Bitcoin

Feds Moving Quickly To Cash in on Seized Bitcoin, Now Worth $8.4 Million (arstechnica.com) 48

A federal judge in Utah has agreed to let the US government sell off a seized cache of over 513 bitcoins (BTC) and 512 Bitcoin Cash (BCH). At current prices, that would yield approximately $8.4 million for the bitcoins and nearly $1 million for the BCH. From a report: In a court filing, prosecutors noted that due to the volatility of the Bitcoin market, both coins risk losing value. Both the BTC and the BCH have already been transferred to government-controlled wallets. The new round of seized digital currency belonged to a Utah man named Aaron Shamo, whom prosecutors say led a multimillion-dollar ring of counterfeit pharmaceuticals, including oxycodone and alprazolam that were sold on Dark Web marketplaces. Shamo was arrested over a year ago -- his trial has not yet been scheduled. On Tuesday, US District Judge Dale Kimball allowed the sale to proceed. Once sold, the money would go to an account held at the Treasury Executive Office for Asset Forfeiture.
Businesses

One of Australia's Richest Men Lost $1 Million To Email Scam (bloomberg.com) 49

Kaye Wiggins, reporting for Bloomberg: The multi-millionaire founder of Twynam Agricultural Group lost $1 million in an email fraud, a London court heard Thursday. The British man who facilitated the theft says he's a victim too. John Kahlbetzer, who is on the Forbes list of the 50 richest Australians, lost the money when fraudsters tricked the administrator of his personal finances into transferring it to them, his court papers say. Fraudsters emailed Christine Campbell, pretending to be the 87-year-old and asking her to pay $1 million to an account held by a British man, David Aldridge, which she did. Kahlbetzer is suing Aldridge to recover the funds, but Aldridge says he was being "unwittingly used" and was himself the victim of a fraud involving a woman he met online and believed he was in a loving relationship with. Email frauds where companies' staff are tricked into transferring money are a growing problem. U.S. Federal Bureau of Investigation statistics show "business email compromise" cases, where criminals ask company officials to transfer funds, have cost more than $3 billion since 2015.
Government

CIA Captured Putin's 'Specific Instructions' To Hack the 2016 Election, Says Report (thedailybeast.com) 375

An anonymous reader quotes a report from The Daily Beast: When Director of National Intelligence James R. Clapper Jr., CIA Director John Brennan and FBI Director James B. Comey all went to see Donald Trump together during the presidential transition, they told him conclusively that they had "captured Putin's specific instructions on the operation" to hack the 2016 presidential election, according to a report in The Washington Post. The intel bosses were worried that he would explode but Trump remained calm during the carefully choreographed meeting. "He was affable, courteous, complimentary," Clapper told the Post. Comey stayed behind afterward to tell the president-elect about the controversial Steele dossier, however, and that private meeting may have been responsible for the animosity that would eventually lead to Trump firing the director of the FBI.
Bitcoin

A Cryptocurrency Without a Blockchain Has Been Built To Outperform Bitcoin (technologyreview.com) 169

An anonymous reader quotes a report from MIT Technology Review: Bitcoin isn't the only cryptocurrency on a hot streak -- plenty of alternative currencies have enjoyed rallies alongside the Epic Bitcoin Bull Run of 2017. One of the most intriguing examples is also among the most obscure in the cryptocurrency world. Called IOTA, it has jumped in total value from just over $4 billion to more than $10 billion in a little over two weeks. But that isn't what makes it interesting. What makes it interesting is that it isn't based on a blockchain at all; it's something else entirely. The rally began in late November, after the IOTA Foundation, the German nonprofit behind the novel cryptocurrency, announced that it was teaming up with several major technology firms to develop a "decentralized data marketplace."

Though IOTA tokens can be used like any other cryptocurrency, the protocol was designed specifically for use on connected devices, says cofounder David Sonstebo. Organizations collect huge amounts of data from these gadgets, from weather tracking systems to sensors that monitor the performance of industrial machinery (a.k.a. the Internet of things). But nearly all of that information is wasted, sitting in siloed databases and not making money for its owners, says Sonstebo. IOTA's system can address this in two ways, he says. First, it can assure the integrity of this data by securing it in a tamper-proof decentralized ledger. Second, it enables fee-less transactions between the owners of the data and anyone who wants to buy it -- and there are plenty of companies that want to get their hands on data.
The report goes on to note that instead of using a blockchain, "IOTA uses a 'tangle,' which is based on a mathematical concept called a directed acyclic graph." The team decided to research this new alternative after deciding that blockchains are too costly. "Part of Sonstebo's issue with Bitcoin and other blockchain systems is that they rely on a distributed network of 'miners' to verify transactions," reports MIT Technology Review. "When a user issues a transaction [with IOTA], that individual also validates two randomly selected previous transactions, each of which refer to two other previous transactions, and so on. As new transactions mount, a 'tangled web of confirmation' grows, says Sonstebo."
Crime

DOJ Confirms Uber Is Being Investigated For Criminal Behavior (arstechnica.com) 33

