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Microsoft Patch Tuesday, November 2025 Edition

dimanche 16 novembre 2025 à 22:47

Microsoft this week pushed security updates to fix more than 60 vulnerabilities in its Windows operating systems and supported software, including at least one zero-day bug that is already being exploited. Microsoft also fixed a glitch that prevented some Windows 10 users from taking advantage of an extra year of security updates, which is nice because the zero-day flaw and other critical weaknesses patched today affect all versions of Windows, including Windows 10.

Affected products this month include the Windows OS, Office, SharePoint, SQL Server, Visual Studio, GitHub Copilot, and Azure Monitor Agent. The zero-day threat concerns a memory corruption bug deep in the Windows innards called CVE-2025-62215. Despite the flaw’s zero-day status, Microsoft has assigned it an “important” rating rather than critical, because exploiting it requires an attacker to already have access to the target’s device.

“These types of vulnerabilities are often exploited as part of a more complex attack chain,” said Johannes Ullrich, dean of research for the SANS Technology Institute. “However, exploiting this specific vulnerability is likely to be relatively straightforward, given the existence of prior similar vulnerabilities.”

Ben McCarthy, lead cybersecurity engineer at Immersive, called attention to CVE-2025-60274, a critical weakness in a core Windows graphic component (GDI+) that is used by a massive number of applications, including Microsoft Office, web servers processing images, and countless third-party applications.

“The patch for this should be an organization’s highest priority,” McCarthy said. “While Microsoft assesses this as ‘Exploitation Less Likely,’ a 9.8-rated flaw in a ubiquitous library like GDI+ is a critical risk.”

Microsoft patched a critical bug in OfficeCVE-2025-62199 — that can lead to remote code execution on a Windows system. Alex Vovk, CEO and co-founder of Action1, said this Office flaw is a high priority because it is low complexity, needs no privileges, and can be exploited just by viewing a booby-trapped message in the Preview Pane.

Many of the more concerning bugs addressed by Microsoft this month affect Windows 10, an operating system that Microsoft officially ceased supporting with patches last month. As that deadline rolled around, however, Microsoft began offering Windows 10 users an extra year of free updates, so long as they register their PC to an active Microsoft account.

Judging from the comments on last month’s Patch Tuesday post, that registration worked for a lot of Windows 10 users, but some readers reported the option for an extra year of updates was never offered. Nick Carroll, cyber incident response manager at Nightwing, notes that Microsoft has recently released an out-of-band update to address issues when trying to enroll in the Windows 10 Consumer Extended Security Update program.

“If you plan to participate in the program, make sure you update and install KB5071959 to address the enrollment issues,” Carroll said. “After that is installed, users should be able to install other updates such as today’s KB5068781 which is the latest update to Windows 10.”

Chris Goettl at Ivanti notes that in addition to Microsoft updates today, third-party updates from Adobe and Mozilla have already been released. Also, an update for Google Chrome is expected soon, which means Edge will also be in need of its own update.

The SANS Internet Storm Center has a clickable breakdown of each individual fix from Microsoft, indexed by severity and CVSS score. Enterprise Windows admins involved in testing patches before rolling them out should keep an eye on askwoody.com, which often has the skinny on any updates gone awry.

As always, please don’t neglect to back up your data (if not your entire system) at regular intervals, and feel free to sound off in the comments if you experience problems installing any of these fixes.

[Author’s note: This post was intended to appear on the homepage on Tuesday, Nov. 11. I’m still not sure how it happened, but somehow this story failed to publish that day. My apologies for the oversight.]

Google Sues to Disrupt Chinese SMS Phishing Triad

jeudi 13 novembre 2025 à 15:47

Google is suing more than two dozen unnamed individuals allegedly involved in peddling a popular China-based mobile phishing service that helps scammers impersonate hundreds of trusted brands, blast out text message lures, and convert phished payment card data into mobile wallets from Apple and Google.

In a lawsuit filed in the Southern District of New York on November 12, Google sued to unmask and disrupt 25 “John Doe” defendants allegedly linked to the sale of Lighthouse, a sophisticated phishing kit that makes it simple for even novices to steal payment card data from mobile users. Google said Lighthouse has harmed more than a million victims across 120 countries.

