How Phished Data Turns into Apple & Google Wallets

Carding — the underground business of stealing, selling and swiping stolen payment card data — has long been the dominion of Russia-based hackers. Happily, the broad deployment of more secure chip-based payment cards in the United States has weakened the carding market. But a flurry of innovation from cybercrime groups in China is breathing new life into the carding industry, by turning phished card data into mobile wallets that can be used online and at main street stores.

If you own a mobile phone, the chances are excellent that at some point in the past two years it has received at least one phishing message that spoofs the U.S. Postal Service to supposedly collect some outstanding delivery fee, or an SMS that pretends to be a local toll road operator warning of a delinquent toll fee.

These messages are being sent through sophisticated phishing kits sold by several cybercriminals based in mainland China. And they are not traditional SMS phishing or “smishing” messages, as they bypass the mobile networks entirely. Rather, the missives are sent through the Apple iMessage service and through RCS, the functionally equivalent technology on Google phones.

People who enter their payment card data at one of these sites will be told their financial institution needs to verify the small transaction by sending a one-time passcode to the customer’s mobile device. In reality, that code will be sent by the victim’s financial institution to verify that the user indeed wishes to link their card information to a mobile wallet.

If the victim then provides that one-time code, the phishers will link the card data to a new mobile wallet from Apple or Google, loading the wallet onto a mobile phone that the scammers control.

CARDING REINVENTED

Ford Merrill works in security research at SecAlliance, a CSIS Security Group company. Merrill has been studying the evolution of several China-based smishing gangs, and found that most of them feature helpful and informative video tutorials in their sales accounts on Telegram. Those videos show the thieves are loading multiple stolen digital wallets on a single mobile device, and then selling those phones in bulk for hundreds of dollars apiece.

“Who says carding is dead?,” said Merrill, who presented about his findings at the M3AAWG security conference in Lisbon earlier today. “This is the best mag stripe cloning device ever. This threat actor is saying you need to buy at least 10 phones, and they’ll air ship them to you.”

One promotional video shows stacks of milk crates stuffed full of phones for sale. A closer inspection reveals that each phone is affixed with a handwritten notation that typically references the date its mobile wallets were added, the number of wallets on the device, and the initials of the seller.

Merrill said one common way criminal groups in China are cashing out with these stolen mobile wallets involves setting up fake e-commerce businesses on Stripe or Zelle and running transactions through those entities — often for amounts totaling between $100 and $500.

Merrill said that when these phishing groups first began operating in earnest two years ago, they would wait between 60 to 90 days before selling the phones or using them for fraud. But these days that waiting period is more like just seven to ten days, he said.

“When they first installed this, the actors were very patient,” he said. “Nowadays, they only wait like 10 days before [the wallets] are hit hard and fast.”

GHOST TAP

Criminals also can cash out mobile wallets by obtaining real point-of-sale terminals and using tap-to-pay on phone after phone. But they also offer a more cutting-edge mobile fraud technology: Merrill found that at least one of the Chinese phishing groups sells an Android app called “ZNFC” that can relay a valid NFC transaction to anywhere in the world. The user simply waves their phone at a local payment terminal that accepts Apple or Google pay, and the app relays an NFC transaction over the Internet from a phone in China.

“The software can work from anywhere in the world,” Merrill said. “These guys provide the software for $500 a month, and it can relay both NFC enabled tap-to-pay as well as any digital wallet. The even have 24-hour support.”

The rise of so-called “ghost tap” mobile software was first documented in November 2024 by security experts at ThreatFabric. Andy Chandler, the company’s chief commercial officer, said their researchers have since identified a number of criminal groups from different regions of the world latching on to this scheme.

Chandler said those include organized crime gangs in Europe that are using similar mobile wallet and NFC attacks to take money out of ATMs made to work with smartphones.

“No one is talking about it, but we’re now seeing ten different methodologies using the same modus operandi, and none of them are doing it the same,” Chandler said. “This is much bigger than the banks are prepared to say.”

A November 2024 story in the Singapore daily The Straits Times reported authorities there arrested three foreign men who were recruited in their home countries via social messaging platforms, and given ghost tap apps with which to purchase expensive items from retailers, including mobile phones, jewelry, and gold bars.

“Since Nov 4, at least 10 victims who had fallen for e-commerce scams have reported unauthorised transactions totaling more than $100,000 on their credit cards for purchases such as electronic products, like iPhones and chargers, and jewelry in Singapore,” The Straits Times wrote, noting that in another case with a similar modus operandi, the police arrested a Malaysian man and woman on Nov 8.

ADVANCED PHISHING TECHNIQUES

According to Merrill, the phishing pages that spoof the USPS and various toll road operators are powered by several innovations designed to maximize the extraction of victim data.

For example, a would-be smishing victim might enter their personal and financial information, but then decide the whole thing is scam before actually submitting the data. In this case, anything typed into the data fields of the phishing page will be captured in real time, regardless of whether the visitor actually clicks the “submit” button.

Merrill said people who submit payment card data to these phishing sites often are then told their card can’t be processed, and urged to use a different card. This technique, he said, sometimes allows the phishers to steal more than one mobile wallet per victim.

Many phishing websites expose victim data by storing the stolen information directly on the phishing domain. But Merrill said these Chinese phishing kits will forward all victim data to a back-end database operated by the phishing kit vendors. That way, even when the smishing sites get taken down for fraud, the stolen data is still safe and secure.

Another important innovation is the use of mass-created Apple and Google user accounts through which these phishers send their spam messages. One of the Chinese phishing groups posted images on their Telegram sales channels showing how these robot Apple and Google accounts are loaded onto Apple and Google phones, and arranged snugly next to each other in an expansive, multi-tiered rack that sits directly in front of the phishing service operator.

In other words, the smishing websites are powered by real human operators as long as new messages are being sent. Merrill said the criminals appear to send only a few dozen messages at a time, likely because completing the scam takes manual work by the human operators in China. After all, most one-time codes used for mobile wallet provisioning are generally only good for a few minutes before they expire.

Notably, none of the phishing sites spoofing the toll operators or postal services will load in a regular Web browser; they will only render if they detect that a visitor is coming from a mobile device.

“One of the reasons they want you to be on a mobile device is they want you to be on the same device that is going to receive the one-time code,” Merrill said. “They also want to minimize the chances you will leave. And if they want to get that mobile tokenization and grab your one-time code, they need a live operator.”

Merrill found the Chinese phishing kits feature another innovation that makes it simple for customers to turn stolen card details into a mobile wallet: They programmatically take the card data supplied by the phishing victim and convert it into a digital image of a real payment card that matches that victim’s financial institution. That way, attempting to enroll a stolen card into Apple Pay, for example, becomes as easy as scanning the fabricated card image with an iPhone.

“The phone isn’t smart enough to know whether it’s a real card or just an image,” Merrill said. “So it scans the card into Apple Pay, which says okay we need to verify that you’re the owner of the card by sending a one-time code.”

PROFITS

How profitable are these mobile phishing kits? The best guess so far comes from data gathered by other security researchers who’ve been tracking these advanced Chinese phishing vendors.

In August 2023, the security firm Resecurity discovered a vulnerability in one popular Chinese phish kit vendor’s platform that exposed the personal and financial data of phishing victims. Resecurity dubbed the group the Smishing Triad, and found the gang had harvested 108,044 payment cards across 31 phishing domains (3,485 cards per domain).

In August 2024, security researcher Grant Smith gave a presentation at the DEFCON security conference about tracking down the Smishing Triad after scammers spoofing the U.S. Postal Service duped his wife. By identifying a different vulnerability in the gang’s phishing kit, Smith said he was able to see that people entered 438,669 unique credit cards in 1,133 phishing domains (387 cards per domain).

Based on his research, Merrill said it’s reasonable to expect between $100 and $500 in losses on each card that is turned into a mobile wallet. Merrill said they observed nearly 33,000 unique domains tied to these Chinese smishing groups during the year between the publication of Resecurity’s research and Smith’s DEFCON talk.

