News

Dual-Use Software Criminal Case Not So Novel

“He built a piece of software. That tool was pirated and abused by hackers. Now the feds want him to pay for the computer crooks’ crimes.”

The above snippet is the subhead of a story published last month by the Daily Beast titled “FBI Arrests Hacker Who Hacked No One.” The subject of that piece — a 26-year-old American named Taylor Huddleston — faces felony hacking charges connected to two computer programs he authored and sold: An anti-piracy product called Net Seal, and a Remote Administration Tool (RAT) called NanoCore that he says was a benign program designed to help users remotely administer their computers.

The author of the Daily Beast story, former black hat hacker and Wired.com editor Kevin Poulsen, argues that Huddelston’s case “raises a novel question: When is a programmer criminally responsible for the actions of his users? Some experts say [the case] could have far reaching implications for developers, particularly those working on new technologies that criminals might adopt in unforeseeable ways.”

But a closer look at the government’s side of the story — as well as public postings left behind by the accused and his alleged accomplices — paints a more complex and nuanced picture that suggests this may not be the case to raise that legal question in a meaningful way.

Why I Always Tug on the ATM

Once you understand how easy and common it is for thieves to attach “skimming” devices to ATMs and other machines that accept debit and credit cards, it’s difficult not to closely inspect and even tug on the machines before using them. Several readers who are in the habit of doing just that recently shared images of skimmers they discovered after gently pulling on various parts of a cash machine they were about to use.

Post-FCC Privacy Rules, Should You VPN?

Many readers are understandably concerned about recent moves by the U.S. Congress that would roll back privacy rules barring broadband Internet service providers (ISPs) from sharing or selling customer browsing history, among other personal data. Some are concerned enough by this development that they’re looking at obfuscating all of their online browsing by paying for a subscription to a virtual private networking (VPN) service. This piece is intended to serve as a guidepost for those contemplating such a move.

Alleged vDOS Owners Poised to Stand Trial

Police in Israel are recommending that the state attorney’s office indict and prosecute two 18-year-olds suspected of operating vDOS, until recently the most popular attack service for knocking Web sites offline.

On Sept. 8, 2016, KrebsOnSecurity published a story about the hacking of vDOS, a service that attracted tens of thousands of paying customers and facilitated countless distributed denial-of-service (DDoS) attacks. That story named two young Israelis — Yarden Bidani and Itay Huri — as the likely owners and operators of vDOS, and within hours of its publication the two were arrested by Israeli police, placed on house arrest for 10 days, and forbidden from using the Internet for a month.

Phishing 101 at the School of Hard Knocks

A recent, massive spike in sophisticated and successful phishing attacks is prompting many universities to speed up timetables for deploying mandatory two-factor authentication (2FA) — requiring a one-time code in addition to a password — for access to student and faculty services online. This is the story of one university that accelerated plans to require 2FA after witnessing nearly twice as many phishing victims in the first two-and-half months of this year than it saw in all of 2015.

eBay Asks Users to Downgrade Security

Last week, KrebsOnSecurity received an email from eBay. The company wanted me to switch from using a hardware key fob when logging into eBay to receiving a one-time code sent via text message. I found it remarkable that eBay, which at one time was well ahead of most e-commerce companies in providing more robust online authentication options, is now essentially trying to downgrade my login experience to a less-secure option.

Student Aid Tool Held Key for Tax Fraudsters

Citing concerns over criminal activity and fraud, the U.S. Internal Revenue Service (IRS) has disabled an automated tool on its Web site that was used to help students and their families apply for federal financial aid. The removal of the tool has created unexpected hurdles for many families hoping to qualify for financial aid, but the action also eliminated a key source of data that fraudsters could use to conduct tax refund fraud.

Last week, the IRS and the Department of Education said in a joint statement that they were temporarily shutting down the IRS’s Data Retrieval Tool. The service was designed to make it easier to complete the Education Department’s Free Application for Federal Student Aid (FAFSA) — a lengthy form that serves as the starting point for students seeking federal financial assistance to pay for college or career school.

Govt. Cybersecurity Contractor Hit in W-2 Phishing Scam

Just a friendly reminder that phishing scams which spoof the boss and request W-2 tax data on employees are intensifying as tax time nears. The latest victim shows that even cybersecurity experts can fall prey to these increasingly sophisticated attacks.

On Thursday, March 16, the CEO of Defense Point Security, LLP — a Virginia company that bills itself as “the choice provider of cyber security services to the federal government” — told all employees that their W-2 tax data was handed directly to fraudsters after someone inside the company got caught in a phisher’s net.

Four Men Charged With Hacking 500M Yahoo Accounts

The U.S. Justice Department today unsealed indictments against four men accused of hacking into a half-billion Yahoo email accounts. Two of the men named in the indictments worked for a unit of the Russian Federal Security Service (FSB) that serves as the FBI’s point of contact in Moscow on cybercrime cases. Here’s a look at the accused, starting with a 22-year-old who apparently did not try to hide his tracks.

According to a press release put out by the Justice Department, among those indicted was Karim Baratov (a.k.a. Kay, Karim Taloverov), a Canadian and Kazakh national who lives in Canada. Baratov is accused of being hired by the two FSB officer defendants in this case — Dmitry Dokuchaev, 33, and Igor Sushchin, 43 — to hack into the email accounts of thousands of individuals.

According to a press release put out by the Justice Department, among those indicted was Karim Baratov (a.k.a. Kay, Karim Taloverov), a Canadian and Kazakh national who lives in Canada. Baratov is accused of being hired by the two FSB officer defendants in this case — Dmitry Dokuchaev, 33, and Igor Sushchin, 43 — to hack into the email accounts of thousands of individuals.