Pakistani Firm Shipped Fentanyl Analogs, Scams to US

A Texas firm recently charged with conspiring to distribute synthetic opioids in the United States is at the center of a vast network of companies in the U.S. and Pakistan whose employees are accused of using online ads to scam westerners seeking help with trademarks, book writing, mobile app development and logo designs, a new investigation reveals.

In an indictment (PDF) unsealed last month, the U.S. Department of Justice said Dallas-based eWorldTrade “operated an online business-to-business marketplace that facilitated the distribution of synthetic opioids such as isotonitazene and carfentanyl, both significantly more potent than fentanyl.”

Launched in 2017, eWorldTrade[.]com now features a seizure notice from the DOJ. eWorldTrade operated as a wholesale seller of consumer goods, including clothes, machinery, chemicals, automobiles and appliances. The DOJ’s indictment includes no additional details about eWorldTrade’s business, origins or other activity, and at first glance the website might appear to be a legitimate e-commerce platform that also just happened to sell some restricted chemicals.

However, an investigation into the company’s founders reveals they are connected to a sprawling network of websites that have a history of extortionate scams involving trademark registration, book publishing, exam preparation, and the design of logos, mobile applications and websites.

Records from the U.S. Patent and Trademark Office (USPTO) show the eWorldTrade mark is owned by an Azneem Bilwani in Karachi (this name also is in the registration records for the now-seized eWorldTrade domain). Mr. Bilwani is perhaps better known as the director of the Pakistan-based IT provider Abtach Ltd., which has been singled out by the USPTO and Google for operating trademark registration scams (the main offices for eWorldtrade and Abtach share the same address in Pakistan).

In November 2021, the USPTO accused Abtach of perpetrating “an egregious scheme to deceive and defraud applicants for federal trademark registrations by improperly altering official USPTO correspondence, overcharging application filing fees, misappropriating the USPTO’s trademarks, and impersonating the USPTO.”

Abtach offered trademark registration at suspiciously low prices compared to legitimate costs of over USD $1,500, and claimed they could register a trademark in 24 hours. Abtach reportedly rebranded to Intersys Limited after the USPTO banned Abtach from filing any more trademark applications.

FROM AXACT TO ABTACH

Many of Abtach’s employees are former associates of a similar company in Pakistan called Axact that was targeted by Pakistani authorities in a 2015 fraud investigation. Axact came under law enforcement scrutiny after The New York Times ran a front-page story about the company’s most lucrative scam business: Hundreds of sites peddling fake college degrees and diplomas.

People who purchased fake certifications were subsequently blackmailed by Axact employees posing as government officials, who would demand additional payments under threats of prosecution or imprisonment for having bought fraudulent “unauthorized” academic degrees. This practice created a continuous cycle of extortion, internally referred to as “upselling.”

“Axact took money from at least 215,000 people in 197 countries — one-third of them from the United States,” The Times reported. “Sales agents wielded threats and false promises and impersonated government officials, earning the company at least $89 million in its final year of operation.”

Dozens of top Axact employees were arrested, jailed, held for months, tried and sentenced to seven years for various fraud violations. But a 2019 research brief on Axact’s diploma mills found none of those convicted had started their prison sentence, and that several had fled Pakistan and never returned.

“In October 2016, a Pakistan district judge acquitted 24 Axact officials at trial due to ‘not enough evidence’ and then later admitted he had accepted a bribe (of $35,209) from Axact,” reads a history (PDF) published by the American Association of Collegiate Registrars and Admissions Officers.

In 2021, Pakistan’s Federal Investigation Agency (FIA) charged Bilwani and nearly four dozen others — many of them Abtach employees — with running an elaborate trademark scam. The authorities called it “the biggest money laundering case in the history of Pakistan,” and named a number of businesses based in Texas that allegedly helped move the proceeds of cybercrime.

The FIA said the defendants operated a large number of websites offering low-cost trademark services to customers, before then “ignoring them after getting the funds and later demanding more funds from clients/victims in the name of up-sale (extortion).” The Pakistani law enforcement agency said that about 75 percent of customers received fake or fabricated trademarks as a result of the scams.

The FIA found Abtach operates in conjunction with a Karachi firm called Digitonics Labs, which earned a monthly revenue of around $2.5 million through the “extortion of international clients in the name of up-selling, the sale of fake/fabricated USPTO certificates, and the maintaining of phishing websites.”

According the Pakistani authorities, the accused also ran countless scams involving ebook publication and logo creation, wherein customers are subjected to advance-fee fraud and extortion — with the scammers demanding more money for supposed “copyright release” and threatening to release the trademark.

Also charged by the FIA was Junaid Mansoor, the owner of Digitonics Labs in Karachi. Mansoor’s U.K.-registered company Maple Solutions Direct Limited has run at least 700 ads for logo design websites since 2015, the Google Ads Transparency page reports. The company has approximately 88 ads running on Google as of today. 

Mr. Mansoor is actively involved with and promoting a Quran study business called quranmasteronline[.]com, which was founded by Junaid’s brother Qasim Mansoor (Qasim is also named in the FIA criminal investigation). The Google ads promoting quranmasteronline[.]com were paid for by the same account advertising a number of scam websites selling logo and web design services. 

Junaid Mansoor did not respond to requests for comment. An address in Teaneck, New Jersey where Mr. Mansoor previously lived is listed as an official address of exporthub[.]com, a Pakistan-based e-commerce website that appears remarkably similar to eWorldTrade (Exporthub says its offices are in Texas). Interestingly, a search in Google for this domain shows ExportHub currently features multiple listings for fentanyl citrate from suppliers in China and elsewhere.

The CEO of Digitonics Labs is Muhammad Burhan Mirza, a former Axact official who was arrested by the FIA as part of its money laundering and trademark fraud investigation in 2021. In 2023, prosecutors in Pakistan charged Mirza, Mansoor and 14 other Digitonics employees with fraud, impersonating government officials, phishing, cheating and extortion. Mirza’s LinkedIn profile says he currently runs an educational technology/life coach enterprise called TheCoach360, which purports to help young kids “achieve financial independence.”

Reached via LinkedIn, Mr. Mirza denied having anything to do with eWorldTrade or any of its sister companies in Texas.

“Moreover, I have no knowledge as to the companies you have mentioned,” said Mr. Mirza, who did not respond to follow-up questions.

The current disposition of the FIA’s fraud case against the defendants is unclear. The investigation was marred early on by allegations of corruption and bribery. In 2021, Pakistani authorities alleged Bilwani paid a six-figure bribe to FIA investigators. Meanwhile, attorneys for Mr. Bilwani have argued that although their client did pay a bribe, the payment was solicited by government officials. Mr. Bilwani did not respond to requests for comment.

THE TEXAS NEXUS

KrebsOnSecurity has learned that the people and entities at the center of the FIA investigations have built a significant presence in the United States, with a strong concentration in Texas. The Texas businesses promote websites that sell logo and web design, ghostwriting, and academic cheating services. Many of these entities have recently been sued for fraud and breach of contract by angry former customers, who claimed the companies relentlessly upsold them while failing to produce the work as promised.

For example, the FIA complaints named Retrocube LLC and 360 Digital Marketing LLC, two entities that share a street address with eWorldTrade: 1910 Pacific Avenue, Suite 8025, Dallas, Texas. Also incorporated at that Pacific Avenue address is abtach[.]ae, a web design and marketing firm based in Dubai; and intersyslimited[.]com, the new name of Abtach after they were banned by the USPTO. Other businesses registered at this address market services for logo design, mobile app development, and ghostwriting.

360 Digital Marketing’s website 360digimarketing[.]com is owned by an Abtach front company called Abtech LTD. Meanwhile, business records show 360 Digi Marketing LTD is a U.K. company whose officers include former Abtach director Bilwani; Muhammad Saad Iqbal, formerly Abtach, now CEO of Intersys Ltd; Niaz Ahmed, a former Abtach associate; and Muhammad Salman Yousuf, formerly a vice president at Axact, Abtach, and Digitonics Labs.

Google’s Ads Transparency Center finds 360 Digital Marketing LLC ran at least 500 ads promoting various websites selling ghostwriting services . Another entity tied to Junaid Mansoor — a company called Octa Group Technologies AU — has run approximately 300 Google ads for book publishing services, promoting confusingly named websites like amazonlistinghub[.]com and barnesnoblepublishing[.]co.

Rameez Moiz is a Texas resident and former Abtach product manager who has represented 360 Digital Marketing LLC and RetroCube. Moiz told KrebsOnSecurity he stopped working for 360 Digital Marketing in the summer of 2023. Mr. Moiz did not respond to follow-up questions, but an Upwork profile for him states that as of April 2025 he is employed by Dallas-based Vertical Minds LLC.

In April 2025, California resident Melinda Will sued the Texas firm Majestic Ghostwriting — which is doing business as ghostwritingsquad[.]com —  alleging they scammed her out of $100,000 after she hired them to help write her book. Google’s ad transparency page shows Moiz’s employer Vertical Minds LLC paid to run approximately 55 ads for ghostwritingsquad[.]com and related sites.

VICTIMS SPEAK OUT

Ms. Will’s lawsuit is just one of more than two dozen complaints over the past four years wherein plaintiffs sued one of this group’s web design, wiki editing or ghostwriting services. In 2021, a New Jersey man sued Octagroup Technologies, alleging they ripped him off when he paid a total of more than $26,000 for the design and marketing of a web-based mapping service.

The plaintiff in that case did not respond to requests for comment, but his complaint alleges Octagroup and a myriad other companies it contracted with produced minimal work product despite subjecting him to relentless upselling. That case was decided in favor of the plaintiff because the defendants never contested the matter in court.

In 2023, 360 Digital Marketing LLC and Retrocube LLC were sued by a woman who said they scammed her out of $40,000 over a book she wanted help writing. That lawsuit helpfully showed an image of the office front door at 1910 Pacific Ave Suite 8025, which featured the logos of 360 Digital Marketing, Retrocube, and eWorldTrade.

The lawsuit was filed pro se by Leigh Riley, a 64-year-old career IT professional who paid 360 Digital Marketing to have a company called Talented Ghostwriter co-author and promote a series of books she’d outlined on spirituality and healing.

“The main reason I hired them was because I didn’t understand what I call the formula for writing a book, and I know there’s a lot of marketing that goes into publishing,” Riley explained in an interview. “I know nothing about that stuff, and these guys were convincing that they could handle all aspects of it. Until I discovered they couldn’t write a damn sentence in English properly.”

Riley’s well-documented lawsuit (not linked here because it features a great deal of personal information) includes screenshots of conversations with the ghostwriting team, which was constantly assigning her to new writers and editors, and ghosting her on scheduled conference calls about progress on the project. Riley said she ended up writing most of the book herself because the work they produced was unusable.

“Finally after months of promising the books were printed and on their way, they show up at my doorstep with the wrong title on the book,” Riley said. When she demanded her money back, she said the people helping her with the website to promote the book locked her out of the site.

Riley decided to sue, naming 360 Digital Marketing LLC and Retrocube LLC, among others.  The companies offered to settle the matter for $20,000, which she accepted. “I didn’t have money to hire a lawyer, and I figured it was time to cut my losses,” she said.

Riley said she could have saved herself a great deal of headache by doing some basic research on Talented Ghostwriter, whose website claims the company is based in Los Angeles. According to the California Secretary of State, however, there is no registered entity by that name. Rather, the address claimed by talentedghostwriter[.]com is a vacant office building with a “space available” sign in the window.

California resident Walter Horsting discovered something similar when he sued 360 Digital Marketing in small claims court last year, after hiring a company called Vox Ghostwriting to help write, edit and promote a spy novel he’d been working on. Horsting said he paid Vox $3,300 to ghostwrite a 280-page book, and was upsold an Amazon marketing and publishing package for $7,500.

In an interview, Horsting said the prose that Vox Ghostwriting produced was “juvenile at best,” forcing him to rewrite and edit the work himself, and to partner with a graphical artist to produce illustrations. Horsting said that when it came time to begin marketing the novel, Vox Ghostwriting tried to further upsell him on marketing packages, while dodging scheduled meetings with no follow-up.

“They have a money back guarantee, and when they wouldn’t refund my money I said I’m taking you to court,” Horsting recounted. “I tried to serve them in Los Angeles but found no such office exists. I talked to a salon next door and they said someone else had recently shown up desperately looking for where the ghostwriting company went, and it appears there are a trail of corpses on this. I finally tracked down where they are in Texas.”

It was the same office that Ms. Riley served her lawsuit against. Horsting said he has a court hearing scheduled later this month, but he’s under no illusions that winning the case means he’ll be able to collect.

“At this point, I’m doing it out of pride more than actually expecting anything to come to good fortune for me,” he said.

The following mind map was helpful in piecing together key events, individuals and connections mentioned above. It’s important to note that this graphic only scratches the surface of the operations tied to this group. For example, in Case 2 we can see mention of academic cheating services, wherein people can be hired to take online proctored exams on one’s behalf. Those who hire these services soon find themselves subject to impersonation and blackmail attempts for larger and larger sums of money, with the threat of publicly exposing their unethical academic cheating activity.

GOOGLE RESPONDS

KrebsOnSecurity reviewed the Google Ad Transparency links for nearly 500 different websites tied to this network of ghostwriting, logo, app and web development businesses. Those website names were then fed into spyfu.com, a competitive intelligence company that tracks the reach and performance of advertising keywords. Spyfu estimates that between April 2023 and April 2025, those websites spent more than $10 million on Google ads.

Reached for comment, Google said in a written statement that it is constantly policing its ad network for bad actors, pointing to an ads safety report (PDF) showing Google blocked or removed 5.1 billion bad ads last year — including more than 500 million ads related to trademarks.

“Our policy against Enabling Dishonest Behavior prohibits products or services that help users mislead others, including ads for paper-writing or exam-taking services,” the statement reads. “When we identify ads or advertisers that violate our policies, we take action, including by suspending advertiser accounts, disapproving ads, and restricting ads to specific domains when appropriate.”

Google did not respond to specific questions about the advertising entities mentioned in this story, saying only that “we are actively investigating this matter and addressing any policy violations, including suspending advertiser accounts when appropriate.”

From reviewing the ad accounts that have been promoting these scam websites, it appears Google has very recently acted to remove a large number of the offending ads. Prior to my notifying Google about the extent of this ad network on April 28, the Google Ad Transparency network listed over 500 ads for 360 Digital Marketing; as of this publication, that number had dwindled to 10.

On April 30, Google announced that starting this month its ads transparency page will display the payment profile name as the payer name for verified advertisers, if that name differs from their verified advertiser name. Searchengineland.com writes the changes are aimed at increasing accountability in digital advertising.

This spreadsheet lists the domain names, advertiser names, and Google Ad Transparency links for more than 350 entities offering ghostwriting, publishing, web design and academic cheating services.

KrebsOnSecurity would like to thank the anonymous security researcher NatInfoSec for their assistance in this investigation.

For further reading on Abtach and its myriad companies in all of the above-mentioned verticals (ghostwriting, logo design, etc.), see this Wikiwand entry.

Alleged ‘Scattered Spider’ Member Extradited to U.S.

A 23-year-old Scottish man thought to be a member of the prolific Scattered Spider cybercrime group was extradited last week from Spain to the United States, where he is facing charges of wire fraud, conspiracy and identity theft. U.S. prosecutors allege Tyler Robert Buchanan and co-conspirators hacked into dozens of companies in the United States and abroad, and that he personally controlled more than $26 million stolen from victims.

Scattered Spider is a loosely affiliated criminal hacking group whose members have broken into and stolen data from some of the world’s largest technology companies. Buchanan was arrested in Spain last year on a warrant from the FBI, which wanted him in connection with a series of SMS-based phishing attacks in the summer of 2022 that led to intrusions at Twilio, LastPass, DoorDash, Mailchimp, and many other tech firms.

As first reported by KrebsOnSecurity, Buchanan (a.k.a. “tylerb”) fled the United Kingdom in February 2023, after a rival cybercrime gang hired thugs to invade his home, assault his mother, and threaten to burn him with a blowtorch unless he gave up the keys to his cryptocurrency wallet. Buchanan was arrested in June 2024 at the airport in Palma de Mallorca while trying to board a flight to Italy. His extradition to the United States was first reported last week by Bloomberg.

Members of Scattered Spider have been tied to the 2023 ransomware attacks against MGM and Caesars casinos in Las Vegas, but it remains unclear whether Buchanan was implicated in that incident. The Justice Department’s complaint against Buchanan makes no mention of the 2023 ransomware attack.

Rather, the investigation into Buchanan appears to center on the SMS phishing campaigns from 2022, and on SIM-swapping attacks that siphoned funds from individual cryptocurrency investors. In a SIM-swapping attack, crooks transfer the target’s phone number to a device they control and intercept any text messages or phone calls to the victim’s device — including one-time passcodes for authentication and password reset links sent via SMS.

In August 2022, KrebsOnSecurity reviewed data harvested in a months-long cybercrime campaign by Scattered Spider involving countless SMS-based phishing attacks against employees at major corporations. The security firm Group-IB called them by a different name — 0ktapus, because the group typically spoofed the identity provider Okta in their phishing messages to employees at targeted firms.

The complaint against Buchanan (PDF) says the FBI tied him to the 2022 SMS phishing attacks after discovering the same username and email address was used to register numerous Okta-themed phishing domains seen in the campaign. The domain registrar NameCheap found that less than a month before the phishing spree, the account that registered those domains logged in from an Internet address in the U.K. FBI investigators said the Scottish police told them the address was leased to Buchanan from January 26, 2022 to November 7, 2022.

Authorities seized at least 20 digital devices when they raided Buchanan’s residence, and on one of those devices they found usernames and passwords for employees of three different companies targeted in the phishing campaign.

“The FBI’s investigation to date has gathered evidence showing that Buchanan and his co-conspirators targeted at least 45 companies in the United States and abroad, including Canada, India, and the United Kingdom,” the FBI complaint reads. “One of Buchanan’s devices contained a screenshot of Telegram messages between an account known to be used by Buchanan and other unidentified co-conspirators discussing dividing up the proceeds of SIM swapping.”

U.S. prosecutors allege that records obtained from Discord showed the same U.K. Internet address was used to operate a Discord account that specified a cryptocurrency wallet when asking another user to send funds. The complaint says the publicly available transaction history for that payment address shows approximately 391 bitcoin was transferred in and out of this address between October 2022 and
February 2023; 391 bitcoin is presently worth more than $26 million.

In November 2024, federal prosecutors in Los Angeles unsealed criminal charges against Buchanan and four other alleged Scattered Spider members, including Ahmed Elbadawy, 23, of College Station, Texas; Joel Evans, 25, of Jacksonville, North Carolina; Evans Osiebo, 20, of Dallas; and Noah Urban, 20, of Palm Coast, Florida. KrebsOnSecurity reported last year that another suspected Scattered Spider member — a 17-year-old from the United Kingdom — was arrested as part of a joint investigation with the FBI into the MGM hack.

Mr. Buchanan’s court-appointed attorney did not respond to a request for comment. The accused faces charges of wire fraud conspiracy, conspiracy to obtain information by computer for private financial gain, and aggravated identity theft. Convictions on the latter charge carry a minimum sentence of two years in prison.

Documents from the U.S. District Court for the Central District of California indicate Buchanan is being held without bail pending trial. A preliminary hearing in the case is slated for May 6.

Trump Revenge Tour Targets Cyber Leaders, Elections

President Trump last week revoked security clearances for Chris Krebs, the former director of the Cybersecurity and Infrastructure Security Agency (CISA) who was fired by Trump after declaring the 2020 election the most secure in U.S. history. The White House memo, which also suspended clearances for other security professionals at Krebs’s employer SentinelOne, comes as CISA is facing huge funding and staffing cuts.

The extraordinary April 9 memo directs the attorney general to investigate Chris Krebs (no relation), calling him “a significant bad-faith actor who weaponized and abused his government authority.”

The memo said the inquiry will include “a comprehensive evaluation of all of CISA’s activities over the last 6 years and will identify any instances where Krebs’ or CISA’s conduct appears to be contrary to the administration’s commitment to free speech and ending federal censorship, including whether Krebs’ conduct was contrary to suitability standards for federal employees or involved the unauthorized dissemination of classified information.”

CISA was created in 2018 during Trump’s first term, with Krebs installed as its first director. In 2020, CISA launched Rumor Control, a website that sought to rebut disinformation swirling around the 2020 election.

That effort ran directly counter to Trump’s claims that he lost the election because it was somehow hacked and stolen. The Trump campaign and its supporters filed at least 62 lawsuits contesting the election, vote counting, and vote certification in nine states, and nearly all of those cases were dismissed or dropped for lack of evidence or standing.

When the Justice Department began prosecuting people who violently attacked the U.S. Capitol on January 6, 2021, President Trump and Republican leaders shifted the narrative, claiming that Trump lost the election because the previous administration had censored conservative voices on social media.

Incredibly, the president’s memo seeking to ostracize Krebs stands reality on its head, accusing Krebs of promoting the censorship of election information, “including known risks associated with certain voting practices.” Trump also alleged that Krebs “falsely and baselessly denied that the 2020 election was rigged and stolen, including by inappropriately and categorically dismissing widespread election malfeasance and serious vulnerabilities with voting machines” [emphasis added].

Krebs did not respond to a request for comment. SentinelOne issued a statement saying it would cooperate in any review of security clearances held by its personnel, which is currently fewer than 10 employees.

Krebs’s former agency is now facing steep budget and staff reductions. The Record reports that CISA is looking to remove some 1,300 people by cutting about half its full-time staff and another 40% of its contractors.

“The agency’s National Risk Management Center, which serves as a hub analyzing risks to cyber and critical infrastructure, is expected to see significant cuts, said two sources familiar with the plans,” The Record’s Suzanne Smalley wrote. “Some of the office’s systematic risk responsibilities will potentially be moved to the agency’s Cybersecurity Division, according to one of the sources.”

CNN reports the Trump administration is also advancing plans to strip civil service protections from 80% of the remaining CISA employees, potentially allowing them to be fired for political reasons.

The Electronic Frontier Foundation (EFF) urged professionals in the cybersecurity community to defend Krebs and SentinelOne, noting that other security companies and professionals could be the next victims of Trump’s efforts to politicize cybersecurity.

“The White House must not be given free reign to turn cybersecurity professionals into political scapegoats,” the EFF wrote. “It is critical that the cybersecurity community now join together to denounce this chilling attack on free speech and rally behind Krebs and SentinelOne rather than cowering because they fear they will be next.”

However, Reuters said it found little sign of industry support for Krebs or SentinelOne, and that many security professionals are concerned about potentially being targeted if they speak out.

“Reuters contacted 33 of the largest U.S. cybersecurity companies, including tech companies and professional services firms with large cybersecurity practices, and three industry groups, for comment on Trump’s action against SentinelOne,” wrote Raphael Satter and A.J. Vicens. “Only one offered comment on Trump’s action. The rest declined, did not respond or did not answer questions.”

CYBERCOM-PLICATIONS

On April 3, President Trump fired Gen. Timothy Haugh, the head of the National Security Agency (NSA) and the U.S. Cyber Command, as well as Haugh’s deputy, Wendy Noble. The president did so immediately after meeting in the Oval Office with far-right conspiracy theorist Laura Loomer, who reportedly urged their dismissal. Speaking to reporters on Air Force One after news of the firings broke, Trump questioned Haugh’s loyalty.

Virginia Senator Mark Warner, the top Democrat on the Senate Intelligence Committee, called it inexplicable that the administration would remove the senior leaders of NSA-CYBERCOM without cause or warning, and risk disrupting critical ongoing intelligence operations.

“It is astonishing, too, that President Trump would fire the nonpartisan, experienced leader of the National Security Agency while still failing to hold any member of his team accountable for leaking classified information on a commercial messaging app – even as he apparently takes staffing direction on national security from a discredited conspiracy theorist in the Oval Office,” Warner said in a statement.

On Feb. 28, The Record’s Martin Matishak cited three sources saying Defense Secretary Pete Hegseth ordered U.S. Cyber Command to stand down from all planning against Russia, including offensive digital actions. The following day, The Guardian reported that analysts at CISA were verbally informed that they were not to follow or report on Russian threats, even though this had previously been a main focus for the agency.

A follow-up story from The Washington Post cited officials saying Cyber Command had received an order to halt active operations against Russia, but that the pause was intended to last only as long as negotiations with Russia continue.

The Department of Defense responded on Twitter/X that Hegseth had “neither canceled nor delayed any cyber operations directed against malicious Russian targets and there has been no stand-down order whatsoever from that priority.”

But on March 19, Reuters reported several U.S. national security agencies have halted work on a coordinated effort to counter Russian sabotage, disinformation and cyberattacks.

“Regular meetings between the National Security Council and European national security officials have gone unscheduled, and the NSC has also stopped formally coordinating efforts across U.S. agencies, including with the FBI, the Department of Homeland Security and the State Department,” Reuters reported, citing current and former officials.

TARIFFS VS TYPHOONS

President’s Trump’s institution of 125% tariffs on goods from China has seen Beijing strike back with 84 percent tariffs on U.S. imports. Now, some security experts are warning that the trade war could spill over into a cyber conflict, given China’s successful efforts to burrow into America’s critical infrastructure networks.

Over the past year, a number of Chinese government-backed digital intrusions have come into focus, including a sprawling espionage campaign involving the compromise of at least nine U.S. telecommunications providers. Dubbed “Salt Typhoon” by Microsoft, these telecom intrusions were pervasive enough that CISA and the FBI in December 2024 warned Americans against communicating sensitive information over phone networks, urging people instead to use encrypted messaging apps (like Signal).

The other broad ranging China-backed campaign is known as “Volt Typhoon,” which CISA described as “state-sponsored cyber actors seeking to pre-position themselves on IT networks for disruptive or destructive cyberattacks against U.S. critical infrastructure in the event of a major crisis or conflict with the United States.”

Responsibility for determining the root causes of the Salt Typhoon security debacle fell to the Cyber Safety Review Board (CSRB), a nonpartisan government entity established in February 2022 with a mandate to investigate the security failures behind major cybersecurity events. But on his first full day back in the White House, President Trump dismissed all 15 CSRB advisory committee members — likely because those advisers included Chris Krebs.

Last week, Sen. Ron Wyden (D-Ore.) placed a hold on Trump’s nominee to lead CISA, saying the hold would continue unless the agency published a report on the telecom industry hacks, as promised.

How Each Pillar of the 1st Amendment is Under Attack

“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.” -U.S. Constitution, First Amendment.

In an address to Congress this month, President Trump claimed he had “brought free speech back to America.” But barely two months into his second term, the president has waged an unprecedented attack on the First Amendment rights of journalists, students, universities, government workers, lawyers and judges.

This story explores a slew of recent actions by the Trump administration that threaten to undermine all five pillars of the First Amendment to the U.S. Constitution, which guarantees freedoms concerning speech, religion, the media, the right to assembly, and the right to petition the government and seek redress for wrongs.

THE RIGHT TO PETITION

The right to petition allows citizens to communicate with the government, whether to complain, request action, or share viewpoints — without fear of reprisal. But that right is being assaulted by this administration on multiple levels. For starters, many GOP lawmakers are now heeding their leadership’s advice to stay away from local town hall meetings and avoid the wrath of constituents affected by the administration’s many federal budget and workforce cuts.

Another example: President Trump recently fired most of the people involved in processing Freedom of Information Act (FOIA) requests for government agencies. FOIA is an indispensable tool used by journalists and the public to request government records, and to hold leaders accountable.

The biggest story by far this week was the bombshell from The Atlantic editor Jeffrey Goldberg, who recounted how he was inadvertently added to a Signal group chat with National Security Advisor Michael Waltz and 16 other Trump administration officials discussing plans for an upcoming attack on Yemen.

One overlooked aspect of Goldberg’s incredible account is that by planning and coordinating the attack on Signal — which features messages that can auto-delete after a short time — administration officials were evidently seeking a way to avoid creating a lasting (and potentially FOIA-able) record of their deliberations.

“Intentional or not, use of Signal in this context was an act of erasure—because without Jeffrey Goldberg being accidentally added to the list, the general public would never have any record of these communications or any way to know they even occurred,” Tony Bradley wrote this week at Forbes.

Petitioning the government, particularly when it ignores your requests, often requires challenging federal agencies in court. But that becomes far more difficult if the most competent law firms start to shy away from cases that may involve crossing the president and his administration.

On March 22, the president issued a memorandum that directs heads of the Justice and Homeland Security Departments to “seek sanctions against attorneys and law firms who engage in frivolous, unreasonable and vexatious litigation against the United States,” or in matters that come before federal agencies.

The POTUS recently issued several executive orders railing against specific law firms with attorneys who worked legal cases against him. On Friday, the president announced that the law firm of Skadden, Arps, Slate, Meager & Flom had agreed to provide $100 million in pro bono work on issues that he supports.

Trump issued another order naming the firm Paul, Weiss, Rifkind, Wharton & Garrison, which ultimately agreed to pledge $40 million in pro bono legal services to the president’s causes.

Other Trump executive orders targeted law firms Jenner & Block and WilmerHale, both of which have attorneys that worked with special counsel Robert Mueller on the investigation into Russian interference in the 2016 election. But this week, two federal judges in separate rulings froze parts of those orders.

“There is no doubt this retaliatory action chills speech and legal advocacy, and that is qualified as a constitutional harm,” wrote Judge Richard Leon, who ruled against the executive order targeting WilmerHale.

President Trump recently took the extraordinary step of calling for the impeachment of federal judges who rule against the administration. Trump called U.S. District Judge James Boasberg a “Radical Left Lunatic” and urged he be removed from office for blocking deportation of Venezuelan alleged gang members under a rarely invoked wartime legal authority.

In a rare public rebuke to a sitting president, U.S. Supreme Court Justice John Roberts issued a statement on March 18 pointing out that “For more than two centuries, it has been established that impeachment is not an appropriate response to disagreement concerning a judicial decision.”

The U.S. Constitution provides that judges can be removed from office only through impeachment by the House of Representatives and conviction by the Senate. The Constitution also states that judges’ salaries cannot be reduced while they are in office.

Undeterred, House Speaker Mike Johnson this week suggested the administration could still use the power of its purse to keep courts in line, and even floated the idea of wholesale eliminating federal courts.

“We do have authority over the federal courts as you know,” Johnson said. “We can eliminate an entire district court. We have power of funding over the courts, and all these other things. But desperate times call for desperate measures, and Congress is going to act, so stay tuned for that.”

FREEDOM OF ASSEMBLY

President Trump has taken a number of actions to discourage lawful demonstrations at universities and colleges across the country, threatening to cut federal funding for any college that supports protests he deems “illegal.”

A Trump executive order in January outlined a broad federal crackdown on what he called “the explosion of antisemitism” on U.S. college campuses. This administration has asserted that foreign students who are lawfully in the United States on visas do not enjoy the same free speech or due process rights as citizens.

Reuters reports that the acting civil rights director at the Department of Education on March 10 sent letters to 60 educational institutions warning they could lose federal funding if they don’t do more to combat anti-semitism. On March 20, Trump issued an order calling for the closure of the Education Department.

Meanwhile, U.S. Immigration and Customs Enforcement (ICE) agents have been detaining and trying to deport pro-Palestinian students who are legally in the United States. The administration is targeting students and academics who spoke out against Israel’s attacks on Gaza, or who were active in campus protests against U.S. support for the attacks. Secretary of State Marco Rubio told reporters Thursday that at least 300 foreign students have seen their visas revoked under President Trump, a far higher number than was previously known.

In his first term, Trump threatened to use the national guard or the U.S. military to deal with protesters, and in campaigning for re-election he promised to revisit the idea.

“I think the bigger problem is the enemy from within,” Trump told Fox News in October 2024. “We have some very bad people. We have some sick people, radical left lunatics. And I think they’re the big — and it should be very easily handled by, if necessary, by National Guard, or if really necessary, by the military, because they can’t let that happen.”

This term, Trump acted swiftly to remove the top judicial advocates in the armed forces who would almost certainly push back on any request by the president to use U.S. soldiers in an effort to quell public protests, or to arrest and detain immigrants. In late February, the president and Defense Secretary Pete Hegseth fired the top legal officers for the military services — those responsible for ensuring the Uniform Code of Military Justice is followed by commanders.

Military.com warns that the purge “sets an alarming precedent for a crucial job in the military, as President Donald Trump has mused about using the military in unorthodox and potentially illegal ways.” Hegseth told reporters the removals were necessary because he didn’t want them to pose any “roadblocks to orders that are given by a commander in chief.”

FREEDOM OF THE PRESS

President Trump has sued a number of U.S. news outlets, including 60 Minutes, CNN, The Washington Post, The New York Times and other smaller media organizations for unflattering coverage.

In a $10 billion lawsuit against 60 Minutes and its parent Paramount, Trump claims they selectively edited an interview with former Vice President Kamala Harris prior to the 2024 election. The TV news show last month published transcripts of the interview at the heart of the dispute, but Paramount is reportedly considering a settlement to avoid potentially damaging its chances of winning the administration’s approval for a pending multibillion-dollar merger.

The president sued The Des Moines Register and its parent company, Gannett, for publishing a poll showing Trump trailing Harris in the 2024 presidential election in Iowa (a state that went for Trump). The POTUS also is suing the Pulitzer Prize board over 2018 awards given to The New York Times and The Washington Post for their coverage of purported Russian interference in the 2016 election.

Whether or not any of the president’s lawsuits against news organizations have merit or succeed is almost beside the point. The strategy behind suing the media is to make reporters and newsrooms think twice about criticizing or challenging the president and his administration. The president also knows some media outlets will find it more expedient to settle.

Trump also sued ABC News and George Stephanopoulos for stating that the president had been found liable for “rape” in a civil case [Trump was found liable of sexually abusing and defaming E. Jean Carroll]. ABC parent Disney settled that claim by agreeing to donate $15 million to the Trump Presidential Library.

Following the attack on the U.S. Capitol on Jan. 6, 2021, Facebook blocked President Trump’s account. Trump sued Meta, and after the president’s victory in 2024 Meta settled and agreed to pay Trump $25 million: $22 million would go to his presidential library, and the rest to legal fees. Meta CEO Mark Zuckerberg also announced Facebook and Instagram would get rid of fact-checkers and rely instead on reader-submitted “community notes” to debunk disinformation on the social media platform.

Brendan Carr, the president’s pick to run the Federal Communications Commission (FCC), has pledged to “dismantle the censorship cartel and restore free speech rights for everyday Americans.” But on January 22, 2025, the FCC reopened complaints against ABC, CBS and NBC over their coverage of the 2024 election. The previous FCC chair had dismissed the complaints as attacks on the First Amendment and an attempt to weaponize the agency for political purposes.

According to Reuters, the complaints call for an investigation into how ABC News moderated the pre-election TV debate between Trump and Biden, and appearances of then-Vice President Harris on 60 Minutes and on NBC’s “Saturday Night Live.”

Since then, the FCC has opened investigations into NPR and PBS, alleging that they are breaking sponsorship rules. The Center for Democracy & Technology (CDT), a think tank based in Washington, D.C., noted that the FCC is also investigating KCBS in San Francisco for reporting on the location of federal immigration authorities.

“Even if these investigations are ultimately closed without action, the mere fact of opening them – and the implicit threat to the news stations’ license to operate – can have the effect of deterring the press from news coverage that the Administration dislikes,” the CDT’s Kate Ruane observed.

Trump has repeatedly threatened to “open up” libel laws, with the goal of making it easier to sue media organizations for unfavorable coverage. But this week, the U.S. Supreme Court declined to hear a challenge brought by Trump donor and Las Vegas casino magnate Steve Wynn to overturn the landmark 1964 decision in New York Times v. Sullivan, which insulates the press from libel suits over good-faith criticism of public figures.

The president also has insisted on picking which reporters and news outlets should be allowed to cover White House events and participate in the press pool that trails the president. He barred the Associated Press from the White House and Air Force One over their refusal to call the Gulf of Mexico by another name.

And the Defense Department has ordered a number of top media outlets to vacate their spots at the Pentagon, including CNN, The Hill, The Washington Post, The New York Times, NBC News, Politico and National Public Radio.

“Incoming media outlets include the New York Post, Breitbart, the Washington Examiner, the Free Press, the Daily Caller, Newsmax, the Huffington Post and One America News Network, most of whom are seen as conservative or favoring Republican President Donald Trump,” Reuters reported.

FREEDOM OF SPEECH

Shortly after Trump took office again in January 2025, the administration began circulating lists of hundreds of words that government staff and agencies shall not use in their reports and communications.

The Brookings Institution notes that in moving to comply with this anti-speech directive, federal agencies have purged countless taxpayer-funded data sets from a swathe of government websites, including data on crime, sexual orientation, gender, education, climate, and global development.

The New York Times reports that in the past two months, hundreds of terabytes of digital resources analyzing data have been taken off government websites.

“While in many cases the underlying data still exists, the tools that make it possible for the public and researchers to use that data have been removed,” The Times wrote.

On Jan. 27, Trump issued a memo (PDF) that paused all federally funded programs pending a review of those programs for alignment with the administration’s priorities. Among those was ensuring that no funding goes toward advancing “Marxist equity, transgenderism, and green new deal social engineering policies.”

According to the CDT, this order is a blatant attempt to force government grantees to cease engaging in speech that the current administration dislikes, including speech about the benefits of diversity, climate change, and LGBTQ issues.

“The First Amendment does not permit the government to discriminate against grantees because it does not like some of the viewpoints they espouse,” the CDT’s Ruane wrote. “Indeed, those groups that are challenging the constitutionality of the order argued as much in their complaint, and have won an injunction blocking its implementation.”

On January 20, the same day Trump issued an executive order on free speech, the president also issued an executive order titled “Reevaluating and Realigning United States Foreign Aid,” which froze funding for programs run by the U.S. Agency for International Development (USAID). Among those were programs designed to empower civil society and human rights groups, journalists and others responding to digital repression and Internet shutdowns.

According to the Electronic Frontier Foundation (EFF), this includes many freedom technologies that use cryptography, fight censorship, protect freedom of speech, privacy and anonymity for millions of people around the world.

“While the State Department has issued some limited waivers, so far those waivers do not seem to cover the open source internet freedom technologies,” the EFF wrote about the USAID disruptions. “As a result, many of these projects have to stop or severely curtail their work, lay off talented workers, and stop or slow further development.”

On March 14, the president signed another executive order that effectively gutted the U.S. Agency for Global Media (USAGM), which oversees or funds media outlets including Radio Free Europe/Radio Liberty and Voice of America (VOA). The USAGM also oversees Radio Free Asia, which supporters say has been one of the most reliable tools used by the government to combat Chinese propaganda.

But this week, U.S. District Court Judge Royce Lamberth, a Reagan appointee, temporarily blocked USAGM’s closure by the administration.

“RFE/RL has, for decades, operated as one of the organizations that Congress has statutorily designated to carry out this policy,” Lamberth wrote in a 10-page opinion. “The leadership of USAGM cannot, with one sentence of reasoning offering virtually no explanation, force RFE/RL to shut down — even if the President has told them to do so.”

FREEDOM OF RELIGION

The Trump administration rescinded a decades-old policy that instructed officers not to take immigration enforcement actions in or near “sensitive” or “protected” places, such as churches, schools, and hospitals.

That directive was immediately challenged in a case brought by a group of Quakers, Baptists and Sikhs, who argued the policy reversal was keeping people from attending services for fear of being arrested on civil immigration violations. On Feb. 24, a federal judge agreed and blocked ICE agents from entering churches or targeting migrants nearby.

The president’s executive order allegedly addressing antisemitism came with a fact sheet that described college campuses as “infested” with “terrorists” and “jihadists.” Multiple faith groups expressed alarm over the order, saying it attempts to weaponize antisemitism and promote “dehumanizing anti-immigrant policies.”

The president also announced the creation of a “Task Force to Eradicate Anti-Christian Bias,” to be led by Attorney General Pam Bondi. Never mind that Christianity is easily the largest faith in America and that Christians are well-represented in Congress.

The Rev. Paul Brandeis Raushenbush, a Baptist minister and head of the progressive Interfaith Alliance, issued a statement accusing Trump of hypocrisy in claiming to champion religion by creating the task force.

“From allowing immigration raids in churches, to targeting faith-based charities, to suppressing religious diversity, the Trump Administration’s aggressive government overreach is infringing on religious freedom in a way we haven’t seen for generations,” Raushenbush said.

A statement from Americans United for Separation of Church and State said the task force could lead to religious persecution of those with other faiths.

“Rather than protecting religious beliefs, this task force will misuse religious freedom to justify bigotry, discrimination, and the subversion of our civil rights laws,” said Rachel Laser, the group’s president and CEO.

Where is President Trump going with all these blatant attacks on the First Amendment? The president has made no secret of his affection for autocratic leaders and “strongmen” around the world, and he is particularly enamored with Hungary’s far-right Prime Minister Viktor Orbán, who has visited Trump’s Mar-a-Lago resort twice in the past year.

A March 15 essay in The Atlantic by Hungarian investigative journalist András Pethő recounts how Orbán rose to power by consolidating control over the courts, and by building his own media universe while simultaneously placing a stranglehold on the independent press.

“As I watch from afar what’s happening to the free press in the United States during the first weeks of Trump’s second presidency — the verbal bullying, the legal harassment, the buckling by media owners in the face of threats — it all looks very familiar,” Pethő wrote. “The MAGA authorities have learned Orbán’s lessons well.”

U.S. Soldier Charged in AT&T Hack Searched “Can Hacking Be Treason”

A U.S. Army soldier who pleaded guilty last week to leaking phone records for high-ranking U.S. government officials searched online for non-extradition countries and for an answer to the question “can hacking be treason?” prosecutors in the case said Wednesday. The government disclosed the details in a court motion to keep the defendant in custody until he is discharged from the military.

Cameron John Wagenius, 21, was arrested near the Army base in Fort Cavazos, Texas on Dec. 20, and charged with two criminal counts of unlawful transfer of confidential phone records. Wagenius was a communications specialist at a U.S. Army base in South Korea, who secretly went by the nickname Kiberphant0m and was part of a trio of criminal hackers that extorted dozens of companies last year over stolen data.

At the end of 2023, malicious hackers learned that many companies had uploaded sensitive customer records to accounts at the cloud data storage service Snowflake that were protected with little more than a username and password (no multi-factor authentication needed). After scouring darknet markets for stolen Snowflake account credentials, the hackers began raiding the data storage repositories used by some of the world’s largest corporations.