A component of the Chinese phishing kit Lighthouse made to target customers of The Toll Roads, which refers to several state routes through Orange County, Calif.

Lighthouse is one of several prolific phishing-as-a-service operations known as the “Smishing Triad,” and collectively they are responsible for sending millions of text messages that spoof the U.S. Postal Service to supposedly collect some outstanding delivery fee, or that pretend to be a local toll road operator warning of a delinquent toll fee. More recently, Lighthouse has been used to spoof e-commerce websites, financial institutions and brokerage firms.

Regardless of the text message lure used or brand used, the basic scam remains the same: After the visitor enters their payment information, the phishing site will automatically attempt to enroll the card as a mobile wallet from Apple or Google. The phishing site then tells the visitor that their bank is going to verify the transaction by sending a one-time code that needs to be entered into the payment page before the transaction can be completed.

If the recipient provides that one-time code, the scammers can link the victim’s card data to a mobile wallet on a device that they control. Researchers say the fraudsters usually load several stolen wallets onto each mobile device, and wait 7-10 days after that enrollment before selling the phones or using them for fraud.

Google called the scale of the Lighthouse phishing attacks “staggering.” A May 2025 report from Silent Push found the domains used by the Smishing Triad are rotated frequently, with approximately 25,000 phishing domains active during any 8-day period.

Google’s lawsuit alleges the purveyors of Lighthouse violated the company’s trademarks by including Google’s logos on countless phishing websites. The complaint says Lighthouse offers over 600 templates for phishing websites of more than 400 entities, and that Google’s logos were featured on at least a quarter of those templates.

Google is also pursuing Lighthouse under the Racketeer Influenced and Corrupt Organizations (RICO) Act, saying the Lighthouse phishing enterprise encompasses several connected threat actor groups that work together to design and implement complex criminal schemes targeting the general public.

According to Google, those threat actor teams include a “developer group” that supplies the phishing software and templates; a “data broker group” that provides a list of targets; a “spammer group” that provides the tools to send fraudulent text messages in volume; a “theft group,” in charge of monetizing the phished information; and an “administrative group,” which runs their Telegram support channels and discussion groups designed to facilitate collaboration and recruit new members.

“While different members of the Enterprise may play different roles in the Schemes, they all collaborate to execute phishing attacks that rely on the Lighthouse software,” Google’s complaint alleges. “None of the Enterprise’s Schemes can generate revenue without collaboration and cooperation among the members of the Enterprise. All of the threat actor groups are connected to one another through historical and current business ties, including through their use of Lighthouse and the online community supporting its use, which exists on both YouTube and Telegram channels.”

Silent Push’s May report observed that the Smishing Triad boasts it has “300+ front desk staff worldwide” involved in Lighthouse, staff that is mainly used to support various aspects of the group’s fraud and cash-out schemes.

An image shared by an SMS phishing group shows a panel of mobile phones responsible for mass-sending phishing messages. These panels require a live operator because the one-time codes being shared by phishing victims must be used quickly as they generally expire within a few minutes.

Google alleges that in addition to blasting out text messages spoofing known brands, Lighthouse makes it easy for customers to mass-create fake e-commerce websites that are advertised using Google Ads accounts (and paid for with stolen credit cards). These phony merchants collect payment card information at checkout, and then prompt the customer to expect and share a one-time code sent from their financial institution.

Once again, that one-time code is being sent by the bank because the fake e-commerce site has just attempted to enroll the victim’s payment card data in a mobile wallet. By the time a victim understands they will likely never receive the item they just purchased from the fake e-commerce shop, the scammers have already run through hundreds of dollars in fraudulent charges, often at high-end electronics stores or jewelers.

Ford Merrill works in security research at SecAlliance, a CSIS Security Group company, and he’s been tracking Chinese SMS phishing groups for several years. Merrill said many Lighthouse customers are now using the phishing kit to erect fake e-commerce websites that are advertised on Google and Meta platforms.

“You find this shop by searching for a particular product online or whatever, and you think you’re getting a good deal,” Merrill said. “But of course you never receive the product, and they will phish that one-time code at checkout.”

Merrill said some of the phishing templates include payment buttons for services like PayPal, and that victims who choose to pay through PayPal can also see their PayPal accounts hijacked.

