Sources tell KrebsOnSecurity that Microsoft Corp. is slated to release a software update on Tuesday to fix an extraordinarily serious security vulnerability in a core cryptographic component present in all versions of Windows. Those sources say Microsoft has quietly shipped a patch for the bug to branches of the U.S. military and to other high-value customers/targets that manage key Internet infrastructure, and that those organizations have been asked to sign agreements preventing them from disclosing details of the flaw prior to Jan. 14, the first Patch Tuesday of 2020.

According to sources, the vulnerability in question resides in a Windows component known as crypt32.dll, a Windows module that Microsoft says handles “certificate and cryptographic messaging functions in the CryptoAPI.” The Microsoft CryptoAPI provides services that enable developers to secure Windows-based applications using cryptography, and includes functionality for encrypting and decrypting data using digital certificates.

A critical vulnerability in this Windows component could have wide-ranging security implications for a number of important Windows functions, including authentication on Windows desktops and servers, the protection of sensitive data handled by Microsoft’s Internet Explorer/Edge browsers, as well as a number of third-party applications and tools.

Equally concerning, a flaw in crypt32.dll might also be abused to spoof the digital signature tied to a specific piece of software. Such a weakness could be exploited by attackers to make malware appear to be a benign program that was produced and signed by a legitimate software company.

This component was introduced into Windows more than 20 years ago — back in Windows NT 4.0. Consequently, all versions of Windows are likely affected (including Windows XP, which is no longer being supported with patches from Microsoft).

Microsoft has not yet responded to requests for comment. However, KrebsOnSecurity has heard rumblings from several sources over the past 48 hours that this Patch Tuesday (tomorrow) will include a doozy of an update that will need to be addressed immediately by all organizations running Windows.

Update 7:49 p.m. ET: Microsoft responded, saying that it does not discuss the details of reported vulnerabilities before an update is available. The company also said it does “not release production-ready updates ahead of regular Update Tuesday schedule. “Through our Security Update Validation Program (SUVP), we release advance versions of our updates for the purpose of validation and interoperability testing in lab environments,” Microsoft said in a written statement. “Participants in this program are contractually disallowed from applying the fix to any system outside of this purpose and may not apply it to production infrastructure.”

Original story:

Will Dormann, a security researcher who authors many of the vulnerability reports for the CERT Coordination Center (CERT-CC), tweeted today that “people should perhaps pay very close attention to installing tomorrow’s Microsoft Patch Tuesday updates in a timely manner. Even more so than others. I don’t know…just call it a hunch?” Dormann declined to elaborate on that teaser.

It could be that the timing and topic here (cryptography) is nothing more than a coincidence, but KrebsOnSecurity today received a heads up from the U.S. National Security Agency (NSA) stating that NSA’s Director of Cybersecurity Anne Neuberger is slated to host a call on Jan. 14 with the news media that “will provide advanced notification of a current NSA cybersecurity issue.”

The NSA’s public affairs folks did not respond to requests for more information on the nature or purpose of the discussion. The invitation from the agency said only that the call “reflects NSA’s efforts to enhance dialogue with industry partners regarding its work in the cybersecurity domain.”

Stay tuned for tomorrow’s coverage of Patch Tuesday and possibly more information on this particular vulnerability.

Anyone searching for a primer on how to spot clever phishing links need look no further than those targeting customers of Apple, whose brand by many measures remains among the most-targeted. Past stories here have examined how scammers working with organized gangs try to phish iCloud credentials from Apple customers who have a mobile device that is lost or stolen. Today’s piece looks at the well-crafted links used in some of these lures.

KrebsOnSecurity heard from a reader in South Africa who recently received a text message stating his lost iPhone X had been found. The message addressed him by name and said he could view the location of his wayward device by visiting the link https://maps-icloud[.]com — which is most definitely not a legitimate Apple or iCloud link and is one of countless spoofing Apple’s “Find My” service for locating lost Apple devices.

While maps-icloud[.]com is not a particularly convincing phishing domain, a review of the Russian server where that domain is hosted reveals a slew of far more persuasive links spoofing Apple’s brand. Almost all of these include encryption certificates (start with “https://) and begin with the subdomains “apple.” or “icloud.” followed by a domain name starting with “com-“.

