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Chinese Bust Online Cryptocurrency Betting Ring

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Chinese police have broken up an illegal World Cup gambling ring hosting more than 10 billion yuan (US$1.5 billion) worth of cryptocurrency bets, in the first major sports betting crime involving digital money in the country. The gambling platform ran on the dark web, which isn’t indexed by traditional search engines. During the eight months of the gambling platform’s operation, the site attracted 330,000 registered users from numerous countries, and built an army of over 8,000 agents who earned commissions for recruiting new members through a pyramid scheme.

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Ransomware

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What is a ransomware attack?

Ransomware is a form of malicious software — malware — which encrypts documents on a PC or even across a network. Victims can often only regain access to their encrypted files and PCs by paying a ransom to the criminals behind the ransomware.

A ransomware infection often starts with someone clicking on what looks like an innocent attachment, and it can be a headache for companies of all sizes if vital files and documents (think spreadsheets and invoices) are suddenly encrypted and inaccessible. But that’s not the only way to get infected.

What is the history of ransomware?

While ransomware exploded last year, increasing by an estimated 748 percent, it’s not a new phenomenon: the first instance of what we now know as ransomware appeared in 1989.

Known as AIDS or the PC Cyborg Trojan, the virus was sent to victims — mostly in the healthcare industry — on a floppy disc. The ransomware counted the number of times the PC was booted: once it hit 90, it encrypted the machine and the files on it and demanded the user ‘renew their license’ with ‘PC Cyborg Corporation ‘ by sending $189 or $378 to a post office box in Panama.

 

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The AIDS demand for payment — by post. Image: Sophos

 

How did ransomware evolve?

This early ransomware was a relatively simple construct, using basic cryptography which mostly just changed the names of files, making it relatively easy to overcome.

But it set off a new branch of computer crime, which slowly but surely grew in reach — and really took off in the internet age. Before they began using advanced cryptography to target corporate networks, hackers were targeting general internet users with basic ransomware.

One of the most successful variants was ‘police ransomware’, which tried to extort victims by claiming to be associated with law enforcement. It locked the screen with a ransom note warning the user they’d committed illegal online activity, which could get them sent to jail.

However, if the victim paid a fine, the ‘police’ would let the infringement slide and restore access to the computer by handing over the decryption key.

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An example of ‘police ransomware’ threatening a UK user. Image: Sophos

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What are the main types of ransomware?

Ransomware is always evolving, with new variants continually appearing in the wild and posing new threats to businesses. However, there are certain types of ransomware which have been much more successful than others.

Perhaps the most notorious form of ransomware is Locky, which terrorised organizations across the globe throughout 2016. It infamously made headlines by infecting a Hollywood hospital. The hospital gave into the demands of cybercriminals and paid a $17,000 ransom to have its networks restored.

 

Locky remained successful because those behind it regularly update the code to avoid detection. They even update it with new functionality, including the ability to make ransom demands in 30 languages, so criminals can more easily target victims around the world. Locky became so successful, it rose to become most prevalent forms of malware in its own right.

Cryptowall is another form of ransomware which has found great success for a prolonged period of time. Starting life as doppelganger of Cryptolocker, it’s gone onto become one of the most successful types of ransomware.

One of the most common forms of ransomware distributed in this way is Cerber, which infected hundreds of thousands of users in just a single month. The original creators of Cerber are selling it on the Dark Web, allowing other criminals to use the code in return for 40 percent of each ransom paid.

Cerber ransomware became so successful that it surpassed Locky — which appeared to mysteriously disappear over Christmas, although reemerged in April with new attack techniques — to become the most dominant form of ransomware on the web, accounting for 90 percent of ransomware attacks on Windows as of mid-April 2017.

 

 

The cryptography behind Cerber is so advanced that there’s currently no decryption tools available to help those infected by the latest versions.

Cerber now comes with the ability to steal to steal bitcoin wallet and password information, in addition to encrypting files.

In exchange for giving up some of the profits for using Cerber, wannabe cyber-fraudsters are provided with everything they need in order to successfully make money through the extortion of victims.

What is WannaCry ransomware?

In the biggest ransomware attack to date, WannaCry — also known as WannaCrypt and Wcry — caused chaos across the globe in an attack which started on Friday 12 May 2017. WannaCrypt ransomware demands $300 in bitcoin for unlocking encrypted files — a price which doubles after three days. Users are also threatened, via a ransom note on the screen, with having all their files permanently deleted if the ransom isn’t paid within a week.

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WannaCry ransomware infected Windows XP systems across the globe. Image: Cisco Talos

 

More than 300,000 victims in over 150 countries fell victim to the ransomware over the course of one weekend, with businesses, governments, and individuals across the globe all affected.

Healthcare organisations across the UK had systems knocked offline by the ransomware attack, forcing patient appointments to be cancelled and hospitals telling people to avoid visiting Accident and Emergency departments unless it was entirely necessary.

