Tag Archive for: Cyber

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

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

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

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

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

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

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

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

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

Here are some of the sobering takeaways from those interviews:

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

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

NO NEWS IS GOOD NEWS?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

AN INTERNATIONAL CHALLENGE

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

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

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

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

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

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

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

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

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

SELF EVALUTION TIME

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

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

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

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

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

Microsoft Patch Tuesday, February 2021 Edition

Microsoft today rolled out updates to plug at least 56 security holes in its Windows operating systems and other software. One of the bugs is already being actively exploited, and six of them were publicized prior to today, potentially giving attackers a head start in figuring out how to exploit the flaws.

Nine of the 56 vulnerabilities earned Microsoft’s most urgent “critical” rating, meaning malware or miscreants could use them to seize remote control over unpatched systems with little or no help from users.

The flaw being exploited in the wild already — CVE-2021-1732 — affects Windows 10, Server 2016 and later editions. It received a slightly less dire “important” rating and mainly because it is a vulnerability that lets an attacker increase their authority and control on a device, which means the attacker needs to already have access to the target system.

Two of the other bugs that were disclosed prior to this week are critical and reside in Microsoft’s .NET Framework, a component required by many third-party applications (most Windows users will have some version of .NET installed).

Windows 10 users should note that while the operating system installs all monthly patch roll-ups in one go, that rollup does not typically include .NET updates, which are installed on their own. So when you’ve backed up your system and installed this month’s patches, you may want to check Windows Update again to see if there are any .NET updates pending.

A key concern for enterprises is another critical bug in the DNS server on Windows Server 2008 through 2019 versions that could be used to remotely install software of the attacker’s choice. CVE-2021-24078 earned a CVSS Score of 9.8, which is about as dangerous as they come.

Recorded Future says this vulnerability can be exploited remotely by getting a vulnerable DNS server to query for a domain it has not seen before (e.g. by sending a phishing email with a link to a new domain or even with images embedded that call out to a new domain). Kevin Breen of Immersive Labs notes that CVE-2021-24078 could let an attacker steal loads of data by altering the destination for an organization’s web traffic — such as pointing internal appliances or Outlook email access at a malicious server.

Windows Server users also should be aware that Microsoft this month is enforcing the second round of security improvements as part of a two-phase update to address CVE-2020-1472, a severe vulnerability that first saw active exploitation back in September 2020.

The vulnerability, dubbed “Zerologon,” is a bug in the core “Netlogon” component of Windows Server devices. The flaw lets an unauthenticated attacker gain administrative access to a Windows domain controller and run any application at will. A domain controller is a server that responds to security authentication requests in a Windows environment, and a compromised domain controller can give attackers the keys to the kingdom inside a corporate network.

Microsoft’s initial patch for CVE-2020-1472 fixed the flaw on Windows Server systems, but did nothing to stop unsupported or third-party devices from talking to domain controllers using the insecure Netlogon communications method. Microsoft said it chose this two-step approach “to ensure vendors of non-compliant implementations can provide customers with updates.” With this month’s patches, Microsoft will begin rejecting insecure Netlogon attempts from non-Windows devices.

A couple of other, non-Windows security updates are worth mentioning. Adobe today released updates to fix at least 50 security holes in a range of products, including Photoshop and Reader. The Acrobat/Reader update tackles a critical zero-day flaw that Adobe says is actively being exploited in the wild against Windows users, so if you have Adobe Acrobat or Reader installed, please make sure these programs are kept up to date.

There is also a zero-day flaw in Google’s Chrome Web browser (CVE-2021-21148) that is seeing active attacks. Chrome downloads security updates automatically, but users still need to restart the browser for the updates to fully take effect. If you’re a Chrome user and notice a red “update” prompt to the right of the address bar, it’s time to save your work and restart the browser.

Standard reminder: While staying up-to-date on Windows patches is a must, it’s important to make sure you’re updating only after you’ve backed up your important data and files. A reliable backup means you’re less likely to pull your hair out when the odd buggy patch causes problems booting the system.

So do yourself a favor and backup your files before installing any patches. Windows 10 even has some built-in tools to help you do that, either on a per-file/folder basis or by making a complete and bootable copy of your hard drive all at once.

Keep in mind that Windows 10 by default will automatically download and install updates on its own schedule. If you wish to ensure Windows has been set to pause updating so you can back up your files and/or system before the operating system decides to reboot and install patches, see this guide.

And as always, if you experience glitches or problems installing any of these patches this month, please consider leaving a comment about it below; there’s a better-than-even chance other readers have experienced the same and may chime in here with some helpful tips.

Arrest, Raids Tied to ‘U-Admin’ Phishing Kit

Cyber cops in Ukraine carried out an arrest and several raids last week in connection with the author of a U-Admin, a software package used to administer what’s being called “one of the world’s largest phishing services.” The operation was carried out in coordination with the FBI and authorities in Australia, which was particularly hard hit by phishing scams perpetrated by U-Admin customers.

The U-Admin phishing panel interface. Image: fr3d.hk/blog

The Ukrainian attorney general’s office said it worked with the nation’s police force to identify a 39-year-old man from the Ternopil region who developed a phishing package and special administrative panel for the product.

“According to the analysis of foreign law enforcement agencies, more than 50% of all phishing attacks in 2019 in Australia were carried out thanks to the development of the Ternopil hacker,” the attorney general’s office said, noting that investigators had identified hundreds of U-Admin customers.

Brad Marden, superintendent of cybercrime operations for the Australian Federal Police (AFP), said their investigation into who was behind U-Admin began in late 2018, after Australian citizens began getting deluged with phishing attacks via mobile text messages that leveraged the software.

