Kaspersky Labs is reporting on a new piece of sophisticated malware:
We observed many web landing pages that mimic the sites of mobile operators and which are used to spread the Android implants. These domains have been registered by the attackers since 2015. According to our telemetry, that was the year the distribution campaign was at its most active. The activities continue: the most recently observed domain was registered on October 31, 2017. Based on our KSN statistics, there are several infected individuals, exclusively in Italy.
Moreover, as we dived deeper into the investigation, we discovered several spyware tools for Windows that form an implant for exfiltrating sensitive data on a targeted machine. The version we found was built at the beginning of 2017, and at the moment we are not sure whether this implant has been used in the wild.
It seems to be Italian. Ars Technica speculates that it is related to Hacking Team:
That's not to say the malware is perfect. The various versions examined by Kaspersky Lab contained several artifacts that provide valuable clues about the people who may have developed and maintained the code. Traces include the domain name h3g.co, which was registered by Italian IT firm Negg International. Negg officials didn't respond to an email requesting comment for this post. The malware may be filling a void left after the epic hack in 2015 of Hacking Team, another Italy-based developer of spyware.
Israeli intelligence officers informed the NSA that, in the course of their Kaspersky hack, they uncovered evidence that Russian government hackers were using Kaspersky's access to aggressively scan for American government classified programs and pulling any findings back to Russian intelligence systems. [Israeli intelligence] provided their NSA counterparts with solid evidence of the Kremlin campaign in the form of screenshots and other documentation, according to the people briefed on the events.
Kaspersky first noticed the Israeli intelligence operation in 2015.
The Washington Post writes about the NSA tools being on the home computer in the first place:
The employee, whose name has not been made public and is under investigation by federal prosecutors, did not intend to pass the material to a foreign adversary. "There wasn't any malice," said one person familiar with the case, who, like others interviewed, spoke on the condition of anonymity to discuss an ongoing case. "It's just that he was trying to complete the mission, and he needed the tools to do it.
I don't buy this. People with clearances are told over and over not to take classified material home with them. It's not just mentioned occasionally; it's a core part of the job.
The Wall Street Journal has a bombshell of a story. Yet another NSA contractor took classified documents home with him. Yet another Russian intelligence operation stole copies of those documents. The twist this time is that the Russians identified the documents because the contractor had Kaspersky Labs anti-virus installed on his home computer.
This is a huge deal, both for the NSA and Kaspersky. The Wall Street Journal article contains no evidence, only unnamed sources. But I am having trouble seeing how the already embattled Kaspersky Labs survives this.
EDITED TO ADD: This is either an example of the Russians subverting a perfectly reasonable security feature in Kaspersky's products, or Kaspersky adding a plausible feature at the request of Russian intelligence. In the latter case, it's a nicely deniable Russian information operation. In either case, it's an impressive Russian information operation.
What's getting a lot less press is yet another NSA contractor stealing top-secret cyberattack software. What is it with the NSA's inability to keep anything secret anymore?
Able to compromise Windows PCs running on XP, Windows Server 2003 and 2008, Vista, Windows 7 SP 1 and below, as well as Windows 8 and Windows Server 2012, the attack tool acts as a service to capture information.
UNITEDRAKE, described as a "fully extensible remote collection system designed for Windows targets," also gives operators the opportunity to take complete control of a device.
The malware's modules -- including FOGGYBOTTOM and GROK -- can perform tasks including listening in and monitoring communication, capturing keystrokes and both webcam and microphone usage, the impersonation users, stealing diagnostics information and self-destructing once tasks are completed.
And Kaspersky Labs has found evidence of these tools in the wild, associated with the Equation Group -- generally assumed to be the NSA:
The capabilities of several tools in the catalog identified by the codenames UNITEDRAKE, STRAITBAZZARE, VALIDATOR and SLICKERVICAR appear to match the tools Kaspersky found. These codenames don't appear in the components from the Equation Group, but Kaspersky did find "UR" in EquationDrug, suggesting a possible connection to UNITEDRAKE (United Rake). Kaspersky also found other codenames in the components that aren't in the NSA catalog but share the same naming conventionsthey include SKYHOOKCHOW, STEALTHFIGHTER, DRINKPARSLEY, STRAITACID, LUTEUSOBSTOS, STRAITSHOOTER, and DESERTWINTER.
