CyberWire Daily - Motives behind NotPetya, other operations. Verizon customer data exposed. Industry notes. Licensing hackers in Singapore.

Episode Date: July 13, 2017

In today's podcast, we hear about signs that NotPetya was covering up a broad espionage campaign. State-sponsored hacking seems, when not simple spying, to aim at eroding trust. Verizon suffers a ma...jor customer data breach said to derive from a vendor's misconfiguration of an Amazon S3 bucket. Industry notes—venture funding and an acquisition. David Dufour from Webroot on homoglyph attacks. Thomas Jones from Bay Dynamics on federal agencies being required to submit a Framework Implementation Action Plan. Singapore will license white hats. And Russia wants you properly signed into adult sites. Or, at least, one of them, anyway. Learn more about your ad choices. Visit megaphone.fm/adchoices

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Starting point is 00:00:00 You're listening to the Cyber Wire Network, powered by N2K. Air Transat presents two friends traveling in Europe for the first time and feeling some pretty big emotions. This coffee is so good. How do they make it so rich and tasty? Those paintings we saw today weren't prints. They were the actual paintings. I have never seen tomatoes like this. How are they so red? With flight deals starting at just $589, it's time for you to see what Europe has to offer.
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Starting point is 00:02:16 white hats. And Russia wants you properly signed into adult sites, or at least one of them anyway. sites, or at least one of them, anyway. I'm Dave Bittner in Baltimore with your CyberWire summary for Thursday, July 13, 2017. Booz Allen has published research that suggests NotPetya may have been in large part misdirection. The company's CyberForesight researchers think they've discovered signs that telebots, aka Sandworm, that is most believed Russia's GRU, use the destructive campaign to conceal traces of long-running widespread cyber espionage against a large number of targets. The evidence they cite, like most such evidence, is circumstantial but subjective. First, over a one- to two-day period, four virus total users uploaded the compiled VBS backdoors together with other malicious files, including the Telebot's Telegram-based backdoor,
Starting point is 00:03:15 PowerShell post-exploitation scripts, and Mimikatz. Second, the uploads, for the most part, were conducted months before NotPetya hit on June 27th. Third, in several cases, these users also uploaded files associated with the ME-Doc update utility to VirusTotal. The researchers conclude from this that, quote, ME-Doc-related processes may have facilitated the installation vector for this software, end quote. Booz Allen conjectures that the threat actor's goal was to collect information, and that the fig leaf of ransomware was decently thrown over the operation to conceal that goal. As usual, further work is needed. As Booz Allen's report
Starting point is 00:03:57 puts it, quote, information from incident response activities demonstrating actual exfiltration of data would need to be made available to check the hypothesis, end quote. U.S. Energy Secretary Perry said this week that the threat to power plants, nuclear and otherwise, is real, and that the government and industry are working to address it. Recent probes have been ascribed to Russian threat actors. Members of Congress are asking for a report on the matter. Influence operations as conducted against elections, fishing of critical infrastructure, as recently seen in the U.S. power grid, and broad malware campaigns like NotPetya may well be motivated by a common goal. According to Darktrace, if you're looking for a common factor,
Starting point is 00:04:41 consider the apparent common aim of fostering general mistrust of otherwise trusted institutions and practices. Verizon has sustained a major data breach. Some 14 million subscriber records are affected, including sensitive credentials. It appears to be a third-party breach. The data was exposed on an unprotected Amazon S3 server controlled by Nice Systems, a Verizon vendor. People who called customer service over the past six months are affected. This is another S3 issue of the sort that's come to prominence over the past two months. It can be all too easy to misconfigure your Amazon S3 bucket.
Starting point is 00:05:20 An article in The Observer, linked in today's CyberWire Daily News briefing, runs through the ways in which such configurations can go wrong. An article in The Observer, linked in today's CyberWire Daily News briefing, runs through the ways in which such configurations can go wrong. Most of the mistakes involve setting permissions at the right level. Security firm Detectify suggests that enterprises get themselves into S3 trouble by using APIs or software to create objects and buckets. In any case, handle S3 with care. We received some reaction from Jeff Hill of security company Prevalent, who finds the episode eerily similar to the DeepRoot Analytics data exposure from last month.