Using a median number of 1,935 cards per domain and a conservative loss of $250 per card, that comes out to about $15 billion in fraudulent charges over a year.

Merrill was reluctant to say whether he’d identified additional security vulnerabilities in any of the phishing kits sold by the Chinese groups, noting that the phishers quickly fixed the vulnerabilities that were detailed publicly by Resecurity and Smith.

FIGHTING BACK

Adoption of touchless payments took off in the United States after the Coronavirus pandemic emerged, and many financial institutions in the United States were eager to make it simple for customers to link payment cards to mobile wallets. Thus, the authentication requirement for doing so defaulted to sending the customer a one-time code via SMS.

Experts say the continued reliance on one-time codes for onboarding mobile wallets has fostered this new wave of carding. KrebsOnSecurity interviewed a security executive from a large European financial institution who spoke on condition of anonymity because they were not authorized to speak to the press.

That expert said the lag between the phishing of victim card data and its eventual use for fraud has left many financial institutions struggling to correlate the causes of their losses.

“That’s part of why the industry as a whole has been caught by surprise,” the expert said. “A lot of people are asking, how this is possible now that we’ve tokenized a plaintext process. We’ve never seen the volume of sending and people responding that we’re seeing with these phishers.”

To improve the security of digital wallet provisioning, some banks in Europe and Asia require customers to log in to the bank’s mobile app before they can link a digital wallet to their device.

Addressing the ghost tap threat may require updates to contactless payment terminals, to better identify NFC transactions that are being relayed from another device. But experts say it’s unrealistic to expect retailers will be eager to replace existing payment terminals before their expected lifespans expire.

And of course Apple and Google have an increased role to play as well, given that their accounts are being created en masse and used to blast out these smishing messages. Both companies could easily tell which of their devices suddenly have 7-10 different mobile wallets added from 7-10 different people around the world. They could also recommend that financial institutions use more secure authentication methods for mobile wallet provisioning.

Neither Apple nor Google responded to requests for comment on this story.

Microsoft Patch Tuesday, February 2025 Edition

Microsoft today issued security updates to fix at least 56 vulnerabilities in its Windows operating systems and supported software, including two zero-day flaws that are being actively exploited.

All supported Windows operating systems will receive an update this month for a buffer overflow vulnerability that carries the catchy name CVE-2025-21418. This patch should be a priority for enterprises, as Microsoft says it is being exploited, has low attack complexity, and no requirements for user interaction.

Tenable senior staff research engineer Satnam Narang noted that since 2022, there have been nine elevation of privilege vulnerabilities in this same Windows component — three each year — including one in 2024 that was exploited in the wild as a zero day (CVE-2024-38193).

“CVE-2024-38193 was exploited by the North Korean APT group known as Lazarus Group to implant a new version of the FudModule rootkit in order to maintain persistence and stealth on compromised systems,” Narang said. “At this time, it is unclear if CVE-2025-21418 was also exploited by Lazarus Group.”

The other zero-day, CVE-2025-21391, is an elevation of privilege vulnerability in Windows Storage that could be used to delete files on a targeted system. Microsoft’s advisory on this bug references something called “CWE-59: Improper Link Resolution Before File Access,” says no user interaction is required, and that the attack complexity is low.

Adam Barnett, lead software engineer at Rapid7, said although the advisory provides scant detail, and even offers some vague reassurance that ‘an attacker would only be able to delete targeted files on a system,’ it would be a mistake to assume that the impact of deleting arbitrary files would be limited to data loss or denial of service.

“As long ago as 2022, ZDI researchers set out how a motivated attacker could parlay arbitrary file deletion into full SYSTEM access using techniques which also involve creative misuse of symbolic links,”Barnett wrote.

One vulnerability patched today that was publicly disclosed earlier is CVE-2025-21377, another weakness that could allow an attacker to elevate their privileges on a vulnerable Windows system. Specifically, this is yet another Windows flaw that can be used to steal NTLMv2 hashes — essentially allowing an attacker to authenticate as the targeted user without having to log in.

According to Microsoft, minimal user interaction with a malicious file is needed to exploit CVE-2025-21377, including selecting, inspecting or “performing an action other than opening or executing the file.”

“This trademark linguistic ducking and weaving may be Microsoft’s way of saying ‘if we told you any more, we’d give the game away,'” Barnett said. “Accordingly, Microsoft assesses exploitation as more likely.”

The SANS Internet Storm Center has a handy list of all the Microsoft patches released today, indexed by severity. Windows enterprise administrators would do well to keep an eye on askwoody.com, which often has the scoop on any patches causing problems.

It’s getting harder to buy Windows software that isn’t also bundled with Microsoft’s flagship Copilot artificial intelligence (AI) feature. Last month Microsoft started bundling Copilot with Microsoft Office 365, which Redmond has since rebranded as “Microsoft 365 Copilot.” Ostensibly to offset the costs of its substantial AI investments, Microsoft also jacked up prices from 22 percent to 30 percent for upcoming license renewals and new subscribers.

Office-watch.com writes that existing Office 365 users who are paying an annual cloud license do have the option of “Microsoft 365 Classic,” an AI-free subscription at a lower price, but that many customers are not offered the option until they attempt to cancel their existing Office subscription.

In other security patch news, Apple has shipped iOS 18.3.1, which fixes a zero day vulnerability (CVE-2025-24200) that is showing up in attacks.

Adobe has issued security updates that fix a total of 45 vulnerabilities across InDesign, Commerce, Substance 3D Stager, InCopy, Illustrator, Substance 3D Designer and Photoshop Elements.

Chris Goettl at Ivanti notes that Google Chrome is shipping an update today which will trigger updates for Chromium based browsers including Microsoft Edge, so be on the lookout for Chrome and Edge updates as we proceed through the week.

MasterCard DNS Error Went Unnoticed for Years

The payment card giant MasterCard just fixed a glaring error in its domain name server settings that could have allowed anyone to intercept or divert Internet traffic for the company by registering an unused domain name. The misconfiguration persisted for nearly five years until a security researcher spent $300 to register the domain and prevent it from being grabbed by cybercriminals.

From June 30, 2020 until January 14, 2025, one of the core Internet servers that MasterCard uses to direct traffic for portions of the mastercard.com network was misnamed. MasterCard.com relies on five shared Domain Name System (DNS) servers at the Internet infrastructure provider Akamai [DNS acts as a kind of Internet phone book, by translating website names to numeric Internet addresses that are easier for computers to manage].

All of the Akamai DNS server names that MasterCard uses are supposed to end in “akam.net” but one of them was misconfigured to rely on the domain “akam.ne.”

This tiny but potentially critical typo was discovered recently by Philippe Caturegli, founder of the security consultancy Seralys. Caturegli said he guessed that nobody had yet registered the domain akam.ne, which is under the purview of the top-level domain authority for the West Africa nation of Niger.

Caturegli said it took $300 and nearly three months of waiting to secure the domain with the registry in Niger. After enabling a DNS server on akam.ne, he noticed hundreds of thousands of DNS requests hitting his server each day from locations around the globe. Apparently, MasterCard wasn’t the only organization that had fat-fingered a DNS entry to include “akam.ne,” but they were by far the largest.

Had he enabled an email server on his new domain akam.ne, Caturegli likely would have received wayward emails directed toward mastercard.com or other affected domains. If he’d abused his access, he probably could have obtained website encryption certificates (SSL/TLS certs) that were authorized to accept and relay web traffic for affected websites. He may even have been able to passively receive Microsoft Windows authentication credentials from employee computers at affected companies.

But the researcher said he didn’t attempt to do any of that. Instead, he alerted MasterCard that the domain was theirs if they wanted it, copying this author on his notifications. A few hours later, MasterCard acknowledged the mistake, but said there was never any real threat to the security of its operations.