“It was rampant,” Marden said, noting that the AFP identified the suspect and referred the case to the Ukrainians for prosecution. “At one stage in 2019 we had a couple of hundred SMS phishing campaigns tied to just this particular actor. Pretty much every Australian received a half dozen of these phishing attempts.”

U-Admin, a.k.a. “Universal Admin,” is crimeware platform that first surfaced in 2016. U-Admin was sold by an individual who used the hacker handle “Kaktys” on multiple cybercrime forums.

According to this comprehensive breakdown of the phishing toolkit, the U-Admin control panel isn’t sold on its own, but rather it is included when customers contact the developer and purchase a set of phishing pages designed to mimic a specific brand — such as a bank website or social media platform.

Cybersecurity threat intelligence firm Intel 471 describes U-Admin as an information stealing framework that uses several plug-ins in one location to help users pilfer victim credentials more efficiently. Those plug-ins include a phishing page generator, a victim tracker, and even a component to help manage money mules (for automatic transfers from victim accounts to people who were hired in advance to receive and launder stolen funds).

Perhaps the biggest selling point for U-Admin is a module that helps phishers intercept multi-factor authentication codes. This core functionality is what’s known as a “web inject,” because it allows phishers to dynamically interact with victims in real-time by injecting content into the phishing page that prompts the victim to enter additional information. The video below, produced by the U-Admin developer, shows a few examples (click to enlarge).

A demonstration video showing the real-time web injection capabilities of the U-Admin phishing kit. Credit: blog.bushidotoken.net

There are multiple recent reports that U-Admin has been used in conjunction with malware — particularly Qakbot (a.k.a. Qbot) — to harvest one-time codes needed for multi-factor authentication.

“Paired with [U-Admin’s 2FA harvesting functionality], a threat actor can remotely connect to the Qakbot-infected device, enter the stolen credentials plus the 2FA token, and begin initiating transactions,” explains this Nov. 2020 blog post on an ongoing Qakbot campaign that was first documented three months earlier by Check Point Research.

In the days following the Ukrainian law enforcement action, several U-Admin customers on the forums where Kaktys was most active began discussing whether the product was still safe to use following the administrator’s arrest.

The AFP’s Marden hinted that the suspicions raised by U-Admin’s customer base might be warranted.

“I wouldn’t be unhappy with the crooks continuing to use that piece of kit, without saying anything more on that front,” Marden said.

While Kaktys’s customers may be primarily concerned about the risks of using a product supported by a guy who just got busted, perhaps they should be more worried about other crooks [or perhaps the victim banks themselves] moving in on their turf: It appears the U-Admin package being sold in the underground has long included a weakness that could allow anyone to view or alter data that was phished with the help of this kit.

The security flaw was briefly alluded to in a 2018 writeup on U-Admin by the SANS Internet Storm Center.

“Looking at the professionality of the code, the layout and the functionality I’m giving this control panel 3 out of 5 stars,” joked SANS guest author Remco Verhoef. “We wanted to give them 4 stars, but we gave one star less because of an SQL injection vulnerability” [link added].

That vulnerability was documented in more detail at exploit archive Packet Storm Security in March 2020 and indexed by Check Point Software in May 2020, suggesting it still persists in current versions of the product.

The best advice to sidestep phishing scams is to avoid clicking on links that arrive unbidden in emails, text messages and other mediums. This advice is the same whether you’re using a mobile or desktop device. In fact, this phishing framework specialized in lures specifically designed to be loaded on mobile devices.

Most phishing scams invoke a temporal element that warns of dire consequences should you fail to respond or act quickly. If you’re unsure whether the message is legitimate, take a deep breath and visit the site or service in question manually — ideally, using a browser bookmark so as to avoid potential typosquatting sites.

Further reading:

uAdmin Show & Tell
Gathering Intelligence on the Qakbot banking Trojan

Facebook, Instagram, TikTok and Twitter Target Resellers of Hacked Accounts

Facebook, Instagram, TikTok, and Twitter this week all took steps to crack down on users involved in trafficking hijacked user accounts across their platforms. The coordinated action seized hundreds of accounts the companies say have played a major role in facilitating the trade and often lucrative resale of compromised, highly sought-after usernames.

At the center of the account ban wave are some of the most active members of OGUsers, a forum that caters to thousands of people selling access to hijacked social media and other online accounts.

Particularly prized by this community are short usernames, which can often be resold for thousands of dollars to those looking to claim a choice vanity name.

Facebook told KrebsOnSecurity it seized hundreds of accounts — mainly on Instagram — that have been stolen from legitimate users through a variety of intimidation and harassment tactics, including hacking, coercion, extortion, sextortion, SIM swapping, and swatting.

THE MIDDLEMEN

Facebook said it targeted a number of accounts tied to key sellers on OGUsers, as well as those who advertise the ability to broker stolen account sales.

Like most cybercrime forums, OGUsers is overrun with shady characters who are there mainly to rip off other members. As a result, some of the most popular denizens of the community are those who’ve earned a reputation as trusted “middlemen.”

These core members offer escrow services that – in exchange for a cut of the total transaction cost (usually five percent) — will hold the buyer’s funds until he is satisfied that the seller has delivered the credentials and any email account access needed to control the hijacked social media account.

For example, one of the most active accounts targeted in this week’s social network crackdown is the Instagram profileTrusted,” self-described as “top-tier professional middleman/escrow since 2014.”

Trusted’s profile included several screenshots of his OGUsers persona, “Beam,” who warns members about an uptick in the number of new OGUsers profiles impersonating him and other middlemen on the forum. Beam currently has more reputation points or “vouches” than almost anyone on the forum, save for perhaps the current and former site administrators.

