Aleksei Burkov, an ultra-connected Russian hacker once described as “an asset of supreme importance” to Moscow, has pleaded guilty in a U.S. court to running a site that sold stolen payment card data and to administering a highly secretive crime forum that counted among its members some of the most elite Russian cybercrooks.

Burkov, 29, admitted to running CardPlanet, a site that sold more than 150,000 stolen credit card accounts, and to being the founder and administrator of DirectConnection — a closely guarded underground community that attracted some of the world’s most-wanted Russian hackers. He pleaded guilty last week in a Virginia court to access device fraud and conspiracy to commit computer intrusion, identity theft, wire fraud and money laundering.

As KrebsOnSecurity noted in a November 2019 profile of Burkov’s hacker nickname ‘k0pa,’ “a deep dive into the various pseudonyms allegedly used by Burkov suggests this individual may be one of the most connected and skilled malicious hackers ever apprehended by U.S. authorities, and that the Russian government is probably concerned that he simply knows too much.”

Membership in the DirectConnection fraud forum was heavily restricted. New members had to be native Russian speakers, provide a $5,000 deposit, and be vouched for by three existing crime forum members. Also, members needed to have a special encryption certificate installed in their Web browser before the forum’s login page would even load.

DirectConnection was something of a Who’s Who of major cybercriminals, and many of its most well-known members have likewise been extradited to and prosecuted by the United States. Those include Sergey “Fly” Vovnenko, who was sentenced to 41 months in prison for operating a botnet and stealing login and payment card data. Vovnenko also served as administrator of his own cybercrime forum, which he used in 2013 to carry out a plan to have Yours Truly framed for heroin possession.

As noted in last year’s profile of Burkov, an early and important member of DirectConnection was a hacker who went by the moniker “aqua” and ran the banking sub-forum on Burkov’s site. In December 2019, The FBI has offered a $5 million bounty leading to the arrest and conviction of aqua, who’s been identified as Maksim Viktorovich Yakubets. The Justice Department says Yakubets/aqua ran a transnational cybercrime organization called “Evil Corp.” that stole roughly $100 million from victims.

According to a statement of facts in Burkov’s case, the author of the infamous SpyEye banking trojan — Aleksandr “Gribodemon” Panin — was personally vouched for by Burkov. Panin was sentenced in 2016 to 24 years in prison.

Other top DirectConnection members include convicted credit card fraudsters Vladislav “Badb” Horohorin and Sergey “zo0mer” Kozerev, as well as the infamous spammer and botnet master Peter “Severa” Levashov.

Burkov was arrested in 2015 on an international warrant while he was visiting Israel, and over the ensuing four years the Russian government aggressively sought to keep him from being extradited to the United States. When Israeli authorities turned down requests to send him back to Russia — supposedly to face separate hacking charges there — the Russians then imprisoned a young Israeli woman on trumped-up drug charges in a bid to trade prisoners.

As the news outlet Haaretz reported in October, Naama Issachar was arrested while changing planes in Russia on her way home from a yoga course in India. Russian police said they found approximately 10 grams of marijuana in Issachar’s bag. Issachar denied smuggling drugs, saying she had not sought to enter Russia during her layover and had no access to her luggage during her brief stay in the Russian airport.

Haaretz noted that the Russian government pressed Israel to exchange Burkov for Issachar. When Israel’s supreme court cleared the way for Burkov’s extradition to the United States, Issachar was found guilty of drug smuggling and sentenced to 7.5 years in jail.

But according to a story today in The Times of Israel, the Kremlin has signaled that Russian President Vladimir Putin may make a decision “in the near future,” on a possible pardon for Issachar, whose mother reportedly met with Putin while the Russian leader was visiting Israel last week.

Burkov currently is scheduled to be sentenced on May 8. He faces a maximum sentence of 15 years in prison.

If you’re running a business online, few things can be as disruptive or destructive to your brand as someone stealing your company’s domain name and doing whatever they wish with it. Even so, most major Web site owners aren’t taking full advantage of the security tools available to protect their domains from being hijacked. Here’s the story of one recent victim who was doing almost everything possible to avoid such a situation and still had a key domain stolen by scammers.

On December 23, 2019, unknown attackers began contacting customer support people at OpenProvider, a popular domain name registrar based in The Netherlands. The scammers told the customer representatives they had just purchased from the original owner the domain e-hawk.net — which is part of a service that helps Web sites detect and block fraud — and that they were having trouble transferring the domain from OpenProvider to a different registrar.

The real owner of e-hawk.net is Raymond Dijkxhoorn, a security expert and entrepreneur who has spent much of his career making life harder for cybercrooks and spammers. Dijkxhoorn and E-HAWK’s CEO Peter Cholnoky had already protected their domain with a “registrar lock,” a service that requires the registrar to confirm any requested changes with the domain owner via whatever communications method is specified by the registrant.