Among those was AT&T, which disclosed in July that cybercriminals had stolen personal information and phone and text message records for roughly 110 million people — nearly all of its customers. AT&T reportedly paid a hacker $370,000 to delete stolen phone records. More than 160 other Snowflake customers were relieved of data, including TicketMaster, Lending Tree, Advance Auto Parts and Neiman Marcus.

In several posts to an English-language cybercrime forum in November, Kiberphant0m leaked some of the phone records and threatened to leak them all unless paid a ransom. Prosecutors said that in addition to his public posts on the forum, Wagenius had engaged in multiple direct attempts to extort “Victim-1,” which appears to be a reference to AT&T. The government states that Kiberphant0m privately demanded $500,000 from Victim-1, threatening to release all of the stolen phone records unless he was paid.

On Feb. 19, Wagenius pleaded guilty to two counts of unlawfully transferring confidential phone records, but he did so without the benefit of a plea agreement. In entering the plea, Wagenius’s attorneys had asked the court to allow him to stay with his father pending his sentencing.

But in a response filed today (PDF), prosecutors in Seattle said Wagenius was a flight risk, partly because prior to his arrest he was searching online for how to defect to countries that do not extradite to the United States. According to the government, while Kiberphant0m was extorting AT&T, Wagenius’s searches included:

-“where can i defect the u.s government military which country will not hand me over”
-“U.S. military personnel defecting to Russia”
-“Embassy of Russia – Washington, D.C.”

“As discussed in the government’s sealed filing, the government has uncovered evidence suggesting that the charged conduct was only a small part of Wagenius’ malicious activity,” the government memo states. “On top of this, for more than two weeks in November 2024, Wagenius communicated with an email address he believed belonged to Country-1’s military intelligence service in an attempt to sell stolen information. Days after he apparently finished communicating with Country-1’s military intelligence service, Wagenius Googled, ‘can hacking be treason.'”

Prosecutors told the court investigators also found a screenshot on Wagenius’ laptop that suggested he had over 17,000 files that included passports, driver’s licenses, and other identity cards belonging to victims of a breach, and that in one of his online accounts, the government also found a fake identification document that contained his picture.

“Wagenius should also be detained because he presents a serious risk of flight, has the means and intent to flee, and is aware that he will likely face additional charges,” the Seattle prosecutors asserted.

The court filing says Wagenius is presently in the process of being separated from the Army, but the government has not received confirmation that his discharge has been finalized.

“The government’s understanding is that, until his discharge from the Army is finalized (which is expected to happen in early March), he may only be released directly to the Army,” reads a footnote in the memo. “Until that process is completed, Wagenius’ proposed release to his father should be rejected for this additional reason.”

Wagenius’s interest in defecting to another country in order to escape prosecution mirrors that of his alleged co-conspirator, John Erin Binns, an 25-year-old elusive American man indicted by the Justice Department for a 2021 breach at T-Mobile that exposed the personal information of at least 76.6 million customers.

Binns has since been charged with the Snowflake hack and subsequent extortion activity. He is currently in custody in a Turkish prison. Sources close to the investigation told KrebsOnSecurity that prior to his arrest by Turkish police, Binns visited the Russian embassy in Turkey to inquire about Russian citizenship.

In late November 2024, Canadian authorities arrested a third alleged member of the extortion conspiracy, 25-year-old Connor Riley Moucka of Kitchener, Ontario. The U.S. government has indicted Moucka and Binns, charging them with one count of conspiracy; 10 counts of wire fraud; four counts of computer fraud and abuse; two counts of extortion in relation to computer fraud; and two counts aggravated identity theft.

Less than a month before Wagenius’s arrest, KrebsOnSecurity published a deep dive into Kiberphant0m’s various Telegram and Discord identities over the years, revealing how the owner of the accounts told others they were in the Army and stationed in South Korea.

The maximum penalty Wagenius could face at sentencing includes up to ten years in prison for each count, and fines not to exceed $250,000.

Trump 2.0 Brings Cuts to Cyber, Consumer Protections

One month into his second term, President Trump’s actions to shrink the government through mass layoffs, firings and withholding funds allocated by Congress have thrown federal cybersecurity and consumer protection programs into disarray. At the same time, agencies are battling an ongoing effort by the world’s richest man to wrest control over their networks and data.

The Trump administration has fired at least 130 employees at the federal government’s foremost cybersecurity body — the Cybersecurity and Infrastructure Security Agency (CISA). Those dismissals reportedly included CISA staff dedicated to securing U.S. elections, and fighting misinformation and foreign influence operations.

Earlier this week, technologists with Elon Musk’s Department of Government Efficiency (DOGE) arrived at CISA and gained access to the agency’s email and networked files. Those DOGE staffers include Edward “Big Balls” Coristine, a 19-year-old former denizen of the “Com,” an archipelago of Discord and Telegram chat channels that function as a kind of distributed cybercriminal social network.

The investigative journalist Jacob Silverman writes that Coristine is the grandson of Valery Martynov, a KGB double agent who spied for the United States. Silverman recounted how Martynov’s wife Natalya Martynova moved to the United States with her two children after her husband’s death.

“Her son became a Virginia police officer who sometimes posts comments on blogs about his historically famous father,” Silverman wrote. “Her daughter became a financial professional who married Charles Coristine, the proprietor of LesserEvil, a snack company. Among their children is a 19-year-old young man named Edward Coristine, who currently wields an unknown amount of power and authority over the inner-workings of our federal government.”

Another member of DOGE is Christopher Stanley, formerly senior director for security engineering at X and principal security engineer at Musk’s SpaceX. Stanley, 33, had a brush with celebrity on Twitter in 2015 when he leaked the user database for the DDoS-for-hire service LizardStresser, and soon faced threats of physical violence against his family.

My 2015 story on that leak did not name Stanley, but he exposed himself as the source by posting a video about it on his Youtube channel. A review of domain names registered by Stanley shows he went by the nickname “enKrypt,” and was the former owner of a pirated software and hacking forum called error33[.]net, as well as theC0re, a video game cheating community.

“A NATIONAL CYBERATTACK”

DOGE has been steadily gaining sensitive network access to federal agencies that hold a staggering amount of personal and financial information on Americans, including the Social Security Administration (SSA), the Department of Homeland Security, the Office of Personnel Management (OPM), and the Treasury Department.

Most recently, DOGE has sought broad access to systems at the Internal Revenue Service that contain the personal tax information on millions of Americans, including how much individuals earn and owe, property information, and even details related to child custody agreements. The New York Times reported Friday that the IRS had reached an agreement whereby a single DOGE employee — 25-year-old Gavin Kliger — will be allowed to see only anonymized taxpayer information.

The rapidity with which DOGE has rifled through one federal database after another in the name of unearthing “massive fraud” by government agencies has alarmed many security experts, who warned that DOGE’s actions bypassed essential safeguards and security measures.

“The most alarming aspect isn’t just the access being granted,” wrote Bruce Schneier and Davi Ottenheimer, referring to DOGE as a national cyberattack. “It’s the systematic dismantling of security measures that would detect and prevent misuse—including standard incident response protocols, auditing, and change-tracking mechanisms—by removing the career officials in charge of those security measures and replacing them with inexperienced operators.”

Jacob Williams is a former hacker with the U.S. National Security Agency who now works as managing director of the cybersecurity firm Hunter Labs. Williams kicked a virtual hornet’s nest last week when he posted on LinkedIn that the network incursions by DOGE were “a bigger threat to U.S. federal government information systems than China.”

Williams said while he doesn’t believe anyone at DOGE would intentionally harm the integrity and availability of these systems, it’s widely reported (and not denied) that DOGE introduced code changes into multiple federal IT systems. These code changes, he maintained, are not following the normal process for vetting and review given to federal government IT systems.

“For those thinking ‘I’m glad they aren’t following the normal federal government IT processes, those are too burdensome’ I get where you’re coming from,” Williams wrote. “But another name for ‘red tape’ are ‘controls.’ If you’re comfortable bypassing controls for the advancement of your agenda, I have questions – mostly about whether you do this in your day job too. Please tag your employer letting them know your position when you comment that controls aren’t important (doubly so if you work in cybersecurity). All satire aside, if you’re comfortable abandoning controls for expediency, I implore you to decide where the line is that you won’t cross in that regard.”

The DOGE website’s “wall of receipts” boasts that Musk and his team have saved the federal government more than $55 billion through staff reductions, lease cancellations and terminated contracts. But a team of reporters at The New York Times found the math that could back up those checks is marred with accounting errors, incorrect assumptions, outdated data and other mistakes.

For example, DOGE claimed it saved $8 billion in one contract, when the total amount was actually $8 million, The Times found.

“Some contracts the group claims credit for were double- or triple-counted,” reads a Times story with six bylines. “Another initially contained an error that inflated the totals by billions of dollars. While the DOGE team has surely cut some number of billions of dollars, its slapdash accounting adds to a pattern of recklessness by the group, which has recently gained access to sensitive government payment systems.”

So far, the DOGE website does not inspire confidence: We learned last week that the doge.gov administrators somehow left their database wide open, allowing someone to publish messages that ridiculed the site’s insecurity.

APPOINTMENTS

Trump’s efforts to grab federal agencies by their data has seen him replace career civil servants who refused to allow DOGE access to agency networks. CNN reports that Michelle King, acting commissioner of the Social Security Administration for more than 30 years, was shown the door after she denied DOGE access to sensitive information.

King was replaced by Leland Dudek, formerly a senior advisor in the SSA’s Office of Program Integrity. This week, Dudek posted a now-deleted message on LinkedIn acknowledging he had been placed on administrative leave for cooperating with DOGE.

“I confess,” Dudek wrote. “I bullied agency executives, shared executive contact information, and circumvented the chain of command to connect DOGE with the people who get stuff done. I confess. I asked where the fat was and is in our contracts so we can make the right tough choices.”

According to Wired, the National Institute of Standards and Technology (NIST) was also bracing this week for roughly 500 staffers to be fired, which could have serious impacts on NIST’s cybersecurity standards and software vulnerability tracking work.

“And cuts last week at the US Digital Service included the cybersecurity lead for the central Veterans Affairs portal, VA.gov, potentially leaving VA systems and data more vulnerable without someone in his role,” Wired’s Andy Greenberg and Lily Hay Newman wrote.

NextGov reports that Trump named the Department of Defense’s new chief information security officer: Katie Arrington, a former South Carolina state lawmaker who helped steer Pentagon cybersecurity contracting policy before being put on leave amid accusations that she disclosed classified data from a military intelligence agency.

NextGov notes that the National Security Agency suspended her clearance in 2021, although the exact reasons that led to the suspension and her subsequent leave were classified. Arrington argued that the suspension was a politically motivated effort to silence her.

Trump also appointed the former chief operating officer of the Republican National Committee as the new head of the Office of National Cyber Director. Sean Cairncross, who has no formal experience in technology or security, will be responsible for coordinating national cybersecurity policy, advising the president on cyber threats, and ensuring a unified federal response to emerging cyber-risks, Politico writes.

DarkReading reports that Cairncross would share responsibility for advising the president on cyber matters, along with the director of cyber at the White House National Security Council (NSC) — a group that advises the president on all matters security related, and not just cyber.

CONSUMER PROTECTION?

The president also ordered staffers at the Consumer Financial Protection Bureau (CFPB) to stop most work. Created by Congress in 2011 to be a clearinghouse of consumer complaints, the CFPB has sued some of the nation’s largest financial institutions for violating consumer protection laws.

The CFPB says its actions have put nearly $18 billion back in Americans’ pockets in the form of monetary compensation or canceled debts, and imposed $4 billion in civil money penalties against violators. The CFPB’s homepage has featured a “404: Page not found” error for weeks now.

Trump has appointed Russell Vought, the architect of the conservative policy playbook Project 2025, to be the CFPB’s acting director. Vought has publicly favored abolishing the agency, as has Elon Musk, whose efforts to remake X into a payments platform would otherwise be regulated by the CFPB.

The New York Times recently published a useful graphic showing all of the government staffing changes, including the firing of several top officials, affecting agencies with federal investigations into or regulatory battles with Musk’s companies. Democrats on the House Judiciary Committee also have released a comprehensive account (PDF) of Musk’s various conflicts of interest.

As the Times notes, Musk and his companies have repeatedly failed to comply with federal reporting protocols aimed at protecting state secrets, and these failures have prompted at least three federal reviews. Those include an inquiry launched last year by the Defense Department’s Office of Inspector General. Four days after taking office, Trump fired the DoD inspector general along with 17 other inspectors general.

The Trump administration also shifted the enforcement priorities of the U.S. Securities and Exchange Commission (SEC) away from prosecuting misconduct in the cryptocurrency sector, reassigning lawyers and renaming the unit to focus more on “cyber and emerging technologies.”

Reuters reports that the former SEC chair Gary Gensler made fighting misconduct in a sector he termed the “wild west” a priority for the agency, targeting not only cryptocurrency fraudsters but also the large firms that facilitate trading such as Coinbase.

On Friday, Coinbase said the SEC planned to withdraw its lawsuit against the crypto exchange. Also on Friday, the cryptocurrency exchange Bybit announced on X that a cybersecurity breach led to the theft of more than $1.4 billion worth of cryptocurrencies — making it the largest crypto heist ever.

ORGANIZED CRIME AND CORRUPTION

On Feb. 10, Trump ordered executive branch agencies to stop enforcing the U.S. Foreign Corrupt Practices Act, which froze foreign bribery investigations, and even allows for “remedial actions” of past enforcement actions deemed “inappropriate.”

Trump’s action also disbanded the Kleptocracy Asset Recovery Initiative and KleptoCapture Task Force — units which proved their value in corruption cases and in seizing the assets of sanctioned Russian oligarchs — and diverted resources away from investigating white-collar crime.

That’s according to the independent Organized Crime and Corruption Reporting Project (OCCRP), an investigative journalism outlet that until very recently was funded in part by the U.S. Agency for International Development (USAID).

The OCCRP lost nearly a third of its funding and was forced to lay off 43 reporters and staff after Trump moved to shutter USAID and freeze its spending. NBC News reports the Trump administration plans to gut the agency and leave fewer than 300 staffers on the job out of the current 8,000 direct hires and contractors.

The Global Investigative Journalism Network wrote this week that the sudden hold on USAID foreign assistance funding has frozen an estimated $268 million in agreed grants for independent media and the free flow of information in more than 30 countries — including several under repressive regimes.

Elon Musk has called USAID “a criminal organization” without evidence, and promoted fringe theories on his social media platform X that the agency operated without oversight and was rife with fraud. Just months before the election, USAID’s Office of Inspector General announced an investigation into USAID’s oversight of Starlink satellite terminals provided to the government of Ukraine.

KrebsOnSecurity this week heard from a trusted source that all outgoing email from USAID now carries a notation of “sensitive but unclassified,” a designation that experts say could make it more difficult for journalists and others to obtain USAID email records under the Freedom of Information Act (FOIA). On Feb. 20, Fedscoop reported also hearing the same thing from multiple sources, noting that the added message cannot be seen by senders until after the email is sent.

FIVE BULLETS

On Feb. 18, Trump issued an executive order declaring that only the U.S. attorney general and the president can provide authoritative interpretations of the law for the executive branch, and that this authority extends to independent agencies operating under the executive branch.

Trump is arguing that Article II, Clause 1 of the Constitution vests this power with the president. However, jurist.org writes that Article II does not expressly state the president or any other person in the executive branch has the power to interpret laws.

“The article states that the president is required to ‘take care that the laws be faithfully executed,'” Juris noted. “Jurisdiction to interpret laws and determine constitutionality belongs to the judicial branch under Article III. The framers of the Constitution designed the separation of duties to prevent any single branch of government from becoming too powerful.”

The executive order requires all agencies to submit to “performance standards and management objectives” to be established by the White House Office of Management and Budget, and to report periodically to the president.

Those performance metrics are already being requested: Employees at multiple federal agencies on Saturday reported receiving an email from the Office of Personnel Management ordering them to reply with a set of bullet points justifying their work for the past week.

“Please reply to this email with approx. 5 bullets of what you accomplished last week and cc your manager,” the notice read. “Please do not send any classified information, links, or attachments. Deadline is this Monday at 11:59 p.m. EST.”

In a social media post Saturday, Musk said the directive came at the behest of President Trump, and that failure to respond would be taken as a resignation. Meanwhile, Bloomberg writes the Department of Justice has been urging employees to hold off replying out of concern doing so could trigger ethics violations. The National Treasury Employees Union also is advising its employees not to respond.

A legal battle over Trump’s latest executive order is bound to join more than 70 other lawsuits currently underway to halt the administration’s efforts to massively reduce the size of the federal workforce through layoffs, firings and attrition.

KING TRUMP?

On Feb. 15, the president posted on social media, “He who saves his Country does not violate any Law,” citing a quote often attributed to the French dictator Napoleon Bonaparte. Four days later, Trump referred to himself as “the king” on social media, while the White House nonchalantly posted an illustration of him wearing a crown.

Trump has been publicly musing about running for an unconstitutional third-term in office, a statement that some of his supporters dismiss as Trump just trying to rile his liberal critics. However, just days after Trump began his second term, Rep. Andy Ogles (R-Tenn.) introduced a bill to amend the Constitution so that Trump — and any other future president — can be elected to serve a third term.

This week at the Conservative Political Action Conference (CPAC), Rep. Ogles reportedly led a group of Trump supporters calling itself the “Third Term Project,” which is trying to gain support for the bill from GOP lawmakers. The event featured images of Trump depicted as Caesar.

Russia continues to be among the world’s top exporters of cybercrime, narcotics, money laundering, human trafficking, disinformation, war and death, and yet the Trump administration has suddenly broken with the Western world in normalizing relations with Moscow.

This week President Trump stunned U.S. allies by repeating Kremlin talking points that Ukraine is somehow responsible for Russia’s invasion, and that Ukrainian President Volodymyr Zelensky is a “dictator.” The president repeated these lies even as his administration is demanding that Zelensky give the United States half of his country’s mineral wealth in exchange for a promise that Russia will cease its territorial aggression there.

President Trump’s servility toward an actual dictator — Russian President Vladimir Putin — does not bode well for efforts to improve the cybersecurity of U.S. federal IT networks, or the private sector systems on which the government is largely reliant. In addition, this administration’s baffling moves to alienate, antagonize and sideline our closest allies could make it more difficult for the United States to secure their ongoing cooperation in cybercrime investigations.

It’s also startling how closely DOGE’s approach so far hews to tactics typically employed by ransomware gangs: A group of 20-somethings with names like “Big Balls” shows up on a weekend and gains access to your servers, deletes data, locks out key staff, takes your website down, and prevents you from serving customers.

When the federal executive starts imitating ransomware playbooks against its own agencies while Congress largely gazes on in either bewilderment or amusement, we’re in four-alarm fire territory. At least in theory, one can negotiate with ransomware purveyors.

Experts Flag Security, Privacy Risks in DeepSeek AI App

New mobile apps from the Chinese artificial intelligence (AI) company DeepSeek have remained among the top three “free” downloads for Apple and Google devices since their debut on Jan. 25, 2025. But experts caution that many of DeepSeek’s design choices — such as using hard-coded encryption keys, and sending unencrypted user and device data to Chinese companies — introduce a number of glaring security and privacy risks.

Public interest in the DeepSeek AI chat apps swelled following widespread media reports that the upstart Chinese AI firm had managed to match the abilities of cutting-edge chatbots while using a fraction of the specialized computer chips that leading AI companies rely on. As of this writing, DeepSeek is the third most-downloaded “free” app on the Apple store, and #1 on Google Play.

DeepSeek’s rapid rise caught the attention of the mobile security firm NowSecure, a Chicago-based company that helps clients screen mobile apps for security and privacy threats. In a teardown of the DeepSeek app published today, NowSecure urged organizations to remove the DeepSeek iOS mobile app from their environments, citing security concerns.

NowSecure founder Andrew Hoog said they haven’t yet concluded an in-depth analysis of the DeepSeek app for Android devices, but that there is little reason to believe its basic design would be functionally much different.

Hoog told KrebsOnSecurity there were a number of qualities about the DeepSeek iOS app that suggest the presence of deep-seated security and privacy risks. For starters, he said, the app collects an awful lot of data about the user’s device.

“They are doing some very interesting things that are on the edge of advanced device fingerprinting,” Hoog said, noting that one property of the app tracks the device’s name — which for many iOS devices defaults to the customer’s name followed by the type of iOS device.

The device information shared, combined with the user’s Internet address and data gathered from mobile advertising companies, could be used to deanonymize users of the DeepSeek iOS app, NowSecure warned. The report notes that DeepSeek communicates with Volcengine, a cloud platform developed by ByteDance (the makers of TikTok), although NowSecure said it wasn’t clear if the data is just leveraging ByteDance’s digital transformation cloud service or if the declared information share extends further between the two companies.

Perhaps more concerning, NowSecure said the iOS app transmits device information “in the clear,” without any encryption to encapsulate the data. This means the data being handled by the app could be intercepted, read, and even modified by anyone who has access to any of the networks that carry the app’s traffic.

“The DeepSeek iOS app globally disables App Transport Security (ATS) which is an iOS platform level protection that prevents sensitive data from being sent over unencrypted channels,” the report observed. “Since this protection is disabled, the app can (and does) send unencrypted data over the internet.”

Hoog said the app does selectively encrypt portions of the responses coming from DeepSeek servers. But they also found it uses an insecure and now deprecated encryption algorithm called 3DES (aka Triple DES), and that the developers had hard-coded the encryption key. That means the cryptographic key needed to decipher those data fields can be extracted from the app itself.

There were other, less alarming security and privacy issues highlighted in the report, but Hoog said he’s confident there are additional, unseen security concerns lurking within the app’s code.

“When we see people exhibit really simplistic coding errors, as you dig deeper there are usually a lot more issues,” Hoog said. “There is virtually no priority around security or privacy. Whether cultural, or mandated by China, or a witting choice, taken together they point to significant lapse in security and privacy controls, and that puts companies at risk.”

Apparently, plenty of others share this view. Axios reported on January 30 that U.S. congressional offices are being warned not to use the app.

“[T]hreat actors are already exploiting DeepSeek to deliver malicious software and infect devices,” read the notice from the chief administrative officer for the House of Representatives. “To mitigate these risks, the House has taken security measures to restrict DeepSeek’s functionality on all House-issued devices.”

TechCrunch reports that Italy and Taiwan have already moved to ban DeepSeek over security concerns. Bloomberg writes that The Pentagon has blocked access to DeepSeek. CNBC says NASA also banned employees from using the service, as did the U.S. Navy.

Beyond security concerns tied to the DeepSeek iOS app, there are indications the Chinese AI company may be playing fast and loose with the data that it collects from and about users. On January 29, researchers at Wiz said they discovered a publicly accessible database linked to DeepSeek that exposed “a significant volume of chat history, backend data and sensitive information, including log streams, API secrets, and operational details.”

“More critically, the exposure allowed for full database control and potential privilege escalation within the DeepSeek environment, without any authentication or defense mechanism to the outside world,” Wiz wrote. [Full disclosure: Wiz is currently an advertiser on this website.]

KrebsOnSecurity sought comment on the report from DeepSeek and from Apple. This story will be updated with any substantive replies.

Who’s Behind the Seized Forums ‘Cracked’ & ‘Nulled’?

The FBI joined authorities across Europe last week in seizing domain names for Cracked and Nulled, English-language cybercrime forums with millions of users that trafficked in stolen data, hacking tools and malware. An investigation into the history of these communities shows their apparent co-founders quite openly operate an Internet service provider and a pair of e-commerce platforms catering to buyers and sellers on both forums.

On Jan. 30, the U.S. Department of Justice said it seized eight domain names that were used to operate Cracked, a cybercrime forum that sprang up in 2018 and attracted more than four million users. The DOJ said the law enforcement action, dubbed Operation Talent, also seized domains tied to Sellix, Cracked’s payment processor.

In addition, the government seized the domain names for two popular anonymity services that were heavily advertised on Cracked and Nulled and allowed customers to rent virtual servers: StarkRDP[.]io, and rdp[.]sh.

Those archived webpages show both RDP services were owned by an entity called 1337 Services Gmbh. According to corporate records compiled by Northdata.com, 1337 Services GmbH is also known as AS210558 and is incorporated in Hamburg, Germany.

The Cracked forum administrator went by the nicknames “FlorainN” and “StarkRDP” on multiple cybercrime forums. Meanwhile, a LinkedIn profile for a Florian M. from Germany refers to this person as the co-founder of Sellix and founder of 1337 Services GmbH.

Northdata’s business profile for 1337 Services GmbH shows the company is controlled by two individuals: 32-year-old Florian Marzahl and Finn Alexander Grimpe, 28.

Neither Marzahl nor Grimpe responded to requests for comment. But Grimpe’s first name is interesting because it corresponds to the nickname chosen by the founder of Nulled, who goes by the monikers “Finn” and “Finndev.” NorthData reveals that Grimpe was the founder of a German entity called DreamDrive GmbH, which rented out high-end sports cars and motorcycles.

According to the cyber intelligence firm Intel 471, a user named Finndev registered on multiple cybercrime forums, including Raidforums [seized by the FBI in 2022], Void[.]to, and vDOS, a DDoS-for-hire service that was shut down in 2016 after its founders were arrested.

The email address used for those accounts was f.grimpe@gmail.com. DomainTools.com reports f.grimpe@gmail.com was used to register at least nine domain names, including nulled[.]lol and nulled[.]it. Neither of these domains were among those seized in Operation Talent.

Intel471 finds the user FlorainN registered across multiple cybercrime forums using the email address olivia.messla@outlook.de. The breach tracking service Constella Intelligence says this email address used the same password (and slight variations of it) across many accounts online — including at hacker forums — and that the same password was used in connection with dozens of other email addresses, such as florianmarzahl@hotmail.de, and fmarzahl137@gmail.com.

The Justice Department said the Nulled marketplace had more than five million members, and has been selling stolen login credentials, stolen identification documents and hacking services, as well as tools for carrying out cybercrime and fraud, since 2016.

Perhaps fittingly, both Cracked and Nulled have been hacked over the years, exposing countless private messages between forum users. A review of those messages archived by Intel 471 showed that dozens of early forum members referred privately to Finndev as the owner of shoppy[.]gg, an e-commerce platform that caters to the same clientele as Sellix.

Shoppy was not targeted as part of Operation Talent, and its website remains online. Northdata reports that Shoppy’s business name — Shoppy Ecommerce Ltd. — is registered at an address in Gan-Ner, Israel, but there is no ownership information about this entity. Shoppy did not respond to requests for comment.

Constella found that a user named Shoppy registered on Cracked in 2019 using the email address finn@shoppy[.]gg. Constella says that email address is tied to a Twitter/X account for Shoppy Ecommerce in Israel.

The DOJ said one of the alleged administrators of Nulled, a 29-year-old Argentinian national named Lucas Sohn, was arrested in Spain. The government has not announced any other arrests or charges associated with Operation Talent.

Indeed, both StarkRDP and FloraiN have posted to their accounts on Telegram that there were no charges levied against the proprietors of 1337 Services GmbH. FlorainN told former customers they were in the process of moving to a new name and domain for StarkRDP, where existing accounts and balances would be transferred.

“StarkRDP has always been operating by the law and is not involved in any of these alleged crimes and the legal process will confirm this,” the StarkRDP Telegram account wrote on January 30. “All of your servers are safe and they have not been collected in this operation. The only things that were seized is the website server and our domain. Unfortunately, no one can tell who took it and with whom we can talk about it. Therefore, we will restart operation soon, under a different name, to close the chapter [of] ‘StarkRDP.'”

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.

Chinese Innovations Spawn Wave of Toll Phishing Via SMS

Residents across the United States are being inundated with text messages purporting to come from toll road operators like E-ZPass, warning that recipients face fines if a delinquent toll fee remains unpaid. Researchers say the surge in SMS spam coincides with new features added to a popular commercial phishing kit sold in China that makes it simple to set up convincing lures spoofing toll road operators in multiple U.S. states.

Last week, the Massachusetts Department of Transportation (MassDOT) warned residents to be on the lookout for a new SMS phishing or “smishing” scam targeting users of EZDriveMA, MassDOT’s all electronic tolling program. Those who fall for the scam are asked to provide payment card data, and eventually will be asked to supply a one-time password sent via SMS or a mobile authentication app.

Reports of similar SMS phishing attacks against customers of other U.S. state-run toll facilities surfaced around the same time as the MassDOT alert. People in Florida reported receiving SMS phishing that spoofed Sunpass, Florida’s prepaid toll program.

In Texas, residents said they received text messages about unpaid tolls with the North Texas Toll Authority. Similar reports came from readers in California, Colorado, Connecticut, Minnesota, and Washington. This is by no means a comprehensive list.

In each case, the emergence of these SMS phishing attacks coincided with the release of new phishing kit capabilities that closely mimic these toll operator websites as they appear on mobile devices. Notably, none of the phishing pages will even load unless the website detects that the visitor is coming from a mobile device.

Ford Merrill works in security research at SecAlliance, a CSIS Security Group company. Merrill said the volume of SMS phishing attacks spoofing toll road operators skyrocketed after the New Year, when at least one Chinese cybercriminal group known for selling sophisticated SMS phishing kits began offering new phishing pages designed to spoof toll operators in various U.S. states.

According to Merrill, multiple China-based cybercriminals are selling distinct SMS-based phishing kits that each have hundreds or thousands of customers. The ultimate goal of these kits, he said, is to phish enough information from victims that their payment cards can be added to mobile wallets and used to buy goods at physical stores, online, or to launder money through shell companies.

Merrill said the different purveyors of these SMS phishing tools traditionally have impersonated shipping companies, customs authorities, and even governments with tax refund lures and visa or immigration renewal scams targeting people who may be living abroad or new to a country.

“What we’re seeing with these tolls scams is just a continuation of the Chinese smishing groups rotating from package redelivery schemes to toll road scams,” Merrill said. “Every one of us by now is sick and tired of receiving these package smishing attacks, so now it’s a new twist on an existing scam.”

In October 2023, KrebsOnSecurity wrote about a massive uptick in SMS phishing scams targeting U.S. Postal Service customers. That story revealed the surge was tied to innovations introduced by “Chenlun,” a mainland China-based proprietor of a popular phishing kit and service. At the time, Chenlun had just introduced new phishing pages made to impersonate postal services in the United States and at least a dozen other countries.

SMS phishing kits are hardly new, but Merrill said Chinese smishing groups recently have introduced innovations in deliverability, by more seamlessly integrating their spam messages with Apple’s iMessage technology, and with RCS, the equivalent “rich text” messaging capability built into Android devices.

“While traditional smishing kits relied heavily on SMS for delivery, nowadays the actors make heavy use of iMessage and RCS because telecom operators can’t filter them and they likely have a higher success rate with these delivery channels,” he said.

It remains unclear how the phishers have selected their targets, or from where their data may be sourced. A notice from MassDOT cautions that “the targeted phone numbers seem to be chosen at random and are not uniquely associated with an account or usage of toll roads.”

Indeed, one reader shared on Mastodon yesterday that they’d received one of these SMS phishing attacks spoofing a local toll operator, when they didn’t even own a vehicle.

Targeted or not, these phishing websites are dangerous because they are operated dynamically in real-time by criminals. If you receive one of these messages, just ignore it or delete it, but please do not visit the phishing site. The FBI asks that before you bin the missives, consider filing a complaint with the agency’s Internet Crime Complaint Center (IC3), including the phone number where the text originated, and the website listed within the text.

U.S. Army Soldier Arrested in AT&T, Verizon Extortions

Federal authorities have arrested and indicted a 20-year-old U.S. Army soldier on suspicion of being Kiberphant0m, a cybercriminal who has been selling and leaking sensitive customer call records stolen earlier this year from AT&T and Verizon. As first reported by KrebsOnSecurity last month, the accused is a communications specialist who was recently stationed in South Korea.

Cameron John Wagenius was arrested near the Army base in Fort Hood, Texas on Dec. 20, after being indicted on two criminal counts of unlawful transfer of confidential phone records.

The sparse, two-page indictment (PDF) doesn’t reference specific victims or hacking activity, nor does it include any personal details about the accused. But a conversation with Wagenius’ mother — Minnesota native Alicia Roen — filled in the gaps.

Roen said that prior to her son’s arrest he’d acknowledged being associated with Connor Riley Moucka, a.k.a. “Judische,” a prolific cybercriminal from Canada who was arrested in late October for stealing data from and extorting dozens of companies that stored data at the cloud service Snowflake.

In an interview with KrebsOnSecurity, Judische said he had no interest in selling the data he’d stolen from Snowflake customers and telecom providers, and that he preferred to outsource that to Kiberphant0m and others. Meanwhile, Kiberphant0m claimed in posts on Telegram that he was responsible for hacking into at least 15 telecommunications firms, including AT&T and Verizon.

On November 26, KrebsOnSecurity published a story that followed a trail of clues left behind by Kiberphantom indicating he was a U.S. Army soldier stationed in South Korea.

Ms. Roen said Cameron worked on radio signals and network communications at an Army base in South Korea for the past two years, returning to the United States periodically. She said Cameron was always good with computers, but that she had no idea he might have been involved in criminal hacking.

“I never was aware he was into hacking,” Roen said. “It was definitely a shock to me when we found this stuff out.”

Ms. Roen said Cameron joined the Army as soon as he was of age, following in his older brother’s footsteps.

“He and his brother when they were like 6 and 7 years old would ask for MREs from other countries,” she recalled, referring to military-issued “meals ready to eat” food rations. “They both always wanted to be in the Army. I’m not sure where things went wrong.”

Immediately after news broke of Moucka’s arrest, Kiberphant0m posted on the hacker community BreachForums what they claimed were the AT&T call logs for President-elect Donald J. Trump and for Vice President Kamala Harris.

“In the event you do not reach out to us @ATNT all presidential government call logs will be leaked,” Kiberphant0m threatened, signing their post with multiple “#FREEWAIFU” tags. “You don’t think we don’t have plans in the event of an arrest? Think again.”

On that same day, Kiberphant0m posted what they claimed was the “data schema” from the U.S. National Security Agency.

On Nov. 5, Kiberphant0m offered call logs stolen from Verizon’s push-to-talk (PTT) customers — mainly U.S. government agencies and emergency first responders. On Nov. 9, Kiberphant0m posted a sales thread on BreachForums offering a “SIM-swapping” service targeting Verizon PTT customers. In a SIM-swap, fraudsters use credentials that are phished or stolen from mobile phone company employees to divert a target’s phone calls and text messages to a device they control.

The profile photo on Wagenius’ Facebook page was deleted within hours of my Nov. 26 story identifying Kiberphant0m as a likely U.S. Army soldier. Still, many of his original profile photos remain, including several that show Wagenius in uniform while holding various Army-issued weapons.

November’s story on Kiberphant0m cited his own Telegram messages saying he maintained a large botnet that was used for distributed denial-of-service (DDoS) attacks to knock websites, users and networks offline. In 2023, Kiberphant0m sold remote access credentials for a major U.S. defense contractor.

Allison Nixon, chief research officer at the New York-based cybersecurity firm Unit 221B, helped track down Kiberphant0m’s real life identity. Nixon was among several security researchers who faced harassment and specific threats of violence from Judische and his associates.

“Anonymously extorting the President and VP as a member of the military is a bad idea, but it’s an even worse idea to harass people who specialize in de-anonymizing cybercriminals,” Nixon told KrebsOnSecurity. She said the investigation into Kiberphant0m shows that law enforcement is getting better and faster at going after cybercriminals — especially those who are actually living in the United States.

“Between when we, and an anonymous colleague, found his opsec mistake on November 10th to his last Telegram activity on December 6, law enforcement set the speed record for the fastest turnaround time for an American federal cyber case that I have witnessed in my career,” she said.

Nixon asked to share a message for all the other Kiberphant0ms out there who think they can’t be found and arrested.

“I know that young people involved in cybercrime will read these articles,” Nixon said. “You need to stop doing stupid shit and get a lawyer. Law enforcement wants to put all of you in prison for a long time.”

The indictment against Wagenius was filed in Texas, but the case has been transferred to the U.S. District Court for the Western District of Washington in Seattle.

How Cryptocurrency Turns to Cash in Russian Banks

A financial firm registered in Canada has emerged as the payment processor for dozens of Russian cryptocurrency exchanges and websites hawking cybercrime services aimed at Russian-speaking customers, new research finds. Meanwhile, an investigation into the Vancouver street address used by this company shows it is home to dozens of foreign currency dealers, money transfer businesses, and cryptocurrency exchanges — none of which are physically located there.

Richard Sanders is a blockchain analyst and investigator who advises the law enforcement and intelligence community. Sanders spent most of 2023 in Ukraine, traveling with Ukrainian soldiers while mapping the shifting landscape of Russian crypto exchanges that are laundering money for narcotics networks operating in the region.

More recently, Sanders has focused on identifying how dozens of popular cybercrime services are getting paid by their customers, and how they are converting cryptocurrency revenues into cash. For the past several months, he’s been signing up for various cybercrime services, and then tracking where their customer funds go from there.

The 122 services targeted in Sanders’ research include some of the more prominent businesses advertising on the cybercrime forums today, such as:

-abuse-friendly or “bulletproof” hosting providers like anonvm[.]wtf, and PQHosting;
-sites selling aged email, financial, or social media accounts, such as verif[.]work and kopeechka[.]store;
-anonymity or “proxy” providers like crazyrdp[.]com and rdp[.]monster;
-anonymous SMS services, including anonsim[.]net and smsboss[.]pro.

Sanders said he first encountered some of these services while investigating Kremlin-funded disinformation efforts in Ukraine, as they are all useful in assembling large-scale, anonymous social media campaigns.

According to Sanders, all 122 of the services he tested are processing transactions through a company called Cryptomus, which says it is a cryptocurrency payments platform based in Vancouver, British Columbia. Cryptomus’ website says its parent firm — Xeltox Enterprises Ltd. (formerly certa-pay[.]com) — is registered as a money service business (MSB) with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

Sanders said the payment data he gathered also shows that at least 56 cryptocurrency exchanges are currently using Cryptomus to process transactions, including financial entities with names like casher[.]su, grumbot[.]com, flymoney[.]biz, obama[.]ru and swop[.]is.

These platforms are built for Russian speakers, and they each advertise the ability to anonymously swap one form of cryptocurrency for another. They also allow the exchange of cryptocurrency for cash in accounts at some of Russia’s largest banks — nearly all of which are currently sanctioned by the United States and other western nations.

An analysis of their technology infrastructure shows that all of these exchanges use Russian email providers, and most are directly hosted in Russia or by Russia-backed ISPs with infrastructure in Europe (e.g. Selectel, Netwarm UK, Beget, Timeweb and DDoS-Guard). The analysis also showed nearly all 56 exchanges used services from Cloudflare, a global content delivery network based in San Francisco.

“Purportedly, the purpose of these platforms is for companies to accept cryptocurrency payments in exchange for goods or services,” Sanders told KrebsOnSecurity. “Unfortunately, it is next to impossible to find any goods for sale with websites using Cryptomus, and the services appear to fall into one or two different categories: Facilitating transactions with sanctioned Russian banks, and platforms providing the infrastructure and means for cyber attacks.”

Cryptomus did not respond to multiple requests for comment.

PHANTOM ADDRESSES?

The Cryptomus website and its FINTRAC listing say the company’s registered address is Suite 170, 422 Richards St. in Vancouver, BC. This address was the subject of an investigation published in July by CTV National News and the Investigative Journalism Foundation (IJF), which documented dozens of cases across Canada where multiple MSBs are incorporated at the same address, often without the knowledge or consent of the location’s actual occupant.

Their inquiry found 422 Richards St. was listed as the registered address for at least 76 foreign currency dealers, eight MSBs, and six cryptocurrency exchanges. At that address is a three-story building that used to be a bank and now houses a massage therapy clinic and a co-working space. But they found none of the MSBs or currency dealers were paying for services at that co-working space.

The reporters found another collection of 97 MSBs clustered at an address for a commercial office suite in Ontario, even though there was no evidence these companies had ever arranged for any business services at that address.

Peter German, a former deputy commissioner for the Royal Canadian Mounted Police who authored two reports on money laundering in British Columbia, told the publications it goes against the spirit of Canada’s registration requirements for such businesses, which are considered high-risk for money laundering and terrorist financing.

“If you’re able to have 70 in one building, that’s just an abuse of the whole system,” German said.

Ten MSBs registered to 422 Richard St. had their registrations revoked. One company at 422 Richards St. whose registration was revoked this year had a director with a listed address in Russia, the publications reported. “Others appear to be directed by people who are also directors of companies in Cyprus and other high-risk jurisdictions for money laundering,” they wrote.

A review of FINTRAC’s registry (.CSV) shows many of the MSBs at 422 Richards St. are international money transfer or remittance services to countries like Malaysia, India and Nigeria. Some act as currency exchanges, while others appear to sell merchant accounts and online payment services. Still, KrebsOnSecurity could find no obvious connections between the 56 Russian cryptocurrency exchanges identified by Sanders and the dozens of payment companies that FINTRAC says share an address with the Cryptomus parent firm Xeltox Enterprises.

SANCTIONS EVASION

In August 2023, Binance and some of the largest cryptocurrency exchanges responded to sanctions against Russia by cutting off many Russian banks and restricting Russian customers to transactions in Rubles only. Sanders said prior to that change, most of the exchanges currently served by Cryptomus were handling customer funds with their own self-custodial cryptocurrency wallets.

By September 2023, Sanders said he found the exchanges he was tracking had all nested themselves like Matryoshka dolls at Cryptomus, which adds a layer of obfuscation to all transactions by generating a new cryptocurrency wallet for each order.

“They all simply moved to Cryptomus,” he said. “Cryptomus generates new wallets for each order, rendering ongoing attribution to require transactions with high fees each time.”

“Exchanges like Binance and OKX removing Sberbank and other sanctioned banks and offboarding Russian users did not remove the ability of Russians to transact in and out of cryptocurrency easily,” he continued. “In fact, it’s become easier, because the instant-swap exchanges do not even have Know Your Customer rules. The U.S. sanctions resulted in the majority of Russian instant exchanges switching from their self-custodial wallets to platforms, especially Cryptomus.”

Russian President Vladimir Putin in August signed a new law legalizing cryptocurrency mining and allowing the use of cryptocurrency for international payments. The Russian government’s embrace of cryptocurrency was a remarkable pivot: Bloomberg notes that as recently as January 2022, just weeks before Russia’s full-scale invasion of Ukraine, the central bank proposed a blanket ban on the use and creation of cryptocurrencies.

