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Meet EventBot, a new Android malware that steals banking passwords and two-factor codes

Security researchers are sounding the alarm over a newly discovered Android malware that targets banking apps and cryptocurrency wallets.

The malware, which researchers at security firm Cybereason recently discovered and called EventBot, masquerades as a legitimate Android app — like Adobe Flash or Microsoft Word for Android — which abuses Android’s in-built accessibility features to obtain deep access to the device’s operating system.

Once installed — either by an unsuspecting user or by a malicious person with access to a victim’s phone — the EventBot-infected fake app quietly siphons off passwords for more than 200 banking and cryptocurrency apps — including PayPal, Coinbase, CapitalOne and HSBC — and intercepts and two-factor authentication text message codes.

With a victim’s password and two-factor code, the hackers can break into bank accounts, apps and wallets, and steal a victim’s funds.

“The developer behind Eventbot has invested a lot of time and resources into creating the code, and the level of sophistication and capabilities is really high,” Assaf Dahan, head of threat research at Cybereason, told TechCrunch.

The malware quietly records every tap and key press, and can read notifications from other installed apps, giving the hackers a window into what’s happening on a victim’s device.

Over time, the malware siphons off banking and cryptocurrency app passwords back to the hackers’ server.

The researchers said that EventBot remains a work in progress. Over a period of several weeks since its discovery in March, the researchers saw the malware iteratively update every few days to include new malicious features. At one point the malware’s creators improved the encryption scheme it uses to communicate with the hackers’ server, and included a new feature that can grab a user’s device lock code, likely to allow the malware to grant itself higher privileges to the victim’s device like payments and system settings.

But while the researchers are stumped as to who is behind the campaign, their research suggests the malware is brand new.

“Thus far, we haven’t observed clear cases of copy-paste or code reuse from other malware and it seems to have been written from scratch,” said Dahan.

Android malware is not new, but it’s on the rise. Hackers and malware operators have increasingly targeted mobile users because many device owners have their banking apps, social media, and other sensitive services on their device. Google has improved Android security in recent years by screening apps in its app store and proactively blocking third-party apps to cut down on malware — with mixed results. Many malicious apps have evaded Google’s detection.

Cybereason said it has not yet seen EventBot on Android’s app store or in active use in malware campaigns, limiting the exposure to potential victims — for now.

But the researchers said users should avoid untrusted apps from third-party sites and stores, many of which don’t screen their apps for malware.

Zoom admits some calls were routed through China by mistake

Hours after security researchers at Citizen Lab reported that some Zoom calls were routed through China, the video conferencing platform has offered an apology and a partial explanation.

To recap, Zoom has faced a barrage of headlines this week over its security policies and privacy practices, as hundreds of millions forced to work from home during the coronavirus pandemic still need to communicate with each other.

The latest findings landed earlier today when Citizen Lab researchers said that some calls made in North America were routed through China — as were the encryption keys used to secure those calls. But as was noted this week, Zoom isn’t end-to-end encrypted at all, despite the company’s earlier claims, meaning that Zoom controls the encryption keys and can therefore access the contents of its customers’ calls. Zoom said in an earlier blog post that it has “implemented robust and validated internal controls to prevent unauthorized access to any content that users share during meetings.” The same can’t be said for Chinese authorities, however, which could demand Zoom turn over any encryption keys on its servers in China to facilitate decryption of the contents of encrypted calls.

Zoom now says that during its efforts to ramp up its server capacity to accommodate the massive influx of users over the past few weeks, it “mistakenly” allowed two of its Chinese data centers to accept calls as a backup in the event of network congestion.

From Zoom’s CEO Eric Yuan:

During normal operations, Zoom clients attempt to connect to a series of primary datacenters in or near a user’s region, and if those multiple connection attempts fail due to network congestion or other issues, clients will reach out to two secondary datacenters off of a list of several secondary datacenters as a potential backup bridge to the Zoom platform. In all instances, Zoom clients are provided with a list of datacenters appropriate to their region. This system is critical to Zoom’s trademark reliability, particularly during times of massive internet stress.”

In other words, North American calls are supposed to stay in North America, just as European calls are supposed to stay in Europe. This is what Zoom calls its data center “geofencing.” But when traffic spikes, the network shifts traffic to the nearest data center with the most available capacity.

China, however, is supposed to be an exception, largely due to privacy concerns among Western companies. But China’s own laws and regulations mandate that companies operating on the mainland must keep citizens’ data within its borders.