In the case of e-hawk.net, however, the scammers managed to trick an OpenProvider customer service rep into transferring the domain to another registrar with a fairly lame social engineering ruse — and without triggering any verification to the real owners of the domain.

Specifically, the thieves contacted OpenProvider via WhatsApp, said they were now the rightful owners of the domain, and shared a short screen grab video showing the registrar’s automated system blocking the domain transfer (see video below).

“The support agent helpfully tried to verify if what the [scammers] were saying was true, and said, ‘Let’s see if we can move e-hawk.net from here to check if that works’,” Dijkxhoorn said. “But a registrar should not act on instructions coming from a random email address or other account that is not even connected to the domain in question.”

Dijkxhoorn shared records obtained from OpenProvider showing that on Dec. 23, 2019, the e-hawk.net domain was transferred to a reseller account within OpenProvider. Just three days later, that reseller account moved e-hawk.net to another registrar — Public Domain Registry (PDR).

“Due to the previously silent move to another reseller account within OpenProvider, we were not notified by the registrar about any changes,” Dijkxhoorn said. “This fraudulent move was possible due to successful social engineering towards the OpenProvider support team. We have now learned that after the move to the other OpenProvider account, the fraudsters could silently remove the registrar lock and move the domain to PDR.”

REGISTRY LOCK

Dijkxhoorn said one security precaution his company had not taken with their domain prior to the fraudulent transfer was a “registry lock,” a more stringent, manual (and sometimes offline) process that effectively neutralizes any attempts by fraudsters to social engineer your domain registrar.

With a registry lock in place, your registrar cannot move your domain to another registrar on its own. Doing so requires manual contact verification by the appropriate domain registry, such as Verisign — which is the authoritative registry for all domains ending in .com, .net, .name, .cc, .tv, .edu, .gov and .jobs. Other registries handle locks for specific top-level or country-code domains, including Nominet (for .co.uk or .uk domains), EURID (for .eu domains), CNNIC for (for .cn) domains, and so on.

According to data provided by digital brand protection firm CSC, while domains created in the top three most registered top-level domains (.com, .jp and .cn) are eligible for registry locks, just 22 percent of domain names tracked in Forbes’ list of the World’s Largest Public Companies have secured registry locks.

Unfortunately, not all registrars support registry locks (a list of top-level domains that do allow registry locks is here, courtesy of CSC). But as we’ll see in a moment, there are other security precautions that can and do help if your domain somehow ends up getting hijacked.

Dijkxhoorn said his company first learned of the domain theft on Jan. 13, 2020, which was the date the fraudsters got around to changing the domain name system (DNS) settings for e-hawk.net. That alert was triggered by systems E-HAWK had previously built in-house that continually monitor their stable of domains for any DNS changes.

By the way, this continuous monitoring of one’s DNS settings is a powerful approach to help blunt attacks on your domains and DNS infrastructure. Anyone curious about why this might be a good approach should have a look at this deep-dive from 2019 on “DNSpionage,” the name given to the exploits of an Iranian group that has successfully stolen countless passwords and VPN credentials from major companies via DNS-based attacks.

DNSSEC

Shortly after pointing e-hawk.net’s DNS settings to a server they controlled, the attackers were able to obtain at least one encryption certificate for the domain, which could have allowed them to intercept and read encrypted Web and email communications tied to e-hawk.net.

But that effort failed because E-HAWK’s owners also had enabled DNSSEC for their domains (a.k.a. “DNS Security Extensions”), which protects applications from using forged or manipulated DNS data by requiring that all DNS queries for a given domain or set of domains be digitally signed.

With DNSSEC properly enabled, if a name server determines that the address record for a given domain has not been modified in transit, it resolves the domain and lets the user visit the site. If, however, that record has been modified in some way or doesn’t match the domain requested, the name server blocks the user from reaching the fraudulent address.

While fraudsters who have hijacked your domain and/or co-opted access to your domain registrar can and usually will try to remove any DNSSEC records associated with the hijacked domain, it generally takes a few days for these updated records to be noticed and obeyed by the rest of the Internet.

As a result, having DNSSEC enabled for its domains bought E-HAWK an additional 48 hours or so with which to regain control over its domain before any encrypted traffic to and from e-hawk.net could have been intercepted.

In the end, E-HAWK was able to wrest back its hijacked domain in less than 48 hours, but only because its owners are on a first-name basis with many of the companies that manage the Internet’s global domain name system. Perhaps more importantly, they happened to know key people at PDR — the registrar to which the thieves moved the stolen domain.