The now-banned Instagram account for the middleman @trusted/beam.

Helpfully, OGUsers has been hacked multiple times over the years, and its database of user details and private messages posted on competing crime forums. Those databases show Beam was just the 12th user account created on OGUsers back in 2014.

In his posts, Beam says he has brokered well north of 10,000 transactions. Indeed, the leaked OGUsers databases — which include private messages on the forum prior to June 2020 — offer a small window into the overall value of the hijacked social media account industry.

In each of Beam’s direct messages to other members who hired him as a middleman he would include the address of the bitcoin wallet to which the buyer was to send the funds. Just two of the bitcoin wallets Beam used for middlemanning over the past of couple of years recorded in excess of 6,700 transactions totaling more than 243 bitcoins — or roughly $8.5 million by today’s valuation (~$35,000 per coin)Beam would have earned roughly $425,000 in commissions on those sales.

Beam, a Canadian whose real name is Noah Hawkins, declined to be interviewed when contacted earlier this week. But his “Trusted” account on Instagram was taken down by Facebook today, as were “@Killer,” — a personal Instagram account he used under the nickname “noah/beam.” Beam’s Twitter account — @NH — has been deactivated by Twitter; it was hacked and stolen from its original owner back in 2014.

Reached for comment, Twitter confirmed that it worked in tandem with Facebook to seize accounts tied to top members of OGUsers, citing its platform manipulation and spam policy. Twitter said its investigation into the people behind these accounts is ongoing.

TikTok confirmed it also took action to target accounts tied to top OGUusers members, although it declined to say how many accounts were reclaimed.

“As part of our ongoing work to find and stop inauthentic behavior, we recently reclaimed a number of TikTok usernames that were being used for account squatting,” TikTok said in a written statement. “We will continue to focus on staying ahead of the ever-evolving tactics of bad actors, including cooperating with third parties and others in the industry.”

‘SOCIAL MEDIA SPECIALISTS’

Other key middlemen who’ve brokered thousands more social media account transactions via OGUsers that were part of this week’s ban wave included Farzad (OGUser #81), who used the Instagram accounts @middleman and @frzd; and @rl, a.k.a. “Amp,” a major middleman and account seller on OGUusers.

Naturally, the top middlemen in the OGUsers community get much of their business from sellers of compromised social media and online gaming accounts, and these two groups tend to cross-promote one another. Among the top seller accounts targeted in the ban wave was the Instagram account belonging to Ryan Zanelli (@zanelli), a 22-year-old self-described “social media marketing specialist” from Melbourne, Australia.

The leaked OGusers databases suggest Zanelli is better known to the OGusers community as “Verdict,” the fifth profile created on the forum and a longtime administrator of the site.

Reached via Telegram, Zanelli acknowledged he was an administrator of OGUsers, but denied being involved in anything illegal.

“I’m an early adaptor to the forum yes just like other countless members, and no social media property I sell is hacked or has been obtained through illegitimate means,” he said. “If you want the truth, I don’t even own any of the stock, I just resell off of people who do.”

This is not the first time Instagram has come for his accounts: As documented in this story in The Atlantic, some of his accounts totaling more than 1 million followers were axed in late 2018 when the platform took down 500 usernames that were stolen, resold, and used for posting memes.

“This is my full-time income, so it’s very detrimental to my livelihood,” Zanelli told The Atlantic, which identified him only by his first name. “I was trying to eat dinner and socialize with my family, but knowing behind the scenes everything I’ve built, my entire net worth, was just gone before my eyes.”

Another top seller account targeted in the ban wave was the Instagram account @h4ck, whose Telegram sales channel also advertises various services to get certain accounts banned and unbanned from differed platforms, including Snapchat and Instagram.

Snippets from the Telegram sales channel for @h4ck, one of the Instagram handles seized by Facebook today.

Facebook said while this is hardly the first time it has reclaimed accounts associated with hijackers, it is the first time it has done so publicly. The company says it has no illusions that this latest enforcement action is going to put a stop to the rampant problem of account hijacking for resale, but views the effort as part of an ongoing strategy to drive up costs for account traffickers, and to educate potential account buyers about the damage inflicted on people whose accounts are hijacked.

In recognition of the scale of the problem, Instagram today rolled out a new feature called “Recently Deleted,” which seeks to help victims undo the damage wrought by an account takeover.

“We know hackers sometimes delete content when they gain access to an account, and until now people had no way of easily getting their photos and videos back,” Instagram explained in a blog post. “Starting today, we will ask people to first verify that they are the rightful account holders when permanently deleting or restoring content from Recently Deleted.”

Facebook wasn’t exaggerating about the hijacking community’s use of extortion and other serious threats to gain control over highly prized usernames. I wish I could get back the many hours spent reading private messages from the OGUsers community, but it is certainly not uncommon for targets to be threatened with swatting attacks, or to have their deeply personal and/or financial information posted publicly online unless they relinquish control over a desired account.

WHAT YOU CAN DO

Any accounts that you value should be secured with a unique and strong password, as well the most robust form of multi-factor authentication available. Usually, this is a mobile app that generates a one-time code, but some sites like Twitter and Facebook now support even more robust options — such as physical security keys.

Whenever possible, avoid opting to receive the second factor via text message or automated phone calls, as these methods are prone to compromise via SIM swapping — a crime that is prevalent among people engaged in stealing social media accounts. SIM swapping involves convincing mobile phone company employees to transfer ownership of the target’s phone number to a device the attackers control.