In a report on Russia’s cryptocurrency ambitions published in September, blockchain analysis firm Chainalysis said Russia’s move to integrate crypto into its financial system may improve its ability to bypass the U.S.-led financial system and to engage in non-dollar denominated trade.

“Although it can be hard to quantify the true impact of certain sanctions actions, the fact that Russian officials have singled out the effect of sanctions on Moscow’s ability to process cross-border trade suggests that the impact felt is great enough to incite urgency to legitimize and invest in alternative payment channels it once decried,” Chainalysis assessed.

Asked about its view of activity on Cryptomus, Chainanlysis said Cryptomus has been used by criminals of all stripes for laundering money and/or the purchase of goods and services.

“We see threat actors engaged in ransomware, narcotics, darknet markets, fraud, cybercrime, sanctioned entities and jurisdictions, and hacktivism making deposits to Cryptomus for purchases but also laundering the services using Cryptomos payment API,” the company said in a statement.

SHELL GAMES

It is unclear if Cryptomus and/or Xeltox Enterprises have any presence in Canada at all. A search in the United Kingdom’s Companies House registry for Xeltox’s former name — Certa Payments Ltd. — shows an entity by that name incorporated at a mail drop in London in December 2023.

The sole shareholder and director of that company is listed as a 25-year-old Ukrainian woman in the Czech Republic named Vira Krychka. Ms. Krychka was recently appointed the director of several other new U.K. firms, including an entity created in February 2024 called Globopay UAB Ltd, and another called WS Management and Advisory Corporation Ltd. Ms. Krychka did not respond to a request for comment.

WS Management and Advisory Corporation bills itself as the regulatory body that exclusively oversees licenses of cryptocurrencies in the jurisdiction of Western Sahara, a disputed territory in northwest Africa. Its website says the company assists applicants with bank setup and formation, online gaming licenses, and the creation and licensing of foreign exchange brokers. One of Certa Payments’ former websites — certa[.]website — also shared a server with 12 other domains, including rasd-state[.]ws, a website for the Central Reserve Authority of the Western Sahara.

This business registry from the Czech Republic indicates Ms. Krychka works as a director at an advertising and marketing firm called Icon Tech SRO, which was previously named Blaven Technologies (Blaven’s website says it is an online payment service provider).

In August 2024, Icon Tech changed its name again to Mezhundarondnaya IBU SRO, which describes itself as an “experienced company in IT consulting” that is based in Armenia. The same registry says Ms. Krychka is somehow also a director at a Turkish investment venture. So much business acumen at such a young age!

For now, Canada remains an attractive location for cryptocurrency businesses to set up shop, at least on paper. The IJF and CTV News found that as of February 2024, there were just over 3,000 actively registered MSBs in Canada, 1,247 of which were located at the same building as at least one other MSB.

“That analysis does not include the roughly 2,700 MSBs whose registrations have lapsed, been revoked or otherwise stopped,” they observed. “If they are included, then a staggering 2,061 out of 5,705 total MSBs share a building with at least one other MSB.”

Hacker in Snowflake Extortions May Be a U.S. Soldier

Two men have been arrested for allegedly stealing data from and extorting dozens of companies that used the cloud data storage company Snowflake, but a third suspect — a prolific hacker known as Kiberphant0m — remains at large and continues to publicly extort victims. However, this person’s identity may not remain a secret for long: A careful review of Kiberphant0m’s daily chats across multiple cybercrime personas suggests they are a U.S. Army soldier who is or was recently stationed in South Korea.

Kiberphant0m’s identities on cybercrime forums and on Telegram and Discord chat channels have been selling data stolen from customers of the cloud data storage company Snowflake. At the end of 2023, malicious hackers discovered that many companies had uploaded huge volumes of sensitive customer data to Snowflake accounts that were protected with nothing more than a username and password (no multi-factor authentication required).

After scouring darknet markets for stolen Snowflake account credentials, the hackers began raiding the data storage repositories for some of the world’s largest corporations. Among those was AT&T, which disclosed in July that cybercriminals had stolen personal information, phone and text message records for roughly 110 million people.  Wired.com reported in July that AT&T paid a hacker $370,000 to delete stolen phone records.

On October 30, Canadian authorities arrested Alexander Moucka, a.k.a. Connor Riley Moucka of Kitchener, Ontario, on a provisional arrest warrant from the United States, which has since indicted him on 20 criminal counts connected to the Snowflake breaches. Another suspect in the Snowflake hacks, John Erin Binns, is an American who is currently incarcerated in Turkey.

Investigators say Moucka, who went by the handles Judische and Waifu, had tasked Kiberphant0m with selling data stolen from Snowflake customers who refused to pay a ransom to have their information deleted. Immediately after news broke of Moucka’s arrest, Kiberphant0m was clearly furious, and posted on the hacker community BreachForums what they claimed were the AT&T call logs for President-elect Donald J. Trump and for Vice President Kamala Harris.

“In the event you do not reach out to us @ATNT all presidential government call logs will be leaked,” Kiberphant0m threatened, signing their post with multiple “#FREEWAIFU” tags. “You don’t think we don’t have plans in the event of an arrest? Think again.”

On the same day, Kiberphant0m posted what they claimed was the “data schema” from the U.S. National Security Agency.

“This was obtained from the ATNT Snowflake hack which is why ATNT paid an extortion,” Kiberphant0m wrote in a thread on BreachForums. “Why would ATNT pay Waifu for the data when they wouldn’t even pay an extortion for over 20M+ SSNs?”

Also on Nov. 5, Kiberphant0m offered call logs stolen from Verizon’s push-to-talk (PTT) customers — mainly U.S. government agencies and emergency first responders. On Nov. 9, Kiberphant0m posted a sales thread on BreachForums offering a “SIM-swapping” service targeting Verizon PTT customers. In a SIM-swap, fraudsters use credentials that are phished or stolen from mobile phone company employees to divert a target’s phone calls and text messages to a device they control.

MEET ‘BUTTHOLIO’

Kiberphant0m joined BreachForums in January 2024, but their public utterances on Discord and Telegram channels date back to at least early 2022. On their first post to BreachForums, Kiberphant0m said they could be reached at the Telegram handle @cyb3rph4nt0m.

A review of @cyb3rph4nt0m shows this user has posted more than 4,200 messages since January 2024. Many of these messages were attempts to recruit people who could be hired to deploy a piece of malware that enslaved host machines in an Internet of Things (IoT) botnet.

On BreachForums, Kiberphant0m has sold the source code to “Shi-Bot,” a custom Linux DDoS botnet based on the Mirai malware. Kiberphant0m had few sales threads on BreachForums prior to the Snowflake attacks becoming public in May, and many of those involved databases stolen from companies in South Korea.

On June 5, 2024, a Telegram user by the name “Buttholio” joined the fraud-focused Telegram channel “Comgirl” and claimed to be Kiberphant0m. Buttholio made the claim after being taunted as a nobody by another denizen of Comgirl, referring to their @cyb3rph4nt0m account on Telegram and the Kiberphant0m user on cybercrime forums.

“Type ‘kiberphant0m’ on google with the quotes,” Buttholio told another user. “I’ll wait. Go ahead. Over 50 articles. 15+ telecoms breached. I got the IMSI number to every single person that’s ever registered in Verizon, Tmobile, ATNT and Verifone.”

On Sept. 17, 2023, Buttholio posted in a Discord chat room dedicated to players of the video game Escape from Tarkov. “Come to Korea, servers there is pretty much no extract camper or cheater,” Buttholio advised.

In another message that same day in the gaming Discord, Buttholio told others they bought the game in the United States, but that they were playing it in Asia.

“USA is where the game was purchased from, server location is actual in game servers u play on. I am a u.s. soldier so i bought it in the states but got on rotation so i have to use asian servers,” they shared.

‘REVERSESHELL’

The account @Kiberphant0m was assigned the Telegram ID number 6953392511. A review of this ID at the cyber intelligence platform Flashpoint shows that on January 4, 2024 Kibertphant0m posted to the Telegram channel “Dstat,” which is populated by cybercriminals involved in launching distributed denial-of-service (DDoS) attacks and selling DDoS-for-hire services [Full disclosure: Flashpoint is currently an advertiser on this website].

Immediately after Kiberphant0m logged on to the Dstat channel, another user wrote “hi buttholio,” to which Kiberphant0m replied with an affirmative greeting “wsg,” or “what’s good.” On Nov. 1, Dstat’s website dstat[.]cc was seized as part of “Operation PowerOFF,” an international law enforcement action against DDoS services.

Flashpoint’s data shows that @kiberphant0m told a fellow member of Dstat on April 10, 2024 that their alternate Telegram username was “@reverseshell,” and did the same two weeks later in the Telegram chat The Jacuzzi. The Telegram ID for this account is 5408575119.

Way back on Nov. 15, 2022, @reverseshell told a fellow member of a Telegram channel called Cecilio Chat that they were a soldier in the U.S. Army. This user also shared the following image of someone pictured waist-down in military fatigues, with a camouflaged backpack at their feet:

In September 2022, Reverseshell was embroiled in an argument with another member who had threatened to launch a DDoS attack against Reverseshell’s Internet address. After the promised attack materialized, Reverseshell responded, “Yall just hit military base contracted wifi.”

In a chat from October 2022, Reverseshell was bragging about the speed of the servers they were using, and in reply to another member’s question said that they were accessing the Internet via South Korea Telecom.

Telegram chat logs archived by Flashpoint show that on Aug. 23, 2022, Reverseshell bragged they’d been using automated tools to find valid logins for Internet servers that they resold to others.

“I’ve hit US gov servers with default creds,” Reverseshell wrote, referring to systems with easy-to-guess usernames and/or passwords. “Telecom control servers, machinery shops, Russian ISP servers, etc. I sold a few big companies for like $2-3k a piece. You can sell the access when you get a big SSH into corporation.”

On July 29, 2023, Reverseshell posted a screenshot of a login page for a major U.S. defense contractor, claiming they had an aerospace company’s credentials to sell.

PROMAN AND VARS_SECC

Flashpoint finds the Telegram ID 5408575119 has used several aliases since 2022, including Reverseshell and Proman557.

A search on the username Proman557 at the cyber intelligence platform Intel 471 shows that a hacker by the name “Proman554” registered on Hackforums in September 2022, and in messages to other users Proman554 said they can be reached at the Telegram account Buttholio.

Intel 471 also finds the Proman557 moniker is one of many used by a person on the Russian-language hacking forum Exploit in 2022 who sold a variety of Linux-based botnet malware.

Proman557 was eventually banned — allegedly for scamming a fellow member out of $350 — and the Exploit moderator warned forum users that Proman557 had previously registered under several other nicknames, including an account called “Vars_Secc.”

Vars_Secc’s thousands of comments on Telegram over two years show this user divided their time between online gaming, maintaining a DDoS botnet, and promoting the sale or renting of their botnets to other users.

“I use ddos for many things not just to be a skid,” Vars_Secc pronounced. “Why do you think I haven’t sold my net?” They then proceeded to list the most useful qualities of their botnet:

-I use it to hit off servers that ban me or piss me off
-I used to ddos certain games to get my items back since the data reverts to when u joined
-I use it for server side desync RCE vulnerabilities
-I use it to sometimes ransom
-I use it when bored as a source of entertainment

Flashpoint shows that in June 2023, Vars_Secc responded to taunting from a fellow member in the Telegram channel SecHub who had threatened to reveal their personal details to the federal government for a reward.

“Man I’ve been doing this shit for 4 years,” Vars_Secc replied nonchalantly. “I highly doubt the government is going to pay millions of dollars for data on some random dude operating a pointless ddos botnet and finding a few vulnerabilities here and there.”

For several months in 2023, Vars_Secc also was an active member of the Russian-language crime forum XSS, where they sold access to a U.S. government server for $2,000. However, Vars_Secc would be banned from XSS after attempting to sell access to the Russian telecommunications giant Rostelecom. [In this, Vars_Secc violated the Number One Rule for operating on a Russia-based crime forum: Never offer to hack or sell data stolen from Russian entities or citizens].

On June 20, 2023, Vars_Secc posted a sales thread on the cybercrime forum Ramp 2.0 titled, “Selling US Gov Financial Access.”

“Server within the network, possible to pivot,” Vars_Secc’s sparse sales post read. “Has 3-5 subroutes connected to it. Price $1,250. Telegram: Vars_Secc.”

Vars_Secc also used Ramp in June 2023 to sell access to a “Vietnam government Internet Network Information Center.”

“Selling access server allocated within the network,” Vars_Secc wrote. “Has some data on it. $500.”

BUG BOUNTIES

The Vars_Secc identity claimed on Telegram in May 2023 that they made money by submitting reports about software flaws to HackerOne, a company that helps technology firms field reports about security vulnerabilities in their products and services. Specifically, Vars_Secc said they had earned financial rewards or “bug bounties” from reddit.com, the U.S. Department of Defense, and Coinbase, among 30 others.

“I make money off bug bounties, it’s quite simple,” Vars_Secc said when asked what they do for a living. “That’s why I have over 30 bug bounty reports on HackerOne.”

A month before that, Vars_Secc said they’d found a vulnerability in reddit.com.

“I poisoned Reddit’s cache,” they explained. “I’m going to exploit it further, then report it to reddit.”

KrebsOnSecurity sought comment from HackerOne, which said it would investigate the claims. This story will be updated if they respond.

The Vars_Secc telegram handle also has claimed ownership of the BreachForums member “Boxfan,” and Intel 471 shows Boxfan’s early posts on the forum had the Vars_Secc Telegram account in their signature. In their most recent post to BreachForums in January 2024, Boxfan disclosed a security vulnerability they found in Naver, the most popular search engine in South Korea (according to statista.com). Boxfan’s comments suggest they have strong negative feelings about South Korean culture.

“Have fun exploiting this vulnerability,” Boxfan wrote on BreachForums, after pasting a long string of computer code intended to demonstrate the flaw. “Fuck you South Korea and your discriminatory views. Nobody likes ur shit kpop you evil fucks. Whoever can dump this DB [database] congrats. I don’t feel like doing it so I’ll post it to the forum.”

The many identities tied to Kiberphant0m strongly suggest they are or until recently were a U.S. Army soldier stationed in South Korea. Kiberphant0m’s alter egos never mentioned their military rank, regiment, or specialization.

However, it is likely that Kiberphant0m’s facility with computers and networking was noticed by the Army. According to the U.S. Army’s website, the bulk of its forces in South Korea reside within the Eighth Army, which has a dedicated cyber operations unit focused on defending against cyber threats.

On April 1, 2023, Vars_Secc posted to a public Telegram chat channel a screenshot of the National Security Agency’s website. The image indicated the visitor had just applied for some type of job at the NSA.

The NSA has not yet responded to requests for comment.

Reached via Telegram, Kiberphant0m acknowledged that KrebsOnSecurity managed to unearth their old handles.

“I see you found the IP behind it no way,” Kiberphant0m replied. “I see you managed to find my old aliases LOL.”

Kiberphant0m denied being in the U.S. Army or ever being in South Korea, and said all of that was a lengthy ruse designed to create a fictitious persona. “Epic opsec troll,” they claimed.

Asked if they were at all concerned about getting busted, Kiberphant0m called that an impossibility.

“I literally can’t get caught,” Kiberphant0m said, declining an invitation to explain why. “I don’t even live in the USA Mr. Krebs.”

Below is a mind map that hopefully helps illustrate some of the connections between and among Kiberphant0m’s apparent alter egos.

KrebsOnSecurity would like to extend a special note of thanks to the New York City based security intelligence firm Unit 221B for their assistance in helping to piece together key elements of Kiberphant0m’s different identities.

Feds Charge Five Men in ‘Scattered Spider’ Roundup

Federal prosecutors in Los Angeles this week unsealed criminal charges against five men alleged to be members of a hacking group responsible for dozens of cyber intrusions at major U.S. technology companies between 2021 and 2023, including LastPass, MailChimp, Okta, T-Mobile and Twilio.

The five men, aged 20 to 25, are allegedly members of a hacking conspiracy dubbed “Scattered Spider” and “Oktapus,” which specialized in SMS-based phishing attacks that tricked employees at tech firms into entering their credentials and one-time passcodes at phishing websites.

The targeted SMS scams asked employees to click a link and log in at a website that mimicked their employer’s Okta authentication page. Some SMS phishing messages told employees their VPN credentials were expiring and needed to be changed; other phishing messages advised employees about changes to their upcoming work schedule.

These attacks leveraged newly-registered domains that often included the name of the targeted company, such as twilio-help[.]com and ouryahoo-okta[.]com. The phishing websites were normally kept online for just one or two hours at a time, meaning they were often yanked offline before they could be flagged by anti-phishing and security services.

The phishing kits used for these campaigns featured a hidden Telegram instant message bot that forwarded any submitted credentials in real-time. The bot allowed the attackers to use the phished username, password and one-time code to log in as that employee at the real employer website.

In August 2022, multiple security firms gained access to the server that was receiving data from that Telegram bot, which on several occasions leaked the Telegram ID and handle of its developer, who used the nickname “Joeleoli.”

That Joeleoli moniker registered on the cybercrime forum OGusers in 2018 with the email address joelebruh@gmail.com, which also was used to register accounts at several websites for a Joel Evans from North Carolina. Indeed, prosecutors say Joeleoli’s real name is Joel Martin Evans, and he is a 25-year-old from Jacksonville, North Carolina.

One of Scattered Spider’s first big victims in its 2022 SMS phishing spree was Twilio, a company that provides services for making and receiving text messages and phone calls. The group then used their access to Twilio to attack at least 163 of its customers. According to prosecutors, the group mainly sought to steal cryptocurrency from victim companies and their employees.

“The defendants allegedly preyed on unsuspecting victims in this phishing scheme and used their personal information as a gateway to steal millions in their cryptocurrency accounts,” said Akil Davis, the assistant director in charge of the FBI’s Los Angeles field office.

Many of the hacking group’s phishing domains were registered through the registrar NameCheap, and FBI investigators said records obtained from NameCheap showed the person who managed those phishing websites did so from an Internet address in Scotland. The feds then obtained records from Virgin Media, which showed the address was leased for several months to Tyler Buchanan, a 22-year-old from Dundee, Scotland.

As first reported here in June, Buchanan was arrested in Spain as he tried to board a flight bound for Italy. The Spanish police told local media that Buchanan, who allegedly went by the alias “Tylerb,” at one time possessed Bitcoins worth $27 million.

The government says much of Tylerb’s cryptocurrency wealth was the result of successful SIM-swapping attacks, wherein crooks transfer the target’s phone number to a device they control and intercept any text messages or phone calls sent to the victim — including one-time passcodes for authentication, or password reset links sent via SMS.

According to several SIM-swapping channels on Telegram where Tylerb was known to frequent, rival SIM-swappers hired thugs to invade his home in February 2023. Those accounts state that the intruders assaulted Tylerb’s mother in the home invasion, and that they threatened to burn him with a blowtorch if he didn’t give up the keys to his cryptocurrency wallets. Tylerb was reputed to have fled the United Kingdom after that assault.

Prosecutors allege Tylerb worked closely on SIM-swapping attacks with Noah Michael Urban, another alleged Scattered Spider member from Palm Coast, Fla. who went by the handles “Sosa,” “Elijah,” and “Kingbob.”

Sosa was known to be a top member of the broader cybercriminal community online known as “The Com,” wherein hackers boast loudly about high-profile exploits and hacks that almost invariably begin with social engineering — tricking people over the phone, email or SMS into giving away credentials that allow remote access to corporate networks.

In January 2024, KrebsOnSecurity broke the news that Urban had been arrested in Florida in connection with multiple SIM-swapping attacks. That story noted that Sosa’s alter ego Kingbob routinely targeted people in the recording industry to steal and share “grails,” a slang term used to describe unreleased music recordings from popular artists.

FBI investigators identified a fourth alleged member of the conspiracy – Ahmed Hossam Eldin Elbadawy, 23, of College Station, Texas — after he used a portion of cryptocurrency funds stolen from a victim company to pay for an account used to register phishing domains.

The indictment unsealed Wednesday alleges Elbadawy controlled a number of cryptocurrency accounts used to receive stolen funds, along with another Texas man — Evans Onyeaka Osiebo, 20, of Dallas.

Members of Scattered Spider are reputed to have been involved in a September 2023 ransomware attack against the MGM Resorts hotel chain that quickly brought multiple MGM casinos to a standstill. In September 2024, KrebsOnSecurity reported that a 17-year-old from the United Kingdom was arrested last year by U.K. police as part of an FBI investigation into the MGM hack.

Evans, Elbadawy, Osiebo and Urban were all charged with one count of conspiracy to commit wire fraud, one count of conspiracy, and one count of aggravated identity theft. Buchanan, who is named as an indicted co-conspirator, was charged with conspiracy to commit wire fraud, conspiracy, wire fraud, and aggravated identity theft.

A Justice Department press release states that if convicted, each defendant would face a statutory maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud, up to five years in federal prison for the conspiracy count, and a mandatory two-year consecutive prison sentence for aggravated identity theft. Buchanan would face up to 20 years in prison for the wire fraud count as well.

Further reading:

The redacted complaint against Buchanan (PDF)

Charges against Urban and the other defendants (PDF).

An Interview With the Target & Home Depot Hacker

In December 2023, KrebsOnSecurity revealed the real-life identity of Rescator, the nickname used by a Russian cybercriminal who sold more than 100 million payment cards stolen from Target and Home Depot between 2013 and 2014. Moscow resident Mikhail Shefel, who confirmed using the Rescator identity in a recent interview, also admitted reaching out because he is broke and seeking publicity for several new money making schemes.

Mr. Shefel, who recently changed his legal surname to Lenin, was the star of last year’s story, Ten Years Later, New Clues in the Target Breach. That investigation detailed how the 38-year-old Shefel adopted the nickname Rescator while working as vice president of payments at ChronoPay, a Russian financial company that paid spammers to advertise fake antivirus scams, male enhancement drugs and knockoff pharmaceuticals.

Mr. Shefel did not respond to requests for comment in advance of that December 2023 profile. Nor did he respond to reporting here in January 2024 that he ran an IT company with a 34-year-old Russian man named Aleksandr Ermakov, who was sanctioned by authorities in Australia, the U.K. and U.S. for stealing data on nearly 10 million customers of the Australian health insurance giant Medibank.

But not long after KrebsOnSecurity reported in April that Shefel/Rescator also was behind the theft of Social Security and tax information from a majority of South Carolina residents in 2012, Mr. Shefel began contacting this author with the pretense of setting the record straight on his alleged criminal hacking activities.

In a series of live video chats and text messages, Mr. Shefel confirmed he indeed went by the Rescator identity for several years, and that he did operate a slew of websites between 2013 and 2015 that sold payment card data stolen from Target, Home Depot and a number of other nationwide retail chains.

Shefel claims the true mastermind behind the Target and other retail breaches was Dmitri Golubov, an infamous Ukrainian hacker known as the co-founder of Carderplanet, among the earliest Russian-language cybercrime forums focused on payment card fraud. Mr. Golubov could not be reached for comment, and Shefel says he no longer has the laptop containing evidence to support that claim.

Shefel asserts he and his team were responsible for developing the card-stealing malware that Golubov’s hackers installed on Target and Home Depot payment terminals, and that at the time he was technical director of a long-running Russian cybercrime community called Lampeduza.

“My nickname was MikeMike, and I worked with Dmitri Golubov and made technologies for him,” Shefel said. “I’m also godfather of his second son.”

A week after breaking the story about the 2013 data breach at Target, KrebsOnSecurity published Who’s Selling Cards from Target?, which identified a Ukrainian man who went by the nickname Helkern as Rescator’s original identity. But Shefel claims Helkern was subordinate to Golubov, and that he was responsible for introducing the two men more than a decade ago.

“Helkern was my friend, I [set up a] meeting with Golubov and him in 2013,” Shefel said. “That was in Odessa, Ukraine. I was often in that city, and [it’s where] I met my second wife.”

Shefel claims he made several hundred thousand dollars selling cards stolen by Golubov’s Ukraine-based hacking crew, but that not long after Russia annexed Crimea in 2014 Golubov cut him out of the business and replaced Shefel’s malware coding team with programmers in Ukraine.

Golubov was arrested in Ukraine in 2005 as part of a joint investigation with multiple U.S. federal law enforcement agencies, but his political connections in the country ensured his case went nowhere. Golubov later earned immunity from prosecution by becoming an elected politician and founding the Internet Party of Ukraine, which called for free internet for all, the creation of country-wide “hacker schools” and the “computerization of the entire economy.”

Mr. Shefel says he stopped selling stolen payment cards after being pushed out of the business, and invested his earnings in a now-defunct Russian search engine called tf[.]org. He also apparently ran a business called click2dad[.]net that paid people to click on ads for Russian government employment opportunities.

When those enterprises fizzled out, Shefel reverted to selling malware coding services for hire under the nickname “Getsend“; this claim checks out, as Getsend for many years advertised the same Telegram handle that Shefel used in our recent chats and video calls.

Shefel acknowledged that his outreach was motivated by a desire to publicize several new business ventures. None of those will be mentioned here because Shefel is already using my December 2023 profile of him to advertise what appears to be a pyramid scheme, and to remind others within the Russian hacker community of his skills and accomplishments.

Shefel says he is now flat broke, and that he currently has little to show for a storied hacking career. The Moscow native said he recently heard from his ex-wife, who had read last year’s story about him and was suddenly wondering where he’d hidden all of his earnings.

More urgently, Shefel needs money to stay out of prison. In February, he and Ermakov were arrested on charges of operating a short-lived ransomware affiliate program in 2021 called Sugar (a.k.a. Sugar Locker), which targeted single computers and end-users instead of corporations. Shefel is due to face those charges in a Moscow court on Friday, Nov. 15, 2024. Ermakov was recently found guilty and given two years probation.

Shefel claims his Sugar ransomware affiliate program was a bust, and never generated any profits. Russia is known for not prosecuting criminal hackers within its borders who scrupulously avoid attacking Russian businesses and consumers. When asked why he now faces prosecution over Sugar, Shefel said he’s certain the investigation was instigated by  Pyotr “Peter” Vrublevsky — the son of his former boss at ChronoPay.

ChronoPay founder and CEO Pavel Vrublevsky was the key subject of my 2014 book Spam Nation, which described his role as head of one of Russia’s most notorious criminal spam operations.

Vrublevsky Sr. recently declared bankruptcy, and is currently in prison on fraud charges. Russian authorities allege Vrublevsky operated several fraudulent SMS-based payment schemes. They also accused Vrublevsky of facilitating money laundering for Hydra, the largest Russian darknet market at the time. Hydra trafficked in illegal drugs and financial services, including cryptocurrency tumbling for money laundering, exchange services between cryptocurrency and Russian rubles, and the sale of falsified documents and hacking services.

However, in 2022 KrebsOnSecurity reported on a more likely reason for Vrublevsky’s latest criminal charges: He’d been extensively documenting the nicknames, real names and criminal exploits of Russian hackers who worked with the protection of corrupt officials in the Russian Federal Security Service (FSB), and operating a Telegram channel that threatened to expose alleged nefarious dealings by Russian financial executives.

Shefel believes Vrublevsky’s son Peter paid corrupt cops to levy criminal charges against him after reporting the youth to Moscow police, allegedly for walking around in public with a loaded firearm. Shefel says the Russian authorities told the younger Vrublevsky that he had lodged the firearms complaint.

In July 2024, the Russian news outlet Izvestia published a lengthy investigation into Peter Vrublevsky, alleging that the younger son took up his father’s mantle and was responsible for advertising Sprut, a Russian-language narcotics bazaar that sprang to life after the Hydra darknet market was shut down by international law enforcement agencies in 2022.

Izvestia reports that Peter Vrublevsky is currently living in Switzerland, where he reportedly fled in 2022 after being “arrested in absentia” in Russia on charges of running a violent group that could be hired via Telegram to conduct a range of physical attacks in real life, including firebombings and muggings.

Shefel claims his former partner Golubov was involved in the development and dissemination of early ransomware strains, including Cryptolocker, and that Golubov remains active in the cybercrime community.

Meanwhile, Mr. Shefel portrays himself as someone who is barely scraping by with the few odd coding jobs that come his way each month. Incredibly, the day after our initial interview via Telegram, Shefel proposed going into business together.

By way of example, he suggested maybe a company centered around recovering lost passwords for cryptocurrency accounts, or perhaps a series of online retail stores that sold cheap Chinese goods at a steep markup in the United States.

“Hi, how are you?” he inquired. “Maybe we can open business?”

Microsoft Patch Tuesday, November 2024 Edition

Microsoft today released updates to plug at least 89 security holes in its Windows operating systems and other software. November’s patch batch includes fixes for two zero-day vulnerabilities that are already being exploited by attackers, as well as two other flaws that were publicly disclosed prior to today.

The zero-day flaw tracked as CVE-2024-49039 is a bug in the Windows Task Scheduler that allows an attacker to increase their privileges on a Windows machine. Microsoft credits Google’s Threat Analysis Group with reporting the flaw.

The second bug fixed this month that is already seeing in-the-wild exploitation is CVE-2024-43451, a spoofing flaw that could reveal Net-NTLMv2 hashes, which are used for authentication in Windows environments.

Satnam Narang, senior staff research engineer at Tenable, says the danger with stolen NTLM hashes is that they enable so-called “pass-the-hash” attacks, which let an attacker masquerade as a legitimate user without ever having to log in or know the user’s password. Narang notes that CVE-2024-43451 is the third NTLM zero-day so far this year.

“Attackers continue to be adamant about discovering and exploiting zero-day vulnerabilities that can disclose NTLMv2 hashes, as they can be used to authenticate to systems and potentially move laterally within a network to access other systems,” Narang said.

The two other publicly disclosed weaknesses Microsoft patched this month are CVE-2024-49019, an elevation of privilege flaw in Active Directory Certificate Services (AD CS); and CVE-2024-49040, a spoofing vulnerability in Microsoft Exchange Server.

Ben McCarthy, lead cybersecurity engineer at Immersive Labs, called special attention to CVE-2024-43639, a remote code execution vulnerability in Windows Kerberos, the authentication protocol that is heavily used in Windows domain networks.

“This is one of the most threatening CVEs from this patch release,” McCarthy said. “Windows domains are used in the majority of enterprise networks, and by taking advantage of a cryptographic protocol vulnerability, an attacker can perform privileged acts on a remote machine within the network, potentially giving them eventual access to the domain controller, which is the goal for many attackers when attacking a domain.”

McCarthy also pointed to CVE-2024-43498, a remote code execution flaw in .NET and Visual Studio that could be used to install malware. This bug has earned a CVSS severity rating of 9.8 (10 is the worst).

Finally, at least 29 of the updates released today tackle memory-related security issues involving SQL server, each of which earned a threat score of 8.8. Any one of these bugs could be used to install malware if an authenticated user connects to a malicious or hacked SQL database server.

For a more detailed breakdown of today’s patches from Microsoft, check out the SANS Internet Storm Center’s list. For administrators in charge of managing larger Windows environments, it pays to keep an eye on Askwoody.com, which frequently points out when specific Microsoft updates are creating problems for a number of users.

As always, if you experience any problems applying any of these updates, consider dropping a note about it in the comments; chances are excellent that someone else reading here has experienced the same issue, and maybe even has found a solution.

Canadian Man Arrested in Snowflake Data Extortions

A 25-year-old man in Ontario, Canada has been arrested for allegedly stealing data from and extorting more than 160 companies that used the cloud data service Snowflake.

On October 30, Canadian authorities arrested Alexander Moucka, a.k.a. Connor Riley Moucka of Kitchener, Ontario, on a provisional arrest warrant from the United States. Bloomberg first reported Moucka’s alleged ties to the Snowflake hacks on Monday.

At the end of 2023, malicious hackers learned that many large companies had uploaded huge volumes of sensitive customer data to Snowflake accounts that were protected with little more than a username and password (no multi-factor authentication required). After scouring darknet markets for stolen Snowflake account credentials, the hackers began raiding the data storage repositories used by some of the world’s largest corporations.

Among those was AT&T, which disclosed in July that cybercriminals had stolen personal information and phone and text message records for roughly 110 million people — nearly all of its customers. Wired.com reported in July that AT&T paid a hacker $370,000 to delete stolen phone records.

A report on the extortion attacks from the incident response firm Mandiant notes that Snowflake victim companies were privately approached by the hackers, who demanded a ransom in exchange for a promise not to sell or leak the stolen data. All told, more than 160 Snowflake customers were relieved of data, including TicketMaster, Lending Tree, Advance Auto Parts and Neiman Marcus.

Moucka is alleged to have used the hacker handles Judische and Waifu, among many others. These monikers correspond to a prolific cybercriminal whose exploits were the subject of a recent story published here about the overlap between Western, English-speaking cybercriminals and extremist groups that harass and extort minors into harming themselves or others.

On May 2, 2024, Judische claimed on the fraud-focused Telegram channel Star Chat that they had hacked Santander Bank, one of the first known Snowflake victims. Judische would repeat that claim in Star Chat on May 13 — the day before Santander publicly disclosed a data breach — and would periodically blurt out the names of other Snowflake victims before their data even went up for sale on the cybercrime forums.

404 Media reports that at a court hearing in Ontario this morning, Moucka called in from a prison phone and said he was seeking legal aid to hire an attorney.

TELECOM DOMINOES

Mandiant has attributed the Snowflake compromises to a group it calls “UNC5537,” with members based in North America and Turkey. Sources close to the investigation tell KrebsOnSecurity the UNC5537 member in Turkey is John Erin Binns, an elusive American man indicted by the U.S. Department of Justice (DOJ) for a 2021 breach at T-Mobile that exposed the personal information of at least 76.6 million customers.

Update: The Justice Department has unsealed an indictment (PDF) against Moucka and Binns, charging them with one count of conspiracy; 10 counts of wire fraud; four counts of computer fraud and abuse; two counts of extortion in relation to computer fraud; and two counts aggravated identity theft.

In a statement on Moucka’s arrest, Mandiant said UNC5537 aka Alexander ‘Connor’ Moucka has proven to be one of the most consequential threat actors of 2024.

“In April 2024, UNC5537 launched a campaign, systematically compromising misconfigured SaaS instances across over a hundred organizations,” wrote Austin Larsen, Mandiant’s senior threat analyst. “The operation, which left organizations reeling from significant data loss and extortion attempts, highlighted the alarming scale of harm an individual can cause using off-the-shelf tools.”

Sources involved in the investigation said UNC5537 has focused on hacking into telecommunications companies around the world. Those sources told KrebsOnSecurity that Binns and Judische are suspected of stealing data from India’s largest state-run telecommunications firm Bharat Sanchar Nigam Ltd (BNSL), and that the duo even bragged about being able to intercept or divert phone calls and text messages for a large portion of the population of India.

Judische appears to have outsourced the sale of databases from victim companies who refuse to pay, delegating some of that work to a cybercriminal who uses the nickname Kiberphant0m on multiple forums. In late May 2024, Kiberphant0m began advertising the sale of hundreds of gigabytes of data stolen from BSNL.

“Information is worth several million dollars but I’m selling for pretty cheap,” Kiberphant0m wrote of the BSNL data in a post on the English-language cybercrime community Breach Forums. “Negotiate a deal in Telegram.”

Also in May 2024, Kiberphant0m took to the Russian-language hacking forum XSS to sell more than 250 gigabytes of data stolen from an unnamed mobile telecom provider in Asia, including a database of all active customers and software allowing the sending of text messages to all customers.

On September 3, 2024, Kiberphant0m posted a sales thread on XSS titled “Selling American Telecom Access (100B+ Revenue).” Kiberphant0m’s asking price of $200,000 was apparently too high because they reposted the sales thread on Breach Forums a month later, with a headline that more clearly explained the data was stolen from Verizon‘s “push-to-talk” (PTT) customers — primarily U.S. government agencies and first responders.

404Media reported recently that the breach does not appear to impact the main consumer Verizon network. Rather, the hackers broke into a third party provider and stole data on Verizon’s PTT systems, which are a separate product marketed towards public sector agencies, enterprises, and small businesses to communicate internally.

INTERVIEW WITH JUDISCHE

Investigators say Moucka shared a home in Kitchener with other tenants, but not his family. His mother was born in Chechnya, and he speaks Russian in addition to French and English. Moucka’s father died of a drug overdose at age 26, when the defendant was roughly five years old.

A person claiming to be Judische began communicating with this author more than three months ago on Signal after KrebsOnSecurity started asking around about hacker nicknames previously used by Judische over the years.

Judische admitted to stealing and ransoming data from Snowflake customers, but he said he’s not interested in selling the information, and that others have done this with some of the data sets he stole.

“I’m not really someone that sells data unless it’s crypto [databases] or credit cards because they’re the only thing I can find buyers for that actually have money for the data,” Judische told KrebsOnSecurity. “The rest is just ransom.”

Judische has sent this reporter dozens of unsolicited and often profane messages from several different Signal accounts, all of which claimed to be an anonymous tipster sharing different identifying details for Judische. This appears to have been an elaborate effort by Judische to “detrace” his movements online and muddy the waters about his identity.

Judische frequently claimed he had unparalleled “opsec” or operational security, a term that refers to the ability to compartmentalize and obfuscate one’s tracks online. In an effort to show he was one step ahead of investigators, Judische shared information indicating someone had given him a Mandiant researcher’s assessment of who and where they thought he was. Mandiant says those were discussion points shared with select reporters in advance of the researcher’s recent talk at the LabsCon security conference.

But in a conversation with KrebsOnSecurity on October 26, Judische acknowledged it was likely that the authorities were closing in on him, and said he would seriously answer certain questions about his personal life.

“They’re coming after me for sure,” he said.

In several previous conversations, Judische referenced suffering from an unspecified personality disorder, and when pressed said he has a condition called “schizotypal personality disorder” (STPD).

According to the Cleveland Clinic, schizotypal personality disorder is marked by a consistent pattern of intense discomfort with relationships and social interactions: “People with STPD have unusual thoughts, speech and behaviors, which usually hinder their ability to form and maintain relationships.”

Judische said he was prescribed medication for his psychological issues, but that he doesn’t take his meds. Which might explain why he never leaves his home.

“I never go outside,” Judische allowed. “I’ve never had a friend or true relationship not online nor in person. I see people as vehicles to achieve my ends no matter how friendly I may seem on the surface, which you can see by how fast I discard people who are loyal or [that] I’ve known a long time.”

Judische later admitted he doesn’t have an official STPD diagnosis from a physician, but said he knows that he exhibits all the signs of someone with this condition.

“I can’t actually get diagnosed with that either,” Judische shared. “Most countries put you on lists and restrict you from certain things if you have it.”

Asked whether he has always lived at his current residence, Judische replied that he had to leave his hometown for his own safety.

“I can’t live safely where I’m from without getting robbed or arrested,” he said, without offering more details.

A source familiar with the investigation said Moucka previously lived in Quebec, which he allegedly fled after being charged with harassing others on the social network Discord.

Judische claims to have made at least $4 million in his Snowflake extortions. Judische said he and others frequently targeted business process outsourcing (BPO) companies, staffing firms that handle customer service for a wide range of organizations. They also went after managed service providers (MSPs) that oversee IT support and security for multiple companies, he claimed.

“Snowflake isn’t even the biggest BPO/MSP multi-company dataset on our networks, but what’s been exfiltrated from them is well over 100TB,” Judische bragged. “Only ones that don’t pay get disclosed (unless they disclose it themselves). A lot of them don’t even do their SEC filing and just pay us to fuck off.”

INTEL SECRETS

The other half of UNC5537 — 24-year-old John Erin Binns — was arrested in Turkey in late May 2024, and currently resides in a Turkish prison. However, it is unclear if Binns faces any immediate threat of extradition to the United States, where he is currently wanted on criminal hacking charges tied to the 2021 breach at T-Mobile.

A person familiar with the investigation said Binns’s application for Turkish citizenship was inexplicably approved after his incarceration, leading to speculation that Binns may have bought his way out of a sticky legal situation.

Under the Turkish constitution, a Turkish citizen cannot be extradited to a foreign state. Turkey has been criticized for its “golden passport” program, which provides citizenship and sanctuary for anyone willing to pay several hundred thousand dollars.

Binns’s alleged hacker alter egos — “IRDev” and “IntelSecrets” — were at once feared and revered on several cybercrime-focused Telegram communities, because he was known to possess a powerful weapon: A massive botnet. From reviewing the Telegram channels Binns frequented, we can see that others in those communities — including Judische — heavily relied on Binns and his botnet for a variety of cybercriminal purposes.

The IntelSecrets nickname corresponds to an individual who has claimed responsibility for modifying the source code for the Mirai “Internet of Things” botnet to create a variant known as “Satori,” and supplying it to others who used it for criminal gain and were later caught and prosecuted.

Since 2020, Binns has filed a flood of lawsuits naming various federal law enforcement officers and agencies — including the FBI, the CIA, and the U.S. Special Operations Command (PDF), demanding that the government turn over information collected about him and seeking restitution for his alleged kidnapping at the hands of the CIA.

Binns claims he was kidnapped in Turkey and subjected to various forms of psychological and physical torture. According to Binns, the U.S. Central Intelligence Agency (CIA) falsely told their counterparts in Turkey that he was a supporter or member of the Islamic State (ISIS), a claim he says led to his detention and torture by the Turkish authorities.

However, in a 2020 lawsuit he filed against the CIA, Binns himself acknowledged having visited a previously ISIS-controlled area of Syria prior to moving to Turkey in 2017.

Sources familiar with the investigation told KrebsOnSecurity that Binns was so paranoid about possible surveillance on him by American and Turkish intelligence agencies that his erratic behavior and online communications actually brought about the very government snooping that he feared.

In several online chats in late 2023 on Discord, IRDev lamented being lured into a law enforcement sting operation after trying to buy a rocket launcher online. A person close to the investigation confirmed that at the beginning of 2023, IRDev began making earnest inquiries about how to purchase a Stinger, an American-made portable weapon that operates as an infrared surface-to-air missile.

Sources told KrebsOnSecurity Binns’ repeated efforts to purchase the projectile earned him multiple visits from the Turkish authorities, who were justifiably curious why he kept seeking to acquire such a powerful weapon.

WAIFU

A careful study of Judische’s postings on Telegram and Discord since 2019 shows this user is more widely known under the nickname “Waifu,” a moniker that corresponds to one of the more accomplished “SIM swappers” in the English-language cybercrime community over the years.