Of all the countries affected by the attack, Russia was hit the hardest, according to security researchers, with the WannaCry malware crashing Russian banks, telephone operators, and even IT systems supporting transport infrastructure. China was also hit hard by the attack, with 29,000 organizations in total falling victim to this particularly vicious form of ransomware.

Other high-profile targets included the car manufacturer Renault which was forced to halt production lines in several locations as the ransomware played havoc with systems.

What all the targets had in common is that they were running unsupported versions of Microsoft Windows, including Windows XP, Windows 8, and Windows Server 2003.

The ransomware worm is so potent because it exploits a known software vulnerability called EternalBlue. The Windows flaw is one of many zero-days which apparently was known by the NSA — before being leaked by the Shadow Brokers hacking collective. Microsoft released a patch for the vulnerability earlier this year — but only for the most recent operating systems.

In response to the attack, Microsoft took the unprecedented step of issuing patches for unsupported operating systems to protect against the malware.

 

It was almost three months before the WannaCry attackers finally withdrew the funds from the WannaCry bitcoin wallets — they made off with a total of $140,000 thanks to fluctuations in the value of bitcoin.

But despite critical patches being made available to protect systems from WannaCry and other attacks exploiting the SMB vulnerability, a large number of organisations seemingly chose not to apply the updates.

 

 

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Petya ransom note Image: Symantec

 

But that’s a relatively modest loss in comparison to other victims of the attack: shipping and supply vessel operator Maersk and goods delivery company FedEx have both estimated losses of $300m due to the impact of Petya.

In February 2018, the governments of the United Kingdom, the United States, Australia and others officially declared that the NotPetya ransomware had been the work of the Russian military. Russian denies any involvement.

What is Bad Rabbit ransomware?

October 2017 saw the third high profile ransomware attack of the year when organizations in Russia and Ukraine fell victim to a new variant of Petya ransomware.

Dubbed Bad Rabbit, it infected at least three Russian media organisations while also infiltrating the networks of several Ukrainian organisations including the Kiev Metro and Odessa International Airport – at the time, the airport said it had fallen victim to a ‘hacker attack’.

The initial attack vector used to distribute Bad Rabbit was drive-by downloads on hacked websites – some of which had been compromised since June. No exploits were used, rather visitors were told they had to install a phony Flash update, which dropped the malware.

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Bad Rabbit ransom note Image: Kaspersky Lab

Like NotPetya before it, Bad Rabbit spread through networks using a leaked NSA hacking tool – but this time it was via the EternalRomance SMB vulnerability, rather than the EternalBlue exploit.

Analysis of Bad Rabbit shared much of its code – at least 67 percent – with Peyta and researchers at Cisco Talos concluded that this, combined with how it uses SMB exploits, means there’s “high confidence” in a link between the two forms of ransomware – and that they could even share the same author.

Bad Rabbit was named after the text which appeared at the top of the Tor website hosting the ransom note. Some security researchers joked it should’ve been named after the lines in the code referencing characters from Game of Thrones.

 

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SpriteCoin ransomware demands payment in Monero. Image: Fortinet.

How do you prevent a ransomware attack?

With email being by far the most popular attack vector for ransomware, you should provide employees with training on how to spot an incoming malware attack. Even picking up on little indicators like poor formatting or that an email purporting to be from ‘Microsoft Security’ is sent from an obscure address which doesn’t even contain the word Microsoft within it might save your network from infection. The same security policies that protect you from malware attacks in general will go some way towards protecting your company from ransom demands too.

At the very least, employers should invest in antivirus software and keep it up-to date, so that it can warn users about potentially malicious files. Backing up important files and making sure those files can’t be compromised during an attack in another key.

How long does it take to recover from a ransomware attack?

Simply put, ransomware can cripple a whole organization — an encrypted network is more or less useless and not much can be done until systems are restored.

If your organization is sensible and has backups in place, systems can be back online in the time it takes the network to be restored to functionality, although depending on the size of the company, that could range from a few hours to days.

 

FedEx said that it may not be able to recover all the systems affected by the Petya cyberattack, meaning that while the company is back up and running, some machines won’t ever be able to be restored.

Outside of the immediate impact ransomware can have on a network, it can result in an ongoing financial hit.

How do I get rid of ransomware?

The ‘No More Ransom’ initiative — launched in July 2016 by Europol and the Dutch National Police in collaboration with a number of cybersecurity companies including Kaspersky Lab and McAfee — offers free decryption tools for ransomware variants to help victims retrieve their encrypted data without succumbing to the will of cyber extortionists.

Initially launching as a portal offered portal offers decryption tools four for families of ransomware — Shade, Rannoh, Rakhn, and CoinVault — the scheme is regularly adding more decryption tools for even more versions of ransomware including Crypt XXX, MarsJoke, Teslacrypt, Wildfire and Nemucod.

The portal — which also contains information and advice on avoiding falling victim to ransomware in the first place — is updated as often as possible in an effort to ensure tools are available to fight the latest forms of ransomware.