These precautions are even more important for any email accounts you may have. Sign up with any service online, and it will almost certainly require you to supply an email address. In nearly all cases, the person who is in control of that address can reset the password of any associated services or accounts –merely by requesting a password reset email. Unfortunately, many email providers still let users reset their account passwords by having a link sent via text to the phone number on file for the account.

Most online services require users to supply a mobile phone number when setting up the account, but do not require the number to remain associated with the account after it is established. I advise readers to remove their phone numbers from accounts wherever possible, and to take advantage of a mobile app to generate any one-time codes for multifactor authentication.

‘ValidCC,’ a Major Payment Card Bazaar and Looter of E-Commerce Sites, Shuttered

ValidCC, a dark web bazaar run by a cybercrime group that for more than six years hacked online merchants and sold stolen payment card data, abruptly closed up shop last week. The proprietors of the popular store said their servers were seized as part of a coordinated law enforcement operation designed to disconnect and confiscate its infrastructure.

ValidCC, circa 2017.

There are dozens of online shops that sell so-called “card not present” (CNP) payment card data stolen from e-commerce stores, but most source the data from other criminals. In contrast, researchers say ValidCC was actively involved in hacking and pillaging hundreds of online merchants — seeding the sites with hidden card-skimming code that siphoned personal and financial information as customers went through the checkout process.

Russian cybersecurity firm Group-IB published a report last year detailing the activities of ValidCC, noting the gang behind the crime shop was responsible for plundering nearly 700 e-commerce sites. Group-IB dubbed the gang “UltraRank,” which it said had additionally compromised at least 13 third-party suppliers whose software components are used by countless online stores across Europe, Asia, North and Latin America.

Group-IB believes UltraRank is responsible for a slew of hacks that other security firms previously attributed to at least three distinct cybercrime groups.

“Over five years….UltraRank changed its infrastructure and malicious code on numerous occasions, as a result of which cybersecurity experts would wrongly attribute its attacks to other threat actors,” Group-IB wrote. “UltraRank combined attacks on single targets with supply chain attacks.”

ValidCC’s front man on multiple forums — a cybercriminal who uses the hacker handle “SPR” — told customers on Jan. 28 that the shop would close for good following what appeared to be a law enforcement takedown of its operations. SPR claims his site lost access to a significant inventory — more than 600,000 unsold stolen payment card accounts.

“As a result, we lost the proxy and destination backup servers,” SPR explained. “Besides, now it’s impossible to open and decrypt the backend. The database is in the hands of the police, but it’s encrypted.”

ValidCC had thousands of users, some of whom held significant balances of bitcoin stored in the shop when it ceased operations. SPR claims the site took in approximately $100,000 worth of virtual currency deposits each day from customers.

Many of those customers took to the various crime forums where the shop has a presence to voice suspicions that the proprietors had simply decided to walk away with their money at a time when Bitcoin was near record-high price levels.

SPR countered that ValidCC couldn’t return balances because it no longer had access to its own ledgers.

“We don’t know anything!,” SPR pleaded. “We don’t know users’ balances, or your account logins or passwords, or the [credit cards] you purchased, or anything else! You are free to think what you want, but our team has never conned or let anyone down since the beginning of our operations! Nobody would abandon a dairy cow and let it die in the field! We did not take this decision lightly!”

Group-IB said ValidCC was one of many cybercrime shops that stored some or all of its operational components at Media Land LLC, a major “bulletproof hosting” provider that supports a vast array of phishing sites, cybercrime forums and malware download servers.

Assuming SPR’s claims are truthful, it could be that law enforcement agencies targeted portions of Media Land’s digital infrastructure in some sort of coordinated action. However, so far there are no signs of any major uproar in the cybercrime underground directed at Yalishanda, the nickname used by the longtime proprietor of Media Land.

ValidCC’s demise comes close on the heels of the shuttering of Joker’s Stash, by some accounts the largest underground shop for selling stolen credit card and identity data. On Dec. 16, 2020, several of Joker’s long-held domains began displaying notices that the sites had been seized by the U.S. Department of Justice and Interpol. Less than a month later, Joker announced he was closing the shop permanently.

And last week, authorities across Europe seized control over dozens of servers used to operate Emotet, a prolific malware strain and cybercrime-as-service operation. While there are no indications that action targeted any criminal groups apart from the Emotet gang, it is often the case that multiple cybercrime groups will share the same dodgy digital infrastructure providers, knowingly or unwittingly.

Gemini Advisory, a New York-based firm that closely monitors cybercriminal stores, said ValidCC’s administrators recently began recruiting stolen card data resellers who previously had sold their wares to Joker’s Stash.

Stas Alforov, Gemini’s director of research and development, said other card shops will quickly move in to capture the customers and suppliers who frequented ValidCC.

“There are still a bunch of other shops out there,” Alforov said. “There’s enough tier one shops out there that sell card-not-present data that haven’t dropped a beat and have even picked up volumes.”

U.K. Arrest in ‘SMS Bandits’ Phishing Service

Authorities in the United Kingdom have arrested a 20-year-old man for allegedly operating an online service for sending high-volume phishing campaigns via mobile text messages. The service, marketed in the underground under the name “SMS Bandits,” has been responsible for blasting out huge volumes of phishing lures spoofing everything from COVID-19 pandemic relief efforts to PayPal, telecommunications providers and tax revenue agencies.

The U.K.’s National Crime Agency (NCA) declined to name the suspect, but confirmed that the Metropolitan Police Service’s cyber crime unit had detained an individual from Birmingham in connection to a business that supplied “criminal services related to phishing offenses.”

