Wednesday, March 15, 2006

Identity Theft and the Torn Up Credit Card Application

You should never throw out any piece of paper with any contact information on it. Any such papers should be shredded, rather than tossed out. In particular, never throw out credit card statements, always shred them, preferably in a cross-cut shredder. If you are not taking the risk of identity theft seriously, this article on "The Torn Up Credit Card Application" should strike an appropriate amount of fear, just enough to convince you to buy a small home-office shredder.

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Virus Vulnerability for RFID (Radio Frequency ID tags)?

The breeding ground for the computer virus will be expanding continually and rapidly over the next decade as appliances, automobiles, and all manner of other things become equipped with wireless networking and miniature computers. Cell phone and similar networks may enable worms to leap between devices over long distances and other networks over short distances. Researchers have recently demonstrated that RFID tags may be vulnerable next. Articles on the topic: RFID worm created in the lab [NewScientist.com] Viruses leap to smart radio tags [BBC.co.uk] RFID tags could carry computer viruses [SecurityFocus.com] The details for the curious: RFID Viruses and Worms The AntiVirus paradigm that we [the IT community and industry] have foisted upon PC users is already breaking down under the strain of too many virus variants and too many non-technical PC users. The paradigm probably won't work at all for cell phones and the paradigm is completely broken for the typical RFID device which typically lack an end user administration interface of any kind. The AntiVirus paradigm was invented for Enterprise users who were expected to be paid to devote time to protecting a valuable asset, and technical hobbyist users who loved tweaking their PC. It's not designed for users who want to use their PC as a simple household tool, like a television or a refrigerator. The stuff people want to do with RFID technologies is truly amazing. It starts with automating inventory in retail stores, but goes all the way down to things like "washable RFID tags equipped with sensors on all my clothes will allow me to check to see if my favorite suit is at the cleaners, at home in the laundry bag, or at home ready to wear" and "RFID tags will enable my home pantry to let me check from work to see if I have all the ingredients needed to bake a birthday cake, or if I need to stop at the store on my way home". If this stuff is going to work, we will need to be careful that we don't turn the average home into the administrative nightmare that is the average enterprise network. RFID would flop because consumers can't afford to hire an IT staff to maintain IDS and AntiVirus systems for their pantry, wardrobe, stereo, library and toolshed.

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Monday, March 13, 2006

McAfee AntiVirus false positives - older, "reliable" signatures pose risk too

False positives are the bane of AntiVirus and IDS/IPS systems. On the one hand, hundreds and even thousands of new threats are released each week, where they must be discovered, submitted to vendors, analyzed by vendors, definitions, signature files or heuristic algorithms must be tweaked, tested, released to customers, and finally deployed to customer systems. All of this must be done in as short a time as possible, since the threats often spread in minutes and hours. AntiVirus signatures are often available within two days from the first appearance of a threat on the network. Polymorphic techniques, even simple ones like automatically generating dozens or more variants at the threat's compile time, are becoming more common making it more difficult for AntiVirus vendors to keep up with the expanding threat pool every year. Today we learned that an error in a signature file caused the McAfee AntiVirus system to delete good files from production systems. This unfortunate accident affected at least a hundred of their customers and probably thousands of PC systems. The final tally of affected systems probably won't be announced. (A similar problem recently caused Microsoft AntiSpyware to zap Symantec AntiVirus from systems.) This incident is receiving more press attention than they usually do. The real wonder is that things like this don't happen more often. McAfee update exterminates Excel
Such problems with security software are called false positives and they happen occasionally. McAfee typically has to do an emergency release of a virus definition file once every three months because of a false positive issue, Telafici said. "This is our once for the quarter I think," he said.
Similar rates of false positives are probably seen from other vendors, but this might be the first time that an AntiVirus vendor publicly disclosed information about their false positive rate. Not every customer is affected by every false positive. Many affect 3rd party applications which were previously unknown to the AntiVirus vendor. In cases like these, a DLL from a valid production software system accidentally matches a signature file developed by the AntiVirus vendor, who doesn't have the system to test against. Tracking down these problems sometimes includes a finger-pointing exercise between the AntiVirus vendor and the 3rd party application vendor -- the AntiVirus companies sometimes uncover viruses in shipping code, too, and it may be difficult to tell where the problem lies at first. McAfee update exterminates Excel
However, this time around it was a particularly big goof, because the company faulted Excel, Telafici admitted. "Usually, it is either custom applications or applications that did not exist at the time we wrote the signature file," he said.
That bit is particularly interesting. The implication is that after the initial creation and testing, a given signature may not be tested as thoroughly or as often down the line. Several months later, an update to your application software might cause a signature file to break, causing catastrophic damage. In retrospect it makes some sense, as full-on testing of this stuff takes time and resources, and the pressure to test and ship the newest definition or signature files is quite high. However, this revelation probably indicates that the ongoing risks from signature or heuristic approaches may be somewhat higher than previously thought. With the number of threats multiplying every year, and with the number of signature files which require testing increasing concomitantly, older signatures which have been "thoroughly tested and validated in the customer environment" may no longer be assumed to be benign beyond doubt. The current McAfee false positive incident is discussed here: McAfee Anti-Virus Causes Widespread File Damage [Slashdot] Excel = Virus ... At Least to McAfee [RealTechNews]