Dijkxhoorn said without that industry access, E-HAWK probably would still be waiting to re-assume control over its domain.

“This process is normally not that quick,” he said, noting that most domains can’t be moved for at least 60 days after a successful transfer to another registrar.

In an interview with KrebsOnSecurity, OpenProvider CEO and Founder Arno Vis said said OpenProvider is reviewing its procedures and building systems to prevent support employees from overriding security checks that come with a registrar lock.

“We are building an extra layer of approval for things that support engineers shouldn’t be doing in the first place,” Vis said. “As far as I know, this is the first time something like this has happened to us.”

As in this case, crooks who specialize in stealing domains often pounce during holidays, when many registrars are short on well-trained staff. But Vis said the attack against E-HAWK targeted the company’s most senior support engineer.

“This is why social engineering is such a tricky thing, because in the end you still have a person who has to make a decision about something and in some cases they don’t make the right decision,” he said.

WHAT CAN YOU DO?

To recap, for maximum security on your domains, consider adopting some or all of the following best practices:

-Use registration features like Registry Lock that can help protect domain names records from being changed. Note that this may increase the amount of time it takes going forward to make key changes to the locked domain (such as DNS changes).

-Use DNSSEC (both signing zones and validating responses).

-Use access control lists for applications, Internet traffic and monitoring.

-Use 2-factor authentication, and require it to be used by all relevant users and subcontractors.

-In cases where passwords are used, pick unique passwords and consider password managers.

-Review the security of existing accounts with registrars and other providers, and make sure you have multiple notifications in place when and if a domain you own is about to expire.

-Monitor the issuance of new SSL certificates for your domains by monitoring, for example, Certificate Transparency Logs.

Apple is rolling out a new update to its iOS operating system that addresses the location privacy issue on iPhone 11 devices that was first detailed here last month.

Beta versions of iOS 13.3.1 include a new setting that lets users disable the “Ultra Wideband” feature, a short-range technology that lets iPhone 11 users share files locally with other nearby phones that support this feature.

In December, KrebsOnSecurity pointed out the new iPhone 11 line queries the user’s location even when all applications and system services are individually set never to request this data.

Apple initially said the company did not see any privacy concerns and that the location tracking icon (a small, upward-facing arrow to the left of the battery icon) appears for system services that do not have a switch in the iPhone’s settings menu.

Apple later acknowledged the mysterious location requests were related to the inclusion of an Ultra Wideband chip in iPhone 11, Pro and Pro Max devices.

The company further explained that the location information indicator appears because the device periodically checks to see whether it is being used in a handful of countries for which Apple hasn’t yet received approval to deploy Ultra Wideband.

Apple also stressed it doesn’t use the UWB feature to collect user location data, and that this location checking resided “entirely on the device.” Still, it’s nice that iPhone 11 users will now have a disable the feature if they want.

Spotted by journalist Brandon Butch and published on Twitter last week, the new toggle switch to turn off UWB now exists in the “Networking & Wireless” settings in beta versions of iOS 13.3.1, under Locations Services > System Services. Beta versions are released early to developers to help iron out kinks in the software, and it’s not clear yet when 13.3.1 will be released to the general public.

A Georgia man who co-founded a service designed to protect companies from crippling distributed denial-of-service (DDoS) attacks has pleaded to paying a DDoS-for-hire service to launch attacks against others.

Tucker Preston, 22, of Macon, Ga., pleaded guilty last week in a New Jersey court to one count of damaging protected computers by transmission of a program, code or command. DDoS attacks involve flooding a target Web site with so much junk Internet traffic that it can no longer accommodate legitimate visitors.

Preston was featured in the 2016 KrebsOnSecurity story DDoS Mitigation Firm Has History of Hijacks, which detailed how the company he co-founded — BackConnect Security LLC — had developed the unusual habit of hijacking Internet address space it didn’t own in a bid to protect clients from attacks.

Preston’s guilty plea agreement (PDF) doesn’t specify who he admitted attacking, and refers to the target only as “Victim 1.” Preston declined to comment for this story.

But that 2016 story came on the heels of an exclusive about the hacking of vDOS — at the time the world’s most popular and powerful DDoS-for-hire service.

KrebsOnSecurity exposed the co-administrators of vDOS and obtained a copy of the entire vDOS database, including its registered users and a record of the attacks those users had paid vDOS to launch on their behalf.

Those records showed that several email addresses tied to a domain registered by then 19-year-old Preston had been used to create a vDOS account that was active in attacking a large number of targets, including multiple assaults on networks belonging to the Free Software Foundation (FSF).

The 2016 story on BackConnect featured an interview with a former system administrator at FSF who said the nonprofit briefly considered working with BackConnect, and that the attacks started almost immediately after FSF told the company’s owners they would need to look elsewhere for DDoS protection.