Here are just a few examples (the phishing links in this post have been hobbled with brackets to keep them from being clickable):

apple.com-support[.]id
apple.com-findlocation[.]id
apple.com-sign[.]in
apple.com-isupport[.]in
icloud.com-site-log[.]in

Savvy readers here no doubt already know this, but to find the true domain referenced in a link, look to the right of “http(s)://” until you encounter the first forward slash (/). The domain directly to the left of that first slash is the true destination; anything that precedes the second dot to the left of that first slash is a subdomain and should be ignored for the purposes of determining the true domain name.

For instance, in the case of the imaginary link below, example.com is the true destination, not apple.com:

https://www.apple.com.example.com/findmyphone/

Of course, any domain can be used as a redirect to any other domain. Case in point: Targets of the phishing domains above who are undecided on whether the link refers to a legitimate Apple site might seek to load the base domain into a Web browser (minus the customization in the remainder of the link after the first forward slash). To assuage such concerns, the phishers in this case will forward anyone visiting those base domains to Apple’s legitimate iCloud login page (icloud.com).

The best advice to sidestep phishing scams is to avoid clicking on links that arrive unbidden in emails, text messages and other mediums. 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.

Federal investigators on Friday arrested a Virginia man accused of being part of a neo-Nazi group that targeted hundreds of people in “swatting” attacks, wherein fake bomb threats, hostage situations and other violent scenarios were phoned in to police as part of a scheme to trick them into visiting potentially deadly force on a target’s address.

In July 2018, KrebsOnSecurity published the story Neo-Nazi Swatters Target Dozens of Journalists, which detailed the activities of a loose-knit group of individuals who had targeted hundreds of individuals for swatting attacks, including federal judges, corporate executives and almost three-dozen journalists (myself included).

An FBI affidavit unsealed this week identifies one member of the group as John William Kirby Kelley. According to the affidavit, Kelley was instrumental in setting up and maintaining the Internet Relay Chat (IRC) channel called “Deadnet” that was used by he and other co-conspirators to plan, carry out and document their swatting attacks.

Prior to his recent expulsion on drug charges, Kelley was a student studying cybersecurity at Old Dominion University in Norfolk, Va. Interestingly, investigators allege it was Kelley’s decision to swat his own school in late November 2018 that got him caught. Using the handle “Carl,” Kelley allegedly explained to fellow Deadnet members he hoped the swatting would get him out of having to go to class.

The FBI says Kelley used virtual private networking (VPN) services to hide his true Internet location and various voice-over-IP (VoIP) services to conduct the swatting calls. In the ODU incident, investigators say Kelley told ODU police that someone was armed with an AR-15 rifle and had placed multiple pipe bombs within the campus buildings.

Later that day, Kelley allegedly called ODU police again but forgot to obscure his real phone number on campus, and quickly apologized for making an accidental phone call. When authorities determined that the voice on the second call matched that from the bomb threat earlier in the day, they visited and interviewed the young man.

Investigators say Kelley admitted to participating in swatting calls previously, and consented to a search of his dorm room, wherein they found two phones, a laptop and various electronic storage devices.

The affidavit says one of the thumbs drive included multiple documents that logged statements made on the Deadnet IRC channel, which chronicled “countless examples of swatting activity over an extended period of time.” Those included videos Kelley allegedly recorded of his computer screen which showed live news footage of police responding to swatting attacks while he and other Deadnet members discussed the incidents in real-time on their IRC forum.

The FBI believes Kelley also was linked to a bomb threat incident in November 2018 at the predominantly African American Alfred Baptist Church in Old Town Alexandria, an incident that led to the church being evacuated during evening worship services while authorities swept the building for explosives.

The FBI affidavit was based in part on interviews with an unnamed co-conspirator, who told investigators that he and the others on Deadnet IRC are white supremacists and sympathetic to the neo-Nazi movement.

“The group’s neo-Nazi ideology is apparent in the racial tones throughout the conversation logs,” the affidavit reads. “Kelley and other co-conspirators are affiliated with or have expressed sympathy for Atomwafen Division,” an extremist group whose members are suspected of having committed multiple murders in the U.S. since 2017.

Investigators say on one of Kelley’s phones they found a photo of he and others in tactical gear holding automatic weapons next to pictures of Atomwaffen recruitment material and the neo-Nazi publication Siege.

As I reported last summer, several Deadnet members maintained a site on the Dark Web called the “Doxbin,” which listed the names, addresses, phone number and often known IP addresses, Social Security numbers, dates of birth and other sensitive information on hundreds of people — and in some cases the personal information of the target’s friends and family. After those indexed on the Doxbin were successfully swatted, a blue gun icon would be added next to the person’s name.