No More Ransom has grown from offering a set of four tools to carrying 52 decryption tools covering hundreds of families of ransomware. So far, these tools have decrypted tens of thousands of devices, depriving criminals of millions in ransoms.

The platform is now available in over 29 languages with more than 100 partners across the public and private sectors supporting the scheme.

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The No More Ransom portal offers free ransomware decryption tools. Image: Europol

Individual security companies also regularly release decryption tools to counter the ongoing evolution of ransomware — many of these will post updates about these tools on their company blogs as soon as they’ve cracked the code.

 A decryption tool was recently released which may be able to help if your PC has been hit by one of the original versions of the Petya malware — the so-called Red Petya, Green Petya, and GoldenEye — and may enable you to recover the lost files (although it can’t help with PetrWrap or those hit by the Petya/NotPetya global attack). However, these tools don’t always work so it is always wise to make additional backups.

Another way of working around a ransomware infection is to ensure your organization regularly backs up data offline.

Should I pay a ransomware ransom?

There are those who say victims should just pay the ransom, citing it to be the quickest and easiest way to retrieve their encrypted data — and many organizations do pay even if law enforcement agencies warn against it.

WARNING: if word gets out that your organization is an easy target for cybercriminals because it paid a ransom, you could find yourself in the crosshairs of other cybercriminals who are looking to take advantage of your weak security.

 

Operation Wire Wire

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 Department of Justice and the FBI—has announced a major coordinated law enforcement effort to disrupt international business e-mail compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals.

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The ShotSpotter Technology

ShotSpotter Diagram

ShotSpotter” technology is now up and running. The ShotSpotter technology is a series of audio sensors deployed high up on top of light posts and buildings. When a gunshot goes off the sensors triangulate the sound and pinpoints the number of shots fired and the location. ShotSpotter trained acoustic experts review and qualify all gunfire incidents and alert law enforcement immediately, all within a minute, and usually within 30 seconds, of the gunshot occurring.

ShotSpotter helps police departments transform policing practices from reactive to proactive by instantly notifying officers of gunshot crimes in progress with real-time data delivered to dispatch centers, patrol cars and even smartphones. First responders receive precise gunfire incident information, allowing informed decisions for faster emergency response while also improving situation intelligence and increasing first responder safety. ShotSpotter gunfire data also enables law enforcement agencies to improve evidence collection, prosecution and overall police effectiveness. ShotSpotter is installed in more than 90 cities across the United States and the world.

ACLU Wants Amazon To Stop Offering Facial Recognition Tech To Governments & Law Enforcement

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The American Civil Liberties Union wants Amazon to stop offering their new facial recognition system” to governments and law enforcement.

The service, called “Rekognition,” uses artificial intelligence to identify, track and analyze faces in real time. According to Amazon, the service can “analyze billions of images and videos daily, and requires no machine learning expertise to use.”

The ACLU said in a blog post about the program: “People should be free to walk down the street without being watched by the government. By automating mass surveillance, facial recognition systems like Rekognition threaten this freedom, posing a particular threat to communities already unjustly targeted in the current political climate. Once powerful surveillance systems like these are built and deployed, the harm will be extremely difficult to undo.”

Rekognition was released in late 2016, with the sheriff’s office in Washington County, Oregon, as its first customers, according to the Associated Press. The department uses the service about 20 times per day.
 Deputy Jeff Talbot, a spokesman for the sheriff’s office told the AP. “We want our local community to be aware of what we’re doing, how we’re using it to solve crimes – what it is and, just as importantly, what it is not.”

The Orlando Police Department began a pilot program last year with the Rekognition technology in what police chief John Mina called a “first-of-its-kind public-private partnership.”

In a presentation from a developer conference in Seoul, South Korea, Amazon’s Ranju Das said, “It’s about recognizing people, it’s about tracking people, and then it’s about doing this in real time, so that the law enforcement officers … can be then alerted in real time to events that are happening.”

In an email to the AP, the Orlando Police Department said they are “not using the technology in an investigative capacity or in any public spaces at this time.”

“The purpose of a pilot program such as this, is to address any concerns that arise as the new technology is tested,” the statement said. “Any use of the system will be in accordance with current and applicable law. We are always looking for new solutions to further our ability to keep the residents and visitors of Orlando safe.

Lawsuit blames Price Fixing For The Rising Costs Of Smart Phones

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Hagens Berman, a law firm with a long track record of class-action advocacy, believes that Samsung, Hynix, and Micron have colluded to limit the supply of certain DRAM products, which has driven an increase in prices. The firm is filing a class-action on behalf of US consumers of smartphones and computing devices, saying that anyone who purchased a smartphone or computer between July 1, 2016 and Feb. 1, 2018 may have overpaid and could be due restitution.

Did you purchase a smartphone or computer from 2016-2017?

Click For More You May Have A Case

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