The proprietors of the phishing service were variously known on cybercrime forums under handles such as SMSBandits, “Gmuni,” “Bamit9,” and “Uncle Munis.” SMS Bandits offered an SMS phishing (a.k.a. “smishing”) service for the mass sending of text messages designed to phish account credentials for different popular websites and steal personal and financial data for resale.

Image: osint.fans

Sasha Angus is a partner at Scylla Intel, a cyber intelligence startup that did a great deal of research into the SMS Bandits leading up to the arrest. Angus said the phishing lures sent by the SMS Bandits were unusually well-done and free of grammar and spelling mistakes that often make it easy to spot a phony message.

“Just by virtue of these guys being native English speakers, the quality of their phishing kits and lures were considerably better than most,” Angus said.

According to Scylla, the SMS Bandits made a number of operational security (or “opsec”) mistakes that made it relatively easy to find out who they were in real life, but the technical side SMS Bandits’ operation was rather advanced.

“They were launching fairly high-volume smishing campaigns from SMS gateways, but overall their opsec was fairly lousy,” Angus said. “But on the telecom front they were using fairly sophisticated tactics.”

The proprietor of the SMS Bandits, telling the world he lives in Birmingham.

For example, the SMS Bandits automated systems to check whether the phone number list provided by their customers was indeed tied to actual mobile numbers, and not landlines that might tip off telecommunications companies about mass spam campaigns.

“The telcos are monitoring for malicious SMS messages on a number of fronts,” Angus said. “One way to tip off an SMS gateway or wireless provider is to start blasting text messages to phone numbers that can’t receive them.”

Scylla gathered reams of evidence showing the SMS Bandits used email addresses and passwords stolen through its services to validate a variety of account credentials — from PayPal to bank accounts and utilities providers. They would then offload the working credentials onto marketplaces they controlled, and to third-party vendors. One of SMS Bandits’ key offerings: An “auto-shop” web panel for selling stolen account credentials.

SMS Bandits also provided their own “bulletproof hosting” service advertised as a platform that supported “freedom of speach” [sic] where customers could “host any content without restriction.” Invariably, that content constituted sites designed to phish credentials from users of various online services.

The “bulletproof” offerings of Muni Hosting (pronounced “Money Hosting”).

The SMS Bandits phishing service is tied to another crime-friendly service called “OTP Agency,” a bulk SMS provider that appears catered to phishers: The service’s administrator stated on multiple forums that he worked directly with the SMS Bandits.

Otp[.]agency advertises a service designed to help intercept one-time passwords needed to log in to various websites. The customer enters the target’s phone number and name, and OTP Agency will initiate an automated phone call to the target that alerts them about unauthorized activity on their account.

The call prompts the target to enter a one-time password generated by their phone’s mobile app, and that code is then relayed back to the scammer’s user panel at the OTP Agency website.

“We call the holder with an automatic calling bot, with a very believable script, they enter the OTP on the phone, and you’ll see it in real time,” OTP Agency explained on their Telegram channel. The service, which costs anywhere from $40 to $125 per week, advertises unlimited international calling, as well as multiple call scripts and voice accents.

One of the pricing plans available to OTP Agency users.

The volume of SMS-based phishing skyrocketed in 2020 — by more than 328 percent — according to a recent report from Proofpoint, a security firm that processes more than 80 percent of North America’s mobile messages [Full disclosure: Proofpoint is currently an advertiser on this site].

The Taxman Cometh for ID Theft Victims

The unprecedented volume of unemployment insurance fraud witnessed in 2020 hasn’t abated, although news coverage of the issue has largely been pushed off the front pages by other events. But the ID theft problem is coming to the fore once again: Countless Americans will soon be receiving notices from state regulators saying they owe thousands of dollars in taxes on benefits they never received last year.

One state’s experience offers a window into the potential scope of the problem. Hackers, identity thieves and overseas criminal rings stole over $11 billion in unemployment benefits from California last year, or roughly 10 percent of all such claims the state paid out in 2020, the state’s labor secretary told reporters this week. Another 17 percent of claims — nearly $20 billion more – are suspected fraud.

California’s experience is tracked at a somewhat smaller scale in dozens of other states, where chronically underfunded and technologically outdated unemployment insurance systems were caught flat-footed by an avalanche of fraudulent claims. The scammers typically use stolen identity data to claim benefits, and then have the funds credited to an online account that they control.

States are required to send out 1099-G forms reporting taxable income by Jan. 31, and under federal law unemployment benefits are considered taxable income. Unfortunately, many states have not reconciled their forms with confirmed incidences of fraudulent unemployment insurance claims, meaning many people are being told they owe a great deal more in taxes than they actually do.

In a notice posted Jan. 28, the U.S. Internal Revenue Service urged taxpayers who receive forms 1099-G for unemployment benefits they didn’t actually get because of ID theft to contact their appropriate state agency and request a corrected form.

But the IRS’s advice ignores two rather inconvenient realities. The first is that the same 1099-G forms which states are sending to their citizens also are reported to the IRS — typically at the same time the notices are mailed to residents. The other is that many state agencies are completely overwhelmed right now.

Karl Fava, a certified public accountant in Michigan, told KrebsOnSecurity two of his clients have received 1099-G forms from Michigan regarding thousands of dollars in unemployment payments that they had neither requested nor received.

Fava said Michigan recently stood up a website where victims of unemployment insurance fraud who’ve received incorrect 1099-Gs can report it, but said he’s not confident the state will issue corrected notices before the April 15 tax filing deadline.