One of the core members of the group on Deadnet — an individual who used the nickname “Chanz,” among others — stated that he was responsible for maintaining SiegeCulture, a white supremacist Web site that glorifies the writings of neo-Nazi James Mason (whose various books call on followers to start a violent race war in the United States).

Deadnet chat logs obtained by KrebsOnSecurity show that another key swatting suspect on Deadnet who used the handle “Zheme” told other IRC members in March 2019 that one of his friends had recently been raided by federal investigators for allegedly having connections to the person responsible for the mass shooting in October 2018 at the Tree of Life Jewish synagogue in Pittsburgh.

At one point last year, Zheme also reminded denizens of Deadnet about a court hearing in the murder trial of Sam Woodward, an alleged Atomwaffen member who’s been charged with killing a 19-year-old gay Jewish college student.

As reported by this author last year, Deadnet members targeted dozens of journalists whose writings they considered threatening to their worldviews. Indeed, one of the targets successfully swatted by Deadnet members was Pulitzer prize winning columnist Leonard G. Pitts Jr., whose personal information as listed on the Doxbin was annotated with a blue gun icon and the label “anti-white race/politics writer.”

In another Deadnet chat log seen by this author, Chanz admits to calling in a bomb threat at the UCLA campus following a speech by Milo Yiannopoulos. Chanz bragged that he did it to frame feminists at the school for acts of terrorism.

On a personal note, I sincerely hope this arrest is just the first of many to come for those involved in swatting attacks related to Deadnet and the Doxbin. KrebsOnSecurity has obtained information indicating that several members of my family also have been targeted for harassment and swatting by this group.

Finally, it’s important to note that while many people may assume that murders and mass shootings targeting people because of their race, gender, sexual preference or religion are carried out by so-called “lone wolf” assailants, the swatting videos created and shared by Deadnet members are essentially propaganda that hate groups can use to recruit new members to their cause.

The Washington Post reports that Kelley had his first appearance in federal court in Alexandria, Va. on Friday.

“His public defender did not comment on the allegations but said his client has ‘very limited funds,'” The Post’s courts reporter Rachel Weiner wrote.

The charge against Kelley of conspiracy to make threats carries up to five years in prison. The affidavit in Kelley’s arrest is available here (PDF).

Crooks have stolen tens of millions of dollars and other valuable commodities from thousands of consumers via “SIM swapping,” a particularly invasive form of fraud that involves tricking a target’s mobile carrier into transferring someone’s wireless service to a device they control. But the U.S. Federal Communications Commission (FCC), the entity responsible for overseeing wireless industry practices, has so far remained largely silent on the matter. Now, a cadre of lawmakers is demanding to know what, if anything, the agency might be doing to track and combat SIM swapping.

On Thursday, a half-dozen Democrats in the House and Senate sent a letter to FCC Chairman Ajit Pai, asking the agency to require the carriers to offer more protections for consumers against unauthorized SIM swaps.

“Consumers have no choice but to rely on phone companies to protect them against SIM swaps — and they need to be able to count on the FCC to hold mobile carriers accountable when they fail to sure their systems and thus harm consumers,” reads the letter, signed by Sens. Ron Wyden (OR), Sherrod Brown (OH) and Edward Markey (MA), and Reps. Ted Lieu (CA), Anna Eshoo (CA) and Yvette Clarke (NY).

SIM swapping is an insidious form of mobile phone fraud that is often used to steal large amounts of cryptocurrencies and other items of value from victims. All too frequently, the scam involves bribing or tricking employees at mobile phone stores into seizing control of the target’s phone number and diverting all texts and phone calls to the attacker’s mobile device.

Once in control of the stolen phone number, the attacker can then reset the password for any online account that allows password resets and/or two-factor verification requests via text messages or automated phone calls (i.e. most online services, including many of the mobile carrier Web sites).

From there, the scammers can pivot in a variety of directions, including: Plundering the victim’s financial accounts; hacking their identities on social media platforms;  viewing the victim’s email and call history; and abusing that access to harass and scam their friends and family.

The lawmakers asked the FCC to divulge whether it tracks consumer complaints about fraudulent SIM swapping and number “port-outs,” which involve moving the victim’s phone number to another carrier. The legislators demanded to know whether the commission offers any guidance for consumers or carriers on this important issue, and if the FCC has initiated any investigations or taken enforcement actions against carriers that failed to secure customer accounts.