Zoom said in February that “rapidly added capacity” to its Chinese regions to handle demand was also put on an international whitelist of backup data centers, which meant non-Chinese users were in some cases connected to Chinese servers when data centers in other regions were unavailable.

Zoom said this happened in “extremely limited circumstances.” When reached, a Zoom spokesperson did not quantify the number of users affected.

Zoom said that it has now reversed that incorrect whitelisting. The company also said users on the company’s dedicated government plan were not affected by the accidental rerouting.

But some questions remain. The blog post only briefly addresses its encryption design. Citizen Lab criticized the company for “rolling its own” encryption — otherwise known as building its own encryption scheme. Experts have long rejected efforts by companies to build their own encryption, because it doesn’t undergo the same scrutiny and peer review as the decades-old encryption standards we all use today.

Zoom said in its defense that it can “do better” on its encryption scheme, which it says covers a “large range of use cases.” Zoom also said it was consulting with outside experts, but when asked, a spokesperson declined to name any.

Bill Marczak, one of the Citizen Lab researchers that authored today’s report, told TechCrunch he was “cautiously optimistic” about Zoom’s response.

“The bigger issue here is that Zoom has apparently written their own scheme for encrypting and securing calls,” he said, and that “there are Zoom servers in Beijing that have access to the meeting encryption keys.”

“If you’re a well-resourced entity, obtaining a copy of the internet traffic containing some particularly high-value encrypted Zoom call is perhaps not that hard,” said Marcak.

“The huge shift to platforms like Zoom during the COVID-19 pandemic makes platforms like Zoom attractive targets for many different types of intelligence agencies, not just China,” he said. “Fortunately, the company has (so far) hit all the right notes in responding to this new wave of scrutiny from security researchers, and have committed themselves to make improvements in their app.”

Zoom’s blog post gets points for transparency. But the company is still facing pressure from New York’s attorney general and from two class-action lawsuits. Just today, several lawmakers demanded to know what it’s doing to protect users’ privacy.

Will Zoom’s mea culpas be enough?

What you missed in cybersecurity this week

There’s not a week that goes by where cybersecurity doesn’t dominates the headlines. This week was no different. Struggling to keep up? We’ve collected some of the biggest cybersecurity stories from the week to keep you in the know and up to speed.

Malicious websites were used to secretly hack into iPhones for years, says Google

TechCrunch: This was the biggest iPhone security story of the year. Google researchers found a number of websites that were stealthily hacking into thousands of iPhones every week. The operation was carried out by China to target Uyghur Muslims, according to sources, and also targeted Android and Windows users. Google said it was an “indiscriminate” attack through the use of previously undisclosed so-called “zero-day” vulnerabilities.

Hackers could steal a Tesla Model S by cloning its key fob — again

Wired: For the second time in two years, researchers found a serious flaw in the key fobs used to unlock Tesla’s Model S cars. It’s the second time in two years that hackers have successfully cracked the fob’s encryption. Turns out the encryption key was doubled in size from the first time it was cracked. Using twice the resources, the researchers cracked the key again. The good news is that a software update can fix the issue.

Microsoft’s lead EU data watchdog is looking into fresh Windows 10 privacy concerns

TechCrunch: Microsoft could be back in hot water with the Europeans after the Dutch data protection authority asked its Irish counterpart, which oversees the software giant, to investigate Windows 10 for allegedly breaking EU data protection rules. A chief complaint is that Windows 10 collects too much telemetry from its users. Microsoft made some changes after the issue was brought up for the first time in 2017, but the Irish regulator is looking at if these changes go far enough — and if users are adequately informed. Microsoft could be fined up to 4% of its global annual revenue if found to have flouted the law. Based off 2018’s figures, Microsoft could see fines as high as $4.4 billion.

U.S. cyberattack hurt Iran’s ability to target oil tankers, officials say

The New York Times: A secret cyberattack against Iran in June but only reported this week significantly degraded Tehran’s ability to track and target oil tankers in the region. It’s one of several recent offensive operations against a foreign target by the U.S. government in recent moths. Iran’s military seized a British tanker in July in retaliation over a U.S. operation that downed an Iranian drone. According to a senior official, the strike “diminished Iran’s ability to conduct covert attacks” against tankers, but sparked concern that Iran may be able to quickly get back on its feet by fixing the vulnerability used by the Americans to shut down Iran’s operation in the first place.