Perhaps having fun at the expense of the FSF was something of a meme that the accused and his associates seized upon, but it’s interesting to note that the name of the FSF’s founder — Richard Stallman — was used as a nickname by the co-author of Mirai, a potent malware strain that was created for the purposes of enslaving Internet of Things (IoT) devices for large-scale DDoS attacks.

Ultimately, it was the Mirai co-author’s use of this nickname that contributed to him getting caught, arrested, and prosecuted for releasing Mirai and its source code (as well as for facilitating a record-setting DDoS against this Web site in 2016).

According to a statement from the U.S. Justice Department, the count to which he pleaded guilty is punishable by a maximum of 10 years in prison and a fine of up to $250,000, or twice the gross gain or loss from the offense. He is slated to be sentenced on May 7.

Microsoft today released updates to plug 50 security holes in various flavors of Windows and related software. The patch batch includes a fix for a flaw in Windows 10 and server equivalents of this operating system that prompted an unprecedented public warning from the U.S. National Security Agency. This month also marks the end of mainstream support for Windows 7, a still broadly-used operating system that will no longer be supplied with security updates.

As first reported Monday by KrebsOnSecurity, Microsoft addressed a severe bug (CVE-2020-0601) in Windows 10 and Windows Server 2016/19 reported by the NSA that allows an attacker to spoof the digital signature tied to a specific piece of software. Such a weakness could be abused by attackers to make malware appear to be a benign program that was produced and signed by a legitimate software company.

An advisory (PDF) released today by the NSA says the flaw may have far more wide-ranging security implications, noting that the “exploitation of the vulnerability allows attackers to defeat trusted network connections and deliver executable code while appearing as legitimately trusted entities.”

“NSA assesses the vulnerability to be severe and that sophisticated cyber actors will understand the underlying flaw very quickly and, if exploited, would render the previously mentioned platforms as fundamentally vulnerable,” the advisory continues. “The consequences of not patching the vulnerability are severe and widespread.”

Matthew Green, an associate professor in the computer science department at Johns Hopkins University, said the flaw involves an apparent implementation weakness in a component of recent Windows versions responsible for validating the legitimacy of authentication requests for a panoply of security functions in the operating system.

Green said attackers can use this weakness to impersonate everything from trusted Web sites to the source of software updates for Windows and other programs.

“Imagine if I wanted to pick the lock in your front door,” Green analogized. “It might be hard for me to come up with a key that will open your door, but what if I could tamper with or present both the key and the lock at the same time?”

Kenneth White, security principal at the software company MongoDB, equated the vulnerability to a phone call that gets routed to a party you didn’t intend to reach.

“You pick up the phone, dial a number and assume you’re talking to your bank or Microsoft or whomever, but the part of the software that confirms who you’re talking to is flawed,” White said. “That’s pretty bad, especially when your system is saying download this piece of software or patch automatically and it’s being done in the background.”

Both Green and White said it likely will be a matter of hours or days before security researchers and/or bad guys work out ways to exploit this bug, given the stakes involved. Indeed, already this evening KrebsOnSecurity has seen indications that people are teasing out such methods, which will likely be posted publicly online soon.

According to security vendor Qualys, only eight of the 50 flaws fixed in today’s patch roundup from Microsoft earned the company’s most dire “critical” rating, a designation reserved for bugs that can be exploited remotely by malware or miscreants to seize complete control over the target computer without any help from users.

Once again, some of those critical flaws include security weaknesses in the way Windows implements Remote Desktop connections, a feature that allows systems to be accessed, viewed and controlled as if the user was seated directly in front of the remote computer. Other critical patches include updates for the Web browsers and Web scripting engines built into Windows, as well as fixes for ASP.NET and the .NET Framework.

The security fix for the CVE-2020-0601 bug and others detailed in this post will be offered to Windows users as part of a bundle of patches released today by Microsoft. To see whether any updates are available for your Windows computer, go to the Start menu and type “Windows Update,” then let the system scan for any available patches.

Keep in mind that 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 not losing your mind 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.

Today also marks the last month in which Microsoft will ship security updates for Windows 7 home/personal users. I count myself among some 30 percent of Windows users who still like and (ab)use this operating system in one form or another, and am sad that this day has come to pass. But if you rely on this OS for day-to-day use, it’s probably time to think about upgrading to something newer.

That might be a computer with Windows 10. Or maybe you have always wanted that shiny MacOS computer. If cost is a primary motivator and the user you have in mind doesn’t do much with the system other than browsing the Web, perhaps a Chromebook or an older machine with a recent version of Linux is the answer. Whichever system you choose, it’s important to pick one that fits the owner’s needs and provides security updates on an ongoing basis.

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.