“We have looked into the matter and there was not a risk to our systems,” a MasterCard spokesperson wrote. “This typo has now been corrected.”

Meanwhile, Caturegli received a request submitted through Bugcrowd, a program that offers financial rewards and recognition to security researchers who find flaws and work privately with the affected vendor to fix them. The message suggested his public disclosure of the MasterCard DNS error via a post on LinkedIn (after he’d secured the akam.ne domain) was not aligned with ethical security practices, and passed on a request from MasterCard to have the post removed.

Caturegli said while he does have an account on Bugcrowd, he has never submitted anything through the Bugcrowd program, and that he reported this issue directly to MasterCard.

“I did not disclose this issue through Bugcrowd,” Caturegli wrote in reply. “Before making any public disclosure, I ensured that the affected domain was registered to prevent exploitation, mitigating any risk to MasterCard or its customers. This action, which we took at our own expense, demonstrates our commitment to ethical security practices and responsible disclosure.”

Most organizations have at least two authoritative domain name servers, but some handle so many DNS requests that they need to spread the load over additional DNS server domains. In MasterCard’s case, that number is five, so it stands to reason that if an attacker managed to seize control over just one of those domains they would only be able to see about one-fifth of the overall DNS requests coming in.

But Caturegli said the reality is that many Internet users are relying at least to some degree on public traffic forwarders or DNS resolvers like Cloudflare and Google.

“So all we need is for one of these resolvers to query our name server and cache the result,” Caturegli said. By setting their DNS server records with a long TTL or “Time To Live” — a setting that can adjust the lifespan of data packets on a network — an attacker’s poisoned instructions for the target domain can be propagated by large cloud providers.

“With a long TTL, we may reroute a LOT more than just 1/5 of the traffic,” he said.

The researcher said he’d hoped that the credit card giant might thank him, or at least offer to cover the cost of buying the domain.

“We obviously disagree with this assessment,” Caturegli wrote in a follow-up post on LinkedIn regarding MasterCard’s public statement. “But we’ll let you judge— here are some of the DNS lookups we recorded before reporting the issue.”

As the screenshot above shows, the misconfigured DNS server Caturegli found involved the MasterCard subdomain az.mastercard.com. It is not clear exactly how this subdomain is used by MasterCard, however their naming conventions suggest the domains correspond to production servers at Microsoft’s Azure cloud service. Caturegli said the domains all resolve to Internet addresses at Microsoft.

“Don’t be like Mastercard,” Caturegli concluded in his LinkedIn post. “Don’t dismiss risk, and don’t let your marketing team handle security disclosures.”

One final note: The domain akam.ne has been registered previously — in December 2016 by someone using the email address um-i-delo@yandex.ru. The Russian search giant Yandex reports this user account belongs to an “Ivan I.” from Moscow. Passive DNS records from DomainTools.com show that between 2016 and 2018 the domain was connected to an Internet server in Germany, and that the domain was left to expire in 2018.

This is interesting given a comment on Caturegli’s LinkedIn post from an ex-Cloudflare employee who linked to a report he co-authored on a similar typo domain apparently registered in 2017 for organizations that may have mistyped their AWS DNS server as “awsdns-06.ne” instead of “awsdns-06.net.” DomainTools reports that this typo domain also was registered to a Yandex user (playlotto@yandex.ru), and was hosted at the same German ISP — Team Internet (AS61969).

How to Lose a Fortune with Just One Bad Click

Adam Griffin is still in disbelief over how quickly he was robbed of nearly $500,000 in cryptocurrencies. A scammer called using a real Google phone number to warn his Gmail account was being hacked, sent email security alerts directly from google.com, and ultimately seized control over the account by convincing him to click “yes” to a Google prompt on his mobile device.

Griffin is a battalion chief firefighter in the Seattle area, and on May 6 he received a call from someone claiming they were from Google support saying his account was being accessed from Germany. A Google search on the phone number calling him — (650) 203-0000 — revealed it was an official number for Google Assistant, an AI-based service that can engage in two-way conversations.

At the same time, he received an email that came from a google.com email address, warning his Google account was compromised. The message included a “Google Support Case ID number” and information about the Google representative supposedly talking to him on the phone, stating the rep’s name as “Ashton” — the same name given by the caller.

Griffin didn’t learn this until much later, but the email he received had a real google.com address because it was sent via Google Forms, a service available to all Google Docs users that makes it easy to send surveys, quizzes and other communications.

According to tripwire.com’s Graham Cluely, phishers will use Google Forms to create a security alert message, and then change the form’s settings to automatically send a copy of the completed form to any email address entered into the form. The attacker then sends an invitation to complete the form to themselves, not to their intended victim.

“So, the attacker receives the invitation to fill out the form – and when they complete it, they enter their intended victim’s email address into the form, not their own,” Cluely wrote in a December 2023 post. “The attackers are taking advantage of the fact that the emails are being sent out directly by Google Forms (from the google.com domain). It’s an established legitimate domain that helps to make the email look more legitimate and is less likely to be intercepted en route by email-filtering solutions.”

The fake Google representative was polite, patient, professional and reassuring. Ashton told Griffin he was going to receive a notification that would allow him to regain control of the account from the hackers. Sure enough, a Google prompt instantly appeared on his phone asking, “Is it you trying to recover your account?”

Griffin said that after receiving the pop-up prompt from Google on his phone, he felt more at ease that he really was talking to someone at Google. In reality, the thieves caused the alert to appear on his phone merely by stepping through Google’s account recovery process for Griffin’s Gmail address.

“As soon as I clicked yes, I gave them access to my Gmail, which was synched to Google Photos,” Griffin said.

Unfortunately for Griffin, years ago he used Google Photos to store an image of the secret seed phrase that was protecting his cryptocurrency wallet. Armed with that phrase, the phishers could drain all of his funds.

“From there they were able to transfer approximately $450,000 out of my Exodus wallet,” Griffin recalled.

Griffin said just minutes after giving away access to his Gmail account he received a call from someone claiming to be with Coinbase, who likewise told him someone in Germany was trying to take over his account.

Griffin said a follow-up investigation revealed the attackers had used his Gmail account to gain access to his Coinbase account from a VPN connection in California, providing the multi-factor code from his Google Authenticator app. Unbeknownst to him at the time, Google Authenticator by default also makes the same codes available in one’s Google account online.

But when the thieves tried to move $100,000 worth of cryptocurrency out of his account, Coinbase sent an email stating that the account had been locked, and that he would have to submit additional verification documents before he could do anything with it.

GRAND THEFT AUTOMATED

Just days after Griffin was robbed, a scammer impersonating Google managed to phish 45 bitcoins — approximately $4,725,000 at today’s value — from Tony, a 42-year-old professional from northern California. Tony agreed to speak about his harrowing experience on condition that his last name not be used.

Tony got into bitcoin back in 2013 and has been investing in it ever since. On the evening of May 15, 2024, Tony was putting his three- and one-year-old boys to bed when he received a message from Google about an account security issue, followed by a phone call from a “Daniel Alexander” at Google who said his account was compromised by hackers.

Tony said he had just signed up for Google’s Gemini AI (an artificial intelligence platform formerly known as “Bard”), and mistakenly believed the call was part of that service. Daniel told Tony his account was being accessed by someone in Frankfurt, Germany, and that he could evict the hacker and recover access to the account by clicking “yes” to the prompt that Google was going to send to his phone.

The Google prompt arrived seconds later. And to his everlasting regret, Tony clicked the “Yes, it’s me” button.

Then came another call, this one allegedly from security personnel at Trezor, a company that makes encrypted hardware devices made to store cryptocurrency seed phrases securely offline. The caller said someone had submitted a request to Trezor to close his account, and they forwarded Tony a message sent from his Gmail account that included his name, Social Security number, date of birth, address, phone number and email address.

Tony said he began to believe then that his Trezor account truly was compromised. The caller convinced him to “recover” his account by entering his cryptocurrency seed phrase at a phishing website (verify-trezor[.]io) that mimicked the official Trezor website.