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Saturday, March 11, 2006

Citibank PINs and the botnet arms race

I noticed this tidbit from a Gartner researcher quoted in a story about the recently disclosed PIN theft.
PIN Scandal "Worst Hack Ever;" Citibank Only The Start "That's the irony, the PIN was supposed to make debit cards secure," Litan said. "Up until this breach, everyone thought ATMS and PINs could never be compromised."    - Avivah Litan, Gartner
I wish the reporter or Gartner researchers would have checked with me or someone else who has direct experience auditing software systems. I've been warning my clients for years about the security exposure from data retention for e-commerce and credit card transaction systems and I know a number of other security professionals who've been doing the same. In fact, given the number of thefts of credit card data stolen from 3rd party web sites that have occurred in recent years it's unlikely that this is the first PIN number theft to have occurred, counter to the implication in this story. It might be the first that has occurred since legislation obligated disclosure of such thefts, but even that seems unlikely. There are literally thousands if not tens of thousands of different bits of software involved in credit card transaction processing, custom made, derived from free code available on the internet, purchased from third parties, custom made by third parties. Most of those systems originate in the web development world where robust software development and testing practices are not fully realized and security inspection or auditing is an afterthought if it's a thought at all. PIN numbers and the special security codes printed on credit cards are intended by the vendors to be "transient" data, used but not stored at the point of presence -- e.g. the cash register or web site where the transaction is initiated. However, it's impossible to audit all of the custom made systems in the world. In a recent article here discussing the Verified by Visa program, I speculated that proxy agents could be placed in front of an e-commerce engine on a compromised web server to defeat the Verified by Visa security measures. This technique could be used to harvest PIN numbers and security codes even more transparently. Without conducting a survey, I can tell you from my experience it appears that most organizations with e-commerce shopping carts on their web sites are not prepared to detect such an intrusion. Shopping cart systems are only the tip of the iceberg. I've seen dramatic, gaping security problems in systems that existed for years and were easy to discover by accident through ordinary use of the system. One such system provided full identity information for all accounts within the system, including bank account information, phone numbers, addresses, date of birth and other information -- matched to Social Security Number. The system's entire database could be enumerated by fetching them one at a time, simply by poking a randomly generated Social Security Number into a field. By poking them all in, one at a time, one could fetch the entire database. This could be easily accomplished by a "script kiddie" in a very short time. The system was not instrumented with any logging which would reveal that this type of enumeration has been performed. The system's database included many members of Congress and the Senate. (Surprisingly, all of the information in this paragraph doesn't narrow down the field of applications enough to give away what the application was, nor the agency which ran it.) Oftentimes when such issues are encountered it is a struggle to get the owners of the system to understand the exposure and act upon it. I spent two days trying to convince the Federal Agency that owned this system to act. I was only able to get the hole closed by identifying the private contractor who implemented the system and calling their CEO, who immediately understood the importance of the issue. If you find holes like these that are relatively easy to discover and exist in systems for extended periods of time, you must assume that they have been discovered before. In some cases you may be legally obligated to notify the persons whose data has been exposed. The complexity of e-commerce and other online software systems which handle sensitive data is high, and the cost of securing them and auditing them is very high. An audit performed by a commodity consulting shop may cost tens of thousands of dollars and take a couple weeks. Even then, the auditors will often be ill equipped to discover many of the weaknesses that exist in these systems. If you hire a specialty security firm which brings highly skilled and experienced security engineers and programmers to the table, the cost will likely be even higher. Contrast that with the money that firms typically spend on these systems. Oftentimes they don't spend much at all. They got the internet and find a "free" shopping card, don't audit the code so they really have no idea of how it works internally or even if it has already been instrumented with a data harvesting routine, and slap it up on a web server. Even large corporations are guilty of this, as the division with the need may not be given the budget to "do it right". Conventional wisdom says that the west won the Cold War by outspending the Soviet empire, leading to the eventual bankruptcy and collapse of the Soviet system. The economic principles behind this problem are similar to the issues with security and online software systems storing sensitive data like credit card, debit card, and identity information. The barrier to entry for the attacker is low. The cost to defend is high. The botnet arms race continues, and this time the stakes are your identity information, and your bank account balance.