“In both cases, the recipients contacted the state but couldn’t get any help,” Fava said. “We’re not getting a lot of traction in resolving this issue. But the fact that they’ve now created a web page where people can input information about receiving these tells you they have to know how prevalent this is.”

Fava said for now he’s advising his clients who are dealing with this problem to acknowledge the amount of fraudulent income on their federal tax returns, but also to subtract an equal amount on the return and note that the income reported by the state was due to fraud.

“That way, things can be consistent with what the IRS already knows,” Fava said. “Not to acknowledge an issue like this on a federal return is just asking for a notice from the IRS.”

The Taxpayer Advocate Service, an independent office of the U.S. Internal Revenue Service (IRS) that champions taxpayer advocacy issues, said it recently became aware that some taxpayers are receiving 1099-Gs that include reported income due to unemployment insurance identity theft. The office said it is hearing about a lot of such issues in Ohio particularly, but that the problem is happening nationally.

Another perennial (albeit not directly related) identity theft scourge involving taxes each year is refund fraud. Tax refund fraud involves the use of identity information and often stolen or misdirected W-2 forms to electronically file an unauthorized tax return for the purposes of claiming a refund in the name of a taxpayer.

Victims usually first learn of the crime after having their returns rejected because scammers beat them to it. Even those who are not required to file a return can be victims of refund fraud, as can those who are not actually due a refund from the IRS.  

The best way to avoid tax refund fraud is to file your taxes as early possible. This year, that date is Feb. 12. One way the IRS has sought to stem the flow of bogus tax refund applications is to issue the IP PIN, which is a six-digit number assigned to taxpayers that helps prevent the use of their Social Security number on a fraudulent income tax return. Each PIN is good only for the tax year for which it was issued.

Until recently the IRS restricted who could apply for an IP PIN, but the program has since been opened to all taxpayers. To create one, if you haven’t already done so you will need to plant your flag at the IRS by stepping through the agency’s “secure access authentication” process.

Creating an account requires supplying a great deal of personal data; the information that will be requested is listed here.

The signup process requires one to validate ownership of a mobile phone number in one’s name, and it will reject any voice-over-IP-based numbers such as those tied to Skype or Google Voice. If the process fails at this point, the site should offer to send an activation code via postal mail to your address on file.

Once you have an account at the IRS and are logged in, you can request an IP PIN by visiting this link and following the prompts. The site will then display a six digit PIN that needs to be included on your federal return before it can be accepted. Be sure to print out a copy and save it in a secure place.

International Action Targets Emotet Crimeware

Authorities across Europe on Tuesday said they’d seized control over Emotet, a prolific malware strain and cybercrime-as-service operation. Investigators say the action could help quarantine more than a million Microsoft Windows systems currently compromised with malware tied to Emotet infections.

First surfacing in 2014, Emotet began as a banking trojan, but over the years it has evolved into one of the more aggressive platforms for spreading malware that lays the groundwork for ransomware attacks.

In a statement published Wednesday morning on an action dubbed “Operation Ladybird,” the European police agency Europol said the investigation involved authorities in the Netherlands, Germany, United States, the United Kingdom, France, Lithuania, Canada and Ukraine.

“The EMOTET infrastructure essentially acted as a primary door opener for computer systems on a global scale,” Europol said. “Once this unauthorised access was established, these were sold to other top-level criminal groups to deploy further illicit activities such data theft and extortion through ransomware.”

Experts say Emotet is a pay-per-install botnet that is used by several distinct cybercrime groups to deploy secondary malware — most notably the ransomware strain Ryuk and Trickbot, a powerful banking trojan. It propagates mainly via malicious links and attachments sent through compromised email accounts, blasting out tens of thousands of malware-laced missives daily.

Emotet relies on several hierarchical tiers of control servers that communicate with infected systems. Those controllers coordinate the dissemination of second-stage malware and the theft of passwords and other data, and their distributed nature is designed to make the crimeware infrastructure more difficult to dismantle or commandeer.

In a separate statement on the malware takeover, the Dutch National police said two of the three primary servers were located in the Netherlands.

“A software update is placed on the Dutch central servers for all infected computer systems,” the Dutch authorities wrote. “All infected computer systems will automatically retrieve the update there, after which the Emotet infection will be quarantined. Simultaneous action in all the countries concerned was necessary to be able to effectively dismantle the network and thwart any reconstruction.”

A statement from the German Federal Criminal Police Office about their participation in Operation Ladybird said prosecutors seized 17 servers in Germany that acted as Emotet controllers.

“As part of this investigation, various servers were initially identified in Germany with which the malicious software is distributed and the victim systems are monitored and controlled using encrypted communication,” the German police said.

Sources close to the investigation told KrebsOnSecurity the law enforcement action included the arrest of several suspects in Europe thought to be connected to the crimeware gang. The core group of criminals behind Emotet are widely considered to be operating out of Russia.

A statement by the National Police of Ukraine says two citizens of Ukraine were identified “who ensured the proper functioning of the infrastructure for the spread of the virus and maintained its smooth operation.”

A video released to YouTube by the NPU this morning shows authorities there raiding a residence, seizing cash and computer equipment, and what appear to be numerous large bars made of gold or perhaps silver. The Ukrainian policeman speaking in that video said the crooks behind Emotet have caused more than $2 billion in losses globally. That is almost certainly a very conservative number.

Police in the Netherlands seized huge volumes of data stolen by Emotet infections, including email addresses, usernames and passwords. A tool on the Dutch police website lets users learn if their email address has been compromised by Emotet.

But because Emotet is typically used to install additional malware that gets its hooks deeply into infected systems, cleaning up after it is going to be far more complicated and may require a complete rebuild of compromised computers.