“At this point I go into fight or flight mode,” Tony recalled. “I’ve got my kids crying, my wife is like what the heck is going on? My brain went haywire. I put my seed phrase into a phishing site, and that was it.”

Almost immediately, all of the funds he was planning to save for retirement and for his children’s college fund were drained from his account.

“I made mistakes due to being so busy and not thinking correctly,” Tony told KrebsOnSecurity. “I had gotten so far away from the security protocols in bitcoin as life had changed so much since having kids.”

Tony said the theft left him traumatized and angry for months.

“All I was thinking about was protecting my boys and it ended up costing me everything,” he said. “Needless to say I’m devastated and have had to do serious therapy to get through it.”

MISERY LOVES COMPANY

Tony told KrebsOnSecurity that in the weeks following the theft of his 45 bitcoins, he became so consumed with rage and shame that he was seriously contemplating suicide. Then one day, while scouring the Internet for signs that others may have been phished by Daniel, he encountered Griffin posting on Reddit about the phone number involved in his recent bitcoin theft.

Griffin said the two of them were initially suspicious of each other — exchanging cautious messages for about a week — but he decided Tony was telling the truth after contacting the FBI agent that Tony said was working his case. Comparing notes, they discovered the fake Google security alerts they received just prior to their individual bitcoin thefts referenced the same phony “Google Support Case ID” number.

More importantly, Tony recognized the voice of “Daniel from Google” when it was featured in an interview by Junseth, a podcaster who covers cryptocurrency scams. The same voice that had coaxed Tony out of his considerable cryptocurrency holdings just days earlier also had tried to phish Junseth, who played along for several minutes before revealing he knew it was a scam.

Daniel told Junseth he was a teenager and worked with other scam callers who had all met years ago on the game Minecraft, and that he recently enjoyed a run of back-to-back Gmail account compromises that led to crypto theft paydays.

“No one gets arrested,” Daniel enthused to Junseth in the May 7 podcast, which quickly went viral on social media. “It’s almost like there’s no consequences. I have small legal side hustles, like businesses and shit that I can funnel everything through. If you were to see me in real life, I look like a regular child going to school with my backpack and shit, you’d never expect this kid is stealing all this shit.”

Daniel explained that they often use an automated bot that initiates calls to targets warning that their account is experiencing suspicious activity, and that they should press “1” to speak with a representative. This process, he explained, essentially self-selects people who are more likely to be susceptible to their social engineering schemes. [It is possible — but not certain — that this bot Daniel referenced explains the incoming call to Griffin from Google Assistant that precipitated his bitcoin heist].

Daniel told Junseth he and his co-conspirators had just scored a $1.2 million theft that was still pending on the bitcoin investment platform SwanBitcoin. In response, Junseth tagged SwanBitcoin in a post about his podcast on Twitter/X, and the CEO of Swan quickly replied that they caught the $1.2 million transaction that morning.

Apparently, Daniel didn’t appreciate having his voice broadcast to the world (or his $1.2 million bitcoin heist disrupted) because according to Junseth someone submitted a baseless copyright infringement claim about it to Soundcloud, which was hosting the recording.

The complaint alleged the recording included a copyrighted song, but that wasn’t true: Junseth later posted a raw version of the recording to Telegram, and it clearly had no music in the background. Nevertheless, Soundcloud removed the audio file.

“All these companies are very afraid of copyright,” Junseth explained in a May 2024 interview with the podcast whatbitcoindid.com, which features some of the highlights from his recorded call with Daniel.

“It’s interesting because copyright infringement really is an act that you’re claiming against the publisher, but for some reason these companies have taken a very hard line against it, so if you even claim there’s copyrighted material in it they just take it down and then they leave it to you to prove that you’re innocent,” Junseth said. “In Soundcloud’s instance, part of declaring your innocence is you have to give them your home address and everything else, and it says right on there, ‘this will be provided to the person making the copyright claim.'”

AFTERMATH

When Junseth asked how potential victims could protect themselves, Daniel explained that if the target doesn’t have their Google Authenticator synced to their Google cloud account, the scammers can’t easily pivot into the victim’s accounts at cryptocurrency exchanges, as they did with Griffin.

By default, Google Authenticator syncs all one-time codes with a Gmail user’s account, meaning if someone gains access to your Google account, they can then access all of the one-time codes handed out by your Google Authenticator app.

To change this setting, open Authenticator on your mobile device, select your profile picture, and then choose “Use without an Account” from the menu. If you disable this, it’s a good idea to keep a printed copy of one-time backup codes, and to store those in a secure place.

You may also wish to download Google Authenticator to another mobile device that you control. Otherwise, if you turn off cloud synching and lose that sole mobile device with your Google Authenticator app, it could be difficult or impossible to recover access to your account if you somehow get locked out.

Griffin told KrebsOnSecurity he had no idea it was so easy for thieves to take over his account, and to abuse so many different Google services in the process.

“I know I definitely made mistakes, but I also know Google could do a lot better job protecting people,” he said.

In response to questions from KrebsOnSecurity, Google said it can confirm that this was a narrow phishing campaign, reaching a “very small group of people.”

“We’re aware of this narrow and targeted attack, and have hardened our defenses to block recovery attempts from this actor,” the company said in a written statement, which emphasized that the real Google will never call you.

“While these types of social engineering campaigns are constantly evolving, we are continuously working to harden our systems with new tools and technical innovations, as well as sharing updated guidance with our users to stay ahead of attackers,” the statement reads.

Both Griffin and Tony say they continue to receive “account security” calls from people pretending to work for Google or one of the cryptocurrency platforms.

“It’s like you get put on some kind of list, and then those lists get recycled over and over,” Tony said.

Griffin said that for several months after his ordeal, he accepted almost every cryptocurrency scam call that came his way, playing along in the vain hope of somehow tricking the caller into revealing details about who they are in real life. But he stopped after his taunting caused one of the scammers to start threatening him personally.

“I probably shouldn’t have, but I recorded two 30-minute conversations with these guys,” Griffin said, acknowledging that maybe it wasn’t such a great idea to antagonize cybercriminals who clearly already knew everything about him. “One guy I talked to about his personal life, and then his friend called me up and said he was going to dox me and do all this other bad stuff. My FBI contact later told me not to talk to these guys anymore.”

Sound advice. So is hanging up whenever anyone calls you about a security problem with one of your accounts. Even security-conscious people tend to underestimate the complex and shifting threat from phone-based phishing scams, but they do so at their peril.

When in doubt: Hang up, look up, and call back. If your response to these types of calls involves anything other than hanging up, researching the correct phone number, and contacting the entity that claims to be calling, you may be setting yourself up for a costly and humbling learning experience.

Understand that your email credentials are more than likely the key to unlocking your entire digital identity. Be sure to use a long, unique passphrase for your email address, and never pick a passphrase that you have ever used anywhere else (not even a variation on an old password).

Finally, it’s also a good idea to take advantage of the strongest multi-factor authentication methods offered. For Gmail/Google accounts, that includes the use of passkeys or physical security keys, which are heavily phishing resistant. For Google users holding measurable sums of cryptocurrency, the most secure option is Google’s free Advanced Protection program, which includes more extensive account security features but also comes with some serious convenience trade-offs.

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.

Google Cloud Rolling Out Mandatory MFA for All Users

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Google's Big Sleep LLM Agent Discovers Exploitable Bug In SQLite

FakeCall Malware Menaces Android Devices

Kremlin-Backed Hackers Have New Windows And Android Malware To Foist On Ukrainian Foes

Millions At Risk From Hardcoded Creds In Popular iOS And Android Apps

The Global Surveillance Free-for-All in Mobile Ad Data

Not long ago, the ability to digitally track someone’s daily movements just by knowing their home address, employer, or place of worship was considered a dangerous power that should remain only within the purview of nation states. But a new lawsuit in a likely constitutional battle over a New Jersey privacy law shows that anyone can now access this capability, thanks to a proliferation of commercial services that hoover up the digital exhaust emitted by widely-used mobile apps and websites.