SIM swapping involves phishing, tricking or bribing mobile phone company employees for credentials needed to redirect a target’s mobile phone number to a device the attackers control — allowing thieves to intercept incoming text messages and phone calls.

Several SIM-swapping channels on Telegram maintain a frequently updated leaderboard of the 100 richest SIM-swappers, as well as the hacker handles associated with specific cybercrime groups (Waifu is ranked #24). That list has long included Waifu on a roster of hackers for a group that called itself “Beige.”

The term “Beige Group” came up in reporting on two stories published here in 2020. The first was in an August 2020 piece called Voice Phishers Targeting Corporate VPNs, which warned that the COVID-19 epidemic had brought a wave of targeted voice phishing attacks that tried to trick work-at-home employees into providing access to their employers’ networks. Frequent targets of the Beige group included employees at numerous top U.S. banks, ISPs, and mobile phone providers.

The second time Beige Group was mentioned by sources was in reporting on a breach at the domain registrar GoDaddy. In November 2020, intruders thought to be associated with the Beige Group tricked a GoDaddy employee into installing malicious software, and with that access they were able to redirect the web and email traffic for multiple cryptocurrency trading platforms. Other frequent targets of the Beige group included employees at numerous top U.S. banks, ISPs, and mobile phone providers.

Judische’s various Telegram identities have long claimed involvement in the 2020 GoDaddy breach, and he didn’t deny his alleged role when asked directly. Judische said he prefers voice phishing or “vishing” attacks that result in the target installing data-stealing malware, as opposed to tricking the user into entering their username, password and one-time code.

“Most of my ops involve malware [because] credential access burns too fast,” Judische explained.

CRACKDOWN ON HARM GROUPS?

The Telegram channels that the Judische/Waifu accounts frequented over the years show this user divided their time between posting in channels dedicated to financial cybercrime, and harassing and stalking others in harm communities like Leak Society and Court.

Both of these Telegram communities are known for victimizing children through coordinated online campaigns of extortion, doxing, swatting and harassment. People affiliated with harm groups like Court and Leak Society will often recruit new members by lurking on gaming platforms, social media sites and mobile applications that are popular with young people, including Discord, Minecraft, Roblox, Steam, Telegram, and Twitch.

“This type of offence usually starts with a direct message through gaming platforms and can move to more private chatrooms on other virtual platforms, typically one with video enabled features, where the conversation quickly becomes sexualized or violent,” warns a recent alert from the Royal Canadian Mounted Police (RCMP) about the rise of sextortion groups on social media channels.

“One of the tactics being used by these actors is sextortion, however, they are not using it to extract money or for sexual gratification,” the RCMP continued. “Instead they use it to further manipulate and control victims to produce more harmful and violent content as part of their ideological objectives and radicalization pathway.”

Some of the largest such known groups include those that go by the names 764, CVLT, Kaskar, 7997, 8884, 2992, 6996, 555, Slit Town, 545, 404, NMK, 303, and H3ll.

On the various cybercrime-oriented channels Judische frequented, he often lied about his or others’ involvement in various breaches. But Judische also at times shared nuggets of truth about his past, particularly when discussing the early history and membership of specific Telegram- and Discord-based cybercrime and harm groups.

Judische claimed in multiple chats, including on Leak Society and Court, that they were an early member of the Atomwaffen Division (AWD), a white supremacy group whose members are suspected of having committed multiple murders in the U.S. since 2017.

In 2019, KrebsOnSecurity exposed how a loose-knit group of neo-Nazis, some of whom were affiliated with AWD, had doxed and/or swatted nearly three dozen journalists at a range of media publications. Swatting involves communicating a false police report of a bomb threat or hostage situation and tricking authorities into sending a heavily armed police response to a targeted address.

Judsiche also told a fellow denizen of Court that years ago he was active in an older harm community called “RapeLash,” a truly vile Discord server known for attracting Atomwaffen members. A 2018 retrospective on RapeLash posted to the now defunct neo-Nazi forum Fascist Forge explains that RapeLash was awash in gory, violent images and child pornography.

A Fascist Forge member named “Huddy” recalled that RapeLash was the third incarnation of an extremist community also known as “FashWave,” short for Fascist Wave.

“I have no real knowledge of what happened with the intermediary phase known as ‘FashWave 2.0,’ but FashWave 3.0 houses multiple known Satanists and other degenerates connected with AWD, one of which got arrested on possession of child pornography charges, last I heard,” Huddy shared.

In June 2024, a Mandiant employee told Bloomberg that UNC5537 members have made death threats against cybersecurity experts investigating the hackers, and that in one case the group used artificial intelligence to create fake nude photos of a researcher to harass them.

Allison Nixon is chief research officer with the New York-based cybersecurity firm Unit 221B. Nixon is among several researchers who have faced harassment and specific threats of physical violence from Judische.

Nixon said Judische is likely to argue in court that his self-described psychological disorder(s) should somehow excuse his long career in cybercrime and in harming others.

“They ran a misinformation campaign in a sloppy attempt to cover up the hacking campaign,” Nixon said of Judische. “Coverups are an acknowledgment of guilt, which will undermine a mental illness defense in court. We expect that violent hackers from the [cybercrime community] will experience increasingly harsh sentences as the crackdown continues.”

5:34 p.m. ET: Updated story to include a clarification from Mandiant. Corrected Moucka’s age.

Nov. 21, 2024: Included link to a criminal indictment against Moucka and Binns.

Sudanese Brothers Arrested in ‘AnonSudan’ Takedown

The U.S. government on Wednesday announced the arrest and charging of two Sudanese brothers accused of running Anonymous Sudan (a.k.a. AnonSudan), a cybercrime business known for launching powerful distributed denial-of-service (DDoS) attacks against a range of targets, including dozens of hospitals, news websites and cloud providers. The younger brother is facing charges that could land him life in prison for allegedly seeking to kill people with his attacks.

Active since at least January 2023, AnonSudan has been described in media reports as a “hacktivist” group motivated by ideological causes. But in a criminal complaint, the FBI said those high-profile cyberattacks were effectively commercials for the hackers’ DDoS-for-hire service, which they sold to paying customers for as little as $150 a day — with up to 100 attacks allowed per day — or $700 for an entire week.

The complaint says despite reports suggesting Anonymous Sudan might be state-sponsored Russian actors pretending to be Sudanese hackers with Islamist motivations, AnonSudan was led by two brothers in Sudan — Ahmed Salah Yousif Omer, 22, and Alaa Salah Yusuuf Omer, 27.

AnonSudan claimed credit for successful DDoS attacks on numerous U.S. companies, causing a multi-day outage for Microsoft’s cloud services in June 2023. The group hit PayPal the following month, followed by Twitter/X (Aug. 2023), and OpenAI (Nov. 2023). An indictment in the Central District of California notes the duo even swamped the websites of the FBI and the Department of State.

Prosecutors say Anonymous Sudan offered a “Limited Internet Shutdown Package,” which would enable customers to shut down internet service providers in specified countries for $500 (USD) an hour. The two men also allegedly extorted some of their victims for money in exchange for calling off DDoS attacks.

The government isn’t saying where the Omer brothers are being held, only that they were arrested in March 2024 and have been in custody since. A statement by the U.S. Department of Justice says the government also seized control of AnonSudan’s DDoS infrastructure and servers after the two were arrested in March.

AnonSudan accepted orders over the instant messaging service Telegram, and marketed its DDoS service by several names, including “Skynet,” “InfraShutdown,” and the “Godzilla botnet.” However, the DDoS machine the Omer brothers allegedly built was not made up of hacked devices — as is typical with DDoS botnets.

Instead, the government alleges Skynet was more like a “distributed cloud attack tool,” with a command and control (C2) server, and an entire fleet of cloud-based servers that forwards C2 instructions to an array of open proxy resolvers run by unaffiliated third parties, which then transmit the DDoS attack data to the victims.

Amazon was among many companies credited with helping the government in the investigation, and said AnonSudan launched its attacks by finding hosting companies that would rent them small armies of servers.

“Where their potential impact becomes really significant is when they then acquire access to thousands of other machines — typically misconfigured web servers — through which almost anyone can funnel attack traffic,” Amazon explained in a blog post. “This extra layer of machines usually hides the true source of an attack from the targets.”

The security firm CrowdStrike said the success of AnonSudan’s DDoS attacks stemmed from a combination of factors, including sophisticated techniques for bypassing DDoS mitigation services. Also, AnonSudan typically launched so-called “Layer 7” attacks that sought to overwhelm targeted “API endpoints” — the back end systems responsible for handling website requests — with bogus requests for data, leaving the target unable to serve legitimate visitors.

The Omer brothers were both charged with one count of conspiracy to damage protected computers. The younger brother — Ahmed Salah — was also charged with three counts of damaging protected computers.

If extradited to the United States, tried and convicted in a court of law, the older brother Alaa Salah would be facing a maximum of five years in prison. But prosecutors say Ahmed Salah could face life in prison for allegedly launching attacks that sought to kill people.

As Hamas fighters broke through the border fence and attacked Israel on Oct. 7, 2023, a wave of rockets was launched into Israel. At the same time, AnonSudan announced it was attacking the APIs that power Israel’s widely-used “red alert” mobile apps that warn residents about any incoming rocket attacks in their area.

In February 2024, AnonSudan launched a digital assault on the Cedars-Sinai Hospital in the Los Angeles area, an attack that caused emergency services and patients to be temporarily redirected to different hospitals.

The complaint alleges that in September 2023, AnonSudan began a week-long DDoS attack against the Internet infrastructure of Kenya, knocking offline government services, banks, universities and at least seven hospitals.

Lamborghini Carjackers Lured by $243M Cyberheist

The parents of a 19-year-old Connecticut honors student accused of taking part in a $243 million cryptocurrency heist in August were carjacked a week later — while out house-hunting in a brand new Lamborghini. Prosecutors say the couple was beaten and briefly kidnapped by six young men who traveled from Florida as part of a botched plan to hold the parents for ransom.

Late in the afternoon of Aug. 25, 2024 in Danbury, Ct., a married couple in their 50s pulled up to a gated community in a new Lamborghini Urus (investigators say the sports car still had temporary tags) when they were intentionally rear-ended by a Honda Civic.

A witness told police they saw three men exit a van that was following the Honda, and said the men began assaulting the couple and forcing them into the van. Local police officers spotted the van speeding from the scene and pursued it, only to find the vehicle crashed and abandoned a short distance away.

Inside the disabled van the police found the couple with their hands and feet bound in duct tape, the man visibly bruised after being assaulted with a baseball bat. Danbury police soon reported arresting six suspects in the kidnapping, all men aged 18-26 from Florida. They also recovered the abandoned Lamborghini from a wooded area.

A criminal complaint (PDF) filed on Sept. 24 against the six men does not name the victims, referring to them only as a married couple from Danbury with the initials R.C. and S.C. But prosecutors in Connecticut said they were targeted “because the co-conspirators believed the victims’ son had access to significant amounts of digital currency.”

What made the Miami men so convinced R.C. and S.C.’s son was loaded with cryptocurrency? Approximately one week earlier, on Aug. 19, a group of cybercriminals that allegedly included the couple’s son executed a sophisticated phone-based social engineering attack in which they stole $243 million worth of cryptocurrency from a victim in Washington, D.C.

That’s according to ZachXBT, a frequently cited crypto crime investigator who published a lengthy thread that broke down how the theft was carried out and ultimately exposed by the perpetrators themselves.

ZachXBT’s post included a screen recording of a Discord chat session made by one of the participants to the $243 million robbery, noting that two of the people involved managed to leak the username of the Microsoft Windows PCs they were using to participate in the chat.

One of the usernames leaked during the chat was Veer Chetal. According to ZachXBT, that name corresponds to a 19-year-old from Danbury who allegedly goes by the nickname “Wiz,” although in the leaked video footage he allegedly used the handle “Swag.”  Swag was reportedly involved in executing the early stages of the crypto heist — gaining access to the victim’s Gmail and iCloud accounts.

The same day ZachXBT published his findings, a criminal indictment was issued in Washington D.C. charging two of the men he named as involved in the heist. Prosecutors allege Malone “Greavys” Lam, 20, of Miami and Los Angeles, and Jeandiel “Box” Serrano, 21, of Los Angeles conspired to steal and launder over $230 million in cryptocurrency from a victim in Washington, D.C. The indictment alleges Lam and Serrano were helped by other unnamed co-conspirators.

“Lam and Serrano then allegedly spent the laundered cryptocurrency proceeds on international travel, nightclubs, luxury automobiles, watches, jewelry, designer handbags, and rental homes in Los Angeles and Miami,” reads a press release from the U.S. Department of Justice.

By tracing the flow of funds stolen in the heist, ZachXBT concluded that Wiz received a large percentage from the theft, noting that “additional comfort [in naming him as involved] was gained as throughout multiple recordings accomplices refer to him as ‘Veer’ on audio and in chats.”

“A cluster of [cryptocurrency] addresses tied to both Box/Wiz received $41M+ from two exchanges over the past few weeks primarily flowing to luxury goods brokers to purchase cars, watches, jewelry, and designer clothes,” ZachXBT wrote.

KrebsOnSecurity sought comment from Veer Chetal, and from his parents — Radhika Chetal and Suchil Chetal. This story will be updated in the event that anyone representing the Chetal family responds. Veer Chetal has not been publicly charged with any crime.

According to a news brief published by a private Catholic high school in Danbury that Veer Chetal attended, in 2022 he successfully completed Harvard’s Future Lawyers Program, a “unique pre-professional program where students, guided by qualified Harvard undergraduate instructors, learn how to read and build a case, how to write position papers, and how to navigate a path to law school.” A November 2022 story at patch.com quoted Veer Chetal (class of 2024) crediting the Harvard program with his decision to pursue a career in law.

It remains unclear which Chetal family member acquired the 2023 Lamborghini Urus, which has a starting price of around $233,000. Sushil Chetal’s LinkedIn profile says he is a vice president at the investment bank Morgan Stanley.

It is clear that other alleged co-conspirators to the $243 million heist displayed a conspicuous consumption of wealth following the date of the heist. ZachXBT’s post chronicled Malone’s flashy lifestyle, in which he allegedly used the stolen money to purchase more than 10 vehicles, rent palatial properties, travel with friends on chartered jets, and spend between $250,000 and $500,000 a night at clubs in Los Angeles and Miami.

WSVN-TV in Miami covered an FBI raid of a large rented waterfront home around the time Malone and Serrano were arrested. The news station interviewed a neighbor of the home’s occupants, who reported a recent large party at the residence wherein the street was lined with high-end luxury vehicles — all of them with temporary paper tags.

ZachXBT unearthed a video showing a person identified as Wiz at a Miami nightclub earlier this year, wherein they could be seen dancing to the crowd’s chants while holding an illuminated sign with the message, “I win it all.”

It appears that all of the suspects in the cyber heist (and at least some of the alleged carjackers) are members of The Com, an archipelago of crime-focused chat communities which collectively functions as a kind of distributed cybercriminal social network that facilitates instant collaboration.

As documented in last month’s deep dive on top Com members,  The Com is also a place where cybercriminals go to boast about their exploits and standing within the community, or to knock others down a peg or two. Prominent Com members are endlessly sniping over who pulled off the most impressive heists, or who has accumulated the biggest pile of stolen virtual currencies.

And as often as they extort and rob victims for financial gain, members of The Com are trying to wrest stolen money from their cybercriminal rivals — often in ways that spill over into physical violence in the real world.

One of the six Miami-area men arrested in the carjacking and extortion plot gone awry — Reynaldo “Rey” Diaz — was shot twice while parked in his bright yellow Corvette in Miami’s design district in 2022. In an interview with a local NBC television station, Diaz said he was probably targeted for the jewelry he was wearing, which he described as “pretty expensive.”

KrebsOnSecurity has learned Diaz also went by the alias “Pantic” on Telegram chat channels dedicated to stealing cryptocurrencies. Pantic was known for participating in several much smaller cyber heists in the past, and spending most of his cut on designer clothes and jewelry.

Earlier this year, Diaz was “doxed,” or publicly outed as Pantic, with his personal and family information posted on a harassment and extortion channel frequented by members of The Com. The reason cited for Pantic’s doxing was widely corroborated by multiple Com members: Pantic had inexplicably robbed two close friends at gunpoint, one of whom recently died of a drug overdose.

Government prosecutors say the brazen daylight carjacking was paid for and organized by 23-year-old Miami resident Angel “Chi Chi” Borrero. In 2022, Borrero was arrested in Miami for aggravated assault with a deadly weapon.

The six Miami men face charges including first-degree assault, kidnapping and reckless endangerment, and five of them are being held on a $1 million bond. One suspect is also charged with reckless driving, engaging police in pursuit and evading responsibility; his bond was set at $2 million. Lam and Serrano are each charged with conspiracy to commit wire fraud and conspiracy to launder money.

Cybercriminals hail from all walks of life and income levels, but some of the more accomplished cryptocurrency thieves also tend to be among the more privileged, and from relatively well-off families. In other words, these individuals aren’t stealing to put food on the table: They’re doing it so they can amass all the trappings of instant wealth, and so they can boast about their crimes to others on The Com.

There is also a penchant among this crowd to call attention to their activities in conspicuous ways that hasten their arrest and criminal charging. In many ways, the story arc of the young men allegedly involved in the $243 million heist tracks closely to that of Joel Ortiz, a valedictorian who was sentenced in 2019 to 10 years in prison for stealing more than $5 million in cryptocurrencies.

Ortiz famously posted videos of himself and co-conspirators chartering flights and partying it up at LA nightclubs, with scantily clad women waving giant placards bearing their “OG” usernames — highly-prized, single-letter social media accounts that they’d stolen or purchased stolen from others.

Ortiz earned the distinction of being the first person convicted of SIM-swapping, a crime that involves using mobile phone company insiders or compromised employee accounts to transfer a target’s phone number to a mobile device controlled by the attackers. From there, the attacker can intercept any password reset links, and any one-time passcodes sent via SMS or automated voice calls.

But as the mobile carriers seek to make their networks less hospitable to SIM-swappers, and as more financial platforms seek to harden user account security, today’s crypto thieves are finding they don’t need SIM-swaps to steal obscene amounts of cryptocurrency. Not when tricking people over the phone remains such an effective approach.

According to ZachXBT, the crooks responsible for the $243 million theft initially compromised the target’s personal accounts after calling them as Google Support and using a spoofed number. The attackers also spoofed a call from account support representatives at the cryptocurrency exchange Gemini, claiming the target’s account had been hacked.

From there the target was social engineered over the phone into resetting multi-factor authentication and sending Gemini funds to a compromised wallet. ZachXBT says the attackers also convinced the victim to use AnyDesk to share their screen, and in doing so the victim leaked their private keys.

U.S. Indicts 2 Top Russian Hackers, Sanctions Cryptex

The United States today unveiled sanctions and indictments against the alleged proprietor of Joker’s Stash, a now-defunct cybercrime store that peddled tens of millions of payment cards stolen in some of the largest data breaches of the past decade. The government also indicted and sanctioned a top Russian cybercriminal known as Taleon, whose cryptocurrency exchange Cryptex has evolved into one of Russia’s most active money laundering networks.

The U.S. Department of Justice (DOJ) today unsealed an indictment against a 38-year-old man from Novosibirsk, Russia for allegedly operating Joker’s Stash, an extremely successful carding shop that came online in late 2014. Joker’s sold cards stolen in a steady drip of breaches at U.S. retailers, including Saks Fifth Avenue, Lord and Taylor, Bebe Stores, Hilton Hotels, Jason’s Deli, Whole Foods, Chipotle, Wawa, Sonic Drive-In, the Hy-Vee supermarket chain, Buca Di Beppo, and Dickey’s BBQ.

The government believes the brains behind Joker’s Stash is Timur Kamilevich Shakhmametov, an individual who is listed in Russian incorporation documents as the owner of Arpa Plus, a Novosibirsk company that makes mobile games.

Early in his career (circa 2000) Shakhmametov was known as “v1pee” and was the founder of the Russian hacker group nerf[.]ru, which periodically published hacking tools and exploits for software vulnerabilities.

By 2004, v1pee had adopted the moniker “Vega” on the exclusive Russian language hacking forum Mazafaka, where this user became one of the more reliable vendors of stolen payment cards.

In the years that followed, Vega would cement his reputation as a top carder on other forums, including Verified, DirectConnection, and Carder[.]pro.

Vega also became known as someone who had the inside track on “unlimited cashouts,” a globally coordinated cybercrime scheme in which crooks hack a bank or payment card processor and use cloned cards at cash machines to rapidly withdraw millions of dollars in just a few hours.

“Hi, there is work on d+p, unlimited,” Vega wrote in a private message to another user on Verified in Dec. 2012, referring to “dumps and PINs,” the slang term for stolen debit cards with the corresponding PINs that would allow ATM withdrawals.

Joker’s Stash came online in the wake of several enormous card breaches at retailers like Target and Home Depot, and the resulting glut of inventory had depressed prices for stolen cards. But Joker’s would distinguish itself by catering to high-roller customers — essentially street gangs in the United States that would purchase thousands of stolen payment cards in one go.

Faced with a buyer’s market, Joker’s Stash set themselves apart by focusing on loyalty programs, frequent buyer discounts, money-back guarantees, and just plain good customer service. Big spenders were given access to the most freshly hacked payment cards, and were offered the ability to get free replacement cards if any turned out to be duds.

Joker’s Stash also was unique because it claimed to sell only payment cards that its own hackers had stolen directly from merchants. At the time, card shops typically resold payment cards that were stolen and supplied by many third-party hackers of unknown reliability or reputation.

In January 2021, Joker’s Stash announced it was closing up shop, after European authorities seized a number of servers for the fraud store, and its proprietor came down with the Coronavirus.

A DOJ statement credits the U.S. Secret Service for leading the years-long investigations (the Service’s original mandate was not protecting the president; it was pursuing counterfeiters, and modern-day carders definitely qualify as that). Prosecutors allege Joker’s Stash earned revenues of at least $280 million, but possibly more than $1 billion (the broad range is a consequence of several variables, including the rapid fluctuation in the price of bitcoin and the stolen goods they were peddling).

TALEON

The proprietors of Joker’s Stash may have sold tens of millions of stolen payment cards, but Taleon is by far the bigger fish in this law enforcement action because his various cryptocurrency and cash exchanges have allegedly helped to move billions of dollars into and out of Russia over the past 20 years.

An indictment unsealed today names Taleon as Sergey Sergeevich Ivanov, 44, of Saint Petersburg, Russia. The government says Ivanov, who likely changed his surname from Omelnitskii at some point, laundered money for Joker’s Stash, among many other cybercrime stores.

In a statement today, the Treasury Department said Ivanov has laundered hundreds of millions of dollars’ worth of virtual currency for ransomware actors, initial access brokers, darknet marketplace vendors, and other criminal actors for approximately the last 20 years.

First appearing on Mazafaka in the early 2000s, Taleon was known on the forums as someone who could reliably move large amounts of physical cash. Sources familiar with the investigation said Taleon’s service emerged as one of the few remaining domestic cash delivery services still operating after Russia invaded Ukraine in Feb. 2022.

Taleon set up his service to facilitate transfers between Moscow, St. Petersburg and financial institutions in the West. Taleon’s private messages on some hacker forums have been leaked over the years and indexed by the cyber intelligence platform Intel 471. Those messages indicate Taleon worked on many of the same ATM cashouts as Vegas, so it’s clear the two had an established business relationship well before Joker’s Stash came into being.

Sometime around 2013, Taleon launched a partnership with a money transfer business called pm2btc[.]me. PM2BTC allowed customers to convert funds from the virtual currency Perfect Money (PM) into bitcoin, and then have the balance (minus a processing fee) available on a physical debit card that could be used at ATMs, for shopping online, or at retail stores.

The U.S. government itself set things in motion for Taleon’s nascent cryptocurrency exchange business in 2013 after the DOJ levied money laundering charges against the proprietors of Liberty Reserve, one of the largest virtual currencies in operation at the time.  Liberty Reserve was heavily used by cybercriminals of all stripes. The government said the service had more than a million users worldwide, and laundered in excess of $6 billion in suspected criminal proceeds.

In the days following the takedown of Liberty Reserve, KrebsOnSecurity ran a story that examined discussions across multiple top Russian cybercrime forums about where crooks could feel safe parking their stolen funds. The answer involved Bitcoin, but also Taleon’s new service.

UAPS

Part of the appeal of Taleon’s exchange was that it gave its vetted customers an “application programming interface” or API that made it simple for dodgy online shops selling stolen goods and cybercrime services to accept cryptocurrency deposits from their customers, and to manage payouts to any suppliers and affiliates.

This API is synonymous with a service Taleon and friends operate in the background called UAPS, short for “Universal Anonymous Payment System.” UAPS has gone by several other names including “Pinpays,” and in October 2014 it landed Joker’s Stash as its first big client.

A source with knowledge of the investigation told KrebsOnSecurity that Taleon is a pilot who owns and flies around in his own helicopter.

Ivanov appears to have little to no social media presence, but the 40-year-old woman he lives with in St. Petersburg does, and she has a photo on her Vktontake page that shows the two of them in 2019 flying over Lake Ladoga, a large body of water directly north of St. Petersburg.

BRIANS CLUB

In late 2015, a major competitor to Joker’s Stash emerged using UAPS for its back-end payments: BriansClub. BriansClub sullies this author’s name, photos and reputation to peddle millions of credit and debit cards stolen from merchants in the United States and around the world.

In 2019, someone hacked BriansClub and relieved the fraud shop of more than 26 million stolen payment cards — an estimated one-third of the 87 million payment card accounts that were on sale across all underground shops at that time. An anonymous source shared that card data with KrebsOnSecurity, which ultimately shared it with a consortium of financial institutions that issued most of the cards.

After that incident, the administrator of BriansClub changed the site’s login page so that it featured a copy of my phone bill, Social Security card, and a link to my full credit report [to this day, random cybercriminals confuse Yours Truly with the proprietor of BriansClub].

Alex Holden is founder of the Milwaukee-based cybersecurity firm Hold Security. Holden has long maintained visibility into cryptocurrency transactions made by BriansClub.

Holden said those records show BriansClub sells tens of thousands of dollars worth of stolen credit cards every day, and that in the last two years alone the BriansClub administrator has removed more than $242 million worth of cryptocurrency revenue from the UAPS platform.

Passive domain name system (DNS) records show that in its early days BriansClub shared a server in Lithuania along with just a handful of other domains, including secure.pinpays[.]com, the crime forum Verified, and a slew of carding shops operating under the banner Rescator.

As KrebsOnSecurity detailed in December 2023, the Rescator shops were directly involved in some of the largest payment card breaches of the past decade. Those include the 2013 breach at Target and the 2014 breach at Home Depot, intrusions that exposed more than 100 million payment card records.

CRYPTEX

In early 2018, Taleon and the proprietors of UAPS launched a cryptocurrency exchange called Cryptex[.]net that has emerged as a major mover of ill-gotten crypto coins.

Cryptex has been associated with quite a few ransomware transactions, including the largest known ransomware payment to date. In February 2024, a Fortune 50 ransomware victim paid a record $75 million ransom to a Russian cybercrime group that calls themselves the Dark Angels. A source with knowledge of the investigation said an analysis of that payment shows roughly half of it was processed through Cryptex.

That source provided a screen shot of Cryptex’s sending and receiving exposure as viewed by Chainalysis, a company the U.S. government and many cryptocurrency exchanges rely on to flag transactions associated with suspected money laundering, ransomware payouts, or facilitating payments for darknet websites.

Chainalysis finds that Cryptex has received more than $1.6 billion since its inception, and that this amount is roughly equal to its sending exposure (although the total number of outflows is nearly half of the inflows).

The graphic indicates a great deal of money flowing into Cryptex — roughly a quarter of it — is coming from bitcoin ATMs around the world. Experts say most of those ATM inflows to Cryptex are bitcoin ATM cash deposits from customers of carding websites like BriansClub and Jokers Stash.

The indictments released today do not definitively connect Taleon to Cryptex. However, PM2BTC (which teamed up with Taleon to launch UAPS and Pinpays) and Cryptex have now been sanctioned by the U.S. Department of the Treasury.

Treasury’s Financial Crimes Enforcement Network (FinCEN) levied sanctions today against PM2BTC under a powerful new “Section 9714” authority included in the Combating Russian Money Laundering Act, changes enacted in 2022 to make it easier to target financial entities involved in laundering money for Russia.

Treasury first used this authority last year against Bitzlato, a cryptocurrency exchange operating in Russia that became a money laundering conduit for ransomware attackers and dark market dealers.

THE LAUNDROMAT

An investigation into the corporate entities behind UAPS and Cryptex reveals an organization incorporated in 2012 in Scotland called Orbest Investments LP. Records from the United Kingdom’s business registry show the owners of Orbest Investments are two entities: CS Proxy Solutions CY, and RM Everton Ltd.

Public business records further reveal that CS Proxy Solutions and RM Everton are co-owners of Progate Solutions, a holding company that featured prominently in a June 2017 report from Bellingcat and Transparency International (PDF) on money laundering networks tied to the Kremlin.

“Law enforcement agencies believe that the total amount laundered through this process could be as high as US$80 billion,” the joint report reads. “Although it is not clear where all of this money came from, investigators claim it includes significant amounts of money that were diverted from the Russian treasury and state contracts.”

Their story built on reporting published earlier that year by the Organized Crime and Corruption Project (OCCRP) and Novaya Gazeta, which found that at least US$20.8 billion was secretly moved out of Russia between 2010 and 2014 through a vast money laundering machine comprising over 5,000 legal entities known as “The Laundromat.”

“Using company records, reporters tracked the names of some clients after executives refused to give them out,” the OCCRP report explains. “They found the heavy users of the scheme were rich and powerful Russians who had made their fortunes from dealing with the Russian state.”

Rich Sanders is a blockchain analyst and investigator who advises the law enforcement and intelligence community. Sanders just returned from a three-week sojourn through Ukraine, traveling with Ukrainian soldiers while mapping out dodgy Russian crypto exchanges that are laundering money for narcotics networks operating in the region. Sanders said today’s sanctions by the Treasury Department will likely have an immediate impact on Cryptex and its customers.

“Whenever an entity is sanctioned, the implications on-chain are immense,” Sanders told KrebsOnSecurity. “Regardless of whether an exchange is actually compliant or just virtue signals it, it is the case across the board that exchanges will pay attention to these sanctions.”

“This action shows these payment processors for illicit platforms will get attention eventually,” Sanders continued. “Even if it took way too long in this case, Cryptex knew the majority of their volume was problematic, knew why it was problematic, and did it anyway. And this should be a wake up call for other exchanges that know full well that most of their volume is problematic.”

The U.S. Department of State is offering a reward of up to $10 million each for information leading to the arrests and/or convictions of Shakhmametov and Ivanov. The State announcement says separate rewards of up to $1 million each are being offered for information leading to the identification of other leaders of the Joker’s Stash criminal marketplace (other than Shakhmametov), as well as the identification of other key leaders of the UAPS, PM2BTC, and PinPays transnational criminal groups (other than Ivanov).

The Dark Nexus Between Harm Groups and ‘The Com’

A cyberattack that shut down two of the top casinos in Las Vegas last year quickly became one of the most riveting security stories of 2023. It was the first known case of native English-speaking hackers in the United States and Britain teaming up with ransomware gangs based in Russia. But that made-for-Hollywood narrative has eclipsed a far more hideous trend: Many of these young, Western cybercriminals are also members of fast-growing online groups that exist solely to bully, stalk, harass and extort vulnerable teens into physically harming themselves and others.

In September 2023, a Russian ransomware group known as ALPHV/Black Cat claimed credit for an intrusion at the MGM Resorts hotel chain that quickly brought MGM’s casinos in Las Vegas to a standstill. While MGM was still trying to evict the intruders from its systems, an individual who claimed to have firsthand knowledge of the hack contacted multiple media outlets to offer interviews about how it all went down.

One account of the hack came from a 17-year-old in the United Kingdom, who told reporters the intrusion began when one of the English-speaking hackers phoned a tech support person at MGM and tricked them into resetting the password for an employee account.

The security firm CrowdStrike dubbed the group “Scattered Spider,” a recognition that the MGM hackers came from different cliques scattered across an ocean of Telegram and Discord servers dedicated to financially-oriented cybercrime.

Collectively, this archipelago of crime-focused chat communities is known as “The Com,” and it functions as a kind of distributed cybercriminal social network that facilitates instant collaboration.

But mostly, The Com is a place where cybercriminals go to boast about their exploits and standing within the community, or to knock others down a peg or two. Top Com members are constantly sniping over who pulled off the most impressive heists, or who has accumulated the biggest pile of stolen virtual currencies.

And as often as they extort victim companies for financial gain, members of The Com are trying to wrest stolen money from their cybercriminal rivals — often in ways that spill over into physical violence in the real world.

CrowdStrike would go on to produce and sell Scattered Spider action figures, and it featured a life-sized Scattered Spider sculpture at this year’s RSA Security Conference in San Francisco.

But marketing security products and services based on specific cybercriminal groups can be tricky, particularly if it turns out that robbing and extorting victims is by no means the most abhorrent activity those groups engage in on a daily basis.

KrebsOnSecurity examined the Telegram user ID number of the account that offered media interviews about the MGM hack — which corresponds to the screen name “@Holy” — and found the same account was used across a number of cybercrime channels that are entirely focused on extorting young people into harming themselves or others, and recording the harm on video.

HOLY NAZI

Holy was known to possess multiple prized Telegram usernames, including @bomb, @halo, and @cute, as well as one of the highest-priced Telegram usernames ever put up for sale: @nazi.

In one post on a Telegram channel dedicated to youth extortion, this same user can be seen asking if anyone knows the current Telegram handles for several core members of 764, an extremist group known for victimizing children through coordinated online campaigns of extortion, doxing, swatting and harassment.

People affiliated with harm groups like 764 will often recruit new members by lurking on gaming platforms, social media sites and mobile applications that are popular with young people, including Discord, Minecraft, Roblox, Steam, Telegram, and Twitch.

“This type of offence usually starts with a direct message through gaming platforms and can move to more private chatrooms on other virtual platforms, typically one with video enabled features, where the conversation quickly becomes sexualized or violent,” warns a recent alert from the Royal Canadian Mounted Police (RCMP) about the rise of sextortion groups on social media channels.

“One of the tactics being used by these actors is sextortion, however, they are not using it to extract money or for sexual gratification,” the RCMP continued. “Instead they use it to further manipulate and control victims to produce more harmful and violent content as part of their ideological objectives and radicalization pathway.”

The 764 network is among the most populated harm communities, but there are plenty more. Some of the largest such known groups include CVLT, Court, Kaskar, Leak Society, 7997, 8884, 2992, 6996, 555, Slit Town, 545, 404, NMK, 303, and H3ll.

In March, a consortium of reporters from Wired, Der Spiegel, Recorder and The Washington Post examined millions of messages across more than 50 Discord and Telegram chat groups.

“The abuse perpetrated by members of com groups is extreme,” Wired’s Ali Winston wrote. “They have coerced children into sexual abuse or self-harm, causing them to deeply lacerate their bodies to carve ‘cutsigns’ of an abuser’s online alias into their skin.” The story continues:

“Victims have flushed their heads in toilets, attacked their siblings, killed their pets, and in some extreme instances, attempted or died by suicide. Court records from the United States and European nations reveal participants in this network have also been accused of robberies, in-person sexual abuse of minors, kidnapping, weapons violations, swatting, and murder.”

“Some members of the network extort children for sexual pleasure, some for power and control. Some do it merely for the kick that comes from manipulation. Others sell the explicit CSAM content produced by extortion on the dark web.”

KrebsOnSecurity has learned Holy is the 17-year-old who was arrested in July 2024 by the U.K.’s West Midlands Police as part of a joint investigation with the FBI into the MGM hack.

Early in their cybercriminal career (as a 15-year-old), @Holy went by the handle “Vsphere,” and was a proud member of the LAPSUS$ cybercrime group. Throughout 2022, LAPSUS$ would hack and social engineer their way into some of the world’s biggest technology companies, including EA Games, Microsoft, NVIDIA, Okta, Samsung, and T-Mobile.

JUDISCHE/WAIFU

Another timely example of the overlap between harm communities and top members of The Com can be found in a group of criminals who recently stole obscene amounts of customer records from users of the cloud data provider Snowflake.

At the end of 2023, malicious hackers figured out that many major companies have uploaded massive amounts of valuable and sensitive customer data to Snowflake servers, all the while protecting those Snowflake accounts with little more than a username and password (no multi-factor authentication required). The group then searched darknet markets for stolen Snowflake account credentials, and began raiding the data storage repositories used by some of the world’s largest corporations.

Among those that had data exposed in Snowflake was AT&T, which disclosed in July that cybercriminals had stolen personal information and phone and text message records for roughly 110 million people — nearly all its customers.

A report on the extortion group from the incident response firm Mandiant notes that Snowflake victim companies were privately approached by the hackers, who demanded a ransom in exchange for a promise not to sell or leak the stolen data. All told, more than 160 organizations were extorted, including TicketMaster, Lending Tree, Advance Auto Parts and Neiman Marcus.

On May 2, 2024, a user by the name “Judische” claimed on the fraud-focused Telegram channel Star Chat that they had hacked Santander Bank, one of the first known Snowflake victims. Judische would repeat that claim in Star Chat on May 13 — the day before Santander publicly disclosed a data breach — and would periodically blurt out the names of other Snowflake victims before their data even went up for sale on the cybercrime forums.

A careful review of Judische’s account history and postings on Telegram shows this user is more widely known under the nickname “Waifu,” an early moniker that corresponds to one of the more accomplished SIM-swappers in The Com over the years.

In a SIM-swapping attack, the fraudsters will phish or purchase credentials for mobile phone company employees, and use those credentials to redirect a target’s mobile calls and text messages to a device the attackers control.

Several channels on Telegram maintain a frequently updated leaderboard of the 100 richest SIM-swappers, as well as the hacker handles associated with specific cybercrime groups (Waifu is ranked #24). That leaderboard has long included Waifu on a roster of hackers for a group that called itself “Beige.”

Beige members were implicated in two stories published here in 2020. The first was an August 2020 piece called Voice Phishers Targeting Corporate VPNs, which warned that the COVID-19 epidemic had brought a wave of voice phishing or “vishing” attacks that targeted work-from-home employees via their mobile devices, and tricked many of those people into giving up credentials needed to access their employer’s network remotely.

Beige group members also have claimed credit for a breach at the domain registrar GoDaddy. In November 2020, intruders thought to be associated with the Beige Group tricked a GoDaddy employee into installing malicious software, and with that access they were able to redirect the web and email traffic for multiple cryptocurrency trading platforms.

The Telegram channels that Judische and his related accounts frequented over the years show this user divides their time between posting in SIM-swapping and cybercrime cashout channels, and harassing and stalking others in harm communities like Leak Society and Court.

Mandiant has attributed the Snowflake compromises to a group it calls “UNC5537,” with members based in North America and Turkey. KrebsOnSecurity has learned Judische is a 26-year-old software engineer in Ontario, Canada.

Sources close to the investigation into the Snowflake incident tell KrebsOnSecurity the UNC5537 member in Turkey is John Erin Binns, an elusive American man indicted by the U.S. Department of Justice (DOJ) for a 2021 breach at T-Mobile that exposed the personal information of at least 76.6 million customers.

Binns is currently in custody in a Turkish prison and fighting his extradition. Meanwhile, he has been suing almost every federal agency and agent that contributed investigative resources to his case.

In June 2024, a Mandiant employee told Bloomberg that UNC5537 members have made death threats against cybersecurity experts investigating the hackers, and that in one case the group used artificial intelligence to create fake nude photos of a researcher to harass them.

ViLE

In June 2024, two American men pleaded guilty to hacking into a U.S. Drug Enforcement Agency (DEA) online portal that tapped into 16 different federal law enforcement databases.  Sagar “Weep” Singh, a 20-year-old from Rhode Island, and Nicholas “Convict” Ceraolo, 25, of Queens, NY, were both active in SIM-swapping communities.

Singh and Ceraolo hacked into a number of foreign police department email accounts, and used them to make phony “emergency data requests” to social media platforms seeking account information about specific users they were stalking. According to the government, in each case the men impersonating the foreign police departments told those platforms the request was urgent because the account holders had been trading in child pornography or engaging in child extortion.

Eventually, the two men formed part of a group of cybercriminals known to its members as “ViLE,” who specialize in obtaining personal information about third-party victims, which they then used to harass, threaten or extort the victims, a practice known as “doxing.”

The U.S. government says Singh and Ceraolo worked closely with a third man — referenced in the indictment as co-conspirator #1 or “CC-1” — to administer a doxing forum where victims could pay to have their personal information removed.

The government doesn’t name CC-1 or the doxing forum, but CC-1’s hacker handle is “Kayte” (a.k.a. “KT“) which corresponds to the nickname of a 23-year-old man who lives with his parents in Coffs Harbor, Australia. For several years (with a brief interruption), KT has been the administrator of a truly vile doxing community known as the Doxbin.

People whose names and personal information appear on the Doxbin can quickly find themselves the target of extended harassment campaigns, account hacking, SIM-swapping and even swatting — which involves falsely reporting a violent incident at a target’s address to trick local police into responding with potentially deadly force.

A handful of Com members targeted by federal authorities have gone so far as to perpetrate swatting, doxing, and other harassment against the same federal agents who are trying to unravel their alleged crimes. This has led some investigators working cases involving the Com to begin redacting their names from affidavits and indictments filed in federal court.

In January 2024, KrebsOnSecurity broke the news that prosecutors in Florida had charged a 19-year-old alleged Scattered Spider member named Noah Michael Urban with wire fraud and identity theft. That story recounted how Urban’s alleged hacker identities “King Bob” and “Sosa” inhabited a world in which rival cryptocurrency theft rings frequently settled disputes through so-called “violence-as-a-service” offerings — hiring strangers online to perpetrate firebombings, beatings and kidnappings against their rivals.

Urban’s indictment shows the name of the federal agent who testified to it has been blacked out:

HACKING RINGS, STALKING VICTIMS

In June 2022, this blog told the story of two men charged with hacking into the Ring home security cameras of a dozen random people and then methodically swatting each of them. Adding insult to injury, the men used the compromised security cameras to record live footage of local police swarming those homes.

James Thomas Andrew McCarty, Charlotte, N.C., and Kya “Chumlul” Nelson, of Racine, Wisc., conspired to hack into Yahoo email accounts belonging to victims in the United States. The two would check how many of those Yahoo accounts were associated with Ring accounts, and then target people who used the same password for both accounts.