Apple is turning Siri audio clip review off by default and bringing it in house

TechCrunch: After Apple was caught paying contractors to review Siri queries without user permission, the technology giant said this week it will turn off human review of Siri audio by default and bringing any opt-in review in-house. That means users actively have to allow Apple staff to “grade” audio snippets made through Siri. Apple began audio grading to improve the Siri voice assistant. Amazon, Facebook, Google, and Microsoft have all been caught out using contractors to review user-generated audio.

Hackers are actively trying to steal passwords from two widely used VPNs

Ars Technica: Hackers are targeting and exploiting vulnerabilities in two popular corporate virtual private network (VPN) services. Fortigate and Pulse Secure let remote employees tunnel into their corporate networks from outside the firewall. But these VPN services contain flaws which, if exploited, could let a skilled attacker tunnel into a corporate network without needing an employee’s username or password. That means they can get access to all of the internal resources on that network — potentially leading to a major data breach. News of the attacks came a month after the vulnerabilities in widely used corporate VPNs were first revealed. Thousands of vulnerable endpoints exist — months after the bugs were fixed.

Grand jury indicts alleged Capital One hacker over cryptojacking claims

TechCrunch: And finally, just when you thought the Capital One breach couldn’t get any worse, it does. A federal grand jury said the accused hacker, Paige Thompson, should be indicted on new charges. The alleged hacker is said to have created a tool to detect cloud instances hosted by Amazon Web Services with misconfigured web firewalls. Using that tool, she is accused of breaking into those cloud instances and installing cryptocurrency mining software. This is known as “cryptojacking,” and relies on using computer resources to mine cryptocurrency.

Security flaw in ‘nearly all’ modern PCs and Macs exposes encrypted data

Most modern computers, even devices with disk encryption, are vulnerable to a new attack that can steal sensitive data in a matter of minutes, new research says.

In new findings published Wednesday, F-Secure said that none of the existing firmware security measures in every laptop it tested “does a good enough job” of preventing data theft.

F-Secure principal security consultant Olle Segerdahl told TechCrunch that the vulnerabilities put “nearly all” laptops and desktops — both Windows and Mac users — at risk.

The new exploit is built on the foundations of a traditional cold boot attack, which hackers have long used to steal data from a shut-down computer. Modern computers overwrite their memory when a device is powered down to scramble the data from being read. But Segerdahl and his colleague Pasi Saarinen found a way to disable the overwriting process, making a cold boot attack possible again.

“It takes some extra steps,” said Segerdahl, but the flaw is “easy to exploit.” So much so, he said, that it would “very much surprise” him if this technique isn’t already known by some hacker groups.

“We are convinced that anybody tasked with stealing data off laptops would have already come to the same conclusions as us,” he said.

It’s no secret that if you have physical access to a computer, the chances of someone stealing your data is usually greater. That’s why so many use disk encryption — like BitLocker for Windows and FileVault for Macs — to scramble and protect data when a device is turned off.

But the researchers found that in nearly all cases they can still steal data protected by BitLocker and FileVault regardless.

After the researchers figured out how the memory overwriting process works, they said it took just a few hours to build a proof-of-concept tool that prevented the firmware from clearing secrets from memory. From there, the researchers scanned for disk encryption keys, which, when obtained, could be used to mount the protected volume.

It’s not just disk encryption keys at risk, Segerdahl said. A successful attacker can steal “anything that happens to be in memory,” like passwords and corporate network credentials, which can lead to a deeper compromise.

Their findings were shared with Microsoft, Apple, and Intel prior to release. According to the researchers, only a smattering of devices aren’t affected by the attack. Microsoft said in a recently updated article on BitLocker countermeasures that using a startup PIN can mitigate cold boot attacks, but Windows users with “Home” licenses are out of luck. And, any Apple Mac equipped with a T2 chip are not affected, but a firmware password would still improve protection.

Both Microsoft and Apple downplayed the risk.

Acknowledging that an attacker needs physical access to a device, Microsoft said it encourages customers to “practice good security habits, including preventing unauthorized physical access to their device.” Apple said it was looking into measures to protect Macs that don’t come with the T2 chip.

When reached, Intel would not to comment on the record.

In any case, the researchers say, there’s not much hope that affected computer makers can fix their fleet of existing devices.

“Unfortunately, there is nothing Microsoft can do, since we are using flaws in PC hardware vendors’ firmware,” said Segerdahl. “Intel can only do so much, their position in the ecosystem is providing a reference platform for the vendors to extend and build their new models on.”

Companies, and users, are “on their own,” said Segerdahl.

“Planning for these events is a better practice than assuming devices cannot be physically compromised by hackers because that’s obviously not the case,” he said.