Delaware-based Atlas Data Privacy Corp. helps its users remove their personal information from the clutches of consumer data brokers, and from people-search services online. Backed by millions of dollars in litigation financing, Atlas so far this year has sued 151 consumer data brokers on behalf of a class that includes more than 20,000 New Jersey law enforcement officers who are signed up for Atlas services.

Atlas alleges all of these data brokers have ignored repeated warnings that they are violating Daniel’s Law, a New Jersey statute allowing law enforcement, government personnel, judges and their families to have their information completely removed from commercial data brokers. Daniel’s Law was passed in 2020 after the death of 20-year-old Daniel Anderl, who was killed in a violent attack targeting a federal judge — his mother.

Last week, Atlas invoked Daniel’s Law in a lawsuit (PDF) against Babel Street, a little-known technology company incorporated in Reston, Va. Babel Street’s core product allows customers to draw a digital polygon around nearly any location on a map of the world, and view a slightly dated (by a few days) time-lapse history of the mobile devices seen coming in and out of the specified area.

Babel Street’s LocateX platform also allows customers to track individual mobile users by their Mobile Advertising ID or MAID, a unique, alphanumeric identifier built into all Google Android and Apple mobile devices.

Babel Street can offer this tracking capability by consuming location data and other identifying information that is collected by many websites and broadcast to dozens and sometimes hundreds of ad networks that may wish to bid on showing their ad to a particular user.

In an interview, Atlas said a private investigator they hired was offered a free trial of Babel Street, which the investigator was able to use to determine the home address and daily movements of mobile devices belonging to multiple New Jersey police officers whose families have already faced significant harassment and death threats.

Atlas said the investigator encountered Babel Street while testing hundreds of data broker tools and services to see if personal information on its users was being sold. They soon discovered Babel Street also bundles people-search services with its platform, to make it easier for customers to zero in on a specific device.

The investigator contacted Babel Street about possibly buying home addresses in certain areas of New Jersey. After listening to a sales pitch for Babel Street and expressing interest, the investigator was told Babel Street only offers their service to the government or to “contractors of the government.”

“The investigator (truthfully) mentioned that he was contemplating some government contract work in the future and was told by the Babel Street salesperson that ‘that’s good enough’ and that ‘they don’t actually check,’” Atlas shared in an email with reporters.

KrebsOnSecurity was one of five media outlets invited to review screen recordings that Atlas made while its investigator used a two-week trial version of Babel Street’s LocateX service. References and links to reporting by other publications, including 404 Media, Haaretz, NOTUS, and The New York Times, will appear throughout this story.

Collectively, these stories expose how the broad availability of mobile advertising data has created a market in which virtually anyone can build a sophisticated spying apparatus capable of tracking the daily movements of hundreds of millions of people globally.

The findings outlined in Atlas’s lawsuit against Babel Street also illustrate how mobile location data is set to massively complicate several hot-button issues, from the tracking of suspected illegal immigrants or women seeking abortions, to harassing public servants who are already in the crosshairs over baseless conspiracy theories and increasingly hostile political rhetoric against government employees.

WARRANTLESS SURVEILLANCE

Atlas says the Babel Street trial period allowed its investigator to find information about visitors to high-risk targets such as mosques, synagogues, courtrooms and abortion clinics. In one video, an Atlas investigator showed how they isolated mobile devices seen in a New Jersey courtroom parking lot that was reserved for jurors, and then tracked one likely juror’s phone to their home address over several days.

While the Atlas investigator had access to its trial account at Babel Street, they were able to successfully track devices belonging to several plaintiffs named or referenced in the lawsuit. They did so by drawing a digital polygon around the home address or workplace of each person in Babel Street’s platform, which focused exclusively on the devices that passed through those addresses each day.

One unique feature of Babel Street is the ability to toggle a “night” mode, which makes it relatively easy to determine within a few meters where a target typically lays their head each night (because their phone is usually not far away).

Atlas plaintiffs Scott and Justyna Maloney are both veteran officers with the Rahway, NJ police department who live together with their two young children. In April 2023, Scott and Justyna became the target of intense harassment and death threats after Officer Justyna responded to a routine call about a man filming people outside of the Motor Vehicle Commission in Rahway.

The man filming the Motor Vehicle Commission that day is a social media personality who often solicits police contact and then records himself arguing about constitutional rights with the responding officers.

Officer Justyna’s interaction with the man was entirely peaceful, and the episode appeared to end without incident. But after a selectively edited video of that encounter went viral, their home address and unpublished phone numbers were posted online. When their tormentors figured out that Scott was also a cop (a sergeant), the couple began receiving dozens of threatening text messages, including specific death threats.

According to the Atlas lawsuit, one of the messages to Mr. Maloney demanded money, and warned that his family would “pay in blood” if he didn’t comply. Sgt. Maloney said he then received a video in which a masked individual pointed a rifle at the camera and told him that his family was “going to get [their] heads cut off.”

Maloney said a few weeks later, one of their neighbors saw two suspicious individuals in ski masks parked one block away from the home and alerted police. Atlas’s complaint says video surveillance from neighboring homes shows the masked individuals circling the Maloney’s home. The responding officers arrested two men, who were armed, for unlawful possession of a firearm.

Atlas said their investigator was not able to conclusively find Scott Maloney’s iPhone in the Babel Street platform, but they did find Justyna’s. Babel Street had nearly 100,000 hits for her phone over several months, allowing Atlas to piece together an intimate picture of Justyna’s daily movements and meetings with others.

An Atlas investigator visited the Maloneys and inspected Justyna’s iPhone, and determined the only app that used her device’s location data was from the department store Macy’s.

In a written response to questions, Macy’s said its app includes an opt-in feature for geo-location, “which allows customers to receive an enhanced shopping experience based on their location.”

“We do not store any customer location information,” Macy’s wrote. “We share geo-location data with a limited number of partners who help us deliver this enhanced app experience. Furthermore, we have no connection with Babel Street” [link added for context].

Justyna’s experience highlights a stark reality about the broad availability of mobile location data: Even if the person you’re looking for isn’t directly identifiable in platforms like Babel Street, it is likely that at least some of that person’s family members are. In other words, it’s often trivial to infer the location of one device by successfully locating another.

The terms of service for Babel Street’s Locate X service state that the product “may not be used as the basis for any legal process in any country, including as the basis for a warrant, subpoena, or any other legal or administrative action.” But Scott Maloney said he’s convinced by their experience that not even law enforcement agencies should have access to this capability without a warrant.

“As a law enforcement officer, in order for me to track someone I need a judge to sign a warrant – and that’s for a criminal investigation after we’ve developed probable cause,” Mr. Maloney said in an interview. “Data brokers tracking me and my family just to sell that information for profit, without our consent, and even after we’ve explicitly asked them not to is deeply disturbing.”

Mr. Maloney’s law enforcement colleagues in other states may see things differently. In August, The Texas Observer reported that state police plan to spend more than $5 million on a contract for a controversial surveillance tool called Tangles from the tech firm PenLink. Tangles is an AI-based web platform that scrapes information from the open, deep and dark web, and it has a premier feature called WebLoc that can be used to geofence mobile devices.

The Associated Press reported last month that law enforcement agencies from suburban Southern California to rural North Carolina have been using an obscure cell phone tracking tool called Fog Reveal — at times without warrants — that gives them the ability to follow people’s movements going back many months.

It remains unclear precisely how Babel Street is obtaining the abundance of mobile location data made available to users of its platform. The company did not respond to multiple requests for comment.

But according to a document (PDF) obtained under a Freedom of Information Act request with the Department of Homeland Security’s Science and Technology directorate, Babel Street re-hosts data from the commercial phone tracking firm Venntel.

On Monday, the Substack newsletter All-Source Intelligence unearthed documents indicating that the U.S. Federal Trade Commission has opened an inquiry into Venntel and its parent company Gravy Analytics.