The Telegram and Discord aliases allegedly used by McCarty — “Aspertaine” and “Couch,” among others — correspond to an identity that was active in certain channels dedicated to SIM-swapping.

What KrebsOnSecurity didn’t report at the time is that both ChumLul and Aspertaine were active members of CVLT, wherein those identities clearly participated in harassing and exploiting young teens online.

In June 2024, McCarty was sentenced to seven years in prison after pleading guilty to making hoax calls that elicited police SWAT responses. Nelson also pleaded guilty and received a seven-year prison sentence.

POMPOMPURIN

In March 2023, U.S. federal agents in New York announced they’d arrested “Pompompurin,” the alleged administrator of Breachforums, an English-language cybercrime forum where hacked corporate databases frequently appear for sale. In cases where the victim organization isn’t extorted in advance by hackers, being listed on Breachforums has often been the way many victims first learned of an intrusion.

Pompompurin had been a nemesis to the FBI for several years. In November 2021, KrebsOnSecurity broke the news that thousands of fake emails about a cybercrime investigation were blasted out from the FBI’s email systems and Internet addresses.

Pompompurin took credit for that stunt, and said he was able to send the FBI email blast by exploiting a flaw in an FBI portal designed to share information with state and local law enforcement authorities. The FBI later acknowledged that a software misconfiguration allowed someone to send the fake emails.

In December, 2022, KrebsOnSecurity detailed how hackers active on BreachForums had infiltrated the FBI’s InfraGard program, a vetted network designed to build cyber and physical threat information sharing partnerships with experts in the private sector. The hackers impersonated the CEO of a major financial company, applied for InfraGard membership in the CEO’s name, and were granted admission to the community.

The feds named Pompompurin as 21-year-old Peekskill resident Conor Brian Fitzpatrick, who was originally charged with one count of conspiracy to solicit individuals to sell unauthorized access devices (stolen usernames and passwords). But after FBI agents raided and searched the home where Fitzpatrick lived with his parents, prosecutors tacked on charges for possession of child pornography.

DOMESTIC TERRORISM?

Recent actions by the DOJ indicate the government is well aware of the significant overlap between leading members of The Com and harm communities. But the government also is growing more sensitive to the criticism that it can often take months or years to gather enough evidence to criminally charge some of these suspects, during which time the perpetrators can abuse and recruit countless new victims.

Late last year, however, the DOJ signaled a new tactic in pursuing leaders of harm communities like 764: Charging them with domestic terrorism.

In December 2023, the government charged (PDF) a Hawaiian man with possessing and sharing sexually explicit videos and images of prepubescent children being abused. Prosecutors allege Kalana Limkin, 18, of Hilo, Hawaii, admitted he was an associate of CVLT and 764, and that he was the founder of a splinter harm group called Cultist. Limkin’s Telegram profile shows he also was active on the harm community Slit Town.

The relevant citation from Limkin’s complaint reads:

“Members of the group ‘764’ have conspired and continue to conspire in both online and in-person venues to engage in violent actions in furtherance of a Racially Motivated Violent Extremist ideology, wholly or in part through activities that violate federal criminal law meeting the statutory definition of Domestic Terrorism, defined in Title 18, United States Code, § 2331.”

Experts say charging harm groups under anti-terrorism statutes potentially gives the government access to more expedient investigative powers than it would normally have in a run-of-the-mill criminal hacking case.

“What it ultimately gets you is additional tools you can use in the investigation, possibly warrants and things like that,” said Mark Rasch, a former U.S. federal cybercrime prosecutor and now general counsel for the New York-based cybersecurity firm Unit 221B. “It can also get you additional remedies at the end of the case, like greater sanctions, more jail time, fines and forfeiture.”

But Rasch said this tactic can backfire on prosecutors who overplay their hand and go after someone who ends up challenging the charges in court.

“If you’re going to charge a hacker or pedophile with a crime like terrorism, that’s going to make it harder to get a conviction,” Rasch said. “It adds to the prosecutorial burden and increases the likelihood of getting an acquittal.”

Rasch said it’s unclear where it is appropriate to draw the line in the use of terrorism statutes to disrupt harm groups online, noting that there certainly are circumstances where individuals can commit violations of domestic anti-terrorism statutes through their Internet activity alone.

“The Internet is a platform like any other, where virtually any kind of crime that can be committed in the real world can also be committed online,” he said. “That doesn’t mean all misuse of computers fits within the statutory definition of terrorism.”

The RCMP’s advisory on sexual extortion of minors over the Internet lists a number of potential warning signs that teens may exhibit if they become entangled in these harm groups. The FBI urges anyone who believes their child or someone they know is being exploited to contact their local FBI field office, call 1-800-CALL-FBI, or report it online at tips.fbi.gov.

New 0-Day Attacks Linked to China’s ‘Volt Typhoon’

Malicious hackers are exploiting a zero-day vulnerability in Versa Director, a software product used by many Internet and IT service providers. Researchers believe the activity is linked to Volt Typhoon, a Chinese cyber espionage group focused on infiltrating critical U.S. networks and laying the groundwork for the ability to disrupt communications between the United States and Asia during any future armed conflict with China.

Versa Director systems are primarily used by Internet service providers (ISPs), as well as managed service providers (MSPs) that cater to the IT needs of many small to mid-sized businesses simultaneously. In a security advisory published Aug. 26, Versa urged customers to deploy a patch for the vulnerability (CVE-2024-39717), which the company said is fixed in Versa Director 22.1.4 or later.

Versa said the weakness allows attackers to upload a file of their choosing to vulnerable systems. The advisory placed much of the blame on Versa customers who “failed to implement system hardening and firewall guidelines…leaving a management port exposed on the internet that provided the threat actors with initial access.”

Versa’s advisory doesn’t say how it learned of the zero-day flaw, but its vulnerability listing at mitre.org acknowledges “there are reports of others based on backbone telemetry observations of a 3rd party provider, however these are unconfirmed to date.”

Those third-party reports came in late June 2024 from Michael Horka, senior lead information security engineer at Black Lotus Labs, the security research arm of Lumen Technologies, which operates one of the global Internet’s largest backbones.

In an interview with KrebsOnSecurity, Horka said Black Lotus Labs identified a web-based backdoor on Versa Director systems belonging to four U.S. victims and one non-U.S. victim in the ISP and MSP sectors, with the earliest known exploit activity occurring at a U.S. ISP on June 12, 2024.

“This makes Versa Director a lucrative target for advanced persistent threat (APT) actors who would want to view or control network infrastructure at scale, or pivot into additional (or downstream) networks of interest,” Horka wrote in a blog post published today.

Black Lotus Labs said it assessed with “medium” confidence that Volt Typhoon was responsible for the compromises, noting the intrusions bear the hallmarks of the Chinese state-sponsored espionage group — including zero-day attacks targeting IT infrastructure providers, and Java-based backdoors that run in memory only.

In May 2023, the National Security Agency (NSA), the Federal Bureau of Investigation (FBI), and the Cybersecurity Infrastructure Security Agency (CISA) issued a joint warning (PDF) about Volt Typhoon, also known as “Bronze Silhouette” and “Insidious Taurus,” which described how the group uses small office/home office (SOHO) network devices to hide their activity.

In early December 2023, Black Lotus Labs published its findings on “KV-botnet,” thousands of compromised SOHO routers that were chained together to form a covert data transfer network supporting various Chinese state-sponsored hacking groups, including Volt Typhoon.

In January 2024, the U.S. Department of Justice disclosed the FBI had executed a court-authorized takedown of the KV-botnet shortly before Black Lotus Labs released its December report.

In February 2024, CISA again joined the FBI and NSA in warning Volt Typhoon had compromised the IT environments of multiple critical infrastructure organizations — primarily in communications, energy, transportation systems, and water and wastewater sectors — in the continental and non-continental United States and its territories, including Guam.

“Volt Typhoon’s choice of targets and pattern of behavior is not consistent with traditional cyber espionage or intelligence gathering operations, and the U.S. authoring agencies assess with high confidence that Volt Typhoon actors are pre-positioning themselves on IT networks to enable lateral movement to OT [operational technology] assets to disrupt functions,” that alert warned.

In a speech at Vanderbilt University in April, FBI Director Christopher Wray said China is developing the “ability to physically wreak havoc on our critical infrastructure at a time of its choosing,” and that China’s plan is to “land blows against civilian infrastructure to try to induce panic.”

Ryan English, an information security engineer at Lumen, said it’s disappointing his employer didn’t at least garner an honorable mention in Versa’s security advisory. But he said he’s glad there are now a lot fewer Versa systems exposed to this attack.

“Lumen has for the last nine weeks been very intimate with their leadership with the goal in mind of helping them mitigate this,” English said. “We’ve given them everything we could along the way, so it kind of sucks being referenced just as a third party.”

Local Networks Go Global When Domain Names Collide

The proliferation of new top-level domains (TLDs) has exacerbated a well-known security weakness: Many organizations set up their internal Microsoft authentication systems years ago using domain names in TLDs that didn’t exist at the time. Meaning, they are continuously sending their Windows usernames and passwords to domain names they do not control and which are freely available for anyone to register. Here’s a look at one security researcher’s efforts to map and shrink the size of this insidious problem.

At issue is a well-known security and privacy threat called “namespace collision,” a situation where domain names intended to be used exclusively on an internal company network end up overlapping with domains that can resolve normally on the open Internet.

Windows computers on a private corporate network validate other things on that network using a Microsoft innovation called Active Directory, which is the umbrella term for a broad range of identity-related services in Windows environments. A core part of the way these things find each other involves a Windows feature called “DNS name devolution,” a kind of network shorthand that makes it easier to find other computers or servers without having to specify a full, legitimate domain name for those resources.

Consider the hypothetical private network internalnetwork.example.com: When an employee on this network wishes to access a shared drive called “drive1,” there’s no need to type “drive1.internalnetwork.example.com” into Windows Explorer; entering “\\drive1\” alone will suffice, and Windows takes care of the rest.

But problems can arise when an organization has built their Active Directory network on top of a domain they don’t own or control. While that may sound like a bonkers way to design a corporate authentication system, keep in mind that many organizations built their networks long before the introduction of hundreds of new top-level domains (TLDs), like .network, .inc, and .llc.

For example, a company in 2005 builds their Microsoft Active Directory service around the domain company.llc, perhaps reasoning that since .llc wasn’t even a routable TLD, the domain would simply fail to resolve if the organization’s Windows computers were ever used outside of its local network.

Alas, in 2018, the .llc TLD was born and began selling domains. From then on, anyone who registered company.llc would be able to passively intercept that organization’s Microsoft Windows credentials, or actively modify those connections in some way — such as redirecting them somewhere malicious.

Philippe Caturegli, founder of the security consultancy Seralys, is one of several researchers seeking to chart the size of the namespace collision problem. As a professional penetration tester, Caturegli has long exploited these collisions to attack specific targets that were paying to have their cyber defenses probed. But over the past year, Caturegli has been gradually mapping this vulnerability across the Internet by looking for clues that appear in self-signed security certificates (e.g. SSL/TLS certs).

Caturegli has been scanning the open Internet for self-signed certificates referencing domains in a variety of TLDs likely to appeal to businesses, including .ad, .associates, .center, .cloud, .consulting, .dev, .digital, .domains, .email, .global, .gmbh, .group, .holdings, .host, .inc, .institute, .international, .it, .llc, .ltd, .management, .ms, .name, .network, .security, .services, .site, .srl, .support, .systems, .tech, .university, .win and .zone, among others.

Seralys found certificates referencing more than 9,000 distinct domains across those TLDs. Their analysis determined many TLDs had far more exposed domains than others, and that about 20 percent of the domains they found ending .ad, .cloud and .group remain unregistered.

“The scale of the issue seems bigger than I initially anticipated,” Caturegli said in an interview with KrebsOnSecurity. “And while doing my research, I have also identified government entities (foreign and domestic), critical infrastructures, etc. that have such misconfigured assets.”

REAL-TIME CRIME

Some of the above-listed TLDs are not new and correspond to country-code TLDs, like .it for Italy, and .ad, the country-code TLD for the tiny nation of Andorra. Caturegli said many organizations no doubt viewed a domain ending in .ad as a convenient shorthand for an internal Active Directory setup, while being unaware or unworried that someone could actually register such a domain and intercept all of their Windows credentials and any unencrypted traffic.

When Caturegli discovered an encryption certificate being actively used for the domain memrtcc.ad, the domain was still available for registration. He then learned the .ad registry requires prospective customers to show a valid trademark for a domain before it can be registered.

Undeterred, Caturegli found a domain registrar that would sell him the domain for $160, and handle the trademark registration for another $500 (on subsequent .ad registrations, he located a company in Andorra that could process the trademark application for half that amount).

Caturegli said that immediately after setting up a DNS server for memrtcc.ad, he began receiving a flood of communications from hundreds of Microsoft Windows computers trying to authenticate to the domain. Each request contained a username and a hashed Windows password, and upon searching the usernames online Caturegli concluded they all belonged to police officers in Memphis, Tenn.

“It looks like all of the police cars there have a laptop in the cars, and they’re all attached to this memrtcc.ad domain that I now own,” Caturegli said, noting wryly that “memrtcc” stands for “Memphis Real-Time Crime Center.”

Caturegli said setting up an email server record for memrtcc.ad caused him to begin receiving automated messages from the police department’s IT help desk, including trouble tickets regarding the city’s Okta authentication system.

Mike Barlow, information security manager for the City of Memphis, confirmed the Memphis Police’s systems were sharing their Microsoft Windows credentials with the domain, and that the city was working with Caturegli to have the domain transferred to them.

“We are working with the Memphis Police Department to at least somewhat mitigate the issue in the meantime,” Barlow said.

Domain administrators have long been encouraged to use .local for internal domain names, because this TLD is reserved for use by local networks and cannot be routed over the open Internet. However, Caturegli said many organizations seem to have missed that memo and gotten things backwards — setting up their internal Active Directory structure around the perfectly routable domain local.ad.

Caturegli said he knows this because he “defensively” registered local.ad, which he said is currently used by multiple large organizations for Active Directory setups — including a European mobile phone provider, and the City of Newcastle in the United Kingdom.

ONE WPAD TO RULE THEM ALL

Caturegli said he has now defensively registered a number of domains ending in .ad, such as internal.ad and schema.ad. But perhaps the most dangerous domain in his stable is wpad.ad. WPAD stands for Web Proxy Auto-Discovery Protocol, which is an ancient, on-by-default feature built into every version of Microsoft Windows that was designed to make it simpler for Windows computers to automatically find and download any proxy settings required by the local network.

Trouble is, any organization that chose a .ad domain they don’t own for their Active Directory setup will have a whole bunch of Microsoft systems constantly trying to reach out to wpad.ad if those machines have proxy automated detection enabled.

Security researchers have been beating up on WPAD for more than two decades now, warning time and again how it can be abused for nefarious ends. At this year’s DEF CON security conference in Las Vegas, for example, a researcher showed what happened after they registered the domain wpad.dk: Immediately after switching on the domain, they received a flood of WPAD requests from Microsoft Windows systems in Denmark that had namespace collisions in their Active Directory environments.

For his part, Caturegli set up a server on wpad.ad to resolve and record the Internet address of any Windows systems trying to reach Microsoft Sharepoint servers, and saw that over one week it received more than 140,000 hits from hosts around the world attempting to connect.

The fundamental problem with WPAD is the same with Active Directory: Both are technologies originally designed to be used in closed, static, trusted office environments, and neither was built with today’s mobile devices or workforce in mind.

Probably one big reason organizations with potential namespace collision problems don’t fix them is that rebuilding one’s Active Directory infrastructure around a new domain name can be incredibly disruptive, costly, and risky, while the potential threat is considered comparatively low.

But Caturegli said ransomware gangs and other cybercrime groups could siphon huge volumes of Microsoft Windows credentials from quite a few companies with just a small up-front investment.

“It’s an easy way to gain that initial access without even having to launch an actual attack,” he said. “You just wait for the misconfigured workstation to connect to you and send you their credentials.”

If we ever learn that cybercrime groups are using namespace collisions to launch ransomware attacks, nobody can say they weren’t warned. Mike O’Connor, an early domain name investor who registered a number of choice domains such as bar.com, place.com and television.com, warned loudly and often back in 2013 that then-pending plans to add more than 1,000 new TLDs would massively expand the number of namespace collisions.

Mr. O’Connor’s most famous domain is corp.com, because for several decades he watched in horror as hundreds of thousands of Microsoft PCs continuously blasted his domain with credentials from organizations that had set up their Active Directory environment around the domain corp.com.

It turned out that Microsoft had actually used corp.com as an example of how one might set up Active Directory in some editions of Windows NT. Worse, some of the traffic going to corp.com was coming from Microsoft’s internal networks, indicating some part of Microsoft’s own internal infrastructure was misconfigured. When O’Connor said he was ready to sell corp.com to the highest bidder in 2020, Microsoft agreed to buy the domain for an undisclosed amount.

“I kind of imagine this problem to be something like a town [that] knowingly built a water supply out of lead pipes, or vendors of those projects who knew but didn’t tell their customers,” O’Connor told KrebsOnSecurity. “This is not an inadvertent thing like Y2K where everybody was surprised by what happened. People knew and didn’t care.”

Phish-Friendly Domain Registry “.top” Put on Notice

The Chinese company in charge of handing out domain names ending in “.top” has been given until mid-August 2024 to show that it has put in place systems for managing phishing reports and suspending abusive domains, or else forfeit its license to sell domains. The warning comes amid the release of new findings that .top was the most common suffix in phishing websites over the past year, second only to domains ending in “.com.”

On July 16, the Internet Corporation for Assigned Names and Numbers (ICANN) sent a letter to the owners of the .top domain registry. ICANN has filed hundreds of enforcement actions against domain registrars over the years, but in this case ICANN singled out a domain registry responsible for maintaining an entire top-level domain (TLD).

Among other reasons, the missive chided the registry for failing to respond to reports about phishing attacks involving .top domains.

“Based on the information and records gathered through several weeks, it was determined that .TOP Registry does not have a process in place to promptly, comprehensively, and reasonably investigate and act on reports of DNS Abuse,” the ICANN letter reads (PDF).

ICANN’s warning redacted the name of the recipient, but records show the .top registry is operated by a Chinese entity called Jiangsu Bangning Science & Technology Co. Ltd. Representatives for the company have not responded to requests for comment.

Domains ending in .top were represented prominently in a new phishing report released today by the Interisle Consulting Group, which sources phishing data from several places, including the Anti-Phishing Working Group (APWG), OpenPhish, PhishTank, and Spamhaus.

Interisle’s newest study examined nearly two million phishing attacks in the last year, and found that phishing sites accounted for more than four percent of all new .top domains between May 2023 and April 2024. Interisle said .top has roughly 2.76 million domains in its stable, and that more than 117,000 of those were phishing sites in the past year.

ICANN said its review was based on information collected and studied about .top domains over the past few weeks. But the fact that high volumes of phishing sites are being registered through Jiangsu Bangning Science & Technology Co Ltd. is hardly a new trend.

For example, more than 10 years ago the same Chinese registrar was the fourth most common source of phishing websites, as tracked by the APWG. Bear in mind that the APWG report excerpted below was published more than a year before Jiangsu Bangning received ICANN approval to introduce and administer the new .top registry.

A fascinating new wrinkle in the phishing landscape is the growth in scam pages hosted via the InterPlanetary File System (IPFS), a decentralized data storage and delivery network that is based on peer-to-peer networking. According to Interisle, the use of IPFS to host and launch phishing attacks — which can make phishing sites more difficult to take down — increased a staggering 1,300 percent, to roughly 19,000 phishing sites reported in the last year.

Last year’s report from Interisle found that domain names ending in “.us” — the top-level domain for the United States — were among the most prevalent in phishing scams. While .us domains are not even on the Top 20 list of this year’s study, “.com” maintained its perennial #1 spot as the largest source of phishing domains overall.

A year ago, the phishiest domain registrar by far was Freenom, a now-defunct registrar that handed out free domains in several country-code TLDs, including .tk, .ml, .ga and .cf. Freenom went out of business after being sued by Meta, which alleged Freenom ignored abuse complaints while monetizing traffic to abusive domains.

Following Freenom’s demise, phishers quickly migrated to other new low-cost TLDs and to services that allow anonymous, free domain registrations — particularly subdomain services. For example, Interisle found phishing attacks involving websites created on Google’s blogspot.com skyrocketed last year more than 230 percent. Other subdomain services that saw a substantial growth in domains registered by phishers include weebly.com, github.io, wix.com, and ChangeIP, the report notes.

Interisle Consulting partner Dave Piscitello said ICANN could easily send similar warning letters to at least a half-dozen other top-level domain registries, noting that spammers and phishers tend to cycle through the same TLDs periodically — including .xyz, .info, .support and .lol, all of which saw considerably more business from phishers after Freenom’s implosion.

Piscitello said domain registrars and registries could significantly reduce the number of phishing sites registered through their services just by flagging customers who try to register huge volumes of domains at once. Their study found that at least 27% of the domains used for phishing were registered in bulk — i.e. the same registrant paid for hundreds or thousands of domains in quick succession.

The report includes a case study in which a phisher this year registered 17,562 domains over the course of an eight-hour period — roughly 38 domains per minute — using .lol domains that were all composed of random letters.

ICANN tries to resolve contract disputes privately with the registry and registrar community, and experts say the nonprofit organization usually only publishes enforcement letters when the recipient is ignoring its private notices. Indeed, ICANN’s letter notes Jiangsu Bangning didn’t even open its emailed notifications. It also cited the registry for falling behind in its ICANN membership fees.

With that in mind, a review of ICANN’s public enforcement activity suggests two trends: One is that there have been far fewer public compliance and enforcement actions in recent years — even as the number of new TLDs has expanded dramatically.

The second is that in a majority of cases, the failure of a registry or registrar to pay its annual ICANN membership fees was cited as a reason for a warning letter. A review of nearly two dozen enforcement letters ICANN has sent to domain registrars since 2022 shows that failure to pay dues was cited as a reason (or the reason) for the violation at least 75 percent of the time.

Piscitello, a former vice president of security at ICANN, said nearly all breach notices sent out while he was at ICANN were because the registrar owed money.

“I think the rest is just lipstick to suggest that ICANN’s on top of DNS Abuse,” Piscitello said.

KrebsOnSecurity has sought comment from ICANN and will update this story if they respond.

ICANN said most of its investigations are resolved and closed through the initial informal resolution stage, and that hundreds of enforcement cases are initiated during this stage with the contracted parties who are required to demonstrate compliance, become compliant, and/or present and implement remediation plans to prevent the recurrence of those enforcement issues.

“It is important to take into account that, prior to issuing any notice of breach to a registrar or registry operator, ICANN Compliance conducts an overall contractual compliance ‘health check’ of the relevant contracted party,” ICANN said in a written response to questions. “During this check, ICANN Compliance proactively reviews the contracted party’s compliance with obligations across the agreements and policies. Any additional contractual violation found during these checks is added to the Notice of Breach. It is not uncommon for parties who failed to comply with contractual obligations (whether they are related to DNS Abuse, RDDS, or others) to also be in arrears with ICANN fees.”

Update, 11:49 p.m. ET: Added statement from ICANN. Clarified Piscitello’s former role at ICANN.

Crooks Steal Phone, SMS Records for Nearly All AT&T Customers

AT&T Corp. disclosed today that a new data breach has exposed phone call and text message records for roughly 110 million people — nearly all of its customers. AT&T said it delayed disclosing the incident in response to “national security and public safety concerns,” noting that some of the records included data that could be used to determine where a call was made or text message sent. AT&T also acknowledged the customer records were exposed in a cloud database that was protected only by a username and password (no multi-factor authentication needed).

In a regulatory filing with the U.S. Securities and Exchange Commission today, AT&T said cyber intruders accessed an AT&T workspace on a third-party cloud platform in April, downloading files containing customer call and text interactions between May 1 and October 31, 2022, as well as on January 2, 2023.

The company said the stolen data includes records of calls and texts for mobile providers that resell AT&T’s service, but that it does not include the content of calls or texts, Social Security numbers, dates of birth, or any other personally identifiable information.

However, the company said a subset of stolen records included information about the location of cellular communications towers closest to the subscriber, data that could be used to determine the approximate location of the customer device initiating or receiving those text messages or phone calls.

“While the data does not include customer names, there are often ways, using publicly available online tools, to find the name associated with a specific telephone number,” AT&T allowed.

AT&T’s said it learned of the breach on April 19, but delayed disclosing it at the request of federal investigators. The company’s SEC disclosure says at least one individual has been detained by the authorities in connection with the breach.

In a written statement shared with KrebsOnSecurity, the FBI confirmed that it asked AT&T to delay notifying affected customers.

“Shortly after identifying a potential breach to customer data and before making its materiality decision, AT&T contacted the FBI to report the incident,” the FBI statement reads. “In assessing the nature of the breach, all parties discussed a potential delay to public reporting under Item 1.05(c) of the SEC Rule, due to potential risks to national security and/or public safety. AT&T, FBI, and DOJ worked collaboratively through the first and second delay process, all while sharing key threat intelligence to bolster FBI investigative equities and to assist AT&T’s incident response work.”

Techcrunch quoted an AT&T spokesperson saying the customer data was stolen as a result of a still-unfolding data breach involving more than 160 customers of the cloud data provider Snowflake.

Earlier this year, malicious hackers figured out that many major companies have uploaded massive amounts of valuable and sensitive customer data to Snowflake servers, all the while protecting those Snowflake accounts with little more than a username and password.

Wired reported last month how the hackers behind the Snowflake data thefts purchased stolen Snowflake credentials from dark web services that sell access to usernames, passwords and authentication tokens that are siphoned by information-stealing malware. For its part, Snowflake says it now requires all new customers to use multi-factor authentication.

Other companies with millions of customer records stolen from Snowflake servers include Advance Auto Parts, Allstate, Anheuser-Busch, Los Angeles Unified, Mitsubishi, Neiman Marcus, Pure Storage, Santander Bank, State Farm, and Ticketmaster.

Earlier this year, AT&T reset passwords for millions of customers after the company finally acknowledged a data breach from 2018 involving approximately 7.6 million current AT&T account holders and roughly 65.4 million former account holders.

Mark Burnett is an application security architect, consultant and author. Burnett said the only real use for the data stolen in the most recent AT&T breach is to know who is contacting whom and how many times.

“The most concerning thing to me about this AT&T breach of ALL customer call and text records is that this isn’t one of their main databases; it is metadata on who is contacting who,” Burnett wrote on Mastodon. “Which makes me wonder what would call logs without timestamps or names have been used for.”

It remains unclear why so many major corporations persist in the belief that it is somehow acceptable to store so much sensitive customer data with so few security protections. For example, Advance Auto Parts said the data exposed included full names, Social Security numbers, drivers licenses and government issued ID numbers on 2.3 million people who were former employees or job applicants.

That may be because, apart from the class-action lawsuits that invariably ensue after these breaches, there is little holding companies accountable for sloppy security practices. AT&T told the SEC it does not believe this incident is likely to materially impact AT&T’s financial condition or results of operations. AT&T reported revenues of more than $30 billion in its most recent quarter.

The Stark Truth Behind the Resurgence of Russia’s Fin7

The Russia-based cybercrime group dubbed “Fin7,” known for phishing and malware attacks that have cost victim organizations an estimated $3 billion in losses since 2013, was declared dead last year by U.S. authorities. But experts say Fin7 has roared back to life in 2024 — setting up thousands of websites mimicking a range of media and technology companies — with the help of Stark Industries Solutions, a sprawling hosting provider that is a persistent source of cyberattacks against enemies of Russia.

In May 2023, the U.S. attorney for Washington state declared “Fin7 is an entity no more,” after prosecutors secured convictions and prison sentences against three men found to be high-level Fin7 hackers or managers. This was a bold declaration against a group that the U.S. Department of Justice described as a criminal enterprise with more than 70 people organized into distinct business units and teams.

The first signs of Fin7’s revival came in April 2024, when Blackberry wrote about an intrusion at a large automotive firm that began with malware served by a typosquatting attack targeting people searching for a popular free network scanning tool.

Now, researchers at security firm Silent Push say they have devised a way to map out Fin7’s rapidly regrowing cybercrime infrastructure, which includes more than 4,000 hosts that employ a range of exploits, from typosquatting and booby-trapped ads to malicious browser extensions and spearphishing domains.

Silent Push said it found Fin7 domains targeting or spoofing brands including American Express, Affinity Energy, Airtable, Alliant, Android Developer, Asana, Bitwarden, Bloomberg, Cisco (Webex), CNN, Costco, Dropbox, Grammarly, Google, Goto.com, Harvard, Lexis Nexis, Meta, Microsoft 365, Midjourney, Netflix, Paycor, Quickbooks, Quicken, Reuters, Regions Bank Onepass, RuPay, SAP (Ariba), Trezor, Twitter/X, Wall Street Journal, Westlaw, and Zoom, among others.

Zach Edwards, senior threat analyst at Silent Push, said many of the Fin7 domains are innocuous-looking websites for generic businesses that sometimes include text from default website templates (the content on these sites often has nothing to do with the entity’s stated business or mission).

Edwards said Fin7 does this to “age” the domains and to give them a positive or at least benign reputation before they’re eventually converted for use in hosting brand-specific phishing pages.

“It took them six to nine months to ramp up, but ever since January of this year they have been humming, building a giant phishing infrastructure and aging domains,” Edwards said of the cybercrime group.

In typosquatting attacks, Fin7 registers domains that are similar to those for popular free software tools. Those look-alike domains are then advertised on Google so that sponsored links to them show up prominently in search results, which is usually above the legitimate source of the software in question.

According to Silent Push, the software currently being targeted by Fin7 includes 7-zip, PuTTY, ProtectedPDFViewer, AIMP, Notepad++, Advanced IP Scanner, AnyDesk, pgAdmin, AutoDesk, Bitwarden, Rest Proxy, Python, Sublime Text, and Node.js.

In May 2024, security firm eSentire warned that Fin7 was spotted using sponsored Google ads to serve pop-ups prompting people to download phony browser extensions that install malware. Malwarebytes blogged about a similar campaign in April, but did not attribute the activity to any particular group.

Edwards said Silent Push discovered the new Fin7 domains after a hearing from an organization that was targeted by Fin7 in years past and suspected the group was once again active. Searching for hosts that matched Fin7’s known profile revealed just one active site. But Edwards said that one site pointed to many other Fin7 properties at Stark Industries Solutions, a large hosting provider that materialized just two weeks before Russia invaded Ukraine.

As KrebsOnSecurity wrote in May, Stark Industries Solutions is being used as a staging ground for wave after wave of cyberattacks against Ukraine that have been tied to Russian military and intelligence agencies.

“FIN7 rents a large amount of dedicated IP on Stark Industries,” Edwards said. “Our analysts have discovered numerous Stark Industries IPs that are solely dedicated to hosting FIN7 infrastructure.”

Fin7 once famously operated behind fake cybersecurity companies — with names like Combi Security and Bastion Secure — which they used for hiring security experts to aid in ransomware attacks. One of the new Fin7 domains identified by Silent Push is cybercloudsec[.]com, which promises to “grow your business with our IT, cyber security and cloud solutions.”

Like other phishing groups, Fin7 seizes on current events, and at the moment it is targeting tourists visiting France for the Summer Olympics later this month. Among the new Fin7 domains Silent Push found are several sites phishing people seeking tickets at the Louvre.

“We believe this research makes it clear that Fin7 is back and scaling up quickly,” Edwards said. “It’s our hope that the law enforcement community takes notice of this and puts Fin7 back on their radar for additional enforcement actions, and that quite a few of our competitors will be able to take this pool and expand into all or a good chunk of their infrastructure.”

Further reading:

Stark Industries Solutions: An Iron Hammer in the Cloud.

A 2022 deep dive on Fin7 from the Swiss threat intelligence firm Prodaft (PDF).

The Not-So-Secret Network Access Broker x999xx

Most accomplished cybercriminals go out of their way to separate their real names from their hacker handles. But among certain old-school Russian hackers it is not uncommon to find major players who have done little to prevent people from figuring out who they are in real life. A case study in this phenomenon is “x999xx,” the nickname chosen by a venerated Russian hacker who specializes in providing the initial network access to various ransomware groups.

x999xx is a well-known “access broker” who frequently sells access to hacked corporate networks — usually in the form of remote access credentials — as well as compromised databases containing large amounts of personal and financial data.

In an analysis published in February 2019, cyber intelligence firm Flashpoint called x999xx one of the most senior and prolific members of the top-tier Russian-language cybercrime forum Exploit, where x999xx could be seen frequently advertising the sale of stolen databases and network credentials.

In August 2023, x999xx sold access to a company that develops software for the real estate industry. In July 2023, x999xx advertised the sale of Social Security numbers, names, and birthdays for the citizenry of an entire U.S. state (unnamed in the auction).

A month earlier, x999xx posted a sales thread for 80 databases taken from Australia’s largest retail company. “You may use this data to demand a ransom or do something different with it,” x999xx wrote on Exploit. “Unfortunately, the flaw was patched fast. [+] no one has used the data yet [+] the data hasn’t been used to send spam [+] the data is waiting for its time.”

In October 2022, x999xx sold administrative access to a U.S. healthcare provider.

ALIAS: MAXNM

The oldest account by the name x999xx appeared in 2009 on the Russian language cybercrime forum Verified, under the email address maxnm@ozersk.com. Ozersk is a city in the Chelyabinsk region of west-central Russia.

According to the breach tracking service Constella Intelligence, the address maxnm@ozersk.com was used more than a decade ago to create an account at Vktontakte (the Russian answer to Facebook) under the name Maxim Kirtsov from Ozersk. Mr. Kirtsov’s profile — “maxnm” — says his birthday is September 5, 1991.

The user x999xx registered on the Russian language cybercrime community Zloy in 2014 using the email address maxnmalias-1@yahoo.com. Constella says this email address was used in 2022 at the Russian shipping service cdek.ru by a Maksim Georgievich Kirtsov from Ozersk.

Additional searches on these contact details reveal that prior to 2009, x999xx favored the handle Maxnm on Russian cybercrime forums. Cyber intelligence company Intel 471 finds the user Maxnm registered on Zloy in 2006 from an Internet address in Chelyabinsk, using the email address kirtsov@telecom.ozersk.ru.

That same email address was used to create Maxnm accounts on several other crime forums, including Spamdot and Exploit in 2005 (also from Chelyabinsk), and Damagelab in 2006.

A search in Constella for the Russian version of Kirtsov’s full name — Кирцов Максим Георгиевич — brings up multiple accounts registered to maksya@icloud.com.

A review of the digital footprint for maksya@icloud.com at osint.industries reveals this address was used a decade ago to register a still-active account at imageshack.com under the name x999xx. That account features numerous screenshots of financial statements from various banks, chat logs with other hackers, and even hacked websites.

Some of the photos in that Imageshack account also appear on Kirtsov’s Vkontakte page, including images of vehicles he owns, as well as pictures of potted marijuana plants. Kirtsov’s Vkontakte profile says that in 2012 he was a faculty member of the Ozersk Technological Institute National Research Nuclear University.

The Vkontakte page lists Kirtsov’s occupation as a website called ozersk[.]today, which on the surface appears to be a blog about life in Ozersk. However, in 2019 the security firm Recorded Future published a blog post which found this domain was being used to host a malicious Cobalt Strike server.

Cobalt Strike is a commercial network penetration testing and reconnaissance tool that is sold only to vetted partners. But stolen or ill-gotten Cobalt Strike licenses are frequently abused by cybercriminal gangs to help lay the groundwork for the installation of ransomware on a victim network.

In August 2023, x999xx posted a message on Exploit saying he was interested in buying a licensed version of Cobalt Strike. A month earlier, x999xx filed a complaint on Exploit against another forum member named Cobaltforce, an apparent onetime partner whose sudden and prolonged disappearance from the community left x999xx and others in the lurch. Cobaltforce recruited people experienced in using Cobalt Strike for ransomware operations, and offered to monetize access to hacked networks for a share of the profits.

DomainTools.com finds ozersk[.]today was registered to the email address dashin2008@yahoo.com, which also was used to register roughly two dozen other domains, including x999xx[.]biz. Virtually all of those domains were registered to Maxim Kirtsov from Ozersk. Below is a mind map used to track the identities mentioned in this story.

x999xx is a prolific member of the Russian webmaster forum “Gofuckbiz,” with more than 2,000 posts over nearly a decade, according to Intel 471. In one post from 2016, x999xx asked whether anyone knew where he could buy a heat lamp that simulates sunlight, explaining that one his pet rabbits had recently perished for lack of adequate light and heat. Mr. Kirtsov’s Vkontakte page includes several pictures of caged rabbits from 2015 and earlier.

CONFIRMATION

Reached via email, Mr. Kirtsov acknowledged that he is x999xx. Kirtsov said he and his team are also regular readers of KrebsOnSecurity.

“We’re glad to hear and read you,” Kirtsov replied.

Asked whether he was concerned about the legal and moral implications of his work, Kirtsov downplayed his role in ransomware intrusions, saying he was more focused on harvesting data.

“I consider myself as committed to ethical practices as you are,” Kirtsov wrote. “I have also embarked on research and am currently mentoring students. You may have noticed my activities on a forum, which I assume you know of through information gathered from public sources, possibly using the new tool you reviewed.”

“Regarding my posts about selling access, I must honestly admit, upon reviewing my own actions, I recall such mentions but believe they were never actualized,” he continued. “Many use the forum for self-serving purposes, which explains why listings of targets for sale have dwindled — they simply ceased being viable.”

Kirtsov asserted that he is not interested in harming healthcare institutions, just in stealing their data.

“As for health-related matters, I was once acquainted with affluent webmasters who would pay up to $50 for every 1000 health-themed emails,” Kirtsov said. “Therefore, I had no interest in the more sensitive data from medical institutions like X-rays, insurance numbers, or even names; I focused solely on emails. I am proficient in SQL, hence my ease with handling data like IDs and emails. And i never doing spam or something like this.”

On the Russian crime forums, x999xx said he never targets anything or anyone in Russia, and that he has little to fear from domestic law enforcement agencies provided he remains focused on foreign adversaries.

x999xx’s lackadaisical approach to personal security mirrors that of Wazawaka, another top Russian access broker who sold access to countless organizations and even operated his own ransomware affiliate programs.

“Don’t shit where you live, travel local, and don’t go abroad,” Wazawaka said of his own personal mantra. “Mother Russia will help you. Love your country, and you will always get away with everything.”

In January 2022, KrebsOnSecurity followed clues left behind by Wazawaka to identify him as 32-year-old Mikhail Matveev from Khakassia, Russia. In May 2023, the U.S. Department of Justice indicted Matveev as a key figure in several ransomware groups that collectively extorted hundreds of millions of dollars from victim organizations. The U.S. State Department is offering a $10 million reward for information leading to the capture and/or prosecution of Matveev.

Perhaps in recognition that many top ransomware criminals are largely untouchable so long as they remain in Russia, western law enforcement agencies have begun focusing more on getting inside the heads of those individuals. These so-called “psyops” are aimed at infiltrating ransomware-as-a-service operations, disrupting major cybercrime services, and decreasing trust within cybercriminal communities.

When authorities in the U.S. and U.K. announced in February 2024 that they’d infiltrated and seized the infrastructure used by the infamous LockBit ransomware gang, they borrowed the existing design of LockBit’s victim shaming website to link instead to press releases about the takedown, and included a countdown timer that was eventually replaced with the personal details of LockBit’s alleged leader.

In May 2024, law enforcement agencies in the United States and Europe announced Operation Endgame, a coordinated action against some of the most popular cybercrime platforms for delivering ransomware and data-stealing malware. The Operation Endgame website also included a countdown timer, which served to tease the release of several animated videos that mimic the same sort of flashy, short advertisements that established cybercriminals often produce to promote their services online.

KrebsOnSecurity Threatened with Defamation Lawsuit Over Fake Radaris CEO

On March 8, 2024, KrebsOnSecurity published a deep dive on the consumer data broker Radaris, showing how the original owners are two men in Massachusetts who operated multiple Russian language dating services and affiliate programs, in addition to a dizzying array of people-search websites. The subjects of that piece are threatening to sue KrebsOnSecurity for defamation unless the story is retracted. Meanwhile, their attorney has admitted that the person Radaris named as the CEO from its inception is a fabricated identity.

Radaris is just one cog in a sprawling network of people-search properties online that sell highly detailed background reports on U.S. consumers and businesses. Those reports typically include the subject’s current and previous addresses, partial Social Security numbers, any known licenses, email addresses and phone numbers, as well as the same information for any of their immediate relatives.

Radaris has a less-than-stellar reputation when it comes to responding to consumers seeking to have their reports removed from its various people-search services. That poor reputation, combined with indications that the true founders of Radaris have gone to extraordinary lengths to conceal their stewardship of the company, was what prompted KrebsOnSecurity to investigate the origins of Radaris in the first place.

On April 18, KrebsOnSecurity received a certified letter (PDF) from Valentin “Val” Gurvits, an attorney with the Boston Law Group, stating that KrebsOnSecurity would face a withering defamation lawsuit unless the Radaris story was immediately retracted and an apology issued to the two brothers named in the story as co-founders.

That March story worked backwards from the email address used to register radaris.com, and charted an impressive array of data broker companies created over the past 15 years by Massachusetts residents Dmitry and Igor Lubarsky (also sometimes spelled Lybarsky or Lubarski). Dmitry goes by “Dan,” and Igor uses the name “Gary.”

Those businesses included numerous websites marketed to Russian-speaking people who are new to the United States, such as russianamerica.com, newyork.ru, russiancleveland.com, russianla.com, russianmiami.com, etc. Other domains connected to the Lubarskys included Russian-language dating and adult websites, as well as affiliate programs for their international calling card businesses.

The story on Radaris noted that the Lubarsky brothers registered most of their businesses using a made-up name — “Gary Norden,” sometimes called Gary Nord or Gary Nard.

Mr. Gurvits’ letter stated emphatically that my reporting was lazy, mean-spirited, and obviously intended to smear the reputation of his clients. By way of example, Mr. Gurvits said the Lubarskys were actually Ukrainian, and that the story painted his clients in a negative light by insinuating that they were somehow associated with Radaris and with vaguely nefarious elements in Russia.

But more to the point, Mr. Gurvits said, neither of his clients were Gary Norden, and neither had ever held any leadership positions at Radaris, nor were they financial beneficiaries of the company in any way.

