‘McAfee Labs Threats Report’ Highlights Cryptojacking, Blockchain, Mobile Security Issues

As we look over some of the key issues from the newly released McAfee Labs Threats Report, we read terms such as voice assistant, blockchain, billing fraud, and cryptojacking. Although voice assistants fall in a different category, the other three are closely linked and driven by the goal of fast, profitable attacks that result in …

The post ‘McAfee Labs Threats Report’ Highlights Cryptojacking, Blockchain, Mobile Security Issues appeared first on McAfee Blogs.

As we look over some of the key issues from the newly released McAfee Labs Threats Report, we read terms such as voice assistant, blockchain, billing fraud, and cryptojacking. Although voice assistants fall in a different category, the other three are closely linked and driven by the goal of fast, profitable attacks that result in a quick return on a cybercriminal’s investment.

One of the most significant shifts we see is that cryptojacking is still on the rise, while traditional ransomware attacks—aka “shoot and pray they pay”—are decreasing. Ransomware attacks are becoming more targeted as actors conduct their research to pick likely victims, breach their networks, and launch the malware followed by a high-pressure demand to pay the ransom. Although the total number of ransomware samples has fallen for two quarters, one family continues to spawn new variants. The Scarab ransomware family, which entered the threat landscape in June 2017, developed a dozen new variants in Q2. These variants combined make up more than 50% of the total number of Scarab samples to date.

What spiked the movement, starting in fall 2017, toward cryptojacking? The first reason is the value of cryptocurrency. If attacker can steal Bitcoins, for example, from a victim’s system, that’s enough. If direct theft is not possible, why not mine coins using a large number of hijacked systems. There’s no need to pay for hardware, electricity, or CPU cycles; it’s an easy way for criminals to earn money. We once thought that CPUs in routers and video-recording devices were useless for mining, but default or missing passwords wipe away this view. If an attacker can hijack enough systems, mining in high volume can be profitable. Not only individuals struggle with protecting against these attacks; companies suffer from them as well.

Securing cloud environments can be a challenge. Building applications in the cloud with container technology is effective and fast, but we also need to create the right amount of security controls. We have seen breaches in which bad actors uploaded their own containers and added them to a company’s cloud environment—which started to mine cryptocurrency.

New technologies and improvements to current ones are great, but we need to find the balance of securing them appropriately. Who would guess to use an embedded voice assistant to hack a computer? Who looks for potential attack vectors in new technologies and starts a dialog with the industry? One of those is the McAfee Advanced Threat Research team, which provides most of the analysis behind our threats reports. With a mix of the world’s best researchers in their key areas, they take on the challenge of making the (cyber) world safer. From testing vulnerabilities in new technologies to examining malware and the techniques of nation-state campaigns, we responsibly disclose our research to organizations and the industry. We take what we learn from analyzing attacks to evaluate, adapt, and innovate to improve our technology.

The post ‘McAfee Labs Threats Report’ Highlights Cryptojacking, Blockchain, Mobile Security Issues appeared first on McAfee Blogs.

Threat Report: Don’t Join Blockchain Revolution Without Ensuring Security

On May 19 researchers discovered a series of vulnerabilities in the blockchain-based EOS platform that can lead to remote control over participating nodes. Just four days prior, a mining pool server for the IOT platform HDAC was compromised, impacting …

On May 19 researchers discovered a series of vulnerabilities in the blockchain-based EOS platform that can lead to remote control over participating nodes. Just four days prior, a mining pool server for the IOT platform HDAC was compromised, impacting the vast majority of miners. In January the largest-ever theft of cryptocurrencies occurred against the exchange Coincheck, resulting in the loss of US$532 million in NEM coin. Due to its increased popularity and profitability cybercriminals have been targeting all things blockchain. McAfee Advanced Threat Research team analysts have now published the McAfee Blockchain Threat Report to explain current threats against the users and implementers of blockchain technologies.

What is Blockchain?

Even if you have not heard of blockchain, you have likely heard of cryptocurrencies, namely Bitcoin, the most popular implementation. In late 2017 Bitcoin reached a value of $20,000 per coin, prompting a lot of interest in the currency—including from cybercriminals. Cryptocurrencies are built on top of blockchain, which records transactions in a decentralized way and enables a trusted “ledger” between trustless participants. Each block in the ledger is linked to the next block, creating a chain. Hence, the system is called a blockchain. The chain enables anyone to validate all transactions without going to an outside source. From this, decentralized currencies such as Bitcoin are possible.

Proof-of-work blockchain. Source: https://bitcoin.org/bitcoin.pdf.

Blockchain Attacks

Attackers have adopted many methods targeting consumers and businesses. The primary attack vectors include phishing, malware, implementation vulnerabilities, and technology. In a phishing scheme in January, Iota cryptocurrency lost $4 million to scams that lasted several months. Malware authors often change their focus. In late 2017 to early 2018 some have migrated from deploying ransomware to cryptomining. They have been found using open-source code such as XMRig for system-based mining and the mining service Coinhive.