A fake e-commerce site from the Smishing Triad spoofing PayPal on a mobile device.

“The main advantage of the fake e-commerce site is that it doesn’t require them to send out message lures,” Merrill said, noting that the fake vendor sites have more staying power than traditional phishing sites because it takes far longer for them to be flagged for fraud.

Merrill said Google’s legal action may temporarily disrupt the Lighthouse operators, and could make it easier for U.S. federal authorities to bring criminal charges against the group. But he said the Chinese mobile phishing market is so lucrative right now that it’s difficult to imagine a popular phishing service voluntarily turning out the lights.

Merrill said Google’s lawsuit also can help lay the groundwork for future disruptive actions against Lighthouse and other phishing-as-a-service entities that are operating almost entirely on Chinese networks. According to Silent Push, a majority of the phishing sites created with these kits are sitting at two Chinese hosting companies: Tencent (AS132203) and Alibaba (AS45102).

“Once Google has a default judgment against the Lighthouse guys in court, theoretically they could use that to go to Alibaba and Tencent and say, ‘These guys have been found guilty, here are their domains and IP addresses, we want you to shut these down or we’ll include you in the case.'”

If Google can bring that kind of legal pressure consistently over time, Merrill said, they might succeed in increasing costs for the phishers and more frequently disrupting their operations.

“If you take all of these Chinese phishing kit developers, I have to believe it’s tens of thousands of Chinese-speaking people involved,” he said. “The Lighthouse guys will probably burn down their Telegram channels and disappear for a while. They might call it something else or redevelop their service entirely. But I don’t believe for a minute they’re going to close up shop and leave forever.”

Drilling Down on Uncle Sam’s Proposed TP-Link Ban

dimanche 9 novembre 2025 à 19:14

The U.S. government is reportedly preparing to ban the sale of wireless routers and other networking gear from TP-Link Systems, a tech company that currently enjoys an estimated 50% market share among home users and small businesses. Experts say while the proposed ban may have more to do with TP-Link’s ties to China than any specific technical threats, much of the rest of the industry serving this market also sources hardware from China and ships products that are insecure fresh out of the box.

A TP-Link WiFi 6 AX1800 Smart WiFi Router (Archer AX20).

The Washington Post recently reported that more than a half-dozen federal departments and agencies were backing a proposed ban on future sales of TP-Link devices in the United States. The story said U.S. Department of Commerce officials concluded TP-Link Systems products pose a risk because the U.S.-based company’s products handle sensitive American data and because the officials believe it remains subject to jurisdiction or influence by the Chinese government.

TP-Link Systems denies that, saying that it fully split from the Chinese TP-Link Technologies over the past three years, and that its critics have vastly overstated the company’s market share (TP-Link puts it at around 30 percent). TP-Link says it has headquarters in California, with a branch in Singapore, and that it manufactures in Vietnam. The company says it researches, designs, develops and manufactures everything except its chipsets in-house.

TP-Link Systems told The Post it has sole ownership of some engineering, design and manufacturing capabilities in China that were once part of China-based TP-Link Technologies, and that it operates them without Chinese government supervision.

“TP-Link vigorously disputes any allegation that its products present national security risks to the United States,” Ricca Silverio, a spokeswoman for TP-Link Systems, said in a statement. “TP-Link is a U.S. company committed to supplying high-quality and secure products to the U.S. market and beyond.”

Cost is a big reason TP-Link devices are so prevalent in the consumer and small business market: As this February 2025 story from Wired observed regarding the proposed ban, TP-Link has long had a reputation for flooding the market with devices that are considerably cheaper than comparable models from other vendors. That price point (and consistently excellent performance ratings) has made TP-Link a favorite among Internet service providers (ISPs) that provide routers to their customers.

In August 2024, the chairman and the ranking member of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party called for an investigation into TP-Link devices, which they said were found on U.S. military bases and for sale at exchanges that sell them to members of the military and their families.

“TP-Link’s unusual degree of vulnerabilities and required compliance with PRC law are in and of themselves disconcerting,” the House lawmakers warned in a letter (PDF) to the director of the Commerce Department. “When combined with the PRC government’s common use of SOHO [small office/home office] routers like TP-Link to perpetrate extensive cyberattacks in the United States, it becomes significantly alarming.”