“Neither of my clients is a founder of Radaris, and neither of my clients is the CEOs of Radaris,” Gurvits wrote. “Additionally, presently and going back at least the past 10 years, neither of my clients are (or were) officers or employees of Radaris. Indeed, neither of them even owns (or ever owned) any equity in Radaris. In intentional disregard of these facts, the Article implies that my clients are personally responsible for Radaris’ actions. Therefore, you intentionally caused all negative allegations in the Article made with respect to Radaris to be imputed against my clients personally.”

We took Mr. Gurvits’ word on the ethnicity of his clients, and adjusted the story to remove a single mention that they were Russian. We did so even though Dan Lubarsky’s own Facebook page said (until recently) that he was from Moscow, Russia.

KrebsOnSecurity asked Mr. Gurvits to explain precisely which other details in the story were incorrect, and replied that we would be happy to update the story with a correction if they could demonstrate any errors of fact or omission.

We also requested specifics about several aspects of the story, such as the identity of the current Radaris CEO — listed on the Radaris website as “Victor K.” Mr. Gurvits replied that Radaris is and always has been based in Ukraine, and that the company’s true founder “Eugene L” is based there.

While Radaris has claimed to have offices in Massachusetts, Cyprus and Latvia, its website has never mentioned Ukraine. Mr. Gurvits has not responded to requests for more information about the identities of “Eugene L” or “Victor K.”

Gurvits said he had no intention of doing anyone’s reporting for them, and that the Lubarskys were going to sue KrebsOnSecurity for defamation unless the story was retracted in full. KrebsOnSecurity replied that journalists often face challenges to things that they report, but it is more than rare for one who makes a challenge to take umbrage at being asked for supporting information.

On June 13, Mr. Gurvits sent another letter (PDF) that continued to claim KrebsOnSecurity was defaming his clients, only this time Gurvits said his clients would be satisfied if KrebsOnSecurity just removed their names from the story.

“Ultimately, my clients don’t care what you say about any of the websites or corporate entities in your Article, as long as you completely remove my clients’ names from the Article and cooperate with my clients to have copies of the Article where my clients’ names appear removed from the Internet,” Mr. Gurvits wrote.

MEET THE FAKE RADARIS CEO

The June 13 letter explained that the name Gary Norden was a pseudonym invented by the Radaris marketing division, but that neither of the Lubarsky brothers were Norden.

This was a startling admission, given that Radaris has quoted the fictitious Gary Norden in press releases published and paid for by Radaris, and in news media stories where the company is explicitly seeking money from investors. In other words, Radaris has been misrepresenting itself to investors from the beginning. Here’s a press release from Radaris that was published on PR Newswire in April 2011:

In April 2014, the Boston Business Journal published a story (PDF) about Radaris that extolled the company’s rapid growth and considerable customer base. The story noted that, “to date, the company has raised less than $1 million from Cyprus-based investment company Difive.”

“We live in a world where information becomes much more broad and much more available every single day,” the Boston Business Journal quoted Radaris’ fake CEO Gary Norden, who by then had somehow been demoted from CEO to vice president of business development.

“We decided there needs to be a service that allows for ease of monitoring of information about people,” the fake CEO said. The story went on to say Radaris was seeking to raise between $5 million and $7 million from investors in the ensuing months.

THE BIG LUBARSKY

In his most recent demand letter, Mr. Gurvits helpfully included resumes for both of the Lubarsky brothers.

Dmitry Lubarsky’s resume states he is the owner of Difive.com, a startup incubator for IT companies. Recall that Difive is the same company mentioned by the fake Radaris CEO in the 2014 Boston Business Journal story, which said Difive was the company’s initial and sole investor.

Difive’s website in 2016 said it had offices in Boston, New York, San Francisco, Riga (Latvia) and Moscow (nothing in Ukraine). Meanwhile, DomainTools.com reports difive.com was originally registered in 2007 to the fictitious Gary Norden from Massachusetts.

Archived copies of the Difive website from 2017 include a “Portfolio” page indexing all of the companies in which Difive has invested. That list, available here, includes virtually every “Gary Norden” domain name mentioned in my original report, plus a few that escaped notice earlier.

Dan Lubarsky’s resume says he was CEO of a people search company called HumanBook. The Wayback machine at archive.org shows the Humanbook domain (humanbook.com) came online around April 2008, when the company was still in “beta” mode.

By August 2008, however, humanbook.com had changed the name advertised on its homepage to Radaris Beta. Eventually, Humanbook simply redirected to radaris.com.

Astute readers may notice that the domain radaris.com is not among the companies listed as Difive investments. However, passive domain name system (DNS) records from DomainTools show that between October 2023 and March 2024 radaris.com was hosted alongside all of the other Gary Norden domains at the Internet address range 38.111.228.x.

That address range simultaneously hosted every domain mentioned in this story and in the original March 2024 report as connected to email addresses used by Gary Norden, including radaris.com, radaris.ru, radaris.de, difive.com, privet.ru, blog.ru, comfi.com, phoneowner.com, russianamerica.com, eprofit.com, rehold.com, homeflock.com, humanbook.com and dozens more. A spreadsheet of those historical DNS entries for radaris.com is available here (.csv).

The breach tracking service Constella Intelligence finds just two email addresses ending in difive.com have been exposed in data breaches over the years: dan@difive.com, and gn@difive.com. Presumably, “gn” stands for Gary Norden.

A search on the email address gn@difive.com via the breach tracking service osint.industries reveals this address was used to create an account at Airbnb under the name Gary, with the last four digits of the account’s phone number ending in “0001.”

Constella Intelligence finds gn@difive.com was associated with the Massachusetts number 617-794-0001, which was used to register accounts for “Igor Lybarsky” from Wellesley or Sherborn, Ma. at multiple online businesses, including audiusa.com and the designer eyewear store luxottica.com.

The phone number 617-794-0001 also appears for a “Gary Nard” user at russianamerica.com. Igor Lubarsky’s resume says he was the manager of russianamerica.com.

DomainTools finds 617-794-0001 is connected to registration records for three domains, including paytone.com, a domain that Dan Lubarsky’s resume says he managed. DomainTools also found that number on the registration records for trustoria.com, another major consumer data broker that has an atrocious reputation, according to the Better Business Bureau.

Dan Lubarsky’s resume says he was responsible for several international telecommunications services, including the website comfi.com. DomainTools says the phone number connected to that domain — 617-952-4234 — was also used on the registration records for humanbook.net/biz/info/mobi/us, as well as for radaris.me, radaris.in, and radaris.tel.

Two other key domains are connected to that phone number. The first is barsky.com, which is the website for Barsky Estate Realty Trust (PDF), a real estate holding company controlled by the Lubarskys. Naturally, DomainTools finds barsky.com also was registered to a Gary Norden from Massachusetts. But the organization listed in the barsky.com registration records is Comfi Inc., a VOIP communications firm that Dan Lubarsky’s resume says he managed.

The other domain of note is unipointtechnologies.com. Dan Lubarsky’s resume says he was the CEO of Wellesley Hills, Mass-based Unipoint Technology Inc. In 2012, Unipoint was fined $179,000 by the U.S. Federal Communications Commission, which said the company had failed to apply for a license to provide international telecommunications services.

A pandemic assistance loan granted in 2020 to Igor Lybarsky of Sherborn, Ma. shows he received the money to an entity called Norden Consulting.

PATENTLY REMARKABLE

The 2011 Radaris press release quoting their fake CEO Gary Norden said the company had four patents pending from a team of computer science PhDs. According to the resume shared by Mr. Gurvits, Dan Lubarsky has a PhD in computer science.

The U.S. Patent and Trademark Office (PTO) says Dan Lubarsky/Lubarski has at least nine technology patents to his name. The fake CEO press release from Radaris mentioning its four patents was published in April 2011. By that time, the PTO says Dan Lubarsky had applied for exactly four patents, including, “System and Method for a Web-Based People Directory.” The first of those patents, published in 2009, is tied to Humanbook.com, the company Dan Lubarsky founded that later changed its name to Radaris.

If the Lubarskys were never involved in Radaris, how do they or their attorney know the inside information that Gary Norden is a fiction of Radaris’ marketing department? KrebsOnSecurity has learned that Mr. Gurvits is the same attorney responding on behalf of Radaris in a lawsuit against the data broker filed earlier this year by Atlas Data Privacy.

Mr. Gurvits also stepped forward as Radaris’ attorney in a class action lawsuit the company lost in 2017 because it never contested the claim in court. When the plaintiffs told the judge they couldn’t collect on the $7.5 million default judgment, the judge ordered the domain registry Verisign to transfer the radaris.com domain name to the plaintiffs.

Mr. Gurvits appealed the verdict, arguing that the lawsuit hadn’t named the actual owners of the Radaris domain name — a Cyprus company called Bitseller Expert Limited — and thus taking the domain away would be a violation of their due process rights.

The judge ruled in Radaris’ favor — halting the domain transfer — and told the plaintiffs they could refile their complaint. Soon after, the operator of Radaris changed from Bitseller to Andtop Company, an entity formed (PDF) in the Marshall Islands in Oct. 2020. Andtop also operates the aforementioned people-search service Trustoria.

Mr. Gurvits’ most-publicized defamation case was a client named Aleksej Gubarev, a Russian technology executive whose name appeared in the Steele Dossier. That document included a collection of salacious, unverified information gathered by the former British intelligence officer Christopher Steele during the 2016 U.S. presidential campaign at the direction of former president Donald Trump’s political rivals.

Gubarev, the head of the IT services company XBT Holding and the Florida web hosting firm Webzilla, sued BuzzFeed for publishing the Steele dossier. One of the items in the dossier alleged that XBT/Webzilla and affiliated companies played a key role in the hack of Democratic Party computers in the spring of 2016. The memo alleged Gubarev had been coerced into providing services to Russia’s main domestic security agency, known as the FSB.

In December 2018, a federal judge in Miami ruled in favor of BuzzFeed, saying the publication was protected by the fair report privilege, which gives news organizations latitude in reporting on official government proceedings.

Radaris was originally operated by Bitseller Expert Limited. Who owns Bitseller Expert Limited? A report (PDF) obtained from the Cyprus business registry shows this company lists its director as Pavel Kaydash from Moscow. Mr. Kaydash could not be reached for comment.

Alleged Boss of ‘Scattered Spider’ Hacking Group Arrested

A 22-year-old man from the United Kingdom arrested this week in Spain is allegedly the ringleader of Scattered Spider, a cybercrime group suspected of hacking into Twilio, LastPass, DoorDash, Mailchimp, and nearly 130 other organizations over the past two years.

The Spanish daily Murcia Today reports the suspect was wanted by the FBI and arrested in Palma de Mallorca as he tried to board a flight to Italy.

“He stands accused of hacking into corporate accounts and stealing critical information, which allegedly enabled the group to access multi-million-dollar funds,” Murcia Today wrote. “According to Palma police, at one point he controlled Bitcoins worth $27 million.”

The cybercrime-focused Twitter/X account vx-underground said the U.K. man arrested was a SIM-swapper who went by the alias “Tyler.” In a SIM-swapping attack, crooks transfer the target’s phone number to a device they control and intercept any text messages or phone calls sent to the victim — including one-time passcodes for authentication, or password reset links sent via SMS.

“He is a known SIM-swapper and is allegedly involved with the infamous Scattered Spider group,” vx-underground wrote on June 15, referring to a prolific gang implicated in costly data ransom attacks at MGM and Caesars casinos in Las Vegas last year.

Sources familiar with the investigation told KrebsOnSecurity the accused is a 22-year-old from Dundee, Scotland named Tyler Buchanan, also allegedly known as “tylerb” on Telegram chat channels centered around SIM-swapping.

In January 2024, U.S. authorities arrested another alleged Scattered Spider member — 19-year-old Noah Michael Urban of Palm Coast, Fla. — and charged him with stealing at least $800,000 from five victims between August 2022 and March 2023. Urban allegedly went by the nicknames “Sosa” and “King Bob,” and is believed to be part of the same crew that hacked Twilio and a slew of other companies in 2022.

Investigators say Scattered Spider members are part of a more diffuse cybercriminal community online known as “The Com,” wherein hackers from different cliques boast loudly about high-profile cyber thefts that almost invariably begin with social engineering — tricking people over the phone, email or SMS into giving away credentials that allow remote access to corporate internal networks.

One of the more popular SIM-swapping channels on Telegram maintains a frequently updated leaderboard of the most accomplished SIM-swappers, indexed by their supposed conquests in stealing cryptocurrency. That leaderboard currently lists Sosa as #24 (out of 100), and Tylerb at #65.

0KTAPUS

In August 2022, KrebsOnSecurity wrote about peering inside the data harvested in a months-long cybercrime campaign by Scattered Spider involving countless SMS-based phishing attacks against employees at major corporations. The security firm Group-IB called the gang by a different name — 0ktapus, a nod to how the criminal group phished employees for credentials.

The missives asked users to click a link and log in at a phishing page that mimicked their employer’s Okta authentication page. Those who submitted credentials were then prompted to provide the one-time password needed for multi-factor authentication.

These phishing attacks used newly-registered domains that often included the name of the targeted company, and sent text messages urging employees to click on links to these domains to view information about a pending change in their work schedule. The phishing sites also featured a hidden Telegram instant message bot to forward any submitted credentials in real-time, allowing the attackers to use the phished username, password and one-time code to log in as that employee at the real employer website.

One of Scattered Spider’s first big victims in its 2022 SMS phishing spree was Twilio, a company that provides services for making and receiving text messages and phone calls. The group then pivoted, using their access to Twilio to attack at least 163 of its customers.

Among those was the encrypted messaging app Signal, which said the breach could have let attackers re-register the phone number on another device for about 1,900 users.

Also in August 2022, several employees at email delivery firm Mailchimp provided their remote access credentials to this phishing group. According to Mailchimp, the attackers used their access to Mailchimp employee accounts to steal data from 214 customers involved in cryptocurrency and finance.

On August 25, 2022, the password manager service LastPass disclosed a breach in which attackers stole some source code and proprietary LastPass technical information, and weeks later LastPass said an investigation revealed no customer data or password vaults were accessed.

However, on November 30, 2022 LastPass disclosed a far more serious breach that the company said leveraged data stolen in the August breach. LastPass said criminal hackers had stolen encrypted copies of some password vaults, as well as other personal information.

In February 2023, LastPass disclosed that the intrusion involved a highly complex, targeted attack against an engineer who was one of only four LastPass employees with access to the corporate vault. In that incident, the attackers exploited a security vulnerability in a Plex media server that the employee was running on his home network, and succeeded in installing malicious software that stole passwords and other authentication credentials. The vulnerability exploited by the intruders was patched back in 2020, but the employee never updated his Plex software.

Plex announced its own data breach one day before LastPass disclosed its initial August intrusion. On August 24, 2022, Plex’s security team urged users to reset their passwords, saying an intruder had accessed customer emails, usernames and encrypted passwords.

TURF WARS

Sosa and Tylerb were both subjected to physical attacks from rival SIM-swapping gangs. These communities have been known to settle scores by turning to so-called “violence-as-a-service” offerings on cybercrime channels, wherein people can be hired to perform a variety geographically-specific “in real life” jobs, such as bricking windows, slashing car tires, or even home invasions.

In 2022, a video surfaced on a popular cybercrime channel purporting to show attackers hurling a brick through a window at an address that matches the spacious and upscale home of Urban’s parents in Sanford, Fl.

January’s story on Sosa noted that a junior member of his crew named “Foreshadow” was kidnapped, beaten and held for ransom in September 2022. Foreshadow’s captors held guns to his bloodied head while forcing him to record a video message pleading with his crew to fork over a $200,000 ransom in exchange for his life (Foreshadow escaped further harm in that incident).

According to several SIM-swapping channels on Telegram where Tylerb was known to frequent, rival SIM-swappers hired thugs to invade his home in February 2023. Those accounts state that the intruders assaulted Tylerb’s mother in the home invasion, and that they threatened to burn him with a blowtorch if he didn’t give up the keys to his cryptocurrency wallets. Tylerb was reputed to have fled the United Kingdom after that assault.

KrebsOnSecurity sought comment from Mr. Buchanan, and will update this story in the event he responds.

Stark Industries Solutions: An Iron Hammer in the Cloud

Two weeks before Russia invaded Ukraine in February 2022, a large, mysterious new Internet hosting firm called Stark Industries Solutions materialized and quickly became the epicenter of massive distributed denial-of-service (DDoS) attacks on government and commercial targets in Ukraine and Europe. An investigation into Stark Industries reveals it is being used as a global proxy network that conceals the true source of cyberattacks and disinformation campaigns against enemies of Russia.

At least a dozen patriotic Russian hacking groups have been launching DDoS attacks since the start of the war at a variety of targets seen as opposed to Moscow. But by all accounts, few attacks from those gangs have come close to the amount of firepower wielded by a pro-Russia group calling itself “NoName057(16).”

As detailed by researchers at Radware, NoName has effectively gamified DDoS attacks, recruiting hacktivists via its Telegram channel and offering to pay people who agree to install a piece of software called DDoSia. That program allows NoName to commandeer the host computers and their Internet connections in coordinated DDoS campaigns, and DDoSia users with the most attacks can win cash prizes.

A report from the security firm Team Cymru found the DDoS attack infrastructure used in NoName campaigns is assigned to two interlinked hosting providers: MIRhosting and Stark Industries. MIRhosting is a hosting provider founded in The Netherlands in 2004. But Stark Industries Solutions Ltd was incorporated on February 10, 2022, just two weeks before the Russian invasion of Ukraine.

PROXY WARS

Security experts say that not long after the war started, Stark began hosting dozens of proxy services and free virtual private networking (VPN) services, which are designed to help users shield their Internet usage and location from prying eyes.

Proxy providers allow users to route their Internet and Web browsing traffic through someone else’s computer. From a website’s perspective, the traffic from a proxy network user appears to originate from the rented IP address, not from the proxy service customer.

These services can be used in a legitimate manner for several business purposes — such as price comparisons or sales intelligence — but they are also massively abused for hiding cybercrime activity because they can make it difficult to trace malicious traffic to its original source.

What’s more, many proxy services do not disclose how they obtain access to the proxies they are renting out, and in many cases the access is obtained through the dissemination of malicious software that turns the infected system into a traffic relay — usually unbeknownst to the legitimate owner of the Internet connection. Other proxy services will allow users to make money by renting out their Internet connection to anyone.

Spur.us is a company that tracks VPNs and proxy services worldwide. Spur finds that Stark Industries (AS44477) currently is home to at least 74 VPN services, and 40 different proxy services. As we’ll see in the final section of this story, just one of those proxy networks has over a million Internet addresses available for rent across the globe.

Raymond Dijkxhoorn operates a hosting firm in The Netherlands called Prolocation. He also co-runs SURBL, an anti-abuse service that flags domains and Internet address ranges that are strongly associated with spam and cybercrime activity, including DDoS.

Dijkxhoorn said last year SURBL heard from multiple people who said they operated VPN services whose web resources were included in SURBL’s block lists.

“We had people doing delistings at SURBL for domain names that were suspended by the registrars,” Dijkhoorn told KrebsOnSecurity. “And at least two of them explained that Stark offered them free VPN services that they were reselling.”

Dijkxhoorn added that Stark Industries also sponsored activist groups from Ukraine.

“How valuable would it be for Russia to know the real IPs from Ukraine’s tech warriors?” he observed.

CLOUDY WITH A CHANCE OF BULLETS

Richard Hummel is threat intelligence lead at NETSCOUT. Hummel said when he considers the worst of all the hosting providers out there today, Stark Industries is consistently near or at the top of that list.

“The reason is we’ve had at least a dozen service providers come to us saying, ‘There’s this network out there inundating us with traffic,'” Hummel said. “And it wasn’t even DDoS attacks. [The systems] on Stark were just scanning these providers so fast it was crashing some of their services.”

Hummel said NoName will typically launch their attacks using a mix of resources rented from major, legitimate cloud services, and those from so-called “bulletproof” hosting providers like Stark. Bulletproof providers are so named when they earn or cultivate a reputation for ignoring any abuse complaints or police reports about activity on their networks.

Combining bulletproof providers with legitimate cloud hosting, Hummel said, likely makes NoName’s DDoS campaigns more resilient because many network operators will hesitate to be too aggressive in blocking Internet addresses associated with the major cloud services.

“What we typically see here is a distribution of cloud hosting providers and bulletproof hosting providers in DDoS attacks,” he said. “They’re using public cloud hosting providers because a lot of times that’s your first layer of network defense, and because [many companies are wary of] over-blocking access to legitimate cloud resources.”

But even if the cloud provider detects abuse coming from the customer, the provider is probably not going to shut the customer down immediately, Hummel said.

“There is usually a grace period, and even if that’s only an hour or two, you can still launch a large number of attacks in that time,” he said. “And then they just keep coming back and opening new cloud accounts.”

MERCENARIES TEAM

Stark Industries is incorporated at a mail drop address in the United Kingdom. UK business records list an Ivan Vladimirovich Neculiti as the company’s secretary. Mr. Neculiti also is named as the CEO and founder of PQ Hosting Plus S.R.L. (aka Perfect Quality Hosting), a Moldovan company formed in 2019 that lists the same UK mail drop address as Stark Industries.

Reached via LinkedIn, Mr. Neculiti said PQ Hosting established Stark Industries as a “white label” of its brand so that “resellers could distribute our services using our IP addresses and their clients would not have any affairs with PQ Hosting.”

“PQ Hosting is a company with over 1,000+ of [our] own physical servers in 38 countries and we have over 100,000 clients,” he said. “Though we are not as large as Hetzner, Amazon and OVH, nevertheless we are a fast growing company that provides services to tens of thousands of private customers and legal entities.”

Asked about the constant stream of DDoS attacks whose origins have traced back to Stark Industries over the past two years, Neculiti maintained Stark hasn’t received any official abuse reports about attacks coming from its networks.

“It was probably some kind of clever attack that we did not see, I do not rule out this fact, because we have a very large number of clients and our Internet channels are quite large,” he said. “But, in this situation, unfortunately, no one contacted us to report that there was an attack from our addresses; if someone had contacted us, we would have definitely blocked the network data.”

DomainTools.com finds Ivan V. Neculiti was the owner of war[.]md, a website launched in 2008 that chronicled the history of a 1990 armed conflict in Moldova known as the Transnistria War and the Moldo-Russian war.

Transnistria is a breakaway pro-Russian region that declared itself a state in 1990, although it is not internationally recognized. The copyright on that website credits the “MercenarieS TeaM,” which was at one time a Moldovan IT firm. Mr. Neculiti confirmed personally registering this domain.

DON CHICHO & DFYZ

The data breach tracking service Constella Intelligence reports that an Ivan V. Neculiti registered multiple online accounts under the email address dfyz_bk@bk.ru. Cyber intelligence firm Intel 471 shows this email address is tied to the username “dfyz” on more than a half-dozen Russian language cybercrime forums since 2008. The user dfyz on Searchengines[.]ru in 2008 asked other forum members to review war.md, and said they were part of the MercenarieS TeaM.

Back then, dfyz was selling “bulletproof servers for any purpose,” meaning the hosting company would willfully ignore abuse complaints or police inquiries about the activity of its customers.

DomainTools reports there are at least 33 domain names registered to dfyz_bk@bk.ru. Several of these domains have Ivan Neculiti in their registration records, including tracker-free[.]cn, which was registered to an Ivan Neculiti at dfyz_bk@bk.ru and referenced the MercenarieS TeaM in its original registration records.

Dfyz also used the nickname DonChicho, who likewise sold bulletproof hosting services and access to hacked Internet servers. In 2014, a prominent member of the Russian language cybercrime community Antichat filed a complaint against DonChicho, saying this user scammed them and had used the email address dfyz_bk@bk.ru.

The complaint said DonChicho registered on Antichat from the Transnistria Internet address 84.234.55[.]29. Searching this address in Constella reveals it has been used to register just five accounts online that have been created over the years, including one at ask.ru, where the user registered with the email address neculitzy1@yandex.ru. Constella also returns for that email address a user by the name “Ivan” at memoraleak.com and 000webhost.com.

Constella finds that the password most frequently used by the email address dfyz_bk@bk.ru was “filecast,” and that there are more than 90 email addresses associated with this password. Among them are roughly two dozen addresses with the name “Neculiti” in them, as well as the address support@donservers[.]ru.

Intel 471 says DonChicho posted to several Russian cybercrime forums that support@donservers[.]ru was his address, and that he logged into cybercrime forums almost exclusively from Internet addresses in Tiraspol, the capital of Transnistria. A review of DonChicho’s posts shows this person was banned from several forums in 2014 for scamming other users.

Cached copies of DonChicho’s vanity domain (donchicho[.]ru) show that in 2009 he was a spammer who peddled knockoff prescription drugs via Rx-Promotion, once one of the largest pharmacy spam moneymaking programs for Russian-speaking affiliates.

Mr. Neculiti told KrebsOnSecurity he has never used the nickname DonChicho.

“I may assure you that I have no relation to DonChicho nor to his bulletproof servers,” he said.

Below is a mind map that shows the connections between the accounts mentioned above.

Earlier this year, NoName began massively hitting government and industry websites in Moldova. A new report from Arbor Networks says the attacks began around March 6, when NoName alleged the government of Moldova was “craving for Russophobia.”

“Since early March, more than 50 websites have been targeted, according to posted ‘proof’ by the groups involved in attacking the country,” Arbor’s ASERT Team wrote. “While NoName seemingly initiated the ramp of attacks, a host of other DDoS hacktivists have joined the fray in claiming credit for attacks across more than 15 industries.”

CORRECTIV ACTION

The German independent news outlet Correctiv.org last week published a scathing investigative report on Stark Industries and MIRhosting, which notes that Ivan Neculiti operates his hosting companies with the help of his brother, Yuri.

The report points out that Stark Industries continues to host a Russian disinformation news outlet called “Recent Reliable News” (RRN) that was sanctioned by the European Union in 2023 for spreading links to propaganda blogs and fake European media and government websites.

“The website was not running on computers in Moscow or St. Petersburg until recently, but in the middle of the EU, in the Netherlands, on the computers of the Neculiti brothers,” Correctiv reporters wrote.

“After a request from this editorial team, a well-known service was installed that hides the actual web host,” the report continues. “Ivan Neculiti announced that he had blocked the associated access and server following internal investigations. “We very much regret that we are only now finding out that one of our customers is a sanctioned portal,” said the company boss. However, RRN is still accessible via its servers.”

Correctiv also points to a January 2023 report from the Ukrainian government, which found servers from Stark Industries Solutions were used as part of a cyber attack on the Ukrainian news agency “Ukrinform”. Correctiv notes the notorious hacker group Sandworm — an advanced persistent threat (APT) group operated by a cyberwarfare unit of Russia’s military intelligence service — was identified by Ukrainian government authorities as responsible for that attack.

PEACE HOSTING?

Public records indicate MIRhosting is based in The Netherlands and is operated by 37-year old Andrey Nesterenko, whose personal website says he is an accomplished concert pianist who began performing publicly at a young age.

DomainTools says mirhosting[.]com is registered to Mr. Nesterenko and to Innovation IT Solutions Corp, which lists addresses in London and in Nesterenko’s stated hometown of Nizhny Novgorod, Russia.

This is interesting because according to the book Inside Cyber Warfare by Jeffrey Carr, Innovation IT Solutions Corp. was responsible for hosting StopGeorgia[.]ru, a hacktivist website for organizing cyberattacks against Georgia that appeared at the same time Russian forces invaded the former Soviet nation in 2008. That conflict was thought to be the first war ever fought in which a notable cyberattack and an actual military engagement happened simultaneously.

Responding to questions from KrebsOnSecurity, Mr. Nesterenko said he couldn’t say whether his network had ever hosted the StopGeorgia website back in 2008 because his company didn’t keep records going back that far. But he said Stark Industries Solutions is indeed one of MIRhsoting’s colocation customers.

“Our relationship is purely provider-customer,” Nesterenko said. “They also utilize multiple providers and data centers globally, so connecting them directly to MIRhosting overlooks their broader network.”

“We take any report of malicious activity seriously and are always open to information that can help us identify and prevent misuse of our infrastructure, whether involving Stark Industries or any other customer,” Nesterenko continued. “In cases where our services are exploited for malicious purposes, we collaborate fully with Dutch cyber police and other relevant authorities to investigate and take appropriate measures. However, we have yet to receive any actionable information beyond the article itself, which has not provided us with sufficient detail to identify or block malicious actors.”

In December 2022, security firm Recorded Future profiled the phishing and credential harvesting infrastructure used for Russia-aligned espionage operations by a group dubbed Blue Charlie (aka TAG-53), which has targeted email accounts of nongovernmental organizations and think tanks, journalists, and government and defense officials.

Recorded Future found that virtually all the Blue Charlie domains existed in just ten different ISPs, with a significant concentration located in two networks, one of which was MIRhosting. Both Microsoft and the UK government assess that Blue Charlie is linked to the Russian threat activity groups variously known as Callisto Group, COLDRIVER, and SEABORGIUM.

Mr. Nesterenko took exception to a story on that report from The Record, which is owned by Recorded Future.

“We’ve discussed its contents with our customer, Stark Industries,” he said. “We understand that they have initiated legal proceedings against the website in question, as they firmly believe that the claims made are inaccurate.”

Recorded Future said they updated their story with comments from Mr. Neculiti, but that they stand by their reporting.

Mr. Nesterenko’s LinkedIn profile says he was previously the foreign region sales manager at Serverius-as, a hosting company in The Netherlands that remains in the same data center as MIRhosting.

In February, the Dutch police took 13 servers offline that were used by the infamous LockBit ransomware group, which had originally bragged on its darknet website that its home base was in The Netherlands. Sources tell KrebsOnSecurity the servers seized by the Dutch police were located in Serverius’ data center in Dronten, which is also shared by MIRhosting.

Serverius-as did not respond to requests for comment. Nesterenko said MIRhosting does use one of Serverius’s data centers for its operations in the Netherlands, alongside two other data centers, but that the recent incident involving the seizure of servers has no connection to MIRhosting.

“We are legally prohibited by Dutch law and police regulations from sharing information with third parties regarding any communications we may have had,” he said.

A February 2024 report from security firm ESET found Serverius-as systems were involved in a series of targeted phishing attacks by Russia-aligned groups against Ukrainian entities throughout 2023. ESET observed that after the spearphishing domains were no longer active, they were converted to promoting rogue Internet pharmacy websites.

PEERING INTO THE VOID

A review of the Internet address ranges recently added to the network operated by Stark Industries Solutions offers some insight into its customer base, usage, and maybe even true origins. Here is a snapshot (PDF) of all Internet address ranges announced by Stark Industries so far in the month of May 2024 (this information was graciously collated by the network observability platform Kentik.com).

Those records indicate that the largest portion of the IP space used by Stark is in The Netherlands, followed by Germany and the United States. Stark says it is connected to roughly 4,600 Internet addresses that currently list their ownership as Comcast Cable Communications.

A review of those address ranges at spur.us shows all of them are connected to an entity called Proxyline, which is a sprawling proxy service based in Russia that currently says it has more than 1.6 million proxies globally that are available for rent.

Reached for comment, Comcast said the Internet address ranges never did belong to Comcast, so it is likely that Stark has been fudging the real location of its routing announcements in some cases.

Stark reports that it has more than 67,000 Internet addresses at Santa Clara, Calif.-based EGIhosting. Spur says the Stark addresses involving EGIhosting all map to Proxyline as well. EGIhosting did not respond to requests for comment.

EGIhosting manages Internet addresses for the Cyprus-based hosting firm ITHOSTLINE LTD (aka HOSTLINE-LTD), which is represented throughout Stark’s announced Internet ranges. Stark says it has more than 21,000 Internet addresses with HOSTLINE. Spur.us finds Proxyline addresses are especially concentrated in the Stark ranges labeled ITHOSTLINE LTD, HOSTLINE-LTD, and Proline IT.

Stark’s network list includes approximately 21,000 Internet addresses at Hockessin, De. based DediPath, which abruptly ceased operations without warning in August 2023. According to a phishing report released last year by Interisle Consulting, DediPath was the fourth most common source of phishing attacks in the year ending Oct. 2022. Spur.us likewise finds that virtually all of the Stark address ranges marked “DediPath LLC” are tied to Proxyline.

A large number of the Internet address ranges announced by Stark in May originate in India, and the names that are self-assigned to many of these networks indicate they were previously used to send large volumes of spam for herbal medicinal products, with names like HerbalFarm, AdsChrome, Nutravo, Herbzoot and Herbalve.

The anti-spam organization SpamHaus reports that many of the Indian IP address ranges are associated with known “snowshoe spam,” a form of abuse that involves mass email campaigns spread across several domains and IP addresses to weaken reputation metrics and avoid spam filters.

It’s not clear how much of Stark’s network address space traces its origins to Russia, but big chunks of it recently belonged to some of the oldest entities on the Russian Internet (a.k.a. “Runet”).

For example, many Stark address ranges were most recently assigned to a Russian government entity whose full name is the “Federal State Autonomous Educational Establishment of Additional Professional Education Center of Realization of State Educational Policy and Informational Technologies.”

A review of Internet address ranges adjacent to this entity reveals a long list of Russian government organizations that are part of the Federal Guard Service of the Russian Federation. Wikipedia says the Federal Guard Service is a Russian federal government agency concerned with tasks related to protection of several high-ranking state officials, including the President of Russia, as well as certain federal properties. The agency traces its origins to the USSR’s Ninth Directorate of the KGB, and later the presidential security service.

Stark recently announced the address range 213.159.64.0/20 from April 27 to May 1, and this range was previously assigned to an ancient ISP in St. Petersburg, RU called the Computer Technologies Institute Ltd.

According to a post on the Russian language webmaster forum searchengines[.]ru, the domain for Computer Technologies Institute — ctinet[.]ru — is the seventh-oldest domain in the entire history of the Runet.

Curiously, Stark also lists large tracts of Internet addresses (close to 48,000 in total) assigned to a small ISP in Kharkiv, Ukraine called NetAssist. Reached via email, the CEO of NetAssist Max Tulyev confirmed his company provides a number of services to PQ Hosting.

“We colocate their equipment in Warsaw, Madrid, Sofia and Thessaloniki, provide them IP transit and IPv4 addresses,” Tulyev said. “For their size, we receive relatively low number of complains to their networks. I never seen anything about their pro-Russian activity or support of Russian hackers. It is very interesting for me to see proofs of your accusations.”

Spur.us mapped the entire infrastructure of Proxyline, and found more than one million proxies across multiple providers, but by far the biggest concentration was at Stark Industries Solutions. The full list of Proxyline address ranges (.CSV) shows two other ISPs appear repeatedly throughout the list. One is Kharkiv, Ukraine based ITL LLC, also known as Information Technology Laboratories Group, and Integrated Technologies Laboratory.

The second is a related hosting company in Miami, called Green Floid LLC. Green Floid featured in a 2017 scoop by CNN, which profiled the company’s owner and quizzed him about Russian troll farms using proxy networks on Green Floid and its parent firm ITL to mask disinformation efforts tied to the Kremlin’s Internet Research Agency (IRA). At the time, the IRA was using Facebook and other social media networks to spread videos showing police brutality against African Americans in an effort to encourage protests across the United States.

Doug Madory, director of Internet analysis at Kentik, was able to see at a high level the top sources and destinations for traffic traversing Stark’s network.

“Based on our aggregate NetFlow, we see Iran as the top destination (35.1%) for traffic emanating from Stark (AS44477),” Madory said. “Specifically, the top destination is MTN Irancell, while the top source is Facebook. This data supports the theory that AS44477 houses proxy services as Facebook is blocked in Iran.”

On April 30, the security firm Malwarebytes explored an extensive malware operation that targets corporate Internet users with malicious ads. Among the sites used as lures in that campaign were fake Wall Street Journal and CNN websites that told visitors they were required to install a WSJ or CNN-branded browser extension (malware). Malwarebytes found a domain name central to that operation was hosted at Internet addresses owned by Stark Industries.

Patch Tuesday, May 2024 Edition

Microsoft today released updates to fix more than 60 security holes in Windows computers and supported software, including two “zero-day” vulnerabilities in Windows that are already being exploited in active attacks. There are also important security patches available for macOS and Adobe users, and for the Chrome Web browser, which just patched its own zero-day flaw.

First, the zero-days. CVE-2024-30051 is an “elevation of privilege” bug in a core Windows library. Satnam Narang at Tenable said this flaw is being used as part of post-compromise activity to elevate privileges as a local attacker.

“CVE-2024-30051 is used to gain initial access into a target environment and requires the use of social engineering tactics via email, social media or instant messaging to convince a target to open a specially crafted document file,” Narang said. “Once exploited, the attacker can bypass OLE mitigations in Microsoft 365 and Microsoft Office, which are security features designed to protect end users from malicious files.”

Kaspersky Lab, one of two companies credited with reporting exploitation of CVE-2024-30051 to Microsoft, has published a fascinating writeup on how they discovered the exploit in a file shared with Virustotal.com.

Kaspersky said it has since seen the exploit used together with QakBot and other malware. Emerging in 2007 as a banking trojan, QakBot (a.k.a. Qbot and Pinkslipbot) has morphed into an advanced malware strain now used by multiple cybercriminal groups to prepare newly compromised networks for ransomware infestations.

CVE-2024-30040 is a security feature bypass in MSHTML, a component that is deeply tied to the default Web browser on Windows systems. Microsoft’s advisory on this flaw is fairly sparse, but Kevin Breen from Immersive Labs said this vulnerability also affects Office 365 and Microsoft Office applications.

“Very little information is provided and the short description is painfully obtuse,” Breen said of Microsoft’s advisory on CVE-2024-30040.

The only vulnerability fixed this month that earned Microsoft’s most-dire “critical” rating is CVE-2024-30044, a flaw in Sharepoint that Microsoft said is likely to be exploited. Tenable’s Narang notes that exploitation of this bug requires an attacker to be authenticated to a vulnerable SharePoint Server with Site Owner permissions (or higher) first and to take additional steps in order to exploit this flaw, which makes this flaw less likely to be widely exploited as most attackers follow the path of least resistance.

Five days ago, Google released a security update for Chrome that fixes a zero-day in the popular browser. Chrome usually auto-downloads any available updates, but it still may require a complete restart of the browser to install them. If you use Chrome and see a “Relaunch to update” message in the upper right corner of the browser, it’s time to restart.

Apple has just shipped macOS Sonoma 14.5 update, which includes nearly two dozen security patches. To ensure your Mac is up-to-date, go to System Settings, General tab, then Software Update and follow any prompts.

Finally, Adobe has critical security patches available for a range of products, including Acrobat, Reader, Illustrator, Adobe Substance 3D Painter, Adobe Aero, Adobe Animate and Adobe Framemaker.

Regardless of whether you use a Mac or Windows system (or something else), it’s always a good idea to backup your data and or system before applying any security updates. For a closer look at the individual fixes released by Microsoft today, check out the complete list over at the SANS Internet Storm Center. Anyone in charge of maintaining Windows systems in an enterprise environment should keep an eye on askwoody.com, which usually has the scoop on any wonky Windows patches.

Update, May 15, 8:28 a.m.: Corrected misattribution of CVE-2024-30051.

FCC Fines Major U.S. Wireless Carriers for Selling Customer Location Data

The U.S. Federal Communications Commission (FCC) today levied fines totaling nearly $200 million against the four major carriers — including AT&T, Sprint, T-Mobile and Verizon — for illegally sharing access to customers’ location information without consent.

The fines mark the culmination of a more than four-year investigation into the actions of the major carriers. In February 2020, the FCC put all four wireless providers on notice that their practices of sharing access to customer location data were likely violating the law.

The FCC said it found the carriers each sold access to its customers’ location information to ‘aggregators,’ who then resold access to the information to third-party location-based service providers.

“In doing so, each carrier attempted to offload its obligations to obtain customer consent onto downstream recipients of location information, which in many instances meant that no valid customer consent was obtained,” an FCC statement on the action reads. “This initial failure was compounded when, after becoming aware that their safeguards were ineffective, the carriers continued to sell access to location information without taking reasonable measures to protect it from unauthorized access.”

The FCC’s findings against AT&T, for example, show that AT&T sold customer location data directly or indirectly to at least 88 third-party entities. The FCC found Verizon sold access to customer location data (indirectly or directly) to 67 third-party entities. Location data for Sprint customers found its way to 86 third-party entities, and to 75 third-parties in the case of T-Mobile customers.

The commission said it took action after Sen. Ron Wyden (D-Ore.) sent a letter to the FCC detailing how a company called Securus Technologies had been selling location data on customers of virtually any major mobile provider to law enforcement officials.

That same month, KrebsOnSecurity broke the news that LocationSmart — a data aggregation firm working with the major wireless carriers — had a free, unsecured demo of its service online that anyone could abuse to find the near-exact location of virtually any mobile phone in North America.

The carriers promised to “wind down” location data sharing agreements with third-party companies. But in 2019, reporting at Vice.com showed that little had changed, detailing how reporters were able to locate a test phone after paying $300 to a bounty hunter who simply bought the data through a little-known third-party service.

Sen. Wyden said no one who signed up for a cell plan thought they were giving permission for their phone company to sell a detailed record of their movements to anyone with a credit card.

“I applaud the FCC for following through on my investigation and holding these companies accountable for putting customers’ lives and privacy at risk,” Wyden said in a statement today.

The FCC fined Sprint and T-Mobile $12 million and $80 million respectively. AT&T was fined more than $57 million, while Verizon received a $47 million penalty. Still, these fines represent a tiny fraction of each carrier’s annual revenues. For example, $47 million is less than one percent of Verizon’s total wireless service revenue in 2023, which was nearly $77 billion.

The fine amounts vary because they were calculated based in part on the number of days that the carriers continued sharing customer location data after being notified that doing so was illegal (the agency also considered the number of active third-party location data sharing agreements). The FCC notes that AT&T and Verizon each took more than 320 days from the publication of the Times story to wind down their data sharing agreements; T-Mobile took 275 days; Sprint kept sharing customer location data for 386 days.

Update, 6:25 p.m. ET: Clarified that the FCC launched its investigation at the request of Sen. Wyden.

Fake Lawsuit Threat Exposes Privnote Phishing Sites

A cybercrook who has been setting up websites that mimic the self-destructing message service privnote.com accidentally exposed the breadth of their operations recently when they threatened to sue a software company. The disclosure revealed a profitable network of phishing sites that behave and look like the real Privnote, except that any messages containing cryptocurrency addresses will be automatically altered to include a different payment address controlled by the scammers.