Source: McAfee Labs

Implementation vulnerabilities are the flaws introduced when new technologies and tools are built on top of blockchain. The recent EOS attack is one example. In mid-July 2017 Iota suffered an attack that essentially enabled attackers to steal from any wallet. Another currency, Verge, was found with numerous vulnerabilities. Attackers exploiting the vulnerabilities were able to generate coins without spending any mining power.

Known attacks against the core blockchain technology are much more difficult to implement, although they are not unheard of. The most widely known attack is the 51% attack, or majority attack, which enables attackers to create their own chains at will. The group 51 Crew targeted small coins, including Krypton, and held them for ransom. Another attack, known as a Sybil attack, can allow an attacker to completely control a targeted victim’s ledger. Attempts have been made for larger scale Sybil attacks such as one in 2016. 

Dictionary Attacks

Blockchain may be a relatively new technology but that does not mean that old attacks cannot work. Mostly due to insecure user behavior, dictionary attacks can leverage some implementations of blockchain. Brain wallets, or wallets based on weak passwords, are insecure, yet people still use them. These wallets are routinely stolen, as was the case with the nearly BTC60 stolen from the following wallet:

This wallet recorded two transactions as recently as March 5, 2018. One incoming and one outgoing transaction occurred within roughly 15 minutes. Source: https://blockchain.info.

Exchanges Under Attack

The biggest players, and targets, in blockchain are cryptocurrency exchanges. Cryptocurrency exchanges can be thought of as banks in which you users create accounts, manage finances, and even trade currencies including traditional ones. One of the most notable incidents is the attack against Mt. Gox between 2011‒2014 that resulted in $450 million of Bitcoin stolen and led to the liquidation and closure of the company. Coincheck, previously mentioned, survived the attack and began reimbursing victims for their losses in March 2018. Not all recent exchanges fared so well. Bitcurex abruptly closed and led to an official investigation into the circumstances; Youbit suffered two attacks, leading the company into bankruptcy.

An advertisement for the shuttered Polish exchange Bitcurex.

Conclusion 

Blockchain technologies and its users are heavily targeted by profit-driven cybercriminals. Current attackers are changing their tactics and new groups are entering the space. As more businesses look to blockchain to solve their business problems and consumers increasingly rely on these technologies, we must be diligent in understanding where the threats lie to achieve proper and tailored risk management. New implementations must place security at the forefront. Cybercriminals have already enjoyed successes against the users and implementations of blockchain so we must prepare accordingly.

The post Threat Report: Don’t Join Blockchain Revolution Without Ensuring Security appeared first on McAfee Blogs.

Crypto flaws in Blockchain Android app sent bitcoins to the wrong address

A comedy of programming errors could prove catastrophic for affected users.

Blockchain, one of the Internet's most widely used Bitcoin wallets, has rushed out an update for its Android app after discovering critical cryptographic and programming flaws that can cause users to send digital coins to the wrong people with no warning.

The vulnerabilities affect a subset of people who run Blockchain for Android on versions 4.1 or older of the mobile OS, according to an advisory published Thursday. The most serious of the flaws is the use of the unencrypted HTTP connections when the app's cryptographic engine contacts random.org to obtain random numbers used to generate private keys for Bitcoin addresses. Since January, random.org has required the use of the more secure HTTPS protocol and has returned a 301 Moved Permanently response when accessed through HTTP. As a result, vulnerable installations of Blockchain for Android generated the private key corresponding to the address 1Bn9ReEocMG1WEW1qYjuDrdFzEFFDCq43F, regardless of the address specified by the user.

"To our knowledge, this bug resulted in one specific address being generated multiple times, leading to a loss of funds for a handful of users," Thursday's advisory stated.

Read 9 remaining paragraphs | Comments

Mt. Gox plans to resume Bitcoin transfers after fixing “phantom” weakness

Customers have been unable to make withdrawals following DoS attack by griefers.

Bitcoin exchange Mt. Gox plans to lift its suspension of external Bitcoin transfers soon after fixing a weakness in its accounting process that left it susceptible to denial-of-service attacks, company representatives said Monday.

As Ars reported last week, the Tokyo-based Mt. Gox was one of at least two Bitcoin exchanges that temporarily suspended withdrawals after coming under attacks that deliberately flooded it with malformed transaction records. The phantom transactions didn't allow attackers to steal money or permanently tamper with the central accounting system for the digital currency, but it had a noticeable effect on some exchanges. The malformed records created discrepancies in the effected exchange's accounting systems that caused them to fall out of sync with the network. The exchanges then experienced slow downs as they recalculated their account balances. The attack and the vulnerability it exploited came to public attention through the research of Bitcoin wallet developer Blockchain.info.

In a statement issued Monday, Mt. Gox representatives said:

Read 1 remaining paragraphs | Comments