Category: Equifax

Sep 21 2017

Krebs on Security 2017-09-21 11:06:57

An alert reader recently pointed my attention to a free online service offered by big-three credit bureau Experian that allows anyone to request the personal identification number (PIN) needed to unlock a consumer credit file that was previously frozen at Experian.

Experian's page for retrieving someone's credit freeze PIN requires little more information than has already been leaked by big-three bureau Equifax and a myriad other breaches.

Experian’s page for retrieving someone’s credit freeze PIN requires little more information than has already been leaked by big-three bureau Equifax and a myriad other breaches.

The first hurdle for instantly revealing anyone’s freeze PIN is to provide the person’s name, address, date of birth and Social Security number (all data that has been jeopardized in breaches 100 times over — including in the recent Equifax breach — and that is broadly for sale in the cybercrime underground).

After that, one just needs to input an email address to receive the PIN and swear that the information is true and belongs to the submitter. I’m certain this warning would deter all but the bravest of identity thieves!

The final authorization check is that Experian asks you to answer four so-called “knowledge-based authentication” or KBA questions. As I have noted in countless stories published here previously, the problem with relying on KBA questions to authenticate consumers online is that so much of the information needed to successfully guess the answers to those multiple-choice questions is now indexed or exposed by search engines, social networks and third-party services online — both criminal and commercial.

What’s more, many of the companies that provide and resell these types of KBA challenge/response questions have been hacked in the past by criminals that run their own identity theft services.

“Whenever I’m faced with KBA-type questions I find that database tools like Spokeo, Zillow, etc are my friend because they are more likely to know the answers for me than I am,” said Nicholas Weaver, a senior researcher in networking and security for the International Computer Science Institute (ICSI).

The above quote from Mr. Weaver came in a story from May 2017 which looked at how identity thieves were able to steal financial and personal data for over a year from TALX, an Equifax subsidiary that provides online payroll, HR and tax services. Equifax says crooks were able to reset the 4-digit PIN given to customer employees as a password and then steal W-2 tax data after successfully answering KBA questions about those employees.

In short: Crooks and identity thieves broadly have access to the data needed to reliably answer KBA questions on most consumers. That is why this offering from Experian completely undermines the entire point of placing a freeze. 

After discovering this portal at Experian, I tried to get my PIN, but the system failed and told me to submit the request via mail. That’s fine and as far as I’m concerned the way it should be. However, I also asked my followers on Twitter who have freezes in place at Experian to test it themselves. More than a dozen readers responded in just a few minutes, and most of them reported success at retrieving their PINs on the site and via email after answering the KBA questions.

Here’s a sample of the KBA questions the site asked one reader:

1. Please select the city that you have previously resided in.

2. According to our records, you previously lived on (XXTH). Please choose the city from the following list where this street is located.

3. Which of the following people live or previously lived with you at the address you provided?

4. Please select the model year of the vehicle you purchased or leased prior to July 2017 .

Experian will display the freeze PIN on its site, and offer to send it to an email address of your choice.

Experian will display the freeze PIN on its site, and offer to send it to an email address of your choice. Image: Rob Jacques.

I understand if people who place freezes on their credit files are prone to misplacing the PIN provided by the bureaus that is needed to unlock or thaw a freeze. This is human nature, and the bureaus should absolutely have a reliable process to recover this PIN. However, the information should be sent via snail mail to the address on the credit record, not via email to any old email address.

This is yet another example of how someone or some entity other than the credit bureaus needs to be in put in charge of rethinking and rebuilding the process by which consumers apply for and manage credit freezes. I addressed some of these issues — as well as other abuses by the credit reporting bureaus — in the second half of a long story published Wednesday evening.

Experian has not yet responded to requests for comment.

While this service is disappointing, I stand by my recommendation that everyone should place a freeze on their credit files. I published a detailed Q&A a few days ago about why this is so important and how you can do it. For those wondering about whether it’s possible and advisable to do this for their kids or dependents, check out The Lowdown on Freezing Your Kid’s Credit.

Sep 14 2017

Equifax Data Breach – Hack Due To Missed Apache Patch

Equifax Data Breach – Hack Due To Missed Apache Patch

The Equifax data breach is pretty huge with 143 million records leaked from the hack in the US alone with unknown more in Canada and the UK.

The original statement about the breach is as follows for those that weren’t up to date with it, which came out Sept 7th (4 months AFTER the breach happened).

Equifax Inc. (NYSE: EFX) today announced a cybersecurity incident potentially impacting approximately 143 million U.S.

Read the rest of Equifax Data Breach – Hack Due To Missed Apache Patch now! Only available at Darknet.

