Industry Intel

If you’ve ever been infected with serious malware, you may have assumed the culprit is a person sitting in the basement of their mom’s house, or a small group of people huddled in a garage somewhere. It’s really not that simple.  There’s a whole global cyber underground network that’s working diligently to make all this happen for you. It’s the lucrative cyber black market. Mostly everyone has heard the term “black market” at least a few times. It’s referenced in many movies and is often heard on the news when speaking of criminal activity and the purchasing of illegal materials or services.

Malware-as-a-Service is a prosperous business run on the black market that offers an array of services and isn’t just limited to malware or bits of code. And you don’t have to be a computer expert either. Anyone can purchase code that will cause harm to a person’s computers or even hold it for ransom. But once purchased, what are you going to do with it? How will investing in this piece of malware return a profit? There’s still the challenge of getting it out there, getting your potential victims to run the payload for the newly purchased malware on their computer. And most importantly, cashing out on the investment. This is where the entire business model of Malware-as-a-Service comes into play.

It’s all offered in the cyber black market and functions no different than the global markets we hear of. Due to its low key nature, it’s difficult to say exactly how much money is generated from Malware-as-a-Service in this market. But it would be no surprise if it stretched up into the billions.  In this market it’s possible to purchase all the necessary pieces to make it as easy as possible for the investors to profit.

First level: The highly skilled elite programmers or engineers who write malware, develop exploits, and are general researchers. This can be an individual or individuals working together.

Second level: Here are the spammers, botnet owners, distributors, hosted system providers. These people are also skilled, but not always elite. This is where the distribution is handled

Third level: The money mules, treasurers, financial data providers.

These three levels fall under the umbrella of Malware-as-a-Service that can be sold and purchased as an entire package or individual services by a vendor.

The individuals involved aren’t always strictly black hat. There are also grey hat hackers, otherwise known as freelancers who are simply looking to make a profit. A programmer can sell a zero day exploit to the vendor of a software as a bounty. However that same exploit might be able to fetch a far greater profit if sold on the black market. A perfect example of this is Facebook, who offers a minimum of $500 for anyone who can hack their site. With over 700 million users, a Facebook exploit can sell for a pretty hefty price in the black market. As malware becomes more profitable this type of business model will continue to grow.

Advertisements on the internet are no longer just a nuisance. They are now also potentially dangerous. Even sticking to widely used and trusted websites can be risky, as the banner ads they contain may be carrying malicious code.

“Malvertising”, a combination of “malware” and “advertising”, is the technique of using trusted ad networks to deliver malware-loaded advertisements to users on trusted websites. This is not a new technique, but over the last couple of years its use has grown exponentially by cybercriminals because it is so effective.

According to David Kennerley, Sr. Threat Research Manager at Webroot: “Malvertising is a big problem and its return on investment for fraudsters suggests it’s not going away anytime soon.”

Most websites that have advertisements use “ad networks” to manage those ads, giving the site options for what type of ads to deliver to visitors. In a malvertising scenario, a cybercriminal will either hack into an ad network’s server or even sign a fraudulent contract with an ad network, posing as an advertiser in order to gain trust. They will then upload a seemingly legitimate advertisement that is loaded with malicious content, such as a Flash or Javascript exploit. The ad network unwittingly adds this malicious ad into its database so that its customers can choose it as one of multiple rotating ads. Or, it can take more of a social engineering approach and appear on your screen based on your browsing habits, which are tracked by tracking cookies.

“Unfortunately, simply keeping to trusted websites no longer means you’ll stay safe,” said Kennerley. “The outsourced, distributed and chaotic nature of the online advertising industry means that even the world’s most popular websites have no visibility on the ad content displayed on their pages or its original source.”

In recent months, an additional level of complexity has been employed in these types of attacks: “Fingerprinting”, a method of uniquely identifying computers based on meta-data and file dumps. As online advertisers move away from human transactions and toward real-time ad bidding, cybercriminals are finding ways to better target their victims. Ad networks provide user meta-data to advertisers so that they can better advertise to consumers, but this same data can be used by cybercriminals to identify systems that can be exploited. For instance, if the meta-data reveals that a PC’s Adobe Flash is not up to date and a known exploit exists for their version of Flash, they will identify that PC as a target for attack.

In addition to identifying potential victims, cybercriminals also use fingerprinting to identify networks and devices to avoid. For instance, if they choose to target only people in specific countries and avoid people in their own country, they can do so using geolocation data. This technique has also been used to evade security researchers by avoiding networks of security companies, making it more difficult to replicate and research these types of attacks.

With malvertising gaining popularity among cybercriminals, protecting yourself from this type of attack is critically important. “Internet users should keep their browsers fully patched, with appropriate in-built phishing and malware protection switched on,” advised Kennerley. “Browser add-ons should be kept up-to-date, with auto-play turned off; or better yet, disable or remove these commonly exploited add-ons completely. Ad-blocking software is becoming a must and of course a strong endpoint protection product is essential.”