The letter also requires the FCC to respond as to whether there is anything in federal regulations that prevents mobile carriers from sharing with banks information about the most recent SIM swap date of a customer as a way to flag potentially suspicious login attempts — a method already used by financial institutions in other countries, including Australia, the United Kingdom and several nations in Africa.

“Some carriers, both in the U.S. and abroad, have adopted policies that better protect consumers from SIM swaps, such as allowing customers to add optional security protections to their account that prevent SIM swaps unless the customer visits a store and shows ID,” the letter continues. “Unfortunately, implementation of these additional security measures by wireless carriers in the U.S. is still spotty and consumers are not likely to find out about the availability of these obscure, optional security features until it is too late.”

The FCC did not immediately respond to requests for comment.

SIM SWAP (CRIM)INNOVATIONS

Legitimate SIM swaps are a common request for all carriers, and they usually happen when a customer has lost their mobile phone or when they need to upgrade to a newer model that requires a different-sized SIM card (the small, removable smart chip that ties the customer’s device to their phone number).

But unauthorized SIM swaps enable even low-skilled thieves to quickly turn a victim’s life upside down and wrest control over a great deal of their online identities and finances. What’s more, the security options available to wireless customers concerned about SIM swapping — such as personal identification number (PIN) codes — are largely ineffective against crooked or clueless mobile phone store employees.

A successful SIM swap may allow tormentors to access a victim’s email inbox even after the target has changed his or her password. For example, some email services allow customers to reset their passwords just by providing a piece of information that would likely only be known to the legitimate account holder, such as the month and year the account was created, or the name of a custom folder or label in the account previously created by the user.

One technique used by SIM swappers to regain access to hacked inboxes is to jot down this information once a SIM swap affords them the ability to reset the account’s password. Alternatively, SIM swappers have been known to create their own folders or labels in the hacked account to facilitate backdoor access later on.

A number of young men have recently been criminally charged with using SIM swapping to steal accounts and cryptocurrencies like Bitcoin from victims. This week, a court in New York unsealed a grand jury indictment against 22-year-old alleged serial SIM swapper Nicholas Truglia, who stands accused of using the technique to siphon $24 million worth of cryptocurrencies from blockchain investor Michael Terpin.

But experts say the few arrests that have been made in conjunction with SIM swapping attacks have pushed many involved in this crime to enlist help from co-conspirators who are minors and thus largely outside the reach of federal prosecutors.

For his part, Terpin sent an open letter to FCC commissioners in October 2019, urging them to mandate that wireless carriers provide a way for customers to truly lock down their accounts against SIM swapping, even if that means requiring an in-person visit to a store or conversation with the carrier’s fraud department.

In an interview with KrebsOnSecurity, Terpin said the FCC has so far abdicated its responsibility over the carriers on this matter.

“It took them a long time to get around to taking robocalls seriously, but those scams rarely cost people millions of dollars,” Terpin said. “Imagine going into a bank and you don’t remember your PIN and the teller says, ‘Oh, that’s okay I can look it up for you.’ The fact that a $9-an-hour mobile store employee can see your high security password or PIN is shocking.”

“The carriers should also have to inform every single current and future customer that there is this high security option available,” Terpin continued. “That would stop a lot of this fraud and would take away the ability of these ne’er-do-well 19-year-old store employees who get bribed into helping out with the scam.”

Want to read more about SIM swapping? Check out Busting SIM Swappers and SIM Swap Myths, or view the entire catalog of stories on the topic here.

Late last year saw the re-emergence of a nasty phishing tactic that allows the attacker to gain full access to a user’s data stored in the cloud without actually stealing the account password. The phishing lure starts with a link that leads to the real login page for a cloud email and/or file storage service. Anyone who takes the bait will inadvertently forward a digital token to the attackers that gives them indefinite access to the victim’s email, files and contacts — even after the victim has changed their password.

Before delving into the details, it’s important to note two things. First, while the most recent versions of this stealthy phish targeted corporate users of Microsoft’s Office 365 service, the same approach could be leveraged to ensnare users of many other cloud providers. Second, this attack is not exactly new: In 2017, for instance, phishers used a similar technique to plunder accounts at Google’s Gmail service.

Still, this phishing tactic is worth highlighting because recent examples of it received relatively little press coverage. Also, the resulting compromise is quite persistent and sidesteps two-factor authentication, and thus it seems likely we will see this approach exploited more frequently in the future.