The U.S. Cybersecurity & Infrastructure Security Agency has labeled Emotet “one of the most prevalent ongoing threats” that is difficult to combat because of its ‘worm-like’ features that enable network-wide infections.” Hence, a single Emotet infection can often lead to multiple systems on the same network getting compromised.

It is too soon to say how effective this operation has been in fully wresting control over Emotet, but a takedown of this size is a significant action.

In October, Microsoft used trademark law to disrupt the Trickbot botnet. Around the same time, the U.S. Cyber Command also took aim at Trickbot. However, neither of those actions completely dismantled the crimeware network, which remains in operation today.

Roman Hüssy, a Swiss information technology expert who maintains Feodotracker — a site that lists the location of major botnet controllers — told KrebsOnSecurity that prior to January 25, some 98 Emotet control servers were active. The site now lists 20 Emotet controllers online, although it is unclear if any of those remaining servers have been commandeered as part of the quarantine effort.

A current list of Emotet control servers online. Source: Feodotracker.abuse.ch

Further reading: Team Cymru on taking down Emotet

Arrest, Seizures Tied to Netwalker Ransomware

U.S. and Bulgarian authorities this week seized the darkweb site used by the NetWalker ransomware cybercrime group to publish data stolen from its victims. In connection with the seizure, a Canadian national suspected of extorting more than $27 million through the spreading of NetWalker was charged in a Florida court.

The victim shaming site maintained by the NetWalker ransomware group, after being seized by authorities this week.

NetWalker is a ransomware-as-a-service crimeware product in which affiliates rent access to the continuously updated malware code in exchange for a percentage of any funds extorted from victims. The crooks behind NetWalker used the now-seized website to publish personal and proprietary data stolen from their prey, as part of a public pressure campaign to convince victims to pay up.

NetWalker has been among the most rapacious ransomware strains, hitting at least 305 victims from 27 countries — the majority in the United States, according to Chainalysis, a company that tracks the flow virtual currency payments.

“Chainalysis has traced more than $46 million worth of funds in NetWalker ransoms since it first came on the scene in August 2019,” the company said in a blog post detailing its assistance with the investigation. “It picked up steam in mid-2020, growing the average ransom to $65,000 last year, up from $18,800 in 2019.”

Image: Chainalysis

In a statement on the seizure, the Justice Department said the NetWalker ransomware has impacted numerous victims, including companies, municipalities, hospitals, law enforcement, emergency services, school districts, colleges, and universities. For example, the University of California, San Francisco paid $1.14 million last summer in exchange for a digital key needed to unlock files encrypted by the ransomware.

“Attacks have specifically targeted the healthcare sector during the COVID-19 pandemic, taking advantage of the global crisis to extort victims,” the DOJ said.

U.S. prosecutors say one of NetWalker’s top affiliates was Sebastien Vachon-Desjardins, of Gatineau, in Ottawa, Canada. An indictment unsealed today in Florida alleges Vachon-Desjardins obtained at least $27.6 million from the scheme.

The DOJ’s media advisory doesn’t mention the defendant’s age, but a 2015 report in the Gatineau local news website ledroit.com suggests this may not be his first offense. According to the story, a then-27-year-old Sebastien Vachon-Desjardins was sentenced to more than three years in prison for drug trafficking: He was reportedly found in possession of more than 50,000 methamphetamine tablets.

The NetWalker action came on the same day that European authorities announced a coordinated takedown targeting the Emotet crimeware-as-a-service network. Emotet is a pay-per-install botnet that is used by several distinct cybercrime groups to deploy secondary malware — most notably the ransomware strain Ryuk and Trickbot, a powerful banking trojan.

The NetWalker ransomware affiliate program kicked off in March 2020, when the administrator of the crimeware project began recruiting people on the dark web. Like many other ransomware programs, NetWalker does not permit affiliates to infect systems physically located in Russia or in any other countries that are part of the Commonwealth of Independent States (CIS) — which includes most of the nations in the former Soviet Union. This is a prohibition typically made by cybercrime operations that are coordinated out of Russia and/or other CIS nations because it helps minimize the chances that local authorities will investigate their crimes.

The following advertisement (translated into English by cybersecurity firm Intel 471) was posted by the NetWalker affiliate program manager last year to a top cybercrime forum. It illustrates the allure of the ransomware affiliate model, which handles everything from updating the malware to slip past the latest antivirus updates, to leasing space on the dark web where affiliates can interact with victims and negotiate payment. The affiliate, on the other hand, need only focus on finding new victims.

We are recruiting affiliates for network processing and spamming.
We are interested in people whose priority is quality and not quantity.
We prefer candidates who can work with large networks and have their own access to them.
We are going to recruit a limited number of affiliates and then close the openings until they are available again.

We offer you prompt and flexible ransomware, a user-friendly admin panel in Tor, an automated service.

Encryption of shared accesses: if several users are logged in to the target computer, the ransomware will infect their mapped drives, as well as network resources where those users are logged in — shared accesses/NAS etc.

Powershell build. Each build is unique, in that the malware is inside the script – it is not downloaded from the internet. This makes bypassing antivirus protection easier, including Windows Defender (cloud+).

A fully automated blog where the victim’s dumped data is directed. The data is published according to your settings. Instant and automated payouts: initially 20 percent, no less than 16 percent.

Accessibility of a crypting service to avoid AV detections.

The ransomware has been in use since September 2019 and proved to be reliable. The files encrypted with it cannot be decrypted.

Targeting Russia or the CIS is prohibited.

You’ll get all the information about the ransomware as well as terms and conditions after you place an application via PM.