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Total Cost of 0wn3rsh1p

This whitepaper spoof was written a couple years ago. I tripped over it by accident, and was rewarded with health boosting laughter. Microsoft Windows: A lower Total Cost of 0wnership

Monday, March 06, 2006

Identity Theft & the Mail Box Meth Gang

Botnets are the big guns in the Identity Theft world, ripping millions of identities from hard drives around the world -- not just home users, but web servers and database servers getting thousands or tens of thousands or millions pieces of data at once. However, low tech methods of data harvesting are still used. Low tech methods, too, appear to be evolving as increasingly organized, larger scale efforts are being uncovered, paralleling what we see in the internet security world. The canonical examples of organized crime driving spyware, worms and botnets has been shady advertising schemes. However, it's clear that identity theft is also a driver. But what drives the identity theft? Well, money obviously, but apparently drugs are behind some of it, too. The North County Times (San Diego) has an interesting story with quite a few details about one gang of Meth users turning to identity theft to pay for their habit. Apparently 14,000 credit card numbers were gathered by the gang of 20 people using a fairly low tech method -- they drove around suburbs looking for mailboxes with raised red flags, and extracted bills and other mail. That may seem like a lot of identity for 20 people to harvest by driving around and stealing mail, but they could probably harvest that much in a month or maybe two at most, working in pairs, and working only a few hours a day. The wonder is that they managed to do this for more than a couple days without getting caught. Neighborhood watch must not be watching the neighbor's mailboxes. The basic organization behind turning stolen data into money has been the same for decades, but the scale is larger than it's ever been.
"There is the collector who steals your identity from mailboxes or trash bins," said Alameda police Sgt. Anthony Munoz, who teaches a class about the connection for the California Narcotics Officers Association. "Then there is the converter, who turns your identity into something, and lastly there is the passer, the person who uses the fraudulent identity."
From the perspective of an individual, the short term and low cost solution to this problem is prevention -- start by getting a lockable mailbox. Make sure you shred any paper or other media (floppy, zip disk, cdrom, etc.) that has any name and address information. This includes things like bills that you don't think of as sensitive. However, on the scale of the society, this is problematic, partly because people don't always realize when they are throwing away sensitive data -- because they think of each item separately. "Here's a bill, it just has my name and address," for example. Well, it has other things. It's got your account number with the electric company. With enough different little bits of information stole from mailboxes and dug out of the trash, the Mail Box Meth Gang was able to steal identities and use them to fund expensive drug habits. By picking up several different bits of information out of the trash, or inbound mail, it's possible to assemble a more complete picture of the data needed to steal an identity. We discussed this general technique recently in another context --it's known as "the aggregation problem". In order to deter this kind of theft, a substantial majority of people would need to exercise careful practices with their sensitive data -- thereby raising the cost of gathering the raw data. In actual practice, most people don't realize it's that important, and won't go to the time and expense required. Credit card vendors have responded to the growing identity theft problem by trying to make it more difficult to use a credit card number without the card. That's what those little three-digit and four-digit numbers that appear on the back of the card are about. Those numbers don't appear on the credit card statement, and are required for some online purchases, thus making it more difficult to use a stolen credit card number. Unfortunately for the victims of identity theft, the classic trade-off between security and convenience hasn't been conquered. Further attempts to improve security of the credit card transaction system are clunky at best, typically problematic, and possibly open up new avenues for large scale identity harvesting at worst.

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Friday, March 03, 2006

Phishing: more clever, more evil, every day

This phishing scam, targeted at customers of Chase bank, is simple and direct. Fear it. Well, at least be aware of the general tendency of phishing scams to exploit basic human trust relationships with increasing sophistication. They get better and better every day, and they are building up quite a library of clever tricks.
  • It looks like it came from your bank.
  • The text is simple, direct, clear, and free from glaring grammatical errors.
  • It appears to be a simple request. The apparent source of the email is obscured.
  • It appears to be from: Chase Online Services Team
  • It exploits the HTML processing ability of most modern email clients to obscure the actual target of the "click here" link (which I've removed, but which was obviously something other than chase.com.)
Here's the simplest, most direct, most likely to succeed phishing scam email I've seen to date:
Dear Chase Member: We have processed your request to change your e-mail address, based upon the information you supplied. Beginning immediately, we will send all future e-mail messages, excluding Alerts, to you at allenbauer@aol.com. Any e-mail addresses that receive Alerts about your accounts will need to be updated separately. If you did not request this e-mail address change or have any questions, please cancel this action and reactivate your account by clicking here. Please do not respond to this confirmation e-mail. Sincerely, Online Services Team
Phishing scammers don't use their own systems to harvest data for identy theft and credit card fraud. They use systems that belong to other people, which they have taken over without the knowledge of the owner. Often they take over large numbers of systems with worms or botnets. Intrinsic Security is working with Internet Service Providers to help stop botnets. Help us spread the word by linking to our site from your blog. Link to Intrinsic Security - join the antibotnet campaign.