The letter cited a May 2023 blog post by Check Point Research about a Chinese state-sponsored hacking group dubbed “Camaro Dragon” that used a malicious firmware implant for some TP-Link routers to carry out a sequence of targeted cyberattacks against European foreign affairs entities. Check Point said while it only found the malicious firmware on TP-Link devices, “the firmware-agnostic nature of the implanted components indicates that a wide range of devices and vendors may be at risk.”

In a report published in October 2024, Microsoft said it was tracking a network of compromised TP-Link small office and home office routers that has been abused by multiple distinct Chinese state-sponsored hacking groups since 2021. Microsoft found the hacker groups were leveraging the compromised TP-Link systems to conduct “password spraying” attacks against Microsoft accounts. Password spraying involves rapidly attempting to access a large number of accounts (usernames/email addresses) with a relatively small number of commonly used passwords.

TP-Link rightly points out that most of its competitors likewise source components from China. The company also correctly notes that advanced persistent threat (APT) groups from China and other nations have leveraged vulnerabilities in products from their competitors, such as Cisco and Netgear.

But that may be cold comfort for TP-Link customers who are now wondering if it’s smart to continue using these products, or whether it makes sense to buy more costly networking gear that might only be marginally less vulnerable to compromise.

Almost without exception, the hardware and software that ships with most consumer-grade routers includes a number of default settings that need to be changed before the devices can be safely connected to the Internet. For example, bring a new router online without changing the default username and password and chances are it will only take a few minutes before it is probed and possibly compromised by some type of Internet-of-Things botnet. Also, it is incredibly common for the firmware in a brand new router to be dangerously out of date by the time it is purchased and unboxed.

Until quite recently, the idea that router manufacturers should make it easier for their customers to use these products safely was something of anathema to this industry. Consumers were largely left to figure that out on their own, with predictably disastrous results.

But over the past few years, many manufacturers of popular consumer routers have begun forcing users to perform basic hygiene — such as changing the default password and updating the internal firmware — before the devices can be used as a router. For example, most brands of “mesh” wireless routers — like Amazon’s Eero, Netgear’s Orbi series, or Asus’s ZenWifi — require online registration that automates these critical steps going forward (or at least through their stated support lifecycle).

For better or worse, less expensive, traditional consumer routers like those from Belkin and Linksys also now automate this setup by heavily steering customers toward installing a mobile app to complete the installation (this often comes as a shock to people more accustomed to manually configuring a router). Still, these products tend to put the onus on users to check for and install available updates periodically. Also, they’re often powered by underwhelming or else bloated firmware, and a dearth of configurable options.

Of course, not everyone wants to fiddle with mobile apps or is comfortable with registering their router so that it can be managed or monitored remotely in the cloud. For those hands-on folks — and for power users seeking more advanced router features like VPNs, ad blockers and network monitoring — the best advice is to check if your router’s stock firmware can be replaced with open-source alternatives, such as OpenWrt or DD-WRT.

These open-source firmware options are compatible with a wide range of devices, and they generally offer more features and configurability. Open-source firmware can even help extend the life of routers years after the vendor stops supporting the underlying hardware, but it still requires users to manually check for and install any available updates.

Happily, TP-Link users spooked by the proposed ban may have an alternative to outright junking these devices, as many TP-Link routers also support open-source firmware options like OpenWRT. While this approach may not eliminate any potential hardware-specific security flaws, it could serve as an effective hedge against more common vendor-specific vulnerabilities, such as undocumented user accounts, hard-coded credentials, and weaknesses that allow attackers to bypass authentication.

Regardless of the brand, if your router is more than four or five years old it may be worth upgrading for performance reasons alone — particularly if your home or office is primarily accessing the Internet through WiFi.

NB: The Post’s story notes that a substantial portion of TP-Link routers and those of its competitors are purchased or leased through ISPs. In these cases, the devices are typically managed and updated remotely by your ISP, and equipped with custom profiles responsible for authenticating your device to the ISP’s network. If this describes your setup, please do not attempt to modify or replace these devices without first consulting with your Internet provider.