Sep 12 2017

Krebs on Security 2017-09-12 18:02:49

Equifax last week disclosed a historic breach involving Social Security numbers and other sensitive data on as many as 143 million Americans. The company said the breach also impacted an undisclosed number of people in Canada and the United Kingdom. But the official list of victim countries may not yet be complete: According to information obtained by KrebsOnSecurity, Equifax can safely add Argentina — if not also other Latin American nations where it does business — to the list as well.

equihaxEquifax is one of the world’s three-largest consumer credit reporting bureaus, and a big part of what it does is maintain records on consumers that businesses can use to learn how risky it might be to loan someone money or to extend them new lines of credit. On the flip side, Equifax is somewhat answerable to those consumers, who have a legal right to dispute any information in their credit report which may be inaccurate.

Earlier today, this author was contacted by Alex Holden, founder of Milwaukee, Wisc.-based Hold Security LLC. Holden’s team of nearly 30 employees includes two native Argentinians who spent some time examining Equifax’s South American operations online after the company disclosed the breach involving its business units in North America.

It took almost no time for them to discover that an online portal designed to let Equifax employees in Argentina manage credit report disputes from consumers in that country was wide open, protected by perhaps the most easy-to-guess password combination ever: “admin/admin.”

We’ll speak about this Equifax Argentina employee portal — known as Veraz or “truthful” in Spanish — in the past tense because the credit bureau took the whole thing offline shortly after being contacted by KrebsOnSecurity this afternoon. The specific Veraz application being described in this post was dubbed Ayuda or “help” in Spanish on internal documentation.

The landing page for the internal administration page of Equifax’s Veraz portal. Click to enlarge.

Once inside the portal, the researchers found they could view the names of more than 100 Equifax employees in Argentina, as well as their employee ID and email address. The “list of users” page also featured a clickable button that anyone authenticated with the “admin/admin” username and password could use to add, modify or delete user accounts on the system. A search on “Equifax Veraz” at Linkedin indicates the unit currently has approximately 111 employees in Argentina.

A partial list of active and inactive Equifax employees in Argentina. This page also let anyone add or remove users at will, or modify existing user accounts.

Each employee record included a company username in plain text, and a corresponding password that was obfuscated by a series of dots.

The “edit users” page obscured the Veraz employee’s password, but the same password was exposed by sloppy coding on the Web page.

However, all one needed to do in order to view said password was to right-click on the employee’s profile page and select “view source,” a function that displays the raw HTML code which makes up the Web site. Buried in that HTML code was the employee’s password in plain text.

A review of those accounts shows all employee passwords were the same as each user’s username. Worse still, each employee’s username appears to be nothing more than their last name, or a combination of their first initial and last name. In other words, if you knew an Equifax Argentina employee’s last name, you also could work out their password for this credit dispute portal quite easily.

But wait, it gets worse. From the main page of the Equifax.com.ar employee portal was a listing of some 715 pages worth of complaints and disputes filed by Argentinians who had at one point over the past decade contacted Equifax via fax, phone or email to dispute issues with their credit reports. The site also lists each person’s DNI — the Argentinian equivalent of the Social Security number — again, in plain text. All told, this section of the employee portal included more than 14,000 such records.

750 pages worth of consumer complaints — more than 14,000 in all — complete with the Argentinian equivalent of the SSN (the DNI) in plain text. This page was auto-translated by Google Chrome into English.

Jorge Speranza, manager of information technology at Hold Security, was born in Argentina and lived there for 40 years before moving to the United States. Speranza said he was aghast at seeing the personal data of so many Argentinians protected by virtually non-existent security.

Speranza explained that — unlike the United States — Argentina is traditionally a cash-based society that only recently saw citizens gaining access to credit.

“People there have put a lot of effort into getting a loan, and for them to have a situation like this would be a disaster,” he said. “In a country that has gone through so much — where there once was no credit, no mortgages or whatever — and now having the ability to get loans and lines of credit, this is potentially very damaging.”

Shortly after receiving details about this epic security weakness from Hold Security, I reached out to Equifax and soon after heard from a Washington, D.C.-based law firm that represents the credit bureau.

I briefly described what I’d been shown by Hold Security, and attorneys for Equifax said they’d get back to me after they validated the claims. They later confirmed that the Veraz portal was disabled and that Equifax is investigating how this may have happened. Here’s hoping it will stay offline until it is fortified with even the most basic of security protections.

According to Equifax’s own literature, the company has operations and consumer “customers” in several other South American nations, including Brazil, Chile, Ecuador, Paraguay, Peru and Uruguay. It is unclear whether the complete lack of security at Equifax’s Veraz unit in Argentina was indicative of a larger problem for the company’s online employee portals across the region, but it’s difficult to imagine they could be any worse.

“To me, this is just negligence,” Holden said. “In this case, their approach to security was just abysmal, and it’s hard to believe the rest of their operations are much better.”