Starting point is 00:05:55 It's a pedestrian case, not some exotic hack, and it illustrates again the value of attention to IT and security basics. Hill also says it should teach an object lesson in the importance of monitoring your vendors' security controls. As part of President Trump's recently signed cybersecurity executive order, all federal agencies are required to submit a framework implementation action plan, as well as a set of metrics that show how they're protecting their most valuable information assets from cyberattacks and breaches. Thomas Jones is a federal systems engineer at Bay Dynamics, and he joins us with an overview of the requirements.
Starting point is 00:06:33 The framework actually comes out of NIST. It's been around for, I guess, about three years now. And what it does is it actually aligns certain segments of security with certain risk-based metrics. As they go along, they're trying to move over towards more of a, instead of, you know, secure everything, patch everything, or criticality-based methodology for approaching cybersecurity incidents, they're moving to a risk-based approach. How is that going to be implemented in the real world? What kind of effects will that have on the various agencies who have to implement it? Well, initially this year, what they had to do by July 14th is they had to actually turn in their FISMA reports. And the FISMA reports over the last three years
Starting point is 00:07:20 have been realigned to actually fall into the same pattern as the cybersecurity framework. And what does, I'm sorry, what does FISMA stand for? The Federal Information Security Modernization Act. So yeah, FISMA has been around for ages, 10, 15 years. Over the last three years, they've been aligning everything with NIST's cyber framework, which is a risk-based management framework. It ties to two other NIST documents, 800-36 and 37. The idea is shifting to a, you know, we see a critical patch on a not very important system. We give it the same level of resources as we would for a system that happens to house the keys to the kingdom, crown jewels
Starting point is 00:08:06 of the organization. Or under the cybersecurity framework, you identify what systems are in the environment, how they relate to the valuable assets in your environment, and you supply resources based on the importance of those systems. Now, it's my understanding that President Trump's recently signed cybersecurity executive order puts in place some new accountability for people as well. Yeah, that's actually one of the biggest changes coming out of the OMB mandate. He's actually spelled out that he either wants the heads of the agencies or he designated high level individual within the agency to be responsible for producing the metrics and managing the overall implementation of the cybersecurity framework within the organizations themselves. And so what's been the reaction to these changes within folks who have to deal with them? At a low level, most of this has been going on for 10 or 15 years.
Starting point is 00:08:57 The rank and file don't see a huge change. What this really affects is a very high level within the organization where people are actually being held accountable, where it now becomes very important to actually meet your cap requirements and those are cross-agency priorities that were set back in 2015. So those cap requirements actually have percentages you're supposed to achieve in terms of things like how many people are using PIV cards or two-factor authentication as opposed to username and password. And now there's some level of accountability there for the people higher up. Overall, the response has been pretty good.
Starting point is 00:09:36 That's Thomas Jones from Bay Dynamics. Taking a quick look at our CyberWire event calendar, if you're headed to Black Hat at the end of the month while you're in Vegas, stop by our event sponsor Deep Instinct and say hello. You'll find them at booth 873, and there are links for more on the CyberWire's event tracker at thecyberwire.com. Speaking of Deep Instinct, a feature in today's industry news having recently raised $32 million. NVIDIA is reported to be a major investor. The social media risk management experts, our Baltimore neighbors at ZeroFox, have also attracted significant funding, $40 million in Series C.
Starting point is 00:10:17 OwnBackup, a software-as-a-service backup firm, has received $7.5 million in Series B. And Cisco upgrades its own security capabilities with the acquisition of observable networks. Finally, there are two new licensing initiatives worth noting. Singapore's comprehensive cybersecurity legislation contains a provision to put the legal behind the ethical of ethical hacking. If you're going to work as a white hat, you'll need a license. Hacking without
Starting point is 00:10:45 a license, even for the best of motives, will get you up to two years in the pokey and a fine that could run as high as $36,000. And in Russia, if you want to surf over to Pornhub, not that you would, you'll henceforth have to log in with a registered social media account. So if you're asked to sign in with your Vokontaktia profile, it's not because Prime Minister Medvedov is concerned for your soul, but rather because he doesn't want you watching a couple of less than flattering and not fully enthusiastic short films about himself that critics have posted to the well-known adult content site.