Cloudflare Scrubs Aisuru Botnet from Top Domains List

jeudi 6 novembre 2025 à 03:04

For the past week, domains associated with the massive Aisuru botnet have repeatedly usurped Amazon, Apple, Google and Microsoft in Cloudflare’s public ranking of the most frequently requested websites. Cloudflare responded by redacting Aisuru domain names from their top websites list. The chief executive at Cloudflare says Aisuru’s overlords are using the botnet to boost their malicious domain rankings, while simultaneously attacking the company’s domain name system (DNS) service.

The #1 and #3 positions in this chart are Aisuru botnet controllers with their full domain names redacted. Source: radar.cloudflare.com.

Aisuru is a rapidly growing botnet comprising hundreds of thousands of hacked Internet of Things (IoT) devices, such as poorly secured Internet routers and security cameras. The botnet has increased in size and firepower significantly since its debut in 2024, demonstrating the ability to launch record distributed denial-of-service (DDoS) attacks nearing 30 terabits of data per second.

Until recently, Aisuru’s malicious code instructed all infected systems to use DNS servers from Google — specifically, the servers at 8.8.8.8. But in early October, Aisuru switched to invoking Cloudflare’s main DNS server — 1.1.1.1 — and over the past week domains used by Aisuru to control infected systems started populating Cloudflare’s top domain rankings.

As screenshots of Aisuru domains claiming two of the Top 10 positions ping-ponged across social media, many feared this was yet another sign that an already untamable botnet was running completely amok. One Aisuru botnet domain that sat prominently for days at #1 on the list was someone’s street address in Massachusetts followed by “.com”. Other Aisuru domains mimicked those belonging to major cloud providers.

Cloudflare tried to address these security, brand confusion and privacy concerns by partially redacting the malicious domains, and adding a warning at the top of its rankings:

“Note that the top 100 domains and trending domains lists include domains with organic activity as well as domains with emerging malicious behavior.”

Cloudflare CEO Matthew Prince told KrebsOnSecurity the company’s domain ranking system is fairly simplistic, and that it merely measures the volume of DNS queries to 1.1.1.1.

“The attacker is just generating a ton of requests, maybe to influence the ranking but also to attack our DNS service,” Prince said, adding that Cloudflare has heard reports of other large public DNS services seeing similar uptick in attacks. “We’re fixing the ranking to make it smarter. And, in the meantime, redacting any sites we classify as malware.”

Renee Burton, vice president of threat intel at the DNS security firm Infoblox, said many people erroneously assumed that the skewed Cloudflare domain rankings meant there were more bot-infected devices than there were regular devices querying sites like Google and Apple and Microsoft.

“Cloudflare’s documentation is clear — they know that when it comes to ranking domains you have to make choices on how to normalize things,” Burton wrote on LinkedIn. “There are many aspects that are simply out of your control. Why is it hard? Because reasons. TTL values, caching, prefetching, architecture, load balancing. Things that have shared control between the domain owner and everything in between.”

Alex Greenland is CEO of the anti-phishing and security firm Epi. Greenland said he understands the technical reason why Aisuru botnet domains are showing up in Cloudflare’s rankings (those rankings are based on DNS query volume, not actual web visits). But he said they’re still not meant to be there.

“It’s a failure on Cloudflare’s part, and reveals a compromise of the trust and integrity of their rankings,” he said.

Greenland said Cloudflare planned for its Domain Rankings to list the most popular domains as used by human users, and it was never meant to be a raw calculation of query frequency or traffic volume going through their 1.1.1.1 DNS resolver.

“They spelled out how their popularity algorithm is designed to reflect real human use and exclude automated traffic (they said they’re good at this),” Greenland wrote on LinkedIn. “So something has evidently gone wrong internally. We should have two rankings: one representing trust and real human use, and another derived from raw DNS volume.”

Why might it be a good idea to wholly separate malicious domains from the list? Greenland notes that Cloudflare Domain Rankings see widespread use for trust and safety determination, by browsers, DNS resolvers, safe browsing APIs and things like TRANCO.

“TRANCO is a respected open source list of the top million domains, and Cloudflare Radar is one of their five data providers,” he continued. “So there can be serious knock-on effects when a malicious domain features in Cloudflare’s top 10/100/1000/million. To many people and systems, the top 10 and 100 are naively considered safe and trusted, even though algorithmically-defined top-N lists will always be somewhat crude.”