I don’t have much advice for Argentinians whose data may have been exposed by sloppy security at Equifax. But I have urged my fellow Americans to assume their SSN and other personal data was compromised in the breach and to act accordingly. On Monday, KrebsOnSecurity published a Q&A about the breach, which includes all the information you need to know about this incident, as well as detailed advice for how to protect your credit file from identity thieves.

[Author’s note: I am listed as an adviser to Hold Security on the company’s Web site. However this is not a role for which I have been compensated in any way now or in the past.]

Jun 10 2016

IRS Re-Enables ‘Get Transcript’ Feature

The Internal Revenue Service has re-enabled a service on its Web site that allows taxpayers to get a copy of their previous year’s tax transcript. The renewed effort to beef up taxpayer authentication methods at irs.gov comes more than a year after the agency disabled the transcript service because tax refund fraudsters were using it to steal sensitive data on consumers.

irsbldgDuring the height of tax-filing season in 2015, KrebsOnSecurity warned that identity thieves involved in tax refund fraud with the IRS were using irs.gov’s “Get Transcript” feature to glean salary and personal information they didn’t already have on targeted taxpayers. In May 2015, the IRS suspended the Get Transcript feature, citing its abuse by fraudsters and noting that some 100,000 taxpayers may have been victimized as a result.

In August 2015, the agency revised those estimates up to 330,000, but in February 2016, the IRS again more than doubled its estimate, saying the actual number of victims was probably closer to 724,000.

So exactly how does the new-and-improved Get Transcript feature validate that taxpayers who are requesting information aren’t cybercriminal imposters? According to the IRS’s Get Transcript FAQ, the visitor needs to supply a Social Security number (SSN) and have the following:

  • immediate access to your email account to receive a confirmation code;
  • name, birthdate, mailing address, and filing status from your most recent tax return;
  • an account number from either a credit card, auto loan, mortgage, home equity loan or home equity line of credit;
  • a mobile phone number with your name on the account.

“If you previously registered to use IRS Get Transcript Online, Identity Protection PIN, Online Payment Agreement, or ePostcard online services, log in with the same username and password you chose before,” the IRS said. “You’ll need to provide a financial account number and mobile phone number if you haven’t already done so.”

The agency said it will then verify your financial account number and mobile phone number with big-three credit bureau Equifax. Readers who have taken my advice and placed a security freeze on their credit files will need to request a temporary thaw in that freeze with Equifax before attempting to verify their identity with the IRS.

According to Federal Computer Week, central to the new setup will be knowledge-based authentication that uses supposedly harder-to-answer questions than the tests that led to the compromise of Get Transcript.

Mike Kasper, the tax fraud victim whose story ultimately earned him a chance to testify about the experience before the U.S. Senate Committee on Homeland Security & Governmental Affairs, called the new authentication methods a good step forward. But he worries that they will simply encourage tax refund thieves to commit more acts of identity theft in victim’s name.

“Looks like the investment for a $6,000 refund went from $10 to purchase credit data or now a card number for the victim, up to about $30 to buy a prepaid number although it’s probably even cheaper now,” Kasper said. “I think the ID thieves might simply open new cell phone or credit card accounts in the name of the victim or even keep changing the name on prepaid cell phone accounts acquired just for this purpose.”

Kasper notes that the same lame authentication methods that led to the Get Transcript debacle are still used by annualcreditreport.com, a site mandated by Congress as the only site where consumers can get their by-rights guaranteed free copy of their credit report from each of the major bureaus. Credit reports contain quite a bit of information that may allow thieves to glean the mobile and credit card account numbers for the taxpayers they’re targeting.

Annualcreditreport.com asks consumers to provide a bunch of personal data that can be bought for about $3-$4 from cybercrime shops online — such as date of birth, Social Security number, address and previous addresses. The site also asks the visitor to answer a series of so-called knowledge-based authentication (KBA) questions supplied by the credit bureaus.

These KBA questions — which involve four multiple choice, “out of wallet” questions such as previous address, loan amounts and dates — can be successfully enumerated with random guessing.  In many cases, the answers can be found by consulting free online services, such as Zillow and Facebook.

Fraudsters also may opt to simply phish the phone and credit card information from victims, or turn to criminal data brokers in the underground that specialize in selling these dossiers on consumers, Kasper said.

“The real question is, when will more banks start to check that the incoming transfer from the IRS is for an account under the name of an actual customer,” Kasper said. “Most banks do not do this, but even if they did that is not a complete solution unless they also know their customer. There were probably thousands of fraudulent tax refunds last year where the [perpetrators] just opened up bank accounts in other peoples’ names to receive a refund from the IRS. Because if you’re a thieve and you open an account in the victim’s name, it’s a little harder to trace.”