Palo Alto Networks recently discovered ransomware hidden inside of the torrenting app ‘Transmission’. While this may come as a shock to those that still believe the Mac is a fortress that can’t be broken, the rest of us are not shocked at all. In fact, a few months back I wrote a blog warning Mac users not to dismiss Mac malware. It is time to take Mac security seriously. Apple does a great job for the most part, but in order to secure your information and your devices, you need a good Antivirus product.

Back to the threat at hand. This ransomware is bundled in with the Transmission Bittorrent client as a file called “General.rtf”. For most, this file looks like a simple real text file. However, it is actually a Mach-O 64-bit executable file that will execute three days after you run Transmission. This helps keep the ransomware hidden so that users wouldn’t suspect the app they are using for torrenting, but rather the torrents that they are pulling down as the source of infection.

After the three days, the app executes and drops a file called “kernel_service” into the user’s library directory. This process is named in such a way so as to confuse anyone that looks in Activity Monitor into believing that it is a system process. It then drops three more files in the user’s library: “.kernel_pid”, “.kernel_time” and “.kernel_complete”. It will collect the infected Mac’s model name and UUID then upload the information to one of its Command and Control servers.

These servers will respond with a file named “README_FOR_DECRYPT.txt”, in which it explains how to get the key for decryption and the price for the key in bitcoins. The ransomware is able encrypt around 300 different types of file extensions that it finds in the “/Users/” directory and changes the file extension to end in “.encrypted”. This means that the family pictures that you keep on your Mac will now be labeled “GrandCanyon2010.jpg.encrypted” and cannot be opened.

One of the most important things to note is that the program is still a work in progress. There are many functions that have been found in the code that are not currently being used, like the ability to encrypt your Time Machine backup as well. This of course is the second wall of defense for many people, who believe that because they have a Time Machine backup, they can always just roll back their Mac if something happens.

To add some more context into the expansion of ransomware into the Mac OS, our David Kennerley recently commented in Global Security Mag:

“Given the potential gains for attackers, it’s no surprise that they are now diversifying and targeting OS X – a popular system with a large target base. Add to this the fact that many people believe they are safe from such malware when running OS X, this ransomware has the potential to impact a huge number of people.” 

You can locate the full article here.

I’ve said it before and I will say it again: Mac malware is real. Don’t be an Apple user that finds this out the hard way.

Intro from the 2016 Threat Brief:

“2015 was yet another record year for cybercrime, during which more malware, malicious IPs, websites, and mobile apps were discovered than in any previous year. It comes as no surprise that the cybercrime ecosystem continues to thrive, given new innovations and little in the way of risk for those who choose to participate. The continued onslaught of hacks, breaches, and social engineering scams targeting individuals, businesses, and government agencies alike has caused many in the security field to ask if it’s truly possible to defend against a persistent attacker.

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At Webroot, we believe it is possible to effectively protect enterprises and users, but only by understanding your adversary and the techniques they employ for their attacks.

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Our approach and security solutions reflect our in-depth understanding of the threat landscape and how attackers think, to provide cutting-edge, proven next-generation protection and real-time detection of threats as they emerge. The Webroot 2016 Threat Brief provides a glimpse into the analysis and discoveries made by the Webroot® Threat Intelligence Platform to provide insights on key trends and risks seen by our users over the past year.”

The brief in its entirety can be found here.

However, in this blog, I want to talk about two sections of the Threat Brief and what I found to be most interesting. The first has to do with new malware discoveries and how often malware ensures it is unique with each new infection. The other has to do with the prevalence and targets of phishing attacks, as well as a tactic to improve your personal online security.

Before I go on, it is first important to talk about the source of this data. With respect to malware and phishing site encounters, these stats are pulled directly from Webroot SecureAnywhere users and their real world encounters with these threats. This is an important distinction as it enables us to calculate how frequently different types of attacks occur and the likeliness that an average user encounters such an attack.

Let’s begin with what was interesting in the malware detection data, mainly the fact that around 97% of the time, malware is unique to the system it infects. That is to say that the specific malicious file is never seen elsewhere. This is intentionally done by malware authors and distributors to make the discovery of their threats more difficult. The technology behind this technique is not new however, and is known as polymorphism. The overwhelming trend is that malware uses polymorphism, either on the server side where the malware is distributed from, or through the malware itself where with each new infection, the samples change. While polymorphic malware has been around for over a decade, it is now the norm for nearly all threats today.

Beyond the polymorphic trend, malware encounter data also showed that Webroot SecureAnywhere users encountered more threats on average than in 2014. The per-user infection rate in 2015 was 1.6 infections per customer, compared to 1.2 in 2014. What this means is that infections are more common and during the course of a year, you will more than likely be exposed to a threat. The good news for Webroot customers is that we’ve protected you from these threats. That said, our users were 25% more likely to encounter threats in 2015 than in 2014.

The last bit I want to talk about with respect to malware, is the speed at which churn between variants occurs. We measure this by counting the number of examples per variant that are discovered, on average, before no new samples show up and a new variant is discovered. In 2015, this number plummeted to 97 examples per variant compared to 2014 where nearly 700 examples were discovered. Ultimately, what this shows is that malware authors and distributors are speeding up their variant release process in their efforts to evade detection. Thankfully, the Webroot model for threat discovery isn’t affected by the speed of new malware development, and instead relies on awareness at each individual endpoint we protect. This ensures that even if the samples per variant drops to one, we are still aware of that individual threat and are able to identify and protect against the infection.