Over this past week, Cloudflare started redacting portions of the malicious Aisuru domains from its Top Domains list, leaving only their domain suffix visible. Sometime in the past 24 hours, Cloudflare appears to have begun hiding the malicious Aisuru domains entirely from the web version of that list. However, downloading a spreadsheet of the current Top 200 domains from Cloudflare Radar shows an Aisuru domain still at the very top.

According to Cloudflare’s website, the majority of DNS queries to the top Aisuru domains — nearly 52 percent — originated from the United States. This tracks with my reporting from early October, which found Aisuru was drawing most of its firepower from IoT devices hosted on U.S. Internet providers like AT&T, Comcast and Verizon.

Experts tracking Aisuru say the botnet relies on well more than a hundred control servers, and that for the moment at least most of those domains are registered in the .su top-level domain (TLD). Dot-su is the TLD assigned to the former Soviet Union (.su’s Wikipedia page says the TLD was created just 15 months before the fall of the Berlin wall).

A Cloudflare blog post from October 27 found that .su had the highest “DNS magnitude” of any TLD, referring to a metric estimating the popularity of a TLD based on the number of unique networks querying Cloudflare’s 1.1.1.1 resolver. The report concluded that the top .su hostnames were associated with a popular online world-building game, and that more than half of the queries for that TLD came from the United States, Brazil and Germany [it’s worth noting that servers for the world-building game Minecraft were some of Aisuru’s most frequent targets].

A simple and crude way to detect Aisuru bot activity on a network may be to set an alert on any systems attempting to contact domains ending in .su. This TLD is frequently abused for cybercrime and by cybercrime forums and services, and blocking access to it entirely is unlikely to raise any legitimate complaints.

Alleged Jabber Zeus Coder ‘MrICQ’ in U.S. Custody

dimanche 2 novembre 2025 à 21:37

A Ukrainian man indicted in 2012 for conspiring with a prolific hacking group to steal tens of millions of dollars from U.S. businesses was arrested in Italy and is now in custody in the United States, KrebsOnSecurity has learned.

Sources close to the investigation say Yuriy Igorevich Rybtsov, a 41-year-old from the Russia-controlled city of Donetsk, Ukraine, was previously referenced in U.S. federal charging documents only by his online handle “MrICQ.” According to a 13-year-old indictment (PDF) filed by prosecutors in Nebraska, MrICQ was a developer for a cybercrime group known as “Jabber Zeus.”

Image: lockedup dot wtf.

The Jabber Zeus name is derived from the malware they used — a custom version of the ZeuS banking trojan — that stole banking login credentials and would send the group a Jabber instant message each time a new victim entered a one-time passcode at a financial institution website. The gang targeted mostly small to mid-sized businesses, and they were an early pioneer of so-called “man-in-the-browser” attacks, malware that can silently intercept any data that victims submit in a web-based form.

Once inside a victim company’s accounts, the Jabber Zeus crew would modify the firm’s payroll to add dozens of “money mules,” people recruited through elaborate work-at-home schemes to handle bank transfers. The mules in turn would forward any stolen payroll deposits — minus their commissions — via wire transfers to other mules in Ukraine and the United Kingdom.

The 2012 indictment targeting the Jabber Zeus crew named MrICQ as “John Doe #3,” and said this person handled incoming notifications of newly compromised victims. The Department of Justice (DOJ) said MrICQ also helped the group launder the proceeds of their heists through electronic currency exchange services.

Two sources familiar with the Jabber Zeus investigation said Rybtsov was arrested in Italy, although the exact date and circumstances of his arrest remain unclear. A summary of recent decisions (PDF) published by the Italian Supreme Court states that in April 2025, Rybtsov lost a final appeal to avoid extradition to the United States.

According to the mugshot website lockedup[.]wtf, Rybtsov arrived in Nebraska on October 9, and was being held under an arrest warrant from the U.S. Federal Bureau of Investigation (FBI).

The data breach tracking service Constella Intelligence found breached records from the business profiling site bvdinfo[.]com showing that a 41-year-old Yuriy Igorevich Rybtsov worked in a building at 59 Barnaulska St. in Donetsk. Further searching on this address in Constella finds the same apartment building was shared by a business registered to Vyacheslav “Tank” Penchukov, the leader of the Jabber Zeus crew in Ukraine.