“Venntel has also been a data partner of the police surveillance contractor Fog Data Science, whose product has been described as ‘mass surveillance on a budget,'” All-Source’s Jack Poulson wrote. “Venntel was also reported to have been a primary data source of the controversial ‘Locate X’ phone tracking product of the American data fusion company Babel Street.”

MAID IN HELL

The Mobile Advertising ID or MAID — the unique alphanumeric identifier assigned to each mobile device — was originally envisioned as a way to distinguish individual mobile customers without relying on personally identifiable information such as phone numbers or email addresses.

However, there is now a robust industry of marketing and advertising companies that specialize in assembling enormous lists of MAIDs that are “enriched” with historical and personal information about the individual behind each MAID.

Atlas said its investigator wanted to know whether they could find enriched MAID records on their New Jersey law enforcement customers, and soon found plenty of ad data brokers willing to sell it.

Some vendors offered only a handful of data fields, such as first and last name, MAID and email address. Other brokers sold far more detailed histories along with their MAID, including each subject’s social media profiles, precise GPS coordinates, and even likely consumer category.

How are advertisers and data brokers gaining access to so much information? Some sources of MAID data can be apps on your phone such as AccuWeather, GasBuddy, Grindr, and MyFitnessPal that collect your MAID and location and sell that to brokers.

A user’s MAID profile and location data also is commonly shared as a consequence of simply using a smartphone to visit a web page that features ads. In the few milliseconds before those ads load, the website will send a “bid request” to various ad exchanges, where advertisers can bid on the chance to place their ad in front of users who match the consumer profiles they’re seeking. A great deal of data can be included in a bid request, including the user’s precise location (the current open standard for bid requests is detailed here).

The trouble is that virtually anyone can access the “bidstream” data flowing through these so-called “realtime bidding” networks, because the information is simultaneously broadcast in the clear to hundreds of entities around the world.

The result is that there are a number of marketing companies that now enrich and broker access to this mobile location information. Earlier this year, the German news outlet netzpolitik.org purchased a bidstream data set containing more than 3.6 billion data points, and shared the information with the German daily BR24. They concluded that the data they obtained (through a free trial, no less) made it possible to establish movement profiles — some of them quite precise — of several million people across Germany.

Politico recently covered startling research from universities in New Hampshire, Kentucky and St. Louis that showed how the mobile advertising data they acquired allowed them to link visits from investigators with the U.S. Securities and Exchange Commission (SEC) to insiders selling stock before the investigations became public knowledge.

The researchers in that study said they didn’t attempt to use the same methods to track regulators from other agencies, but that virtually anyone could do it.

Justin Sherman, a distinguished fellow at Georgetown Law’s Center for Privacy and Technology, called the research a “shocking demonstration of what happens when companies can freely harvest Americans’ geolocation data and sell it for their chosen price.”

“Politicians should understand how they, their staff, and public servants are threatened by the sale of personal data—and constituent groups should realize that talk of data broker ‘controls’ or ‘best practices” is designed by companies to distract from the underlying problems and the comprehensive privacy and security solutions,” Sherman wrote for Lawfare this week.

A BIDSTREAM DRAGNET?

The Orwellian nature of modern mobile advertising networks may soon have far-reaching implications for women’s reproductive rights, as more states move to outlaw abortion within their borders. The 2022 Dobbs decision by the U.S. Supreme Court discarded the federal right to abortion, and 14 states have since enacted strict abortion bans.

Anti-abortion groups are already using mobile advertising data to advance their cause. In May 2023, The Wall Street Journal reported that an anti-abortion group in Wisconsin used precise geolocation data to direct ads to women it suspected of seeking abortions.

As it stands, there is little to stop anti-abortion groups from purchasing bidstream data (or renting access to a platform like Babel Street) and using it to geofence abortion clinics, potentially revealing all mobile devices transiting through these locations.

Atlas said its investigator geofenced an abortion clinic and was able to identify a likely employee at that clinic, following their daily route to and from that individual’s home address.

Last year, Idaho became the first state to outlaw “abortion trafficking,” which the Idaho Capital Sun reports is defined as “recruiting, harboring or transporting a pregnant minor to get an abortion or abortion medication without parental permission.” Tennessee now has a similar law, and GOP lawmakers in five other states introduced abortion trafficking bills that failed to advance this year, the Sun reports.

Atlas said its investigator used Babel Street to identify and track a person traveling from their home in Alabama — where abortion is now illegal — to an abortion clinic just over the border in Tallahassee, Fla. — and back home again within a few hours. Abortion rights advocates and providers are currently suing Alabama Attorney General Steve Marshall, seeking to block him from prosecuting people who help patients travel out-of-state to end pregnancies.

Eva Galperin, director of cybersecurity at the Electronic Frontier Foundation (EFF), a non-profit digital rights group, said she’s extremely concerned about dragnet surveillance of people crossing state lines in order to get abortions.

“Specifically, Republican officials from states that have outlawed abortion have made it clear that they are interested in targeting people who have gone to neighboring states in order to get abortions, and to make it more difficult for people who are seeking abortions to go to neighboring states,” Galperin said. “It’s not a great leap to imagine that states will do this.”

APPLES AND GOOGLES

Atlas found that for the right price (typically $10-50k a year), brokers can provide access to tens of billions of data points covering large swaths of the US population and the rest of the world.

Based on the data sets Atlas acquired — many of which included older MAID records — they estimate they could locate roughly 80 percent of Android-based devices, and about 25 percent of Apple phones. Google refers to its MAID as the “Android Advertising ID,” (AAID) while Apple calls it the “Identifier for Advertisers” (IDFA).

What accounts for the disparity between the number of Android and Apple devices that can be found in mobile advertising data? In April 2021, Apple shipped version 14.5 of its iOS operating system, which introduced a technology called App Tracking Transparency (ATT) that requires apps to get affirmative consent before they can track users by their IDFA or any other identifier.

Apple’s introduction of ATT had a swift and profound impact on the advertising market: Less than a year later Facebook disclosed that the iPhone privacy feature would decrease the company’s 2022 revenues by about $10 billion.

Google runs by far the world’s largest ad exchange, known as AdX. The U.S. Department of Justice, which has accused Google of building a monopoly over the technology that places ads on websites, estimates that Google’s ad exchange controls 47 percent of the U.S. market and 56 percent globally.

Google’s Android is also the dominant mobile operating system worldwide, with more than 72 percent of the market. In the U.S., however, iPhone users claim approximately 55 percent of the market, according to TechRepublic.

In response to requests for comment, Google said it does not send real time bidding requests to Babel Street, nor does it share precise location data in bid requests. The company added that its policies explicitly prohibit the sale of data from real-time bidding, or its use for any purpose other than advertising.

Google said its MAIDs are randomly generated and do not contain IP addresses, GPS coordinates, or any other location data, and that its ad systems do not share anyone’s precise location data.

“Android has clear controls for users to manage app access to device location, and reset or delete their advertising ID,” Google’s written statement reads. “If we learn that someone, whether an app developer, ad tech company or anyone else, is violating our policies, we take appropriate action. Beyond that, we support legislation and industry collaboration to address these types of data practices that negatively affect the entire mobile ecosystem, including all operating systems.”

In a written statement shared with reporters, Apple said Location Services is not on by default in its devices. Rather, users must enable Location Services and must give permission to each app or website to use location data. Users can turn Location Services off at any time, and can change whether apps have access to location at any time. The user’s choices include precise vs. approximate location, as well as a one-time grant of location access by the app.

“We believe that privacy is a fundamental human right, and build privacy protections into each of our products and services to put the user in control of their data,” an Apple spokesperson said. “We minimize personal data collection, and where possible, process data only on users’ devices.”

Zach Edwards is a senior threat analyst at the cybersecurity firm SilentPush who has studied the location data industry closely. Edwards said Google and Apple can’t keep pretending like the MAIDs being broadcast into the bidstream from hundreds of millions of American devices aren’t making most people trivially trackable.