Launched in 2008, privnote.com employs technology that encrypts each message so that even Privnote itself cannot read its contents. And it doesn’t send or receive messages. Creating a message merely generates a link. When that link is clicked or visited, the service warns that the message will be gone forever after it is read.

Privnote’s ease-of-use and popularity among cryptocurrency enthusiasts has made it a perennial target of phishers, who erect Privnote clones that function more or less as advertised but also quietly inject their own cryptocurrency payment addresses when a note is created that contains crypto wallets.

Last month, a new user on GitHub named fory66399 lodged a complaint on the “issues” page for MetaMask, a software cryptocurrency wallet used to interact with the Ethereum blockchain. Fory66399 insisted that their website — privnote[.]co — was being wrongly flagged by MetaMask’s “eth-phishing-detect” list as malicious.

“We filed a lawsuit with a lawyer for dishonestly adding a site to the block list, damaging reputation, as well as ignoring the moderation department and ignoring answers!” fory66399 threatened. “Provide evidence or I will demand compensation!”

MetaMask’s lead product manager Taylor Monahan replied by posting several screenshots of privnote[.]co showing the site did indeed swap out any cryptocurrency addresses.

After being told where they could send a copy of their lawsuit, Fory66399 appeared to become flustered, and proceeded to mention a number of other interesting domain names:

You sent me screenshots from some other site! It’s red!!!!
The tornote.io website has a different color altogether
The privatenote,io website also has a different color! What’s wrong?????

A search at DomainTools.com for privatenote[.]io shows it has been registered to two names over as many years, including Andrey Sokol from Moscow and Alexandr Ermakov from Kiev. There is no indication these are the real names of the phishers, but the names are useful in pointing to other sites targeting Privnote since 2020.

DomainTools says other domains registered to Alexandr Ermakov include pirvnota[.]com, privatemessage[.]net, privatenote[.]io, and tornote[.]io.

The registration records for pirvnota[.]com at one point were updated from Andrey Sokol to “BPW” as the registrant organization, and “Tambov district” in the registrant state/province field. Searching DomainTools for domains that include both of these terms reveals pirwnote[.]com.

Other Privnote phishing domains that also phoned home to the same Internet address as pirwnote[.]com include privnode[.]com, privnate[.]com, and prevnóte[.]com. Pirwnote[.]com is currently selling security cameras made by the Chinese manufacturer Hikvision, via an Internet address based in Hong Kong.

It appears someone has gone to great lengths to make tornote[.]io seem like a legitimate website. For example, this account at Medium has authored more than a dozen blog posts in the past year singing the praises of Tornote as a secure, self-destructing messaging service. However, testing shows tornote[.]io will also replace any cryptocurrency addresses in messages with their own payment address.

These malicious note sites attract visitors by gaming search engine results to make the phishing domains appear prominently in search results for “privnote.” A search in Google for “privnote” currently returns tornote[.]io as the fifth result. Like other phishing sites tied to this network, Tornote will use the same cryptocurrency addresses for roughly 5 days, and then rotate in new payment addresses.

Throughout 2023, Tornote was hosted with the Russian provider DDoS-Guard, at the Internet address 186.2.163[.]216. A review of the passive DNS records tied to this address shows that apart from subdomains dedicated to tornote[.]io, the main other domain at this address was hkleaks[.]ml.

In August 2019, a slew of websites and social media channels dubbed “HKLEAKS” began doxing the identities and personal information of pro-democracy activists in Hong Kong. According to a report (PDF) from Citizen Lab, hkleaks[.]ml was the second domain that appeared as the perpetrators began to expand the list of those doxed.

DomainTools shows there are more than 1,000 other domains whose registration records include the organization name “BPW” and “Tambov District” as the location. Virtually all of those domains were registered through one of two registrars — Hong Kong-based Nicenic and Singapore-based WebCC — and almost all appear to be phishing or pill-spam related.

Among those is rustraitor[.]info, a website erected after Russia invaded Ukraine in early 2022 that doxed Russians perceived to have helped the Ukrainian cause.

In keeping with the overall theme, these phishing domains appear focused on stealing usernames and passwords to some of the cybercrime underground’s busiest shops, including Brian’s Club. What do all the phished sites have in common? They all accept payment via virtual currencies.

It appears MetaMask’s Monahan made the correct decision in forcing these phishers to tip their hand: Among the websites at that DDoS-Guard address are multiple MetaMask phishing domains, including metarrnask[.]com, meternask[.]com, and rnetamask[.]com.

How profitable are these private note phishing sites? Reviewing the four malicious cryptocurrency payment addresses that the attackers swapped into notes passed through privnote[.]co (as pictured in Monahan’s screenshot above) shows that between March 15 and March 19, 2024, those address raked in and transferred out nearly $18,000 in cryptocurrencies. And that’s just one of their phishing websites.

The Not-so-True People-Search Network from China

It’s not unusual for the data brokers behind people-search websites to use pseudonyms in their day-to-day lives (you would, too). Some of these personal data purveyors even try to reinvent their online identities in a bid to hide their conflicts of interest. But it’s not every day you run across a US-focused people-search network based in China whose principal owners all appear to be completely fabricated identities.

Responding to a reader inquiry concerning the trustworthiness of a site called TruePeopleSearch[.]net, KrebsOnSecurity began poking around. The site offers to sell reports containing photos, police records, background checks, civil judgments, contact information “and much more!” According to LinkedIn and numerous profiles on websites that accept paid article submissions, the founder of TruePeopleSearch is Marilyn Gaskell from Phoenix, Ariz.

Ms. Gaskell has been quoted in multiple “articles” about random subjects, such as this article at HRDailyAdvisor about the pros and cons of joining a company-led fantasy football team.

“Marilyn Gaskell, founder of TruePeopleSearch, agrees that not everyone in the office is likely to be a football fan and might feel intimidated by joining a company league or left out if they don’t join; however, her company looked for ways to make the activity more inclusive,” this paid story notes.

Also quoted in this article is Sally Stevens, who is cited as HR Manager at FastPeopleSearch[.]io.

“Fantasy football provides one way for employees to set aside work matters for some time and have fun,” Stevens contributed. “Employees can set a special league for themselves and regularly check and compare their scores against one another.”

Imagine that: Two different people-search companies mentioned in the same story about fantasy football. What are the odds?

Both TruePeopleSearch and FastPeopleSearch allow users to search for reports by first and last name, but proceeding to order a report prompts the visitor to purchase the file from one of several established people-finder services, including BeenVerified, Intelius, and Spokeo.

DomainTools.com shows that both TruePeopleSearch and FastPeopleSearch appeared around 2020 and were registered through Alibaba Cloud, in Beijing, China. No other information is available about these domains in their registration records, although both domains appear to use email servers based in China.

Sally Stevens’ LinkedIn profile photo is identical to a stock image titled “beautiful girl” from Adobe.com. Ms. Stevens is also quoted in a paid blog post at ecogreenequipment.com, as is Alina Clark, co-founder and marketing director of CocoDoc, an online service for editing and managing PDF documents.

Scouring multiple image search sites reveals Ms. Clark’s profile photo on LinkedIn is another stock image that is currently on more than 100 different websites, including Adobe.com. Cocodoc[.]com was registered in June 2020 via Alibaba Cloud Beijing in China.

The same Alina Clark and photo materialized in a paid article at the website Ceoblognation, which in 2021 included her at #11 in a piece called “30 Entrepreneurs Describe The Big Hairy Audacious Goals (BHAGs) for Their Business.” It’s also worth noting that Ms. Clark is currently listed as a “former Forbes Council member” at the media outlet Forbes.com.

Entrepreneur #6 is Stephen Curry, who is quoted as CEO of CocoSign[.]com, a website that claims to offer an “easier, quicker, safer eSignature solution for small and medium-sized businesses.” Incidentally, the same photo for Stephen Curry #6 is also used in this “article” for #22 Jake Smith, who is named as the owner of a different company.

Mr. Curry’s LinkedIn profile shows a young man seated at a table in front of a laptop, but an online image search shows this is another stock photo. Cocosign[.]com was registered in June 2020 via Alibaba Cloud Beijing. No ownership details are available in the domain registration records.

Listed at #13 in that 30 Entrepreneurs article is Eden Cheng, who is cited as co-founder of PeopleFinderFree[.]com. KrebsOnSecurity could not find a LinkedIn profile for Ms. Cheng, but a search on her profile image from that Entrepreneurs article shows the same photo for sale at Shutterstock and other stock photo sites.

DomainTools says PeopleFinderFree was registered through Alibaba Cloud, Beijing. Attempts to purchase reports through PeopleFinderFree produce a notice saying the full report is only available via Spokeo.com.

Lynda Fairly is Entrepreneur #24, and she is quoted as co-founder of Numlooker[.]com, a domain registered in April 2021 through Alibaba in China. Searches for people on Numlooker forward visitors to Spokeo.

The photo next to Ms. Fairly’s quote in Entrepreneurs matches that of a LinkedIn profile for Lynda Fairly. But a search on that photo shows this same portrait has been used by many other identities and names, including a woman from the United Kingdom who’s a cancer survivor and mother of five; a licensed marriage and family therapist in Canada; a software security engineer at Quora; a journalist on Twitter/X; and a marketing expert in Canada.

Cocofinder[.]com is a people-search service that launched in Sept. 2019, through Alibaba in China. Cocofinder lists its market officer as Harriet Chan, but Ms. Chan’s LinkedIn profile is just as sparse on work history as the other people-search owners mentioned already. An image search online shows that outside of LinkedIn, the profile photo for Ms. Chan has only ever appeared in articles at pay-to-play media sites, like this one from outbackteambuilding.com.

Perhaps because Cocodoc and Cocosign both sell software services, they are actually tied to a physical presence in the real world — in Singapore (15 Scotts Rd. #03-12 15, Singapore). But it’s difficult to discern much from this address alone.

Who’s behind all this people-search chicanery? A January 2024 review of various people-search services at the website techjury.com states that Cocofinder is a wholly-owned subsidiary of a Chinese company called Shenzhen Duiyun Technology Co.

“Though it only finds results from the United States, users can choose between four main search methods,” Techjury explains. Those include people search, phone, address and email lookup. This claim is supported by a Reddit post from three years ago, wherein the Reddit user “ProtectionAdvanced” named the same Chinese company.

Is Shenzhen Duiyun Technology Co. responsible for all these phony profiles? How many more fake companies and profiles are connected to this scheme? KrebsOnSecurity found other examples that didn’t appear directly tied to other fake executives listed here, but which nevertheless are registered through Alibaba and seek to drive traffic to Spokeo and other data brokers. For example, there’s the winsome Daniela Sawyer, founder of FindPeopleFast[.]net, whose profile is flogged in paid stories at entrepreneur.org.

Google currently turns up nothing else for in a search for Shenzhen Duiyun Technology Co. Please feel free to sound off in the comments if you have any more information about this entity, such as how to contact it. Or reach out directly at krebsonsecurity @ gmail.com.

ANALYSIS

It appears the purpose of this network is to conceal the location of people in China who are seeking to generate affiliate commissions when someone visits one of their sites and purchases a people-search report at Spokeo, for example. And it is clear that Spokeo and others have created incentives wherein anyone can effectively white-label their reports, and thereby make money brokering access to peoples’ personal information.

Spokeo’s Wikipedia page says the company was founded in 2006 by four graduates from Stanford University. Spokeo co-founder and current CEO Harrison Tang has not yet responded to requests for comment.

Intelius is owned by San Diego based PeopleConnect Inc., which also owns Classmates.com, USSearch, TruthFinder and Instant Checkmate. PeopleConnect Inc. in turn is owned by H.I.G. Capital, a $60 billion private equity firm. Requests for comment were sent to H.I.G. Capital. This story will be updated if they respond.

BeenVerified is owned by a New York City based holding company called The Lifetime Value Co., a marketing and advertising firm whose brands include PeopleLooker, NeighborWho, Ownerly, PeopleSmart, NumberGuru, and Bumper, a car history site.

Ross Cohen, chief operating officer at The Lifetime Value Co., said it’s likely the network of suspicious people-finder sites was set up by an affiliate. Cohen said Lifetime Value would investigate to determine if this particular affiliate was driving them any sign-ups.

All of the above people-search services operate similarly. When you find the person you’re looking for, you are put through a lengthy (often 10-20 minute) series of splash screens that require you to agree that these reports won’t be used for employment screening or in evaluating new tenant applications. Still more prompts ask if you are okay with seeing “potentially shocking” details about the subject of the report, including arrest histories and photos.

Only at the end of this process does the site disclose that viewing the report in question requires signing up for a monthly subscription, which is typically priced around $35. Exactly how and from where these major people-search websites are getting their consumer data — and customers — will be the subject of further reporting here.

The main reason these various people-search sites require you to affirm that you won’t use their reports for hiring or vetting potential tenants is that selling reports for those purposes would classify these firms as consumer reporting agencies (CRAs) and expose them to regulations under the Fair Credit Reporting Act (FCRA).

These data brokers do not want to be treated as CRAs, and for this reason their people search reports typically don’t include detailed credit histories, financial information, or full Social Security Numbers (Radaris reports include the first six digits of one’s SSN).

But in September 2023, the U.S. Federal Trade Commission found that TruthFinder and Instant Checkmate were trying to have it both ways. The FTC levied a $5.8 million penalty against the companies for allegedly acting as CRAs because they assembled and compiled information on consumers into background reports that were marketed and sold for employment and tenant screening purposes.

The FTC also found TruthFinder and Instant Checkmate deceived users about background report accuracy. The FTC alleges these companies made millions from their monthly subscriptions using push notifications and marketing emails that claimed that the subject of a background report had a criminal or arrest record, when the record was merely a traffic ticket.

The FTC said both companies deceived customers by providing “Remove” and “Flag as Inaccurate” buttons that did not work as advertised. Rather, the “Remove” button removed the disputed information only from the report as displayed to that customer; however, the same item of information remained visible to other customers who searched for the same person.

The FTC also said that when a customer flagged an item in the background report as inaccurate, the companies never took any steps to investigate those claims, to modify the reports, or to flag to other customers that the information had been disputed.

There are a growing number of online reputation management companies that offer to help customers remove their personal information from people-search sites and data broker databases. There are, no doubt, plenty of honest and well-meaning companies operating in this space, but it has been my experience that a great many people involved in that industry have a background in marketing or advertising — not privacy.

Also, some so-called data privacy companies may be wolves in sheep’s clothing. On March 14, KrebsOnSecurity published an abundance of evidence indicating that the CEO and founder of the data privacy company OneRep.com was responsible for launching dozens of people-search services over the years.

Finally, some of the more popular people-search websites are notorious for ignoring requests from consumers seeking to remove their information, regardless of which reputation or removal service you use. Some force you to create an account and provide more information before you can remove your data. Even then, the information you worked hard to remove may simply reappear a few months later.

This aptly describes countless complaints lodged against the data broker and people search giant Radaris. On March 8, KrebsOnSecurity profiled the co-founders of Radaris, two Russian brothers in Massachusetts who also operate multiple Russian-language dating services and affiliate programs.

The truth is that these people-search companies will continue to thrive unless and until Congress begins to realize it’s time for some consumer privacy and data protection laws that are relevant to life in the 21st century. Duke University adjunct professor Justin Sherman says virtually all state privacy laws exempt records that might be considered “public” or “government” documents, including voting registries, property filings, marriage certificates, motor vehicle records, criminal records, court documents, death records, professional licenses, bankruptcy filings, and more.

“Consumer privacy laws in California, Colorado, Connecticut, Delaware, Indiana, Iowa, Montana, Oregon, Tennessee, Texas, Utah, and Virginia all contain highly similar or completely identical carve-outs for ‘publicly available information’ or government records,” Sherman said.

A Close Up Look at the Consumer Data Broker Radaris

If you live in the United States, the data broker Radaris likely knows a great deal about you, and they are happy to sell what they know to anyone. But how much do we know about Radaris? Publicly available data indicates that in addition to running a dizzying array of people-search websites, the co-founders of Radaris operate multiple Russian-language dating services and affiliate programs. It also appears many of their businesses have ties to a California marketing firm that works with a Russian state-run media conglomerate currently sanctioned by the U.S. government.

Formed in 2009, Radaris is a vast people-search network for finding data on individuals, properties, phone numbers, businesses and addresses. Search for any American’s name in Google and the chances are excellent that a listing for them at Radaris.com will show up prominently in the results.

Radaris reports typically bundle a substantial amount of data scraped from public and court documents, including any current or previous addresses and phone numbers, known email addresses and registered domain names. The reports also list address and phone records for the target’s known relatives and associates. Such information could be useful if you were trying to determine the maiden name of someone’s mother, or successfully answer a range of other knowledge-based authentication questions.

Currently, consumer reports advertised for sale at Radaris.com are being fulfilled by a different people-search company called TruthFinder. But Radaris also operates a number of other people-search properties — like Centeda.com — that sell consumer reports directly and behave almost identically to TruthFinder: That is, reel the visitor in with promises of detailed background reports on people, and then charge a $34.99 monthly subscription fee just to view the results.

The Better Business Bureau (BBB) assigns Radaris a rating of “F” for consistently ignoring consumers seeking to have their information removed from Radaris’ various online properties. Of the 159 complaints detailed there in the last year, several were from people who had used third-party identity protection services to have their information removed from Radaris, only to receive a notice a few months later that their Radaris record had been restored.

What’s more, Radaris’ automated process for requesting the removal of your information requires signing up for an account, potentially providing more information about yourself that the company didn’t already have (see screenshot above).

Radaris has not responded to requests for comment.

Radaris, TruthFinder and others like them all force users to agree that their reports will not be used to evaluate someone’s eligibility for credit, or a new apartment or job. This language is so prominent in people-search reports because selling reports for those purposes would classify these firms as consumer reporting agencies (CRAs) and expose them to regulations under the Fair Credit Reporting Act (FCRA).

These data brokers do not want to be treated as CRAs, and for this reason their people search reports typically do not include detailed credit histories, financial information, or full Social Security Numbers (Radaris reports include the first six digits of one’s SSN).

But in September 2023, the U.S. Federal Trade Commission found that TruthFinder and another people-search service Instant Checkmate were trying to have it both ways. The FTC levied a $5.8 million penalty against the companies for allegedly acting as CRAs because they assembled and compiled information on consumers into background reports that were marketed and sold for employment and tenant screening purposes.

The FTC also found TruthFinder and Instant Checkmate deceived users about background report accuracy. The FTC alleges these companies made millions from their monthly subscriptions using push notifications and marketing emails that claimed that the subject of a background report had a criminal or arrest record, when the record was merely a traffic ticket.

“All the while, the companies touted the accuracy of their reports in online ads and other promotional materials, claiming that their reports contain “the MOST ACCURATE information available to the public,” the FTC noted. The FTC says, however, that all the information used in their background reports is obtained from third parties that expressly disclaim that the information is accurate, and that TruthFinder and Instant Checkmate take no steps to verify the accuracy of the information.

The FTC said both companies deceived customers by providing “Remove” and “Flag as Inaccurate” buttons that did not work as advertised. Rather, the “Remove” button removed the disputed information only from the report as displayed to that customer; however, the same item of information remained visible to other customers who searched for the same person.

The FTC also said that when a customer flagged an item in the background report as inaccurate, the companies never took any steps to investigate those claims, to modify the reports, or to flag to other customers that the information had been disputed.

WHO IS RADARIS?

According to Radaris’ profile at the investor website Pitchbook.com, the company’s founder and “co-chief executive officer” is a Massachusetts resident named Gary Norden, also known as Gary Nard.

An analysis of email addresses known to have been used by Mr. Norden shows he is a native Russian man whose real name is Igor Lybarsky (also spelled Lubarsky). Igor’s brother Dmitry, who goes by “Dan,” appears to be the other co-CEO of Radaris. Dmitry Lybarsky’s Facebook/Meta account says he was born in March 1963.

Indirectly or directly, the Lybarskys own multiple properties in both Sherborn and Wellesley, Mass. However, the Radaris website is operated by an offshore entity called Bitseller Expert Ltd, which is incorporated in Cyprus. Neither Lybarsky brother responded to requests for comment.

A review of the domain names registered by Gary Norden shows that beginning in the early 2000s, he and Dan built an e-commerce empire by marketing prepaid calling cards and VOIP services to Russian expatriates who are living in the United States and seeking an affordable way to stay in touch with loved ones back home.

In 2012, the main company in charge of providing those calling services — Wellesley Hills, Mass-based Unipoint Technology Inc. — was fined $179,000 by the U.S. Federal Communications Commission, which said Unipoint never applied for a license to provide international telecommunications services.

DomainTools.com shows the email address gnard@unipointtech.com is tied to 137 domains, including radaris.com. DomainTools also shows that the email addresses used by Gary Norden for more than two decades — epop@comby.com, gary@barksy.com and gary1@eprofit.com, among others — appear in WHOIS registration records for an entire fleet of people-search websites, including: centeda.com, virtory.com, clubset.com, kworld.com, newenglandfacts.com, and pub360.com.

Still more people-search platforms tied to Gary Norden– like publicreports.com and arrestfacts.com — currently funnel interested customers to third-party search companies, such as TruthFinder and PersonTrust.com.

The email addresses used by Gary Nard/Gary Norden are also connected to a slew of data broker websites that sell reports on businesses, real estate holdings, and professionals, including bizstanding.com, homemetry.com, trustoria.com, homeflock.com, rehold.com, difive.com and projectlab.com.

AFFILIATE & ADULT

Domain records indicate that Gary and Dan for many years operated a now-defunct pay-per-click affiliate advertising network called affiliate.ru. That entity used domain name servers tied to the aforementioned domains comby.com and eprofit.com, as did radaris.ru.

Comby.com used to be a Russian language social media network that looked a great deal like Facebook. The domain now forwards visitors to Privet.ru (“hello” in Russian), a dating site that claims to have 5 million users. Privet.ru says it belongs to a company called Dating Factory, which lists offices in Switzerland. Privet.ru uses the Gary Norden domain eprofit.com for its domain name servers.

Dating Factory’s website says it sells “powerful dating technology” to help customers create unique or niche dating websites. A review of the sample images available on the Dating Factory homepage suggests the term “dating” in this context refers to adult websites. Dating Factory also operates a community called FacebookOfSex, as well as the domain analslappers.com.

RUSSIAN AMERICA

Email addresses for the Comby and Eprofit domains indicate Gary Norden operates an entity in Wellesley Hills, Mass. called RussianAmerican Holding Inc. (russianamerica.com). This organization is listed as the owner of the domain newyork.ru, which is a site dedicated to orienting newcomers from Russia to the Big Apple.

Newyork.ru’s terms of service refer to an international calling card company called ComFi Inc. (comfi.com) and list an address as PO Box 81362 Wellesley Hills, Ma. Other sites that include this address are russianamerica.com, russianboston.com, russianchicago.com, russianla.com, russiansanfran.com, russianmiami.com, russiancleveland.com and russianseattle.com (currently offline).

ComFi is tied to Comfibook.com, which was a search aggregator website that collected and published data from many online and offline sources, including phone directories, social networks, online photo albums, and public records.

AMERICAN RUSSIAN MEDIA

Many of the U.S. city-specific online properties apparently tied to Gary Norden include phone numbers on their contact pages for a pair of Russian media and advertising firms based in southern California. The phone number 323-874-8211 appears on the websites russianla.com, russiasanfran.com, and rosconcert.com, which sells tickets to theater events performed in Russian.

Historic domain registration records from DomainTools show rosconcert.com was registered in 2003 to Unipoint Technologies — the same company fined by the FCC for not having a license. Rosconcert.com also lists the phone number 818-377-2101.

A phone number just a few digits away — 323-874-8205 — appears as a point of contact on newyork.ru, russianmiami.com, russiancleveland.com, and russianchicago.com. A search in Google shows this 82xx number range — and the 818-377-2101 number — belong to two different entities at the same UPS Store mailbox in Tarzana, Calif: American Russian Media Inc. (armediacorp.com), and Lamedia.biz.

Armediacorp.com is the home of FACT Magazine, a glossy Russian-language publication put out jointly by the American-Russian Business Council, the Hollywood Chamber of Commerce, and the West Hollywood Chamber of Commerce.

Lamedia.biz says it is an international media organization with more than 25 years of experience within the Russian-speaking community on the West Coast. The site advertises FACT Magazine and the Russian state-owned media outlet Channel One. Clicking the Channel One link on the homepage shows Lamedia.biz offers to submit advertising spots that can be shown to Channel One viewers. The price for a basic ad is listed at $500.

In May 2022, the U.S. government levied financial sanctions against Channel One that bar US companies or citizens from doing business with the company.

LEGAL ACTIONS AGAINST RADARIS

In 2014, a group of people sued Radaris in a class-action lawsuit claiming the company’s practices violated the Fair Credit Reporting Act. Court records indicate the defendants never showed up in court to dispute the claims, and as a result the judge eventually awarded the plaintiffs a default judgement and ordered the company to pay $7.5 million.

But the plaintiffs in that civil case had a difficult time collecting on the court’s ruling. In response, the court ordered the radaris.com domain name (~9.4M monthly visitors) to be handed over to the plaintiffs.

However, in 2018 Radaris was able to reclaim their domain on a technicality. Attorneys for the company argued that their clients were never named as defendants in the original lawsuit, and so their domain could not legally be taken away from them in a civil judgment.

“Because our clients were never named as parties to the litigation, and were never served in the litigation, the taking of their property without due process is a violation of their rights,” Radaris’ attorneys argued.

In October 2023, an Illinois resident filed a class-action lawsuit against Radaris for allegedly using people’s names for commercial purposes, in violation of the Illinois Right of Publicity Act.

On Feb. 8, 2024, a company called Atlas Data Privacy Corp. sued Radaris LLC for allegedly violating “Daniel’s Law,” a statute that allows New Jersey law enforcement, government personnel, judges and their families to have their information completely removed from people-search services and commercial data brokers. Atlas has filed at least 140 similar Daniel’s Law complaints against data brokers recently.

Daniel’s Law was enacted in response to the death of 20-year-old Daniel Anderl, who was killed in a violent attack targeting a federal judge (his mother). In July 2020, a disgruntled attorney who had appeared before U.S. District Judge Esther Salas disguised himself as a Fedex driver, went to her home and shot and killed her son (the judge was unharmed and the assailant killed himself).

Earlier this month, The Record reported on Atlas Data Privacy’s lawsuit against LexisNexis Risk Data Management, in which the plaintiffs representing thousands of law enforcement personnel in New Jersey alleged that after they asked for their information to remain private, the data broker retaliated against them by freezing their credit and falsely reporting them as identity theft victims.

Another data broker sued by Atlas Data Privacy — pogodata.com — announced on Mar. 1 that it was likely shutting down because of the lawsuit.

“The matter is far from resolved but your response motivates us to try to bring back most of the names while preserving redaction of the 17,000 or so clients of the redaction company,” the company wrote. “While little consolation, we are not alone in the suit – the privacy company sued 140 property-data sites at the same time as PogoData.”

Atlas says their goal is convince more states to pass similar laws, and to extend those protections to other groups such as teachers, healthcare personnel and social workers. Meanwhile, media law experts say they’re concerned that enacting Daniel’s Law in other states would limit the ability of journalists to hold public officials accountable, and allow authorities to pursue criminals charges against media outlets that publish the same type of public and governments records that fuel the people-search industry.

PEOPLE-SEARCH CARVE-OUTS

There are some pending changes to the US legal and regulatory landscape that could soon reshape large swaths of the data broker industry. But experts say it is unlikely that any of these changes will affect people-search companies like Radaris.

On Feb. 28, 2024, the White House issued an executive order that directs the U.S. Department of Justice (DOJ) to create regulations that would prevent data brokers from selling or transferring abroad certain data types deemed too sensitive, including genomic and biometric data, geolocation and financial data, as well as other as-yet unspecified personal identifiers. The DOJ this week published a list of more than 100 questions it is seeking answers to regarding the data broker industry.

In August 2023, the Consumer Financial Protection Bureau (CFPB) announced it was undertaking new rulemaking related to data brokers.

Justin Sherman, an adjunct professor at Duke University, said neither the CFPB nor White House rulemaking will likely address people-search brokers because these companies typically get their information by scouring federal, state and local government records. Those government files include voting registries, property filings, marriage certificates, motor vehicle records, criminal records, court documents, death records, professional licenses, bankruptcy filings, and more.

“These dossiers contain everything from individuals’ names, addresses, and family information to data about finances, criminal justice system history, and home and vehicle purchases,” Sherman wrote in an October 2023 article for Lawfare. “People search websites’ business pitch boils down to the fact that they have done the work of compiling data, digitizing it, and linking it to specific people so that it can be searched online.”

Sherman said while there are ongoing debates about whether people search data brokers have legal responsibilities to the people about whom they gather and sell data, the sources of this information — public records — are completely carved out from every single state consumer privacy law.

“Consumer privacy laws in California, Colorado, Connecticut, Delaware, Indiana, Iowa, Montana, Oregon, Tennessee, Texas, Utah, and Virginia all contain highly similar or completely identical carve-outs for ‘publicly available information’ or government records,” Sherman wrote. “Tennessee’s consumer data privacy law, for example, stipulates that “personal information,” a cornerstone of the legislation, does not include ‘publicly available information,’ defined as:

“…information that is lawfully made available through federal, state, or local government records, or information that a business has a reasonable basis to believe is lawfully made available to the general public through widely distributed media, by the consumer, or by a person to whom the consumer has disclosed the information, unless the consumer has restricted the information to a specific audience.”

Sherman said this is the same language as the carve-out in the California privacy regime, which is often held up as the national leader in state privacy regulations. He said with a limited set of exceptions for survivors of stalking and domestic violence, even under California’s newly passed Delete Act — which creates a centralized mechanism for consumers to ask some third-party data brokers to delete their information — consumers across the board cannot exercise these rights when it comes to data scraped from property filings, marriage certificates, and public court documents, for example.

“With some very narrow exceptions, it’s either extremely difficult or impossible to compel these companies to remove your information from their sites,” Sherman told KrebsOnSecurity. “Even in states like California, every single consumer privacy law in the country completely exempts publicly available information.”

Below is a mind map that helped KrebsOnSecurity track relationships between and among the various organizations named in the story above:

Calendar Meeting Links Used to Spread Mac Malware

Malicious hackers are targeting people in the cryptocurrency space in attacks that start with a link added to the target’s calendar at Calendly, a popular application for scheduling appointments and meetings. The attackers impersonate established cryptocurrency investors and ask to schedule a video conference call. But clicking the meeting link provided by the scammers prompts the user to run a script that quietly installs malware on macOS systems.

KrebsOnSecurity recently heard from a reader who works at a startup that is seeking investment for building a new blockchain platform for the Web. The reader spoke on condition that their name not be used in this story, so for the sake of simplicity we’ll call him Doug.

Being in the cryptocurrency scene, Doug is also active on the instant messenger platform Telegram. Earlier this month, Doug was approached by someone on Telegram whose profile name, image and description said they were Ian Lee, from Signum Capital, a well-established investment firm based in Singapore. The profile also linked to Mr. Lee’s Twitter/X account, which features the same profile image.

The investor expressed interest in financially supporting Doug’s startup, and asked if Doug could find time for a video call to discuss investment prospects. Sure, Doug said, here’s my Calendly profile, book a time and we’ll do it then.

When the day and time of the scheduled meeting with Mr. Lee arrived, Doug clicked the meeting link in his calendar but nothing happened. Doug then messaged the Mr. Lee account on Telegram, who said there was some kind of technology issue with the video platform, and that their IT people suggested using a different meeting link.

Doug clicked the new link, but instead of opening up a videoconference app, a message appeared on his Mac saying the video service was experiencing technical difficulties.

“Some of our users are facing issues with our service,” the message read. “We are actively working on fixing these problems. Please refer to this script as a temporary solution.”

Doug said he ran the script, but nothing appeared to happen after that, and the videoconference application still wouldn’t start. Mr. Lee apologized for the inconvenience and said they would have to reschedule their meeting, but he never responded to any of Doug’s follow-up messages.

It didn’t dawn on Doug until days later that the missed meeting with Mr. Lee might have been a malware attack. Going back to his Telegram client to revisit the conversation, Doug discovered his potential investor had deleted the meeting link and other bits of conversation from their shared chat history.

In a post to its Twitter/X account last month, Signum Capital warned that a fake profile pretending to be their employee Mr. Lee was trying to scam people on Telegram.

The file that Doug ran is a simple Apple Script (file extension “.scpt”) that downloads and executes a malicious trojan made to run on macOS systems. Unfortunately for us, Doug freaked out after deciding he’d been tricked — backing up his important documents, changing his passwords, and then reinstalling macOS on his computer. While this a perfectly sane response, it means we don’t have the actual malware that was pushed to his Mac by the script.

But Doug does still have a copy of the malicious script that was downloaded from clicking the meeting link (the online host serving that link is now offline). A search in Google for a string of text from that script turns up a December 2023 blog post from cryptocurrency security firm SlowMist about phishing attacks on Telegram from North Korean state-sponsored hackers.

“When the project team clicks the link, they encounter a region access restriction,” SlowMist wrote. “At this point, the North Korean hackers coax the team into downloading and running a ‘location-modifying’ malicious script. Once the project team complies, their computer comes under the control of the hackers, leading to the theft of funds.”

SlowMist says the North Korean phishing scams used the “Add Custom Link” feature of the Calendly meeting scheduling system on event pages to insert malicious links and initiate phishing attacks.

“Since Calendly integrates well with the daily work routines of most project teams, these malicious links do not easily raise suspicion,” the blog post explains. “Consequently, the project teams may inadvertently click on these malicious links, download, and execute malicious code.”

SlowMist said the malware downloaded by the malicious link in their case comes from a North Korean hacking group dubbed “BlueNoroff, which Kaspersky Labs says is a subgroup of the Lazarus hacking group.

“A financially motivated threat actor closely connected with Lazarus that targets banks, casinos, fin-tech companies, POST software and cryptocurrency businesses, and ATMs,” Kaspersky wrote of BlueNoroff in Dec. 2023.

The North Korean regime is known to use stolen cryptocurrencies to fund its military and other state projects. A recent report from Recorded Future finds the Lazarus Group has stolen approximately $3 billion in cryptocurrency over the past six years.

While there is still far more malware out there today targeting Microsoft Windows PCs, the prevalence of information-stealing trojans aimed at macOS users is growing at a steady clip. MacOS computers include X-Protect, Apple’s built-in antivirus technology. But experts say attackers are constantly changing the appearance and behavior of their malware to evade X-Protect.

“Recent updates to macOS’s XProtect signature database indicate that Apple are aware of the problem, but early 2024 has already seen a number of stealer families evade known signatures,” security firm SentinelOne wrote in January.

According to Chris Ueland from the threat hunting platform Hunt.io, the Internet address of the fake meeting website Doug was tricked into visiting (104.168.163,149) hosts or very recently hosted about 75 different domain names, many of which invoke words associated with videoconferencing or cryptocurrency. Those domains indicate this North Korean hacking group is hiding behind a number of phony crypto firms, like the six-month-old website for Cryptowave Capital (cryptowave[.]capital).

In a statement shared with KrebsOnSecurity, Calendly said it was aware of these types of social engineering attacks by cryptocurrency hackers.

“To help prevent these kinds of attacks, our security team and partners have implemented a service to automatically detect fraud and impersonations that could lead to social engineering,” the company said. “We are also actively scanning content for all our customers to catch these types of malicious links and to prevent hackers earlier on. Additionally, we intend to add an interstitial page warning users before they’re redirected away from Calendly to other websites. Along with the steps we’ve taken, we recommend users stay vigilant by keeping their software secure with running the latest updates and verifying suspicious links through tools like VirusTotal to alert them of possible malware. We are continuously strengthening the cybersecurity of our platform to protect our customers.”

The increasing frequency of new Mac malware is a good reminder that Mac users should not depend on security software and tools to flag malicious files, which are frequently bundled with or disguised as legitimate software.

As KrebsOnSecurity has advised Windows users for years, a good rule of safety to live by is this: If you didn’t go looking for it, don’t install it. Following this mantra heads off a great deal of malware attacks, regardless of the platform used. When you do decide to install a piece of software, make sure you are downloading it from the original source, and then keep it updated with any new security fixes.

On that last front, I’ve found it’s a good idea not to wait until the last minute to configure my system before joining a scheduled videoconference call. Even if the call uses software that is already on my computer, it is often the case that software updates are required before the program can be used, and I’m one of those weird people who likes to review any changes to the software maker’s privacy policies or user agreements before choosing to install updates.

Most of all, verify new contacts from strangers before accepting anything from them. In this case, had Doug simply messaged Mr. Lee’s real account on Twitter/X or contacted Signum Capital directly, he would discovered that the real Mr. Lee never asked for a meeting.

If you’re approached in a similar scheme, the response from the would-be victim documented in the SlowMist blog post is probably the best.

Update: Added comment from Calendly.

New Leak Shows Business Side of China’s APT Menace

A new data leak that appears to have come from one of China’s top private cybersecurity firms provides a rare glimpse into the commercial side of China’s many state-sponsored hacking groups. Experts say the leak illustrates how Chinese government agencies increasingly are contracting out foreign espionage campaigns to the nation’s burgeoning and highly competitive cybersecurity industry.

A large cache of more than 500 documents published to GitHub last week indicate the records come from i-SOON, a technology company headquartered in Shanghai that is perhaps best known for providing cybersecurity training courses throughout China. But the leaked documents, which include candid employee chat conversations and images, show a less public side of i-SOON, one that frequently initiates and sustains cyberespionage campaigns commissioned by various Chinese government agencies.

The leaked documents suggest i-SOON employees were responsible for a raft of cyber intrusions over many years, infiltrating government systems in the United Kingdom and countries throughout Asia. Although the cache does not include raw data stolen from cyber espionage targets, it features numerous documents listing the level of access gained and the types of data exposed in each intrusion.

Security experts who reviewed the leaked data say they believe the information is legitimate, and that i-SOON works closely with China’s Ministry of Public Security and the military. In 2021, the Sichuan provincial government named i-SOON as one of “the top 30 information security companies.”

“The leak provides some of the most concrete details seen publicly to date, revealing the maturing nature of China’s cyber espionage ecosystem,” said Dakota Cary, a China-focused consultant at the security firm SentinelOne. “It shows explicitly how government targeting requirements drive a competitive marketplace of independent contractor hackers-for-hire.”

Mei Danowski is a former intelligence analyst and China expert who now writes about her research in a Substack publication called Natto Thoughts. Danowski said i-SOON has achieved the highest secrecy classification that a non-state-owned company can receive, which qualifies the company to conduct classified research and development related to state security.

i-SOON’s “business services” webpage states that the company’s offerings include public security, anti-fraud, blockchain forensics, enterprise security solutions, and training. Danowski said that in 2013, i-SOON established a department for research on developing new APT network penetration methods.

APT stands for Advanced Persistent Threat, a term that generally refers to state-sponsored hacking groups. Indeed, among the documents apparently leaked from i-SOON is a sales pitch slide boldly highlighting the hacking prowess of the company’s “APT research team” (see screenshot above).

The leaked documents included a lengthy chat conversation between the company’s founders, who repeatedly discuss flagging sales and the need to secure more employees and government contracts. Danowski said the CEO of i-SOON, Wu Haibo (“Shutdown” in the leaked chats) is a well-known first-generation red hacker or “Honker,” and an early member of Green Army — the very first Chinese hacktivist group founded in 1997. Mr. Haibo has not yet responded to a request for comment.

In October 2023, Danowski detailed how i-SOON became embroiled in a software development contract dispute when it was sued by a competing Chinese cybersecurity company called Chengdu 404. In September 2020, the U.S. Department of Justice unsealed indictments against multiple Chengdu 404 employees, charging that the company was a facade that hid more than a decade’s worth of cyber intrusions attributed to a threat actor group known as “APT 41.”

Danowski said the existence of this legal dispute suggests that Chengdu 404 and i-SOON have or at one time had a business relationship, and that one company likely served as a subcontractor to the other.

“From what they chat about we can see this is a very competitive industry, where companies in this space are constantly poaching each others’ employees and tools,” Danowski said. “The infosec industry is always trying to distinguish [the work] of one APT group from another. But that’s getting harder to do.”

It remains unclear if i-SOON’s work has earned it a unique APT designation. But Will Thomas, a cyber threat intelligence researcher at Equinix, found an Internet address in the leaked data that corresponds to a domain flagged in a 2019 Citizen Lab report about one-click mobile phone exploits that were being used to target groups in Tibet. The 2019 report referred to the threat actor behind those attacks as an APT group called Poison Carp.

Several images and chat records in the data leak suggest i-SOON’s clients periodically gave the company a list of targets they wanted to infiltrate, but sometimes employees confused the instructions. One screenshot shows a conversation in which an employee tells his boss they’ve just hacked one of the universities on their latest list, only to be told that the victim in question was not actually listed as a desired target.

The leaked chats show i-SOON continuously tried to recruit new talent by hosting a series of hacking competitions across China. It also performed charity work, and sought to engage employees and sustain morale with various team-building events.

However, the chats include multiple conversations between employees commiserating over long hours and low pay. The overall tone of the discussions indicates employee morale was quite low and that the workplace environment was fairly toxic. In several of the conversations, i-SOON employees openly discuss with their bosses how much money they just lost gambling online with their mobile phones while at work.

Danowski believes the i-SOON data was probably leaked by one of those disgruntled employees.

“This was released the first working day after the Chinese New Year,” Danowski said. “Definitely whoever did this planned it, because you can’t get all this information all at once.”

SentinelOne’s Cary said he came to the same conclusion, noting that the Protonmail account tied to the GitHub profile that published the records was registered a month before the leak, on January 15, 2024.

China’s much vaunted Great Firewall not only lets the government control and limit what citizens can access online, but this distributed spying apparatus allows authorities to block data on Chinese citizens and companies from ever leaving the country.

As a result, China enjoys a remarkable information asymmetry vis-a-vis virtually all other industrialized nations. Which is why this apparent data leak from i-SOON is such a rare find for Western security researchers.

“I was so excited to see this,” Cary said. “Every day I hope for data leaks coming out of China.”

That information asymmetry is at the heart of the Chinese government’s cyberwarfare goals, according to a 2023 analysis by Margin Research performed on behalf of the Defense Advanced Research Projects Agency (DARPA).