ShadowBrokers has only released the UNITEDRAKE manual, not the tool itself. Presumably they're trying to sell that.
Duqu 2.0 is a really impressive piece of malware, related to Stuxnet and probably written by the NSA. One of its security features is that it stays resident in its host's memory without ever writing persistent files to the system's drives. Now, this same technique is being used by criminals:
Now, fileless malware is going mainstream, as financially motivated criminal hackers mimic their nation-sponsored counterparts. According to research Kaspersky Lab plans to publish Wednesday, networks belonging to at least 140 banks and other enterprises have been infected by malware that relies on the same in-memory design to remain nearly invisible. Because infections are so hard to spot, the actual number is likely much higher. Another trait that makes the infections hard to detect is the use of legitimate and widely used system administrative and security tools -- including PowerShell, Metasploit, and Mimikatz -- to inject the malware into computer memory.
The researchers first discovered the malware late last year, when a bank's security team found a copy of Meterpreter -- an in-memory component of Metasploit -- residing inside the physical memory of a Microsoft domain controller. After conducting a forensic analysis, the researchers found that the Meterpreter code was downloaded and injected into memory using PowerShell commands. The infected machine also used Microsoft's NETSH networking tool to transport data to attacker-controlled servers. To obtain the administrative privileges necessary to do these things, the attackers also relied on Mimikatz. To reduce the evidence left in logs or hard drives, the attackers stashed the PowerShell commands into the Windows registry.
Last July, a still-anonymous hacker broke into the network belonging to the cyberweapons arms manufacturer Hacking Team, and dumped an enormous amount of its proprietary documents online. Kaspersky Labs was able to reverse-engineer one of its zero-day exploits from that data.
Two former Kaspersky employees have accused the company of faking malware to harm rival antivirus products. They would falsely classify legitimate files as malicious, tricking other antivirus companies that blindly copied Kaspersky's data into deleting them from their customers' computers.
In one technique, Kaspersky's engineers would take an important piece of software commonly found in PCs and inject bad code into it so that the file looked like it was infected, the ex-employees said. They would send the doctored file anonymously to VirusTotal.
Then, when competitors ran this doctored file through their virus detection engines, the file would be flagged as potentially malicious. If the doctored file looked close enough to the original, Kaspersky could fool rival companies into thinking the clean file was problematic as well.
The former Kaspersky employees said Microsoft was one of the rivals that were targeted because many smaller security companies followed the Redmond, Washington-based company's lead in detecting malicious files. They declined to give a detailed account of any specific attack.
Microsoft's antimalware research director, Dennis Batchelder, told Reuters in April that he recalled a time in March 2013 when many customers called to complain that a printer code had been deemed dangerous by its antivirus program and placed in "quarantine."
Batchelder said it took him roughly six hours to figure out that the printer code looked a lot like another piece of code that Microsoft had previously ruled malicious. Someone had taken a legitimate file and jammed a wad of bad code into it, he said. Because the normal printer code looked so much like the altered code, the antivirus program quarantined that as well.
Over the next few months, Batchelder's team found hundreds, and eventually thousands, of good files that had been altered to look bad.
On Monday, the Intercept published a new story from the Snowden documents:
The spy agencies have reverse engineered software products, sometimes under questionable legal authority, and monitored web and email traffic in order to discreetly thwart anti-virus software and obtain intelligence from companies about security software and users of such software. One security software maker repeatedly singled out in the documents is Moscow-based Kaspersky Lab, which has a holding registered in the U.K., claims more than 270,000 corporate clients, and says it protects more than 400 million people with its products.