FBI reportedly overestimated inaccessible encrypted phones by thousands

The FBI seems to have been caught fibbing again on the topic of encrypted phones. FBI director Christopher Wray estimated in December that it had almost 7,800 phones from 2017 alone that investigators were unable to access. The real number is likely less than a quarter of that, The Washington Post reports.

Internal records cited by sources put the actual number of encrypted phones at perhaps 1,200 but perhaps as many as 2,000, and the FBI told the paper in a statement that “initial assessment is that programming errors resulted in significant over-counting of mobile devices reported.” Supposedly having three databases tracking the phones led to devices being counted multiple times.

Such a mistake would be so elementary that it’s hard to conceive of how it would be possible. These aren’t court notes, memos or unimportant random pieces of evidence, they’re physical devices with serial numbers and names attached. The idea that no one thought to check for duplicates before giving a number to the director for testimony in Congress suggests either conspiracy or gross incompetence.

The latter seems more likely after a report by the Office of the Inspector General that found the FBI had failed to utilize its own resources to access locked phones, instead suing Apple and then hastily withdrawing the case when its basis (a locked phone from a terror attack) was removed. It seems to have chosen to downplay or ignore its own capabilities in order to pursue the narrative that widespread encryption is dangerous without a backdoor for law enforcement.

An audit is underway at the Bureau to figure out just how many phones it actually has that it can’t access, and hopefully how this all happened.

It is unmistakably among the FBI’s goals to emphasize the problem of devices being fully encrypted and inaccessible to authorities, a trend known as “going dark.” That much it has said publicly, and it is a serious problem for law enforcement. But it seems equally unmistakable that the Bureau is happy to be sloppy, deceptive or both in its advancement of a tailored narrative.

Twitter is testing secret, encrypted direct messaging

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With the proliferation of secure messaging apps out there, Twitter is set to join in on the action.

The company is seemingly testing end-to-end encrypted direct messaging in the Android version of its app, as spotted by computer science student Jane Manchun Wong on Twitter.

The feature, dubbed “Secret conversation,” will apparently be available in the conversation info section of the app, when direct messaging. Users can also view encryption keys of themselves and a recipient.

End-to-end encryption ensures that messages can only be read between the sender and the recipient, and not by the company whose platform you’re using, or anyone who may try and intercept the message. Read more…

More about Twitter, Apps, Encryption, Social Media, and Messaging

IBM dangles carrot of full encryption to lure buyers to new z14 mainframe

IBM z14 mainframe computer IBM is doing its damnedest to keep the mainframe relevant in a modern context, and believe it or not, there are plenty of monster corporations throughout the world who still use those relics from the earliest days of computing. Today, the company unveiled the z14, its latest z-Series mainframe, which comes with the considerable draw of full encryption. Is that enough for even corporate giants… Read More

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Researchers critique security in messaging app Confide

 White House staffers have been drawn to Confide by its security features, which include messages that require a reader to run their finger over the text as they read and destruct after reading. But security researchers say Confide isn’t living up to its encryption guarantee.
Fred Reynal and Jean-Baptiste Bédrune of Quarkslab published a proof-of-concept paper and video today that… Read More

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This article about WhatsApp made security experts furious

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Last week, The Guardian published a bombshell “exclusive” report claiming to reveal disturbing information about a “backdoor” into WhatsApp’s encrypted messaging platform. According to the story, the vulnerability could potentially expose the service’s user base of over a billion to “snooping” by prying eyes. 

The article was met with near-immediate backlash from information security experts and cryptologists, who took to Twitter to voice their complaints. Many alleged the article misrepresented a feature of the encryption WhatsApp’s parent company, Facebook, called “expected behavior.”  Read more…

More about Signal, Encrypted Apps, Messaging Apps, Security, and Encryption

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ProtonMail adds Tor onion site to fight risk of state censorship

ProtonMail onion site Swiss-based PGP end-to-end encrypted email provider, ProtonMail, now has an onion address, allowing users to access its service via a direct connection to the Tor anonymizing network — in what it describes as an active measure aimed at defending against state-sponsored censorship. Read More

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Google’s Cloud Platform gets a new key management service

Keys for the Key Maker Google is launching a new key management service for its Cloud Platform today that will help enterprises — especially in regulated industries like healthcare and banking — to create, use, rotate and destroy their encryption keys in the cloud. The aptly named Google Cloud Key Management Service (Cloud KMS) is now available as a beta in select countries. Enterprises have… Read More

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