“The privacy risks here will remain until Apple and Google permanently turn off their mobile advertising ID schemes and admit to the American public that this is the technology that has been supporting the global data broker ecosystem,” he said.

STATES ACT, WHILE CONGRESS DITHERS

According to Bloomberg Law, between 2019 and 2023, threats against federal judges have more than doubled. Amid increasingly hostile political rhetoric and conspiracy theories against government officials, a growing number of states are seeking to pass their own versions of Daniel’s Law.

Last month, a retired West Virginia police officer filed a class action lawsuit against the people-search service Whitepages for listing their personal information in violation of a statute the state passed in 2021 that largely mirrors Daniel’s Law.

In May 2024, Maryland passed the Judge Andrew F. Wilkinson Judicial Security Act — named after a county circuit court judge who was murdered by an individual involved in a divorce proceeding over which he was presiding. The law allows current and former members of the Maryland judiciary to request their personal information not be made available to the public.

Under the Maryland law, personal information can include a home address; telephone number, email address; Social Security number or federal tax ID number; bank account or payment card number; a license plate or other unique vehicle identifier; a birth or marital record; a child’s name, school, or daycare; place of worship; place of employment for a spouse, child, or dependent.

The law firm Troutman Pepper writes that “so far in 2024, 37 states have begun considering or have adopted similar privacy-based legislation designed to protect members of the judiciary and, in some states, other government officials involved in law enforcement.”

Atlas alleges that in response to requests to have data on its New Jersey law enforcement clients scrubbed from consumer records sold by LexisNexis, the data broker retaliated by freezing the credit of approximately 18,500 people, and falsely reporting them as identity theft victims.

In addition, Atlas said LexisNexis started returning failure codes indicating they had no record of these individuals, resulting in denials when officers attempted to refinance loans or open new bank accounts.

The data broker industry has responded by having at least 70 of the Atlas lawsuits moved to federal court, and challenging the constitutionality of the New Jersey statute as overly broad and a violation of the First Amendment.

Attorneys for the data broker industry argued in their motion to dismiss that there is “no First Amendment doctrine that exempts a content-based restriction from strict scrutiny just because it has some nexus with a privacy interest.”

Atlas’s lawyers responded that data covered under Daniel’s Law — personal information of New Jersey law enforcement officers — is not free speech. Atlas notes that while defending against comparable lawsuits, the data broker industry has argued that home address and phone number data are not “communications.”

“Data brokers should not be allowed to argue that information like addresses are not ‘communications’ in one context, only to turn around and claim that addresses are protectable communications,” Atlas argued (PDF). “Nor can their change of course alter the reality that the data at issue is not speech.”

The judge overseeing the challenge is expected to rule on the motion to dismiss within the next few weeks. Regardless of the outcome, the decision is likely to be appealed all the way to the U.S. Supreme Court.

Meanwhile, media law experts say they’re concerned that enacting Daniel’s Law in other states could limit the ability of journalists to hold public officials accountable, and allow authorities to pursue criminal charges against media outlets that publish the same type of public and government records that fuel the people-search industry.

Sen. Ron Wyden (D-Ore.) said Congress’ failure to regulate data brokers, and the administration’s continued opposition to bipartisan legislation that would limit data sales to law enforcement, have created this current privacy crisis.

“Whether location data is being used to identify and expose closeted gay Americans, or to track people as they cross state lines to seek reproductive health care, data brokers are selling Americans’ deepest secrets and exposing them to serious harm, all for a few bucks,” Wyden said in a statement shared with KrebsOnSecurity, 404 Media, Haaretz, NOTUS, and The New York Times.

Sen. Wyden said Google also deserves blame for refusing to follow Apple’s lead by removing companies’ ability to track phones.

“Google’s insistence on uniquely tracking Android users – and allowing ad companies to do so as well – has created the technical foundations for the surveillance economy and the abuses stemming from it,” Wyden said.

Georgetown Law’s Justin Sherman said the data broker and mobile ad industries claim there are protections in place to anonymize mobile location data and restrict access to it, and that there are limits to the kinds of invasive inferences one can make from location data. The data broker industry also likes to tout the usefulness of mobile location data in fighting retail fraud, he said.

“All kinds of things can be inferred from this data, including people being targeted by abusers, or people with a particular health condition or religious belief,” Sherman said. “You can track jurors, law enforcement officers visiting the homes of suspects, or military intelligence people meeting with their contacts. The notion that the sale of all this data is preventing harm and fraud is hilarious in light of all the harm it causes enabling people to better target their cyber operations, or learning about people’s extramarital affairs and extorting public officials.”

WHAT CAN YOU DO?

Privacy experts say disabling or deleting your device’s MAID will have no effect on how your phone operates, except that you may begin to see far less targeted ads on that device.

Any Android apps with permission to use your location should appear when you navigate to the Settings app, Location, and then App Permissions. “Allowed all the time” is the most permissive setting, followed by “Allowed only while in use,” “Ask every time,” and “Not allowed.”

Android users can delete their ad ID permanently, by opening the Settings app and navigating to Privacy > Ads. Tap “Delete advertising ID,” then tap it again on the next page to confirm. According to the EFF, this will prevent any app on your phone from accessing the ad ID in the future. Google’s documentation on this is here.

By default, Apple’s iOS requires apps to ask permission before they can access your device’s IDFA. When you install a new app, it may ask for permission to track you. When prompted to do so by an app, select the “Ask App Not to Track” option. Apple users also can set the “Allow apps to request to track” switch to the “off” position, which will block apps from asking to track you.

Apple also has its own targeted advertising system which is separate from third-party tracking enabled by the IDFA. To disable it, go to Settings, Privacy, and Apple Advertising, and ensure that the “Personalized Ads” setting is set to “off.”

Finally, if you’re the type of reader who’s the default IT support person for a small group of family or friends (bless your heart), it would be a good idea to set their devices not to track them, and to disable any apps that may have location data sharing turned on 24/7.

There is a dual benefit to this altruism, which is clearly in the device owner’s best interests. Because while your device may not be directly trackable via advertising data, making sure they’re opted out of said tracking also can reduce the likelihood that you are trackable simply by being physically close to those who are.

Google Warns Of Samsung Zero Day Exploited In The Wild

Threat Actors Exploit Zero Days Within 5 Days, Says Mandiant

11 Million Devices Infected With Botnet Malware Hosted In Google Play

Using YouTube To Steal Your Files

CloudImposer Attack Targets Google Cloud Services

Sextortion Scams Now Include Photos of Your Home

An old but persistent email scam known as “sextortion” has a new personalized touch: The missives, which claim that malware has captured webcam footage of recipients pleasuring themselves, now include a photo of the target’s home in a bid to make threats about publishing the videos more frightening and convincing.

This week, several readers reported receiving sextortion emails that addressed them by name and included images of their street or front yard that were apparently lifted from an online mapping application such as Google Maps.

The message purports to have been sent from a hacker who’s compromised your computer and used your webcam to record a video of you while you were watching porn. The missive threatens to release the video to all of your contacts unless you pay a Bitcoin ransom. In this case, the demand is just shy of $2,000, payable by scanning a QR code embedded in the email.

Following a salutation that includes the recipient’s full name, the start of the message reads, “Is visiting [recipient’s street address] a more convenient way to contact if you don’t take action. Nice location btw.” Below that is the photo of the recipient’s street address.

The message tells people they have 24 hours to pay up, or else their embarrassing videos will be released to all of their contacts, friends and family members.

“Don’t even think about replying to this, it’s pointless,” the message concludes. “I don’t make mistakes, [recipient’s name]. If I notice that you’ve shared or discussed this email with someone else, your shitty video will instantly start getting sent to your contacts.”