Application form:
1) The field you specialize in.
2) Your experience. What other affiliate programs have you been in and what was your profit?
3) How many accesses [to networks] do you have? When are you ready to start? How many accesses do you plan on monetizing?

DDoS-Guard To Forfeit Internet Space Occupied by Parler

Parler, the beleaguered social network advertised as a “free speech” alternative to Facebook and Twitter, has had a tough month. Apple and Google removed the Parler app from their stores, and Amazon blocked the platform from using its hosting services. Parler has since found a home in DDoS-Guard, a Russian digital infrastructure company. But now it appears DDoS-Guard is about to be relieved of more than two-thirds of the Internet address space the company leases to clients — including the Internet addresses currently occupied by Parler.

The pending disruption for DDoS-Guard and Parler comes compliments of Ron Guilmette, a researcher who has made it something of a personal mission to de-platform conspiracy theorist and far-right groups.

In October, a phone call from Guilmette to an Internet provider in Oregon was all it took to briefly sideline a vast network of sites tied to 8chan/8kun — a controversial online image board linked to several mass shootings — and QAnon, the far-right conspiracy theory which holds that a cabal of Satanic pedophiles is running a global child sex-trafficking ring and plotting against President Donald Trump. As a result, those QAnon and 8chan sites also ultimately ended up in the arms of DDoS-Guard.

Much like Internet infrastructure firm CloudFlare, DDoS-Guard typically doesn’t host sites directly but instead acts as a go-between to simultaneously keep the real Internet addresses of its clients confidential and to protect them from crippling Distributed Denial-of-Service (DDoS) attacks.

The majority of DDoS-Guard’s employees are based in Russia, but the company is actually incorporated in two other places: As “Cognitive Cloud LLP” in Scotland, and as DDoS-Guard Corp. based in Belize.  However, none of the company’s employees are listed as based in Belize, and DDoS-Guard makes no mention of the Latin American region in its map of global operations.

In studying the more than 11,000 Internet addresses assigned to those two companies, Guilmette found that approximately 66 percent of them were doled out to the Belize entity by LACNIC, the regional Internet registry for the Latin American and Caribbean regions.

Suspecting that DDoS-Guard incorporated in Belize on paper just to get huge swaths of IP addresses that are supposed to be given only to entities with a physical presence in the region, Guilmette filed a complaint with the Internet registry about his suspicions back in November.

Guilmette said LACNIC told him it would investigate, and that any adjudication on the matter could take up to three months. But earlier this week, LACNIC published a notice on its website that it intends to revoke 8,192 IPv4 addresses from DDoS-Guard — including the Internet address currently assigned to Parler[.]com.

A notice of revocation posted by LACNIC.

LACNIC has not yet responded to requests for comment. The notice on its site says the Internet addresses are set to be revoked on Feb. 24.

DDoS-Guard CEO Evgeniy Marchenko maintains the company has done nothing wrong, and that DDoS-Guard does indeed have a presence in Belize.

“They were used strongly according [to] all LACNIC policies by [a] company legally substituted in LACNIC region,” Marchenko said in an email to KrebsOnSecurity. “There is nothing illegal or extremist. We have employers and representatives in different countries around the world because we are global service. And Latin America region is not an exception.”

Guilmette said DDoS-Guard could respond by simply moving Parler and other sites sitting in those address ranges to another part of its network. But he considers it a victory nonetheless that a regional Internet registry took his concerns seriously.

“It appeared to me that it was more probable than not that they got these 8,000+ IPv4 addresses by simply creating an arguably fraudulent shell company in Belize and then going cap in hand to LACNIC, claiming that they had a real presence in the Latin & South American region, and then asking for 8,000+ IPv4 addresses,” he said. “So I reported my suspicions to the LACNIC authorities in early November, and as I have only just recently learned, the LACNIC authorities followed up diligently on my report and, it seems, verified my suspicions.”

In October, KrebsOnSecurity covered another revelation by Guilmette about the same group of QAnon and 8chan-related sites that moved to DDoS-Guard: The companies that provided the Internet address space used by the sites were defunct businesses in the eyes of their respective U.S. state regulators. In other words, the American Registry for Internet Numbers (ARIN) — the non-profit which administers IP addresses for entities based in North America — was well within its contract rights to revoke the IP space.

Guilmette brought his findings to ARIN, which declined to act on the complaint and instead referred the matter to state investigatory agencies.

Still, Guilmette’s gadfly efforts to stir things up in the RIR community sometimes do pay off. For example, he spent nearly three years documenting how $50 million worth of the increasingly scarce IPv4 addresses were misappropriated from African companies to dodgy Internet marketing firms.

His complaints about those findings to the African Network Information Centre (AFRINIC) resulted in an investigation that led to the termination of a top AFRINIC executive, who was found to have quietly sold many of the address blocks for personal gain to marketers based in Europe, Asia and elsewhere.

And this week, AFRINIC took the unusual step of officially documenting the extent of the damage wrought by its former employee, and revoking discrete chunks of address space currently being used by marketing firms.

In a detailed report released today (PDF), AFRNIC said its investigation revealed more than 2.3 million IPv4 addresses were “without any lawful authority, misappropriated from AFRINIC’s pool of resources and attributed to organizations without any justification.”

AFRINIC said it began its inquiry in earnest back in March 2019, when it received an application by the U.S. Federal Bureau of Investigation (FBI) about “certain suspicious activities regarding several IPv4 address blocks which it held.” So far, AFRNINIC said it has reclaimed roughly half of the wayward IP address blocks, with the remainder “yet to be reclaimed due to ongoing due diligence.”