British spies aimed to thwart Kaspersky software in part through a technique known as software reverse engineering, or SRE, according to a top-secret warrant renewal request. The NSA has also studied Kaspersky Lab's software for weaknesses, obtaining sensitive customer information by monitoring communications between the software and Kaspersky servers, according to a draft top-secret report. The U.S. spy agency also appears to have examined emails inbound to security software companies flagging new viruses and vulnerabilities.
The documents...don't describe actual computer breaches against the security firms, but instead depict a systematic campaign to reverse-engineer their software in order to uncover vulnerabilities that could help the spy agencies subvert it.
An NSA slide describing "Project CAMBERDADA" lists at least 23 antivirus and security firms that were in that spy agency's sights. They include the Finnish antivirus firm F-Secure, the Slovakian firm Eset, Avast software from the Czech Republic. and Bit-Defender from Romania. Notably missing from the list are the American anti-virus firms Symantec and McAfee as well as the UK-based firm Sophos.
But antivirus wasn't the only target of the two spy agencies. They also targeted their reverse-engineering skills against CheckPoint, an Israeli maker of firewall software, as well as commercial encryption programs and software underpinning the online bulletin boards of numerous companies. GCHQ, for example, reverse-engineered both the CrypticDisk program made by Exlade and the eDataSecurity system from Acer. The spy agency also targeted web forum systems like vBulletin and Invision Power Boardused by Sony Pictures, Electronic Arts, NBC Universal and othersas well as CPanel, a software used by GoDaddy for configuring its servers, and PostfixAdmin, for managing the Postfix email server software But that's not all. GCHQ reverse-engineered Cisco routers, too, which allowed the agency's spies to access "almost any user of the internet" inside Pakistan and "to re-route selective traffic" straight into the mouth of GCHQ's collection systems.
There's also this article from Ars Technica. Slashdot thread.
Kaspersky recently announced that it was the victim of Duqu 2.0, probably from Israel.
There's a lot of details, and I recommend reading them. There was probably a Kerberos zero-day vulnerability involved, allowing the attackers to send updates to Kaspersky's clients. There's code specifically targeting anti-virus software, both Kaspersky and others. The system includes anti-sniffer defense, and packet-injection code. It's designed to reside in RAM so that it better avoids detection. This is all very sophisticated.
Eugene Kaspersky wrote an op-ed condemning the attack -- and making his company look good -- and almost, but not quite, comparing attacking his company to attacking the Red Cross:
Historically companies like mine have always played an important role in the development of IT. When the number of Internet users exploded, cybercrime skyrocketed and became a serious threat to the security of billions of Internet users and connected devices. Law enforcement agencies were not prepared for the advent of the digital era, and private security companies were alone in providing protection against cybercrime both to individuals and to businesses. The security community has been something like a group of doctors for the Internet; we even share some vocabulary with the medical profession: we talk about 'viruses', 'disinfection', etc. And obviously we're helping law enforcement develop its skills to fight cybercrime more effectively.
One thing that struck me from a very good Wired article on Duqu 2.0:
Raiu says each of the infections began within three weeks before the P5+1 meetings occurred at that particular location. "It cannot be coincidental," he says. "Obviously the intention was to spy on these meetings."
Initially Kaspersky was unsure all of these infections were related, because one of the victims appeared not to be part of the nuclear negotiations. But three weeks after discovering the infection, Raiu says, news outlets began reporting that negotiations were already taking place at the site. "Somehow the attackers knew in advance that this was one of the [negotiation] locations," Raiu says.
Exactly how the attackers spied on the negotiations is unclear, but the malware contained modules for sniffing WiFi networks and hijacking email communications. But Raiu believes the attackers were more sophisticated than this. "I don't think their style is to infect people connecting to the WiFi. I think they were after some kind of room surveillance -- to hijack the audio through the teleconference or hotel phone systems."
Those meetings are talks about Iran's nuclear program, which we previously believed Israel spied on. Look at the details of the attack, though: hack the hotel's Internet, get into the phone system, and turn the hotel phones into room bugs. Very clever.