The remaining sections of the two-page sextortion message (which arrives as a PDF attachment) are fairly formulaic and include thematic elements seen in most previous sextortion waves. Those include claims that the extortionist has installed malware on your computer (in this case the scammer claims the spyware is called “Pegasus,” and that they are watching everything you do on your machine).

Previous innovations in sextortion customization involved sending emails that included at least one password they had previously used at an account online that was tied to their email address.

Microsoft Says North Korean Crypto Thieves Behind Chrome Zero Day

Google Patches Ninth Chrome Zero Day Of 2024

Google To Help Build Cyber Protection For Australian Infrastructure

Novel Technique Allows Malicious Apps To Escape Walled Gardens

Unicoin Hints At Potential Data Meddling After G-Suite Compromise

Iranian Backed Group Steps Up Phishing Against Israel, U.S.

From Object Transition To RCE In The Chrome Renderer

A Deep Dive Into CVE-2023-2163: How Google Found And Fixed An eBPF Linux Kernel Vulnerability

Google Patches 46 Android Bugs, Including Exploited Kernel Flaw

Fake Google Authenticator Used To Deliver Malware On GitHub

Mozilla Follows Google In Losing Trust In Entrust's TLS Certificates

Mysterious Family Of Malware Hid In Google Play For Years

Crooks Bypassed Google’s Email Verification to Create Workspace Accounts, Access 3rd-Party Services

Google says it recently fixed an authentication weakness that allowed crooks to circumvent the email verification required to create a Google Workspace account, and leverage that to impersonate a domain holder at third-party services that allow logins through Google’s “Sign in with Google” feature.

Last week, KrebsOnSecurity heard from a reader who said they received a notice that their email address had been used to create a potentially malicious Workspace account that Google had blocked.

“In the last few weeks, we identified a small-scale abuse campaign whereby bad actors circumvented the email verification step in our account creation flow for Email Verified (EV) Google Workspace accounts using a specially constructed request,” the notice from Google read. “These EV users could then be used to gain access to third-party applications using ‘Sign In with Google’.”

In response to questions, Google said it fixed the problem within 72 hours of discovering it, and that the company has added additional detection to protect against these types of authentication bypasses going forward.

Anu Yamunan, director of abuse and safety protections at Google Workspace, told KrebsOnSecurity the malicious activity began in late June, and involved “a few thousand” Workspace accounts that were created without being domain-verified.

Google Workspace offers a free trial that people can use to access services like Google Docs, but other services such as Gmail are only available to Workspace users who can validate control over the domain name associated with their email address. The weakness Google fixed allowed attackers to bypass this validation process. Google emphasized that none of the affected domains had previously been associated with Workspace accounts or services.

“The tactic here was to create a specifically-constructed request by a bad actor to circumvent email verification during the signup process,” Yamunan said. “The vector here is they would use one email address to try to sign in, and a completely different email address to verify a token. Once they were email verified, in some cases we have seen them access third party services using Google single sign-on.”

Yamunan said none of the potentially malicious workspace accounts were used to abuse Google services, but rather the attackers sought to impersonate the domain holder to other services online.

In the case of the reader who shared the breach notice from Google, the imposters used the authentication bypass to associate his domain with a Workspace account. And that domain was tied to his login at several third-party services online. Indeed, the alert this reader received from Google said the unauthorized Workspace account appears to have been used to sign in to his account at Dropbox.

Google said the now-fixed authentication bypass is unrelated to a recent issue involving cryptocurrency-based domain names that were apparently compromised in their transition to Squarespace, which last year acquired more than 10 million domains that were registered via Google Domains.

On July 12, a number of domains tied to cryptocurrency businesses were hijacked from Squarespace users who hadn’t yet set up their Squarespace accounts. Squarespace has since published a statement blaming the domain hijacks on “a weakness related to OAuth logins”, which Squarespace said it fixed within hours.

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Researchers: Weak Security Defaults Enabled Squarespace Domains Hijacks

At least a dozen organizations with domain names at domain registrar Squarespace saw their websites hijacked last week. Squarespace bought all assets of Google Domains a year ago, but many customers still haven’t set up their new accounts. Experts say malicious hackers learned they could commandeer any migrated Squarespace accounts that hadn’t yet been registered, merely by supplying an email address tied to an existing domain.

The Squarespace domain hijacks, which took place between July 9 and July 12, appear to have mostly targeted cryptocurrency businesses, including Celer Network, Compound Finance, Pendle Finance, and Unstoppable Domains. In some cases, the attackers were able to redirect the hijacked domains to phishing sites set up to steal visitors’ cryptocurrency funds.

New York City-based Squarespace purchased roughly 10 million domain names from Google Domains in June 2023, and it has been gradually migrating those domains to its service ever since. Squarespace has not responded to a request for comment, nor has it issued a statement about the attacks.

But an analysis released by security experts at Metamask and Paradigm finds the most likely explanation for what happened is that Squarespace assumed all users migrating from Google Domains would select the social login options — such “Continue with Google” or “Continue with Apple” — as opposed to the “Continue with email” choice.

Taylor Monahan, lead product manager at Metamask, said Squarespace never accounted for the possibility that a threat actor might sign up for an account using an email associated with a recently-migrated domain before the legitimate email holder created the account themselves.

“Thus nothing actually stops them from trying to login with an email,” Monahan told KrebsOnSecurity. “And since there’s no password on the account, it just shoots them to the ‘create password for your new account’ flow. And since the account is half-initialized on the backend, they now have access to the domain in question.”

What’s more, Monahan said, Squarespace did not require email verification for new accounts created with a password.

“The domains being migrated from Google to Squarespace are known,” Monahan said. “It’s either public or easily discernible info which email addresses have admin of a domain. And if that email never sets up their account on Squarespace — say because the billing admin left the company five years ago or folks just ignored the email — anyone who enters that email@domain in the squarespace form now has full access to control to the domain.”

The researchers say some Squarespace domains that were migrated over also could be hijacked if attackers discovered the email addresses for less privileged user accounts tied to the domain, such as “domain manager,” which likewise has the ability to transfer a domain or point it to a different Internet address.

Monahan said the migration has left domain owners with fewer options to secure and monitor their accounts.

“Squarespace can’t support users who need any control or insight into the activity being performed in their account or domain,” Monahan said. “You basically have no control over the access different folks have. You don’t have any audit logs. You don’t get email notifications for some actions. The owner doesn’t get email notification for actions taken by a ‘domain manager.’ This is absolutely insane if you’re used to and expecting the controls Google provides.”

The researchers have published a comprehensive guide for locking down Squarespace user accounts, which urges Squarespace users to enable multi-factor authentication (disabled during the migration).

“Determining what emails have access to your new Squarespace account is step 1,” the help guide advises. “Most teams DO NOT REALIZE these accounts even exist, let alone theoretically have access.”

The guide also recommends removing unnecessary Squarespace user accounts, and disabling reseller access in Google Workspace.

“If you bought Google Workspace via Google Domains, Squarespace is now your authorized reseller,” the help document explains. “This means that anyone with access to your Squarespace account also has a backdoor into your Google Workspace unless you explicitly disable it by following the instructions here, which you should do. It’s easier to secure one account than two.”

Update, July 23, 1:50 p.m. ET: Squarespace has published a post-mortem about the incident. Their statement blames the domain hijacks on “a weakness related to OAuth logins”, which Squarespace said it fixed within hours, and contradicts the findings presented by the researchers above. Here are the relevant bits from their statement:

“During this incident, all compromised accounts were using third-party OAuth. Neither Squarespace nor any third-party authentication provider made any changes to authentication as part of our migration of Google Domains to Squarespace. To be clear, the migration of domains involved no changes to multi-factor authentication before, during or after.”

“To date there is no evidence that Google Workspace accounts were or are at risk, and we have received no customer reports to this effect. As a reseller, Squarespace manages billing but customers access Workspace directly using their Google account.”

“Our analysis shows no evidence that Squarespace accounts using an email-based login with an unverified email address were involved with this attack.”

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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.

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