In early December, security experts at Phishlabs detailed a sophisticated phishing scheme targeting Office 365 users that used a malicious link which took people who clicked to an official Office 365 login page — login.microsoftonline.com. Anyone suspicious about the link would have seen nothing immediately amiss in their browser’s address bar, and could quite easily verify that the link indeed took them to Microsoft’s real login page:

Only by copying and pasting the link or by scrolling far to the right in the URL bar can we detect that something isn’t quite right:

As we can see from the URL in the image directly above, the link tells Microsoft to forward the authorization token produced by a successful login to the domain officesuited[.]com. From there, the user will be presented with a prompt that says an app is requesting permissions to read your email, contacts, OneNote notebooks, access your files, read/write to your mailbox settings, sign you in, read your profile, and maintain access to that data.

According to Phishlabs, the app that generates this request was created using information apparently stolen from a legitimate organization. The domain hosting the malicious app pictured above — officemtr[.]com — is different from the one I saw in late December, but it was hosted at the same Internet address as officesuited[.]com and likely signed using the same legitimate company’s credentials.

Phishlabs says the attackers are exploiting a feature of Outlook known as “add-ins,” which are applications built by third-party developers that can be installed either from a file or URL from the Office store.

“By default, any user can apply add-ins to their outlook application,” wrote Phishlabs’ Michael Tyler. “Additionally, Microsoft allows Office 365 add-ins and apps to be installed via side loading without going through the Office Store, and thereby avoiding any review process.”

In an interview with KrebsOnSecurity, Tyler said he views this attack method more like malware than traditional phishing, which tries to trick someone into giving their password to the scammers.

“The difference here is instead of handing off credentials to someone, they are allowing an outside application to start interacting with their Office 365 environment directly,” he said.

Many readers at this point may be thinking that they would hesitate before approving such powerful permissions as those requested by this malicious application. But Tyler said this assumes the user somehow understands that there is a malicious third-party involved in the transaction.

“We can look at the reason phishing is still around, and it’s because people are making decisions they shouldn’t be making or shouldn’t be able to make,” he said. “Even employees who are trained on security are trained to make sure it’s a legitimate site before entering their credentials. Well, in this attack the site is legitimate, and at that point their guard is down. I look at this and think, would I be more likely to type my password into a box or more likely to click a button that says ‘okay’?”

The scary part about this attack is that once a user grants the malicious app permissions to read their files and emails, the attackers can maintain access to the account even after the user changes his password. What’s more, Tyler said the malicious app they tested was not visible as an add-in at the individual user level; only system administrators responsible for managing user accounts could see that the app had been approved.

Furthermore, even if an organization requires multi-factor authentication at sign-in, recall that this phish’s login process takes place on Microsoft’s own Web site. That means having two-factor enabled for an account would do nothing to prevent a malicious app that has already been approved by the user from accessing their emails or files.

Once given permission to access the user’s email and files, the app will retain that access until one of two things happen: Microsoft discovers and disables the malicious app, or an administrator on the victim user’s domain removes the program from the user’s account.

Expecting swift action from Microsoft might not be ideal: From my testing, Microsoft appears to have disabled the malicious app being served from officesuited[.]com sometime around Dec. 19 — roughly one week after it went live.

In a statement provided to KrebsOnSecurity, Microsoft Senior Director Jeff Jones said the company continues to monitor for potential new variations of this malicious activity and will take action to disable applications as they are identified.

“The technique described relies on a sophisticated phishing campaign that invites users to permit a malicious Azure Active Directory Application,” Jones said. “We’ve notified impacted customers and worked with them to help remediate their environments.”

Microsoft’s instructions for detecting and removing illicit consent grants in Office 365 are here. Microsoft says administrators can enable a setting that blocks users from installing third-party apps into Office 365, but it calls this a “drastic step” that “isn’t strongly recommended as it severely impairs your users’ ability to be productive with third-party applications.”

Phishlabs’ Tyler said he disagrees with Microsoft here, and encourages Office 365 administrators to block users from installing apps altogether — or at the very least restrict them to apps from the official Microsoft store.

Apart from that, he said, it’s important for Office 365 administrators to periodically look for suspicious apps installed on their Office 365 environment.

“If an organization were to fall prey to this, your traditional methods of eradicating things involve activating two-factor authentication, clearing the user’s sessions, and so on, but that won’t do anything here,” he said. “It’s important that response teams know about this tactic so they can look for problems. If you can’t or don’t want to do that, at least make sure you have security logging turned on so it’s generating an alert when people are introducing new software into your infrastructure.”