The second threat type I want to talk about is the notorious phishing attack. These are malicious websites that impersonate legitimate websites as they look to steal login credentials and more. The vast majority of phishing URL’s show up in carefully crafted emails that use social engineering techniques to encourage some call to action. A common example is an email claiming your account has been suspended and to log in to restore access.

In 2015, over 4 million phishing URL’s were clicked on by Webroot SecureAnywhere users. The good news is that none of these users had the chance to give away their credentials as SecureAnywhere blocked the URL’s page from loading. The bad news is that that the volume of phishing URL’s has increased considerably over 2014. In 2015, about 50% of WSA users clicked on a phishing URL compared to 30% in 2014. There are a number of factors that are responsible for this increase, but the two main ones are that phishing sites are inexpensive to host and that they are an effective method for collecting credentials. In so long as people can be tricked into clicking on a malicious link, phishing sites aren’t going anywhere.

The other interesting data around phishing site detection surrounds correlating the phishing site to the company or entity that is being impersonated. In the Threat Brief, we break them into two main categories which are financial institutions and technology companies. When looking at all phishing sites discovered in 2015, a little more than 2/3 of sites were targeting a technology company such as Google or Apple. This might sound odd as you might think that breaking into someone’s bank account would be more valuable. However, quite the opposite is true. Google is by far the number one target of phishing attacks because the value of breaking into someone’s primary email account is very high. The reason is that an email account provides information about what other accounts an individual has (including financial accounts), as well as the ability to reset those accounts’ passwords as the password reset option validates through the associated email address.

This brings me to my final point, which is less about phishing and more about email security. The number one tip I recommend to help improve personal online security is to make sure your primary email account password is unique from all other passwords. This ensures that your email is difficult to break into when a password for another site is compromised. This happens all-too-often by no fault of a user, but rather because businesses are often attacked and credential data is compromised. The first thing hackers do with stolen credential data is to see what other accounts can be accessed. If your email password is unique, there is no chance of it being compromised through a collateral attack.

There are many other interesting observations in the full 2016 Threat Brief, and I encourage you to read the full report.

Cyber threats come from a wide array of sources, but can be grouped into three categories:

Hacktivists
These are tech-savvy individuals who are normally motivated by morality. These individuals are also classed by many (including the FBI) as terrorists. One of the main hactivist groups out there is anonymous. This group rose from one of the most popular image boards on the internet, 4chan, where users could post anonymously. Many of the influential figures in 4chan have now left, including the board founder moot (Christopher Poole). 4chan is no longer the entity it used to be. One of the most infamous attacks conducted by anonymous was Project Chanology, where the group targeted scientology.  Famously anonymous retrieved a video of Tom Cruise from the scientology group that was not intended to be seen by the general public: https://www.youtube.com/watch?v=UFBZ_uAbxS0

Cyber Criminals
These are individuals who are motivated by money. These are the people who are responsible for the distribution of ransomware. This is a very lucrative business. It was reported in 2013 that cryptolocker made over $30 million in 100 days. Politcal borders make it appealing for criminals to employ these tactics of making money as it is very hard to prosecute them. The encryption that ransomware hits these machines with is normally unbreakable, with the FBI encrouraging individuals to pay the ransom: http://uk.businessinsider.com/fbi-recommends-paying-ransom-for-infected-computer-2015-10?r=US&IR=T .

It has been observed that some ransomware variants have holes and can be cracked (most notably the linux encoder variant which was targeting web servers). Ransomware isn’t the only tactic cyber criminals employ. Another tactic they employ are botnets. This is where a criminal infects your computer, unknowingly to the individual. The criminal can then take control of the victims computer at any time for whatever purpose they see fit. Normally the attacker will either extract information from the victim, monitor the victim or use the victims computer to attack other systems. A recent case to note in relation to botnets is the arrest of one of the administrators of the Dridex botnet, Andrey Ghinkul. This arrest shows that law enforcement are making a good effort to tackle this problem.

State-Sponsored Threat Actors
These are individuals who are sponsored by a government. They act in political interest of the government sponsoring them. It has been reported by FireEye that China has over 20 APT (advanced persistent threat) groups. APT1 (dubbed by Mandiant) is linked with China’s PLA Unit 61398. It is believed this unit occupies a 12 story building employing hundreds of hackers. These groups pose a particular threat to the US, with the FBI putting some of the people involved on their most wanted list: https://www.fbi.gov/news/news_blog/five-chinese-military-hackers-charged-with-cyber-espionage-against-u.s . China isn’t the only country known for sponsoring cyber attacks. The revelations of Edward Snowden reveals much on the NSA’s antics. Another example of a state sponsored cyber attack is where Turkeys internet servers were attacked a couple of months ago, with the blame being pointed at Russia: http://www.todayszaman.com/anasayfa_political-hackers-suspected-as-turkey-suffers-intense-cyber-attack_407781.html