“In the area of cyberwarfare, the western governments see cyberspace as a ‘fifth domain’ of warfare,” the Margin study observed. “The Chinese, however, look at cyberspace in the broader context of information space. The ultimate objective is, not ‘control’ of cyberspace, but control of information, a vision that dominates China’s cyber operations.”

The National Cybersecurity Strategy issued by the White House last year singles out China as the biggest cyber threat to U.S. interests. While the United States government does contract certain aspects of its cyber operations to companies in the private sector, it does not follow China’s example in promoting the wholesale theft of state and corporate secrets for the commercial benefit of its own private industries.

Dave Aitel, a co-author of the Margin Research report and former computer scientist at the U.S. National Security Agency, said it’s nice to see that Chinese cybersecurity firms have to deal with all of the same contracting headaches facing U.S. companies seeking work with the federal government.

“This leak just shows there’s layers of contractors all the way down,” Aitel said. “It’s pretty fun to see the Chinese version of it.”

Feds Seize LockBit Ransomware Websites, Offer Decryption Tools, Troll Affiliates

U.S. and U.K. authorities have seized the darknet websites run by LockBit, a prolific and destructive ransomware group that has claimed more than 2,000 victims worldwide and extorted over $120 million in payments. Instead of listing data stolen from ransomware victims who didn’t pay, LockBit’s victim shaming website now offers free recovery tools, as well as news about arrests and criminal charges involving LockBit affiliates.

Dubbed “Operation Cronos,” the law enforcement action involved the seizure of nearly three-dozen servers; the arrest of two alleged LockBit members; the unsealing of two indictments; the release of a free LockBit decryption tool; and the freezing of more than 200 cryptocurrency accounts thought to be tied to the gang’s activities.

LockBit members have executed attacks against thousands of victims in the United States and around the world, according to the U.S. Department of Justice (DOJ). First surfacing in September 2019, the gang is estimated to have made hundreds of millions of U.S. dollars in ransom demands, and extorted over $120 million in ransom payments.

LockBit operated as a ransomware-as-a-service group, wherein the ransomware gang takes care of everything from the bulletproof hosting and domains to the development and maintenance of the malware. Meanwhile, affiliates are solely responsible for finding new victims, and can reap 60 to 80 percent of any ransom amount ultimately paid to the group.

A statement on Operation Cronos from the European police agency Europol said the months-long infiltration resulted in the compromise of LockBit’s primary platform and other critical infrastructure, including the takedown of 34 servers in the Netherlands, Germany, Finland, France, Switzerland, Australia, the United States and the United Kingdom. Europol said two suspected LockBit actors were arrested in Poland and Ukraine, but no further information has been released about those detained.

The DOJ today unsealed indictments against two Russian men alleged to be active members of LockBit. The government says Russian national Artur Sungatov used LockBit ransomware against victims in manufacturing, logistics, insurance and other companies throughout the United States.

Ivan Gennadievich Kondratyev, a.k.a. “Bassterlord,” allegedly deployed LockBit against targets in the United States, Singapore, Taiwan, and Lebanon. Kondratyev is also charged (PDF) with three criminal counts arising from his alleged use of the Sodinokibi (aka “REvil“) ransomware variant to encrypt data, exfiltrate victim information, and extort a ransom payment from a corporate victim based in Alameda County, California.

With the indictments of Sungatov and Kondratyev, a total of five LockBit affiliates now have been officially charged. In May 2023, U.S. authorities unsealed indictments against two alleged LockBit affiliates, Mikhail “Wazawaka” Matveev and Mikhail Vasiliev.

Vasiliev, 35, of Bradford, Ontario, Canada, is in custody in Canada awaiting extradition to the United States (the complaint against Vasiliev is at this PDF). Matveev remains at large, presumably still in Russia. In January 2022, KrebsOnSecurity published Who is the Network Access Broker ‘Wazawaka,’ which followed clues from Wazawaka’s many pseudonyms and contact details on the Russian-language cybercrime forums back to a 31-year-old Mikhail Matveev from Abaza, RU.

In June 2023, Russian national Ruslan Magomedovich Astamirov was charged in New Jersey for his participation in the LockBit conspiracy, including the deployment of LockBit against victims in Florida, Japan, France, and Kenya. Astamirov is currently in custody in the United States awaiting trial.

LockBit was known to have recruited affiliates that worked with multiple ransomware groups simultaneously, and it’s unclear what impact this takedown may have on competing ransomware affiliate operations. The security firm ProDaft said on Twitter/X that the infiltration of LockBit by investigators provided “in-depth visibility into each affiliate’s structures, including ties with other notorious groups such as FIN7, Wizard Spider, and EvilCorp.”

In a lengthy thread about the LockBit takedown on the Russian-language cybercrime forum XSS, one of the gang’s leaders said the FBI and the U.K.’s National Crime Agency (NCA) had infiltrated its servers using a known vulnerability in PHP, a scripting language that is widely used in Web development.

Several denizens of XSS wondered aloud why the PHP flaw was not flagged by LockBit’s vaunted “Bug Bounty” program, which promised a financial reward to affiliates who could find and quietly report any security vulnerabilities threatening to undermine LockBit’s online infrastructure.

This prompted several XSS members to start posting memes taunting the group about the security failure.

“Does it mean that the FBI provided a pentesting service to the affiliate program?,” one denizen quipped. “Or did they decide to take part in the bug bounty program? :):)”

Federal investigators also appear to be trolling LockBit members with their seizure notices. LockBit’s data leak site previously featured a countdown timer for each victim organization listed, indicating the time remaining for the victim to pay a ransom demand before their stolen files would be published online. Now, the top entry on the shaming site is a countdown timer until the public doxing of “LockBitSupp,” the unofficial spokesperson or figurehead for the LockBit gang.

“Who is LockbitSupp?” the teaser reads. “The $10m question.”

In January 2024, LockBitSupp told XSS forum members he was disappointed the FBI hadn’t offered a reward for his doxing and/or arrest, and that in response he was placing a bounty on his own head — offering $10 million to anyone who could discover his real name.

“My god, who needs me?,” LockBitSupp wrote on Jan. 22, 2024. “There is not even a reward out for me on the FBI website. By the way, I want to use this chance to increase the reward amount for a person who can tell me my full name from USD 1 million to USD 10 million. The person who will find out my name, tell it to me and explain how they were able to find it out will get USD 10 million. Please take note that when looking for criminals, the FBI uses unclear wording offering a reward of UP TO USD 10 million; this means that the FBI can pay you USD 100, because technically, it’s an amount UP TO 10 million. On the other hand, I am willing to pay USD 10 million, no more and no less.”

Mark Stockley, cybersecurity evangelist at the security firm Malwarebytes, said the NCA is obviously trolling the LockBit group and LockBitSupp.

“I don’t think this is an accident—this is how ransomware groups talk to each other,” Stockley said. “This is law enforcement taking the time to enjoy its moment, and humiliate LockBit in its own vernacular, presumably so it loses face.”

In a press conference today, the FBI said Operation Cronos included investigative assistance from the Gendarmerie-C3N in France; the State Criminal Police Office L-K-A and Federal Criminal Police Office in Germany; Fedpol and Zurich Cantonal Police in Switzerland; the National Police Agency in Japan; the Australian Federal Police; the Swedish Police Authority; the National Bureau of Investigation in Finland; the Royal Canadian Mounted Police; and the National Police in the Netherlands.

The Justice Department said victims targeted by LockBit should contact the FBI at https://lockbitvictims.ic3.gov/ to determine whether affected systems can be successfully decrypted. In addition, the Japanese Police, supported by Europol, have released a recovery tool designed to recover files encrypted by the LockBit 3.0 Black Ransomware.

From Cybercrime Saul Goodman to the Russian GRU

In 2021, the exclusive Russian cybercrime forum Mazafaka was hacked. The leaked user database shows one of the forum’s founders was an attorney who advised Russia’s top hackers on the legal risks of their work, and what to do if they got caught. A review of this user’s hacker identities shows that during his time on the forums he served as an officer in the special forces of the GRU, the foreign military intelligence agency of the Russian Federation.

Launched in 2001 under the tagline “Network terrorism,” Mazafaka would evolve into one of the most guarded Russian-language cybercrime communities. The forum’s member roster included a Who’s Who of top Russian cybercriminals, and it featured sub-forums for a wide range of cybercrime specialities, including malware, spam, coding and identity theft.

In almost any database leak, the first accounts listed are usually the administrators and early core members. But the Mazafaka user information posted online was not a database file per se, and it was clearly edited, redacted and restructured by whoever released it. As a result, it can be difficult to tell which members are the earliest users.

The original Mazafaka is known to have been launched by a hacker using the nickname “Stalker.” However, the lowest numbered (non-admin) user ID in the Mazafaka database belongs to another individual who used the handle “Djamix,” and the email address djamix@mazafaka[.]ru.

From the forum’s inception until around 2008, Djamix was one of its most active and eloquent contributors. Djamix told forum members he was a lawyer, and nearly all of his posts included legal analyses of various public cases involving hackers arrested and charged with cybercrimes in Russia and abroad.

“Hiding with purely technical parameters will not help in a serious matter,” Djamix advised Maza members in September 2007. “In order to ESCAPE the law, you need to KNOW the law. This is the most important thing. Technical capabilities cannot overcome intelligence and cunning.”

Stalker himself credited Djamix with keeping Mazafaka online for so many years. In a retrospective post published to Livejournal in 2014 titled, “Mazafaka, from conception to the present day,” Stalker said Djamix had become a core member of the community.

“This guy is everywhere,” Stalker said of Djamix. “There’s not a thing on [Mazafaka] that he doesn’t take part in. For me, he is a stimulus-irritant and thanks to him, Maza is still alive. Our rallying force!”

Djamix told other forum denizens he was a licensed attorney who could be hired for remote or in-person consultations, and his posts on Mazafaka and other Russian boards show several hackers facing legal jeopardy likely took him up on this offer.

“I have the right to represent your interests in court,” Djamix said on the Russian-language cybercrime forum Verified in Jan. 2011. “Remotely (in the form of constant support and consultations), or in person – this is discussed separately. As well as the cost of my services.”

WHO IS DJAMIX?

A search on djamix@mazafaka[.]ru at DomainTools.com reveals this address has been used to register at least 10 domain names since 2008. Those include several websites about life in and around Sochi, Russia, the site of the 2014 Winter Olympics, as well as a nearby coastal town called Adler. All of those sites say they were registered to an Aleksei Safronov from Sochi who also lists Adler as a hometown.

The breach tracking service Constella Intelligence finds that the phone number associated with those domains — +7.9676442212 — is tied to a Facebook account for an Aleksei Valerievich Safronov from Sochi. Mr. Safronov’s Facebook profile, which was last updated in October 2022, says his ICQ instant messenger number is 53765. This is the same ICQ number assigned to Djamix in the Mazafaka user database.

A “Djamix” account on the forum privetsochi[.]ru (“Hello Sochi”) says this user was born Oct. 2, 1970, and that his website is uposter[.]ru. This Russian language news site’s tagline is, “We Create Communication,” and it focuses heavily on news about Sochi, Adler, Russia and the war in Ukraine, with a strong pro-Kremlin bent.

Safronov’s Facebook profile also gives his Skype username as “Djamixadler,” and it includes dozens of photos of him dressed in military fatigues along with a regiment of soldiers deploying in fairly remote areas of Russia. Some of those photos date back to 2008.

In several of the images, we can see a patch on the arm of Safronov’s jacket that bears the logo of the Spetsnaz GRU, a special forces unit of the Russian military. According to a 2020 report from the Congressional Research Service, the GRU operates both as an intelligence agency — collecting human, cyber, and signals intelligence — and as a military organization responsible for battlefield reconnaissance and the operation of Russia’s Spetsnaz military commando units.

“In recent years, reports have linked the GRU to some of Russia’s most aggressive and public intelligence operations,” the CRS report explains. “Reportedly, the GRU played a key role in Russia’s occupation of Ukraine’s Crimea region and invasion of eastern Ukraine, the attempted assassination of former Russian intelligence officer Sergei Skripal in the United Kingdom, interference in the 2016 U.S. presidential elections, disinformation and propaganda operations, and some of the world’s most damaging cyberattacks.”

According to the Russia-focused investigative news outlet Meduza, in 2014 the Russian Defense Ministry created its “information-operation troops” for action in “cyber-confrontations with potential adversaries.”

“Later, sources in the Defense Ministry explained that these new troops were meant to ‘disrupt the potential adversary’s information networks,'” Meduza reported in 2018. “Recruiters reportedly went looking for ‘hackers who have had problems with the law.'”

Mr. Safronov did not respond to multiple requests for comment. A 2018 treatise written by Aleksei Valerievich Safronov titled “One Hundred Years of GRU Military Intelligence” explains the significance of the bat in the seal of the GRU.

“One way or another, the bat is an emblem that unites all active and retired intelligence officers; it is a symbol of unity and exclusivity,” Safronov wrote. “And, in general, it doesn’t matter who we’re talking about – a secret GRU agent somewhere in the army or a sniper in any of the special forces brigades. They all did and are doing one very important and responsible thing.”

It’s unclear what role Mr. Safronov plays or played in the GRU, but it seems likely the military intelligence agency would have exploited his considerable technical skills, knowledge and connections on the Russian cybercrime forums.

Searching on Safronov’s domain uposter[.]ru in Constella Intelligence reveals that this domain was used in 2022 to register an account at a popular Spanish-language discussion forum dedicated to helping applicants prepare for a career in the Guardia Civil, one of Spain’s two national police forces. Pivoting on that Russian IP in Constella shows three other accounts were created at the same Spanish user forum around the same date.

Mark Rasch is a former cybercrime prosecutor for the U.S. Department of Justice who now serves as chief legal officer for the New York cybersecurity firm Unit 221B. Rasch said there has always been a close relationship between the GRU and the Russian hacker community, noting that in the early 2000s the GRU was soliciting hackers with the skills necessary to hack US banks in order to procure funds to help finance Russia’s war in Chechnya.

“The guy is heavily hooked into the Russian cyber community, and that’s useful for intelligence services,” Rasch said. “He could have been infiltrating the community to monitor it for the GRU. Or he could just be a guy wearing a military uniform.”

Fla. Man Charged in SIM-Swapping Spree is Key Suspect in Hacker Groups Oktapus, Scattered Spider

On Jan. 9, 2024, U.S. authorities arrested a 19-year-old Florida man charged with wire fraud, aggravated identity theft, and conspiring with others to use SIM-swapping to steal cryptocurrency. Sources close to the investigation tell KrebsOnSecurity the accused was a key member of a criminal hacking group blamed for a string of cyber intrusions at major U.S. technology companies during the summer of 2022.

Prosecutors say Noah Michael Urban of Palm Coast, Fla., stole at least $800,000 from at least five victims between August 2022 and March 2023. In each attack, the victims saw their email and financial accounts compromised after suffering an unauthorized SIM-swap, wherein attackers transferred each victim’s mobile phone number to a new device that they controlled.

The government says Urban went by the aliases “Sosa” and “King Bob,” among others. Multiple trusted sources told KrebsOnSecurity that Sosa/King Bob was a core member of a hacking group behind the 2022 breach at Twilio, a company that provides services for making and receiving text messages and phone calls. Twilio disclosed in Aug. 2022 that an intrusion had exposed a “limited number” of Twilio customer accounts through a sophisticated social engineering attack designed to steal employee credentials.

Shortly after that disclosure, the security firm Group-IB published a report linking the attackers behind the Twilio intrusion to separate breaches at more than 130 organizations, including LastPass, DoorDash, Mailchimp, and Plex. Multiple security firms soon assigned the hacking group the nickname “Scattered Spider.”

Group-IB dubbed the gang by a different name — 0ktapus — which was a nod to how the criminal group phished employees for credentials. The missives asked users to click a link and log in at a phishing page that mimicked their employer’s Okta authentication page. Those who submitted credentials were then prompted to provide the one-time password needed for multi-factor authentication.

0ktapus used newly-registered domains that often included the name of the targeted company, and sent text messages urging employees to click on links to these domains to view information about a pending change in their work schedule. The phishing sites used a Telegram instant message bot to forward any submitted credentials in real-time, allowing the attackers to use the phished username, password and one-time code to log in as that employee at the real employer website.

0ktapus often leveraged information or access gained in one breach to perpetrate another. As documented by Group-IB, the group pivoted from its access to Twilio to attack at least 163 of its customers. Among those was the encrypted messaging app Signal, which said the breach could have let attackers re-register the phone number on another device for about 1,900 users.

Also in August 2022, several employees at email delivery firm Mailchimp provided their remote access credentials to this phishing group. According to an Aug. 12 blog post, the attackers used their access to Mailchimp employee accounts to steal data from 214 customers involved in cryptocurrency and finance.

On August 25, 2022, the password manager service LastPass disclosed a breach in which attackers stole some source code and proprietary LastPass technical information, and weeks later LastPass said an investigation revealed no customer data or password vaults were accessed.

However, on November 30, 2022 LastPass disclosed a far more serious breach that the company said leveraged data stolen in the August breach. LastPass said criminal hackers had stolen encrypted copies of some password vaults, as well as other personal information.

In February 2023, LastPass disclosed that the intrusion involved a highly complex, targeted attack against a DevOps engineer who was one of only four LastPass employees with access to the corporate vault. In that incident, the attackers exploited a security vulnerability in a Plex media server that the employee was running on his home network, and succeeded in installing malicious software that stole passwords and other authentication credentials. The vulnerability exploited by the intruders was patched back in 2020, but the employee never updated his Plex software.

As it happens, Plex announced its own data breach one day before LastPass disclosed its initial August intrusion. On August 24, 2022, Plex’s security team urged users to reset their passwords, saying an intruder had accessed customer emails, usernames and encrypted passwords.

KING BOB’S GRAILS

A review of thousands of messages that Sosa and King Bob posted to several public forums and Discord servers over the past two years shows that the person behind these identities was mainly focused on two things: Sim-swapping, and trading in stolen, unreleased rap music recordings from popular artists.

Indeed, those messages show Sosa/King Bob was obsessed with finding new “grails,” the slang term used in some cybercrime discussion channels to describe recordings from popular artists that have never been officially released. It stands to reason that King Bob was SIM-swapping important people in the music industry to obtain these files, although there is little to support this conclusion from the public chat records available.

“I got the most music in the com,” King Bob bragged in a Discord server in November 2022. “I got thousands of grails.”

King Bob’s chats show he was particularly enamored of stealing the unreleased works of his favorite artists — Lil Uzi Vert, Playboi Carti, and Juice Wrld. When another Discord user asked if he has Eminem grails, King Bob said he was unsure.

“I have two folders,” King Bob explained. “One with Uzi, Carti, Juicewrld. And then I have ‘every other artist.’ Every other artist is unorganized as fuck and has thousands of random shit.”

King Bob’s posts on Discord show he quickly became a celebrity on Leaked[.]cx, one of most active forums for trading, buying and selling unreleased music from popular artists. The more grails that users share with the Leaked[.]cx community, the more their status and access on the forum grows.

And King Bob shared a large number of his purloined tunes with this community. Still others he tried to sell. It’s unclear how many of those sales were ever consummated, but it is not unusual for a prized grail to sell for anywhere from $5,000 to $20,000.

In mid-January 2024, several Leaked[.]cx regulars began complaining that they hadn’t seen King Bob in a while and were really missing his grails. On or around Jan. 11, the same day the Justice Department unsealed the indictment against Urban, Leaked[.]cx started blocking people who were trying to visit the site from the United States.

Days later, frustrated Leaked[.]cx users speculated about what could be the cause of the blockage.

“Probs blocked as part of king bob investigation i think?,” wrote the user “Plsdontarrest.” “Doubt he only hacked US artists/ppl which is why it’s happening in multiple countries.”

FORESHADOWING

On Sept. 21, 2022, KrebsOnSecurity told the story of a “Foreshadow,” the nickname chosen by a Florida teenager who was working for a SIM-swapping crew when he was abducted, beaten and held for a $200,000 ransom. A rival SIM-swapping group claimed that Foreshadow and his associates had robbed them of their fair share of the profits from a recent SIM-swap.

In a video released by his abductors on Telegram, a bloodied, battered Foreshadow was made to say they would kill him unless the ransom was paid.

As I wrote in that story, Foreshadow appears to have served as a “holder” — a term used to describe a low-level member of any SIM-swapping group who agrees to carry out the riskiest and least rewarding role of the crime: Physically keeping and managing the various mobile devices and SIM cards that are used in SIM-swapping scams.

KrebsOnSecurity has since learned that Foreshadow was a holder for a particularly active SIM-swapper who went by “Elijah,” which was another nickname that prosecutors say Urban used.

Shortly after Foreshadow’s hostage video began circulating on Telegram and Discord, multiple known actors in the SIM-swapping space told everyone in the channels to delete any previous messages with Foreshadow, claiming he was fully cooperating with the FBI.

This was not the first time Sosa and his crew were hit with violent attacks from rival SIM-swapping groups. In early 2022, a video surfaced on a popular cybercrime channel purporting to show attackers hurling a brick through a window at an address that matches the spacious and upscale home of Urban’s parents in Sanford, Fl.

“Brickings” are among the “violence-as-a-service” offerings broadly available on many cybercrime channels. SIM-swapping and adjacent cybercrime channels are replete with job offers for in-person assignments and tasks that can be found if one searches for posts titled, “If you live near,” or “IRL job” — short for “in real life” job.

A number of these classified ads are in service of performing brickings, where someone is hired to visit a specific address and toss a brick through the target’s window. Other typical IRL job offers involve tire slashings and even drive-by shootings.

THE COM

Sosa was known to be a top member of the broader cybercriminal community online known as “The Com,” wherein hackers boast loudly about high-profile exploits and hacks that almost invariably begin with social engineering — tricking people over the phone, email or SMS into giving away credentials that allow remote access to corporate internal networks.

Sosa also was active in a particularly destructive group of accomplished criminal SIM-swappers known as “Star Fraud.” Cyberscoop’s AJ Vicens reported last year that individuals within Star Fraud were likely involved in the high-profile Caesars Entertainment an MGM Resorts extortion attacks.

“ALPHV, an established ransomware-as-a-service operation thought to be based in Russia and linked to attacks on dozens of entities, claimed responsibility for Caesars and MGM attacks in a note posted to its website earlier this month,” Vicens wrote. “Experts had said the attacks were the work of a group tracked variously as UNC 3944 or Scattered Spider, which has been described as an affiliate working with ALPHV made up of people in the United States and Britain who excel at social engineering.”

In February 2023, KrebsOnSecurity published data taken from the Telegram channels for Star Fraud and two other SIM-swapping groups showing these crooks focused on SIM-swapping T-Mobile customers, and that they collectively claimed access to T-Mobile on 100 separate occasions over a 7-month period in 2022.

The SIM-swapping groups were able to switch targeted phone numbers to another device on demand because they constantly phished T-Mobile employees into giving up credentials to employee-only tools. In each of those cases the goal was the same: Phish T-Mobile employees for access to internal company tools, and then convert that access into a cybercrime service that could be hired to divert any T-Mobile user’s text messages and phone calls to another device.

Allison Nixon, chief research officer at the New York cybersecurity consultancy Unit 221B, said the increasing brazenness of many Com members is a function of how long it has taken federal authorities to go after guys like Sosa.

“These incidents show what happens when it takes too long for cybercriminals to get arrested,” Nixon said. “If governments fail to prioritize this source of threat, violence originating from the Internet will affect regular people.”

NO FIXED ADDRESS

The Daytona Beach News-Journal reports that Urban was arrested Jan. 9 and his trial is scheduled to begin in the trial term starting March 4 in Jacksonville. The publication said the judge overseeing Urban’s case denied bail because the defendant was a strong flight risk.

At Urban’s arraignment, it emerged that he had no fixed address and had been using an alias to stay at an Airbnb. The judge reportedly said that when a search warrant was executed at Urban’s residence, the defendant was downloading programs to delete computer files.

What’s more, the judge explained, despite telling authorities in May that he would not have any more contact with his co-conspirators and would not engage in cryptocurrency transactions, he did so anyway.

Urban entered a plea of not guilty. Urban’s court-appointed attorney said her client would have no comment at this time.

Prosecutors charged Urban with eight counts of wire fraud, one count of conspiracy to commit wire fraud, and five counts of aggravated identity theft. According to the government, if convicted Urban faces up to 20 years in federal prison on each wire fraud charge. He also faces a minimum mandatory penalty of two years in prison for the aggravated identity offenses, which will run consecutive to any other prison sentence imposed.

Ten Years Later, New Clues in the Target Breach

On Dec. 18, 2013, KrebsOnSecurity broke the news that U.S. retail giant Target was battling a wide-ranging computer intrusion that compromised more than 40 million customer payment cards over the previous month. The malware used in the Target breach included the text string “Rescator,” which also was the handle chosen by the cybercriminal who was selling all of the cards stolen from Target customers. Ten years later, KrebsOnSecurity has uncovered new clues about the real-life identity of Rescator.

Shortly after breaking the Target story, KrebsOnSecurity reported that Rescator appeared to be a hacker from Ukraine. Efforts to confirm my reporting with that individual ended when they declined to answer questions, and after I declined to accept a bribe of $10,000 not to run my story.

That reporting was based on clues from an early Russian cybercrime forum in which a hacker named Rescator — using the same profile image that Rescator was known to use on other forums — claimed to have originally been known as “Helkern,” the nickname chosen by the administrator of a cybercrime forum called Darklife.

KrebsOnSecurity began revisiting the research into Rescator’s real-life identity in 2018, after the U.S. Department of Justice unsealed an indictment that named a different Ukrainian man as Helkern.

It may be helpful to first recap why Rescator is thought to be so closely tied to the Target breach. For starters, the text string “Rescator” was found in some of the malware used in the Target breach. Investigators would later determine that a variant of the malware used in the Target breach was used in 2014 to steal 56 million payment cards from Home Depot customers. And once again, cards stolen in the Home Depot breach were sold exclusively at Rescator’s shops.

On Nov. 25, 2013, two days before Target said the breach officially began, Rescator could be seen in instant messages hiring another forum member to verify 400,000 payment cards that Rescator claimed were freshly stolen.

By the first week of December 2013, Rescator’s online store — rescator[.]la — was selling more than six million payment card records stolen from Target customers. Prior to the Target breach, Rescator had mostly sold much smaller batches of stolen card and identity data, and the website allowed cybercriminals to automate the sending of fraudulent wire transfers to money mules based in Lviv, Ukraine.

Finally, there is some honor among thieves, and in the marketplace for stolen payment card data it is considered poor form to advertise a batch of cards as “yours” if you are merely reselling cards sold to you by a third-party card vendor or thief. When serious stolen payment card shop vendors wish to communicate that a batch of cards is uniquely their handiwork or that of their immediate crew, they refer to it as “our base.” And Rescator was quite clear in his advertisements that these millions of cards were obtained firsthand.

FLASHBACK

The new clues about Rescator’s identity came into focus when I revisited the reporting around an April 2013 story here that identified the author of the OSX Flashback Trojan, an early Mac malware strain that quickly spread to more than 650,000 Mac computers worldwide in 2012.

That story about the Flashback author was possible because a source had obtained a Web browser authentication cookie for a founding member of a Russian cybercrime forum called BlackSEO. Anyone in possession of that cookie could then browse the invite-only BlackSEO forum and read the user’s private messages without having to log in.

The legitimate owner of that BlackSEO user cookie went by the nickname Ika, and Ika’s private messages on the forum showed he was close friends with the Flashback author. At the time, Ika also was the administrator of Pustota[.]pw — a closely-guarded Russian forum that counted among its members some of the world’s most successful and established spammers and malware writers.

For many years, Ika held a key position at one of Russia’s largest Internet service providers, and his (mostly glowing) reputation as a reliable provider of web hosting to the Russian cybercrime community gave him an encyclopedic knowledge about nearly every major player in that scene at the time.

The story on the Flashback author featured redacted screenshots that were taken from Ika’s BlackSEO account (see image above). The day after that story ran, Ika posted a farewell address to his mates, expressing shock and bewilderment over the apparent compromise of his BlackSEO account.

In a lengthy post on April 4, 2013 titled “I DON’T UNDERSTAND ANYTHING,” Ika told Pustota forum members he was so spooked by recent events that he was closing the forum and quitting the cybercrime business entirely. Ika recounted how the Flashback story had come the same week that rival cybercriminals tried to “dox” him (their dox named the wrong individual, but included some of Ika’s more guarded identities).

“It’s no secret that karma farted in my direction,” Ika said at the beginning of his post. Unbeknownst to Ika at the time, his Pustota forum also had been completely hacked that week, and a copy of its database shared with this author.

Ika said the two individuals who tried to dox him did so on an even more guarded Russian language forum — DirectConnection[.]ws, perhaps the most exclusive Russian cybercrime community ever created. New applicants of this forum had to pay a non-refundable deposit, and receive vouches by three established cybercriminals already on the forum. Even if one managed to steal (or guess) a user’s DirectConnection password, the login page could not be reached unless the visitor also possessed a special browser certificate that the forum administrator gave only to approved members.

In no uncertain terms, Ika declared that Rescator went by the nickname MikeMike on DirectConnection:

“I did not want to bring any of this to real life. Especially since I knew the patron of the clowns – specifically Pavel Vrublevsky. Yes, I do state with confidence that the man with the nickname Rescator a.k.a. MikeMike with his partner Pipol have been Pavel Vrublevsky’s puppets for a long time.”

Pavel Vrublevsky is a convicted cybercriminal who became famous as the CEO of the Russian e-payments company ChronoPay, which specialized in facilitating online payments for a variety of “high-risk” businesses, including gambling, pirated Mp3 files, rogue antivirus software and “male enhancement” pills.

As detailed in my 2014 book Spam Nation, Vrublevsky not-so-secretly ran a pharmacy affiliate spam program called Rx-Promotion, which paid spammers and virus writers to blast out tens of billions of junk emails advertising generic Viagra and controlled pharmaceuticals like pain relief medications. Much of my reporting on Vrublevsky’s cybercrime empire came from several years worth of internal ChronoPay emails and documents that were leaked online in 2010 and 2011.

ZAXVATMIRA

In 2014, KrebsOnSecurity learned from a trusted source close to the Target breach investigation that the user MikeMike on DirectConnection — the same account that Ika said belonged to Rescator — used the email address “zaxvatmira@gmail.com.”

At the time, KrebsOnSecurity could not connect that email address to anything or anyone. However, a recent search on zaxvatmira@gmail.com at the breach tracking service Constella Intelligence returns just one result: An account created in November 2010 at the site searchengines[.]ru under the handle  “r-fac1.”

A search on “r-fac1” at cyber intelligence firm Intel 471 revealed that this user’s introductory post on searchengines[.]ru advertised musictransferonline[.]com, an affiliate program that paid people to drive traffic to sites that sold pirated music files for pennies apiece.

According to leaked ChronoPay emails from 2010, this domain was registered and paid for by ChronoPay. Those missives also show that in August 2010 Vrublevsky authorized a payment of ~$1,200 for a multi-user license of an Intranet service called MegaPlan.

ChronoPay used the MegaPlan service to help manage the sprawling projects that Vrublevsky referred to internally as their “black” payment processing operations, including pirated pills, porn, Mp3s, and fake antivirus products. ChronoPay employees used their MegaPlan accounts to track payment disputes, order volumes, and advertising partnerships for these high-risk programs.

Borrowing a page from the Quentin Tarantino movie Reservoir Dogs, the employees adopted nicknames like “Mr. Kink,” “Mr. Heppner,” and “Ms. Nati.” However, in a classic failure of operational security, many of these employees had their MegaPlan account messages automatically forwarded to their real ChronoPay email accounts.

When ChronoPay’s internal emails were leaked in 2010, the username and password for its MegaPlan subscription were still working and valid. An internal user directory for that subscription included the personal (non-ChronoPay) email address tied to each employee Megaplan nickname. That directory listing said the email address zaxvatmira@gmail.com was assigned to the head of the Media/Mp3 division for ChronoPay, pictured at the top left of the organizational chart above as “Babushka Vani and Koli.”

[Author’s note: I initially overlooked the presence of the email address zaxvatmira@gmail.com in my notes because it did not show up in text searches of my saved emails, files or messages. I rediscovered it recently when a text search for zaxvatmira@gmail.com on my Mac found the address in a screenshot of the ChronoPay MegaPlan interface.]

The nickname two rungs down from “Babushka” in the ChronoPay org chart is “Lev Tolstoy,” which the MegaPlan service showed was picked by someone who used the email address v.zhabukin@freefrog-co-ru.

ChronoPay’s emails show that this Freefrog email address belongs to a Vasily Borisovich Zhabykin from Moscow. The Russian business tracking website rusprofile[.]ru reports that Zhabykin is or was the supervisor or owner of three Russian organizations, including one called JSC Hot Spot.

[Author’s note: The word “babushka” means “grandma” in Russian, and it could be that this nickname is a nod to the ChronoPay CEO’s wife, Vera. The leaked ChronoPay emails show that Vera Vrublevsky managed a group of hackers working with their media division, and was at least nominally in charge of MP3 projects for ChronoPay. Indeed, in messages exposed by the leaked ChronoPay email cache, Zhabykin stated that he was “directly subordinate” to Mrs. Vrublevsky].

CYBERCRIME HOTSPOT

JSC Hot Spot is interesting because its co-founder is another ChronoPay employee: 37-year-old Mikhail “Mike” Shefel. A Facebook profile for Mr. Shefel says he is or was vice president of payment systems at ChronoPay. However, the last update on that profile is from 2018, when Shefel appears to have legally changed his last name.

Archive.org shows that Hot Spot’s website — myhotspot[.]ru — sold a variety of consulting services, including IT security assessments, code and system audits, and email marketing. The earliest recorded archive of the Hot Spot website listed three clients on its homepage, including ChronoPay and Freefrog.

ChronoPay internal emails show that Freefrog was one of its investment projects that facilitated the sale of pirated Mp3 files. Rusprofile[.]ru reports that Freefrog’s official company name — JSC Freefrog — is incorporated by a thinly-documented entity based in the Seychelles called Impex Consulting Ltd., and it is unclear who its true owners are.

However, a search at DomainTools.com on the phone number listed on the homepage of myhotspot[.]ru (74957809554) reveals that number is associated with eight domain names.

Six of those domains are some variation of FreeFrog. Another domain registered to that phone number is bothunter[.]me, which included a copyright credit to “Hot Spot 2011.” At the annual Russian Internet Week IT convention in Moscow in 2012, Mr. Shefel gave a short presentation about bothunter, which he described as a service he designed to identify inauthentic (bot) accounts on Russian social media networks.

Interestingly, one of r-fac1’s first posts to Searchengines[.]ru a year earlier saw this user requesting help from other members who had access to large numbers of hacked social media accounts. R-fac1 told forum members that he was only looking to use those accounts to post harmless links and comments to the followers of the hacked profiles, and his post suggested he was testing something.

“Good afternoon,” r-fac1 wrote on Dec. 20, 2010. “I’m looking for people with their own not-recently-registered accounts on forums, (except for search) Social networks, Twitter, blogs, their websites. Tasks, depending on your accounts, post text and a link, sometimes just a link. Most often the topic is chatter, relaxation, discussion. Posting my links in your profiles, on your walls. A separate offer for people with a large set of contacts in instant messengers to try to use viral marketing.”

Neither Mr. Shefel nor Mr. Zhabykin responded to requests for comment.

WHERE ARE THEY NOW?

Mr. Zhabykin soon moved on to bigger ventures, co-founding a cryptocurrency exchange based in Moscow’s financial center called Suex. In September 2021, Suex earned the distinction of becoming the first crypto firm to be sanctioned by the U.S. Department of the Treasury, which effectively blocked Suex from the global financial system. The Treasury alleged Suex helped to process millions in criminal transactions, including the proceeds of numerous ransomware attacks.

“I don’t understand how I got mixed up in this,” Zhabykin told The New York Times in 2021. Zhabykin said Suex, which is registered in the Czech Republic, was mostly a failure and had conducted only a half dozen or so transactions since 2019.

The Russian business tracking service Rusprofile says Zhabykin also is the owner of a company based in the United Kingdom called RideWithLocal; the company’s website says it specializes in arranging excursions for extreme sports, including snowboarding, skiing, surfing and parasailing. Images from the RideWithLocal Facebook page show helicopters dropping snowboarders and skiers atop some fairly steep mountains.

Constella Intelligence found a cached copy of a now-deleted LinkedIn profile for Mr. Zhabykin, who described himself as a “sporttech/fintech specialist and mentor.”

“I create products and services worldwide, focusing on innovation and global challenges,” his LinkedIn profile said. “I’ve started my career in 2002 and since then I worked in Moscow, different regions of Russia, including Siberia and in Finland, Brazil, United Kingdom, Sri Lanka. Over the last 15 years I contributed to many amazing products in the following industries: sports, ecology, sport tech, fin tech, electronic payments, big data, telecommunications, pulp and paper industry, wood processing and travel. My specialities are Product development, Mentorship, Strategy and Business development.”

Rusprofile reports that Mikhail Borisovich Shefel is associated with at least eight current or now-defunct companies in Russia, including Dengi IM (Money IM), Internet Capital, Internet Lawyer, Internet 2, Zao Hot Spot, and (my personal favorite) an entity incorporated in 2021 called “All the Money in the World.”

Constella Intelligence found several official documents for Mr. Shefel that came from hacked Russian phone, automobile and residence records. They indicate Mr. Shefel is the registrant of a black Porsche Cayenne (Plate:X537SR197) and a Mercedes (Plate:P003PX90). Those vehicle records show Mr. Shefel was born on May 28, 1986.

Rusprofile reveals that at some point near the end of 2018, Shefel changed his last name to Lenin. DomainTools reports that in 2018, Mr. Shefel’s company Internet 2 LLC registered the domain name Lenin[.]me. This now-defunct service sold physical USSR-era Ruble notes that bear the image of Vladimir Lenin, the founding father of the Soviet Union.

Meanwhile, Pavel Vrublevsky remains imprisoned in Russia, awaiting trial on fraud charges levied against the payment company CEO in March 2022. Authorities allege Vrublevsky operated several fraudulent SMS-based payment schemes. They also accused Vrublevsky of facilitating money laundering for Hydra, the largest Russian darknet market. Hydra trafficked in illegal drugs and financial services, including cryptocurrency tumbling for money laundering, exchange services between cryptocurrency and Russian rubles, and the sale of falsified documents and hacking services.

In 2013, Vrublevsky was sentenced to 2.5 years in a Russian penal colony for convincing one of his top spammers and botmasters to launch a distributed denial-of-service (DDoS) attack against a ChronoPay competitor that shut down the ticketing system for the state-owned Aeroflot airline.

Following his release, Vrublevsky began working on a new digital payments platform based in Hong Kong called HPay Ltd (a.k.a. Hong Kong Processing Corporation). HPay appears to have had a great number of clients that were running schemes which bamboozled people with fake lotteries and prize contests.

KrebsOnSecurity sought comment on this research from the Federal Bureau of Investigation (FBI) and the U.S. Secret Service, both of which have been involved in the Target breach investigation over the years. The FBI declined to comment. The Secret Service declined to confirm or dispute any of the findings, but said it is still interested in hearing from anyone who might have more information.

“The U.S. Secret Service does not comment on any open investigation and won’t confirm or deny the accuracy in any reporting related to a criminal manner,” the agency said in a written statement. “However, If you have any information relating to the subjects referenced in this article, please contact the U.S. Secret Service at mostwanted@usss.dhs.gov. The Secret Service pays a reward for information leading to the arrest of cybercriminals.”

Microsoft Patch Tuesday, November 2023 Edition

Microsoft today released updates to fix more than five dozen security holes in its Windows operating systems and related software, including three “zero day” vulnerabilities that Microsoft warns are already being exploited in active attacks.

The zero-day threats targeting Microsoft this month include CVE-2023-36025, a weakness that allows malicious content to bypass the Windows SmartScreen Security feature. SmartScreen is a built-in Windows component that tries to detect and block malicious websites and files. Microsoft’s security advisory for this flaw says attackers could exploit it by getting a Windows user to click on a booby-trapped link to a shortcut file.

Kevin Breen, senior director of threat research at Immersive Labs, said emails with .url attachments or logs with processes spawning from .url files “should be a high priority for threat hunters given the active exploitation of this vulnerability in the wild.”

The second zero day this month is CVE-2023-36033, which is a vulnerability in the “DWM Core Library” in Microsoft Windows that was exploited in the wild as a zero day and publicly disclosed prior to patches being available. It affects Microsoft Windows 10 and later, as well as Microsoft Windows Server 2019 and subsequent versions.

“This vulnerability can be exploited locally, with low complexity and without needing high-level privileges or user interaction,” said Mike Walters, president and co-founder of the security firm Action1. “Attackers exploiting this flaw could gain SYSTEM privileges, making it an efficient method for escalating privileges, especially after initial access through methods like phishing.”

The final zero day in this month’s Patch Tuesday is a problem in the “Windows Cloud Files Mini Filter Driver” tracked as CVE-2023-36036 that affects Windows 10 and later, as well as Windows Server 2008 at later. Microsoft says it is relatively straightforward for attackers to exploit CVE-2023-36036 as a way to elevate their privileges on a compromised PC.

Beyond the zero day flaws, Breen said organizations running Microsoft Exchange Server should prioritize several new Exchange patches, including CVE-2023-36439, which is a bug that would allow attackers to install malicious software on an Exchange server. This weakness technically requires the attacker to be authenticated to the target’s local network, but Breen notes that a pair of phished Exchange credentials will provide that access nicely.

“This is typically achieved through social engineering attacks with spear phishing to gain initial access to a host before searching for other vulnerable internal targets – just because your Exchange Server doesn’t have internet-facing authentication doesn’t mean it’s protected,” Breen said.

Breen said this vulnerability goes hand in hand with three other Exchange bugs that Microsoft designated as “exploitation more likely:” CVE-2023-36050, CVE-2023-36039 and CVE-2023-36035.

Finally, the SANS Internet Storm Center points to two additional bugs patched by Microsoft this month that aren’t yet showing signs of active exploitation but that were made public prior to today and thus deserve prioritization. Those include: CVE-2023-36038, a denial of service vulnerability in ASP.NET Core, with a CVSS score of 8.2; and CVE-2023-36413: A Microsoft Office security feature bypass. Exploiting this vulnerability will bypass the protected mode when opening a file received via the web.

Windows users, please consider backing up your data and/or imaging your system before applying any updates. And feel free to sound off in the comments if you experience any difficulties as a result of these patches.