Starting point is 00:11:22 Pornhub offered the Russian government internet watchdog Roskomnadzor a free account if they left them alone, but the authorities are reported to have said spasiba nyet. Maybe they got a preferred alternative in broadband out to the Dasha. Who knows? Calling all sellers.
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Starting point is 00:13:26 who puts her career on hold to stay home with her young son. But her maternal instincts take a wild and surreal turn as she discovers the best yet fiercest part of herself. Based on the acclaimed novel, Night Bitch is a thought-provoking
Starting point is 00:13:39 and wickedly humorous film from Searchlight Pictures. Stream Night Bitch January 24 only on Disney+. And now a message from Black Cloak. Did you know the easiest way for cyber criminals to bypass your company's defenses is by targeting your executives and their families at home? Black Cloak's award-winning digital executive protection platform secures their personal Thank you. executives and their families 24-7, 365 with Black Cloak. Learn more at blackcloak.io. Joining me once again is David DeFore. He's the Senior Director of Engineering and Cybersecurity
Starting point is 00:14:40 at Webroot. David, welcome back. We wanted to cover homoglyph attacks today. Let's start from the beginning. What are we talking about here? Describe what's going on. Sure. Thanks for having me back, David. You know, a homoglyph attack, they've been around a while, and it's a little bit technical, but they're super interesting from a purely threat perspective. A homoglyph attack is when someone may register a URL in a non-Western character code like, you know, Korean, Japanese, Chinese, even some German characters. And when they register that, it's in a Unicode format. Unicode represents, you know, thousands of characters so that we can type in different languages in our computer. Well, the older coding format most of your listeners
Starting point is 00:15:25 will know was called ASCII. And so when I register, let's say a Chinese URL in a Unicode format with a Chinese character, and it gets converted to Puny code or an ASCII format, it's possible that I'm going to get a popular website like Google or Amazon or some social media site that's going to show up in my browser. So they figured out how to register some random URL in a foreign language and have it show up in your browser as what appears to be a legitimate site with proper SSL encryption and all of that. So from the user's point of view, I'm seeing everything that I would expect to be and to be correct? That is exactly right. So if you look at it, it's going to look like you're at the proper site. And where we're seeing this used is in our favorite topic, phishing attacks, where someone's going to send you a link in an email and it's going to say www.thewebsiteiwanttogo2.com
Starting point is 00:16:25 and your friend's going to say, hey, go check this out. And you're going to click on it and it's going to pop up a URL that in your browser may look like the proper URL. So you're going to enter your credentials. But in fact, because of this type of hack, you're actually at a site that's trying to fish those credentials from you. And is there any way to defend against this? Well, many of the common browsers were susceptible to this. Most of them
Starting point is 00:16:50 have resolved that. So from a browser perspective, you're going to be relatively safe now moving forward. But like with all phishing attacks, the number one way to prevent this is to type URLs into that address bar. Don't click on those links that come in emails. So make sure you're running the latest version of whatever browser you use. Yes, that's correct. All right, David DeFore, thanks for joining us. Cyber threats are evolving every second, and staying ahead is more than just a challenge. It's a necessity. That's why we're thrilled to partner with ThreatLocker, a cybersecurity solution trusted by businesses worldwide.
Starting point is 00:17:34 ThreatLocker is a full suite of solutions designed to give you total control, stopping unauthorized applications, securing sensitive data, and ensuring your organization runs smoothly and securely. Visit ThreatLocker.com today to see how a default-deny approach can keep your company safe and compliant. And that's The Cyber Wire. We are proudly produced in Maryland by our talented team of editors and producers. I'm Dave Bittner. Thanks for listening. Thank you.

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