Vyacheslav “Tank” Penchukov, seen here performing as “DJ Slava Rich” in Ukraine, in an undated photo from social media.

Penchukov was arrested in 2022 while traveling to meet his wife in Switzerland. Last year, a federal court in Nebraska sentenced Penchukov to 18 years in prison and ordered him to pay more than $73 million in restitution.

Lawrence Baldwin is founder of myNetWatchman, a threat intelligence company based in Georgia that began tracking and disrupting the Jabber Zeus gang in 2009. myNetWatchman had secretly gained access to the Jabber chat server used by the Ukrainian hackers, allowing Baldwin to eavesdrop on the daily conversations between MrICQ and other Jabber Zeus members.

Baldwin shared those real-time chat records with multiple state and federal law enforcement agencies, and with this reporter. Between 2010 and 2013, I spent several hours each day alerting small businesses across the country that their payroll accounts were about to be drained by these cybercriminals.

Those notifications, and Baldwin’s tireless efforts, saved countless would-be victims a great deal of money. In most cases, however, we were already too late. Nevertheless, the pilfered Jabber Zeus group chats provided the basis for dozens of stories published here about small businesses fighting their banks in court over six- and seven-figure financial losses.

Baldwin said the Jabber Zeus crew was far ahead of its peers in several respects. For starters, their intercepted chats showed they worked to create a highly customized botnet directly with the author of the original Zeus Trojan — Evgeniy Mikhailovich Bogachev, a Russian man who has long been on the FBI’s “Most Wanted” list. The feds have a standing $3 million reward for information leading to Bogachev’s arrest.

Evgeniy M. Bogachev, in undated photos.

The core innovation of Jabber Zeus was an alert that MrICQ would receive each time a new victim entered a one-time password code into a phishing page mimicking their financial institution. The gang’s internal name for this component was “Leprechaun,” (the video below from myNetWatchman shows it in action). Jabber Zeus would actually re-write the HTML code as displayed in the victim’s browser, allowing them to intercept any passcodes sent by the victim’s bank for multi-factor authentication.

“These guys had compromised such a large number of victims that they were getting buried in a tsunami of stolen banking credentials,” Baldwin told KrebsOnSecurity. “But the whole point of Leprechaun was to isolate the highest-value credentials — the commercial bank accounts with two-factor authentication turned on. They knew these were far juicier targets because they clearly had a lot more money to protect.”

Baldwin said the Jabber Zeus trojan also included a custom “backconnect” component that allowed the hackers to relay their pilfering of commercial bank accounts through the victim’s own infected PC.

“The Jabber Zeus crew were literally connecting to the victim’s bank account from the victim’s IP address, or from the remote control function and by fully emulating the device,” he said. “That trojan was like a hot knife through butter of what everyone thought was state-of-the-art secure online banking at the time.”

Although the Jabber Zeus crew was in direct contact with the Zeus author, the chats intercepted by myNetWatchman show Bogachev frequently ignored the group’s pleas for help. The government says the real leader of the Jabber Zeus crew was Maksim Yakubets, a 38-year Ukrainian man with Russian citizenship who went by the hacker handle “Aqua.”

Alleged Evil Corp leader Maksim “Aqua” Yakubets. Image: FBI

The Jabber chats intercepted by Baldwin show that Aqua interacted almost daily with MrICQ, Tank and other members of the hacking team, often facilitating the group’s money mule and cashout activities remotely from Russia.

The government says Yakubets/Aqua would later emerge as the leader of an elite cybercrime ring of at least 17 hackers that referred to themselves internally as “Evil Corp.” Members of Evil Corp developed and used the Dridex (a.k.a. Bugat) trojan, which helped them siphon more than $100 million from hundreds of victim companies in the United States and Europe.

This 2019 story about the government’s $5 million bounty for information leading to Yakubets’s arrest includes excerpts of conversations between Aqua, Tank, Bogachev and other Jabber Zeus crew members discussing stories I’d written about their victims. Both Baldwin and I were interviewed at length for a new weekly six-part podcast by the BBC that delves deep into the history of Evil Corp. Episode One focuses on the evolution of Zeus, while the second episode centers on an investigation into the group by former FBI agent Jim Craig.

Image: https://www.bbc.co.uk/programmes/w3ct89y8