A newly released letter from the Department of Justice has formally acknowledged that federal prosecutors have an open criminal investigation into Uber. Ars Technica reports: Late last month, as part of the proceedings in the high-profile and ongoing Waymo v. Uber trade secrets lawsuit, U.S. District Judge William Alsup said that on November 22 he had received a letter from San Francisco-based federal prosecutors. It is very unusual for a judge in a civil case to be apprised of a pending criminal investigation involving one of the litigants. In a separate November 28 letter sent to Judge Alsup, Acting U.S. Attorney Alex Tse asked that the first letter not be made public. The judge unsealed both letters on Wednesday. The first letter was signed by two prosecutors, Matthew Parrella and Amie Rooney. Those attorneys are assigned to the Computer Hacking and Intellectual Property (CHIP) Unit at the United States Attorney's Office in San Jose. [T]he letter could mean Uber and/or its current or former employees may be under investigation for possible crimes under the Computer Fraud and Abuse Act, a longstanding anti-hacking law.
The Internet

Lawmakers Are Fighting For Net Neutrality (theverge.com) 203

An anonymous reader quotes a report from The Verge: Lawmakers and public officials are responding to the FCC's decision to gut net neutrality with promises of action. In the hours following the FCC hearing, officials from around the country announced lawsuits and bills intended to counter the FCC's decision. In New York, Attorney General Eric Schneiderman said that he's leading a multi-state lawsuit to challenge the FCC's vote, though he didn't give further details on the suit or who would be joining him. Calling today's decision an "illegal rollback," he described it as giving "Big Telecom an early Christmas present."

Washington state Attorney General Bob Ferguson also announced he would sue alongside Schneiderman and other attorneys general across the country, saying that he held "a strong legal argument" and that it was likely the government had failed to follow the law with this vote. Other officials from Santa Clara, California, including county supervisor Joe Simitian, are also suing the FCC to block the decision. "We believe the depth of your ideas should outweigh the depths of your pockets," Simitian said at a press conference.

State Sen. Scott Wiener (D-CA) announced plans to introduce a bill to adopt net neutrality as a requirement in his state. He wrote in a Medium post, "If the FCC won't stand up for a free and open internet, California will."

Rep. Mike Coffman (R-CO) tweeted that he will be submitting net neutrality legislation, saying that this was a decision better left to Congress. Coffman was the first Republican to ask the FCC to delay the vote, citing "unanticipated negative consequences" on Tuesday.
Furthermore, Sen. Bernie Sanders (D-VT) and Sen. Brian Schatz (D-HI) are supporting Sen. Ed Markey's (D-MA) plan to introduce a Congressional Review Act resolution to undo the FCC vote. Even Rep. Marsha Blackburn (R-TN), who had previously announced on Twitter her support for Ajit Pai and the FCC, tweeted a video, saying, "We will codify the need for no blocking, no throttling, and making certain that we preserve that free and open internet." We're likely to see many others express their disappointment with the FCC's decision over the next few hours and days.
Security

Attackers Deploy 'Triton' Malware Against Industrial Safety Equipment (securityweek.com) 27

wiredmikey writes: A new piece of malware designed to target industrial control systems (ICS) has been used in an attack aimed at a critical infrastructure organization, FireEye said on Thursday. The malware, which has been dubbed "Triton," is designed to target Schneider Electric's Triconex Safety Instrumented System (SIS) controllers, which are used to monitor the state of a process and restore it to a safe state or safely shut it down if parameters indicate a potentially hazardous situation. The investigation found that the attackers shut down operations after causing the SIS controllers to initiate a safe shutdown, but they may have done it inadvertently while trying to determine how they could cause physical damage.
Electronic Frontier Foundation

EFF: Accessing Publicly Available Information On the Internet Is Not a Crime (eff.org) 170

An anonymous reader quotes a report from EFF: EFF is fighting another attempt by a giant corporation to take advantage of our poorly drafted federal computer crime statute for commercial advantage -- without any regard for the impact on the rest of us. This time the culprit is LinkedIn. The social networking giant wants violations of its corporate policy against using automated scripts to access public information on its website to count as felony "hacking" under the Computer Fraud and Abuse Act, a 1986 federal law meant to criminalize breaking into private computer systems to access non-public information.

EFF, together with our friends DuckDuckGo and the Internet Archive, have urged the Ninth Circuit Court of Appeals to reject LinkedIn's request to transform the CFAA from a law meant to target "hacking" into a tool for enforcing its computer use policies. Using automated scripts to access publicly available data is not "hacking," and neither is violating a website's terms of use. LinkedIn would have the court believe that all "bots" are bad, but they're actually a common and necessary part of the Internet. "Good bots" were responsible for 23 percent of Web traffic in 2016. Using them to access publicly available information on the open Internet should not be punishable by years in federal prison. LinkedIn's position would undermine open access to information online, a hallmark of today's Internet, and threaten socially valuable bots that journalists, researchers, and Internet users around the world rely on every day -- all in the name of preserving LinkedIn's advantage over a competing service. The Ninth Circuit should make sure that doesn't happen.

Security

Fortinet VPN Client Exposes VPN Creds; Palo Alto Firewalls Allow Remote Attacks (bleepingcomputer.com) 30

An anonymous reader shares a report: It's been a bad week for two of the world's biggest vendors of enterprise hardware and software -- Fortinet and Palo Alto Networks. The worst of the bunch is a credentials leak affecting Fortinet's FortiClient, an antivirus product provided by Fortinet for both home and enterprise-level clients. Researchers from SEC Consult said in an advisory released this week that they've discovered a security issue that allows attackers to extract credentials for this VPN client. The second major security issue disclosed this week affects firewall products manufactured by Palo Alto Networks and running PAN-OS, the company's in-house operating system. Security researcher Philip Pettersson discovered that by combining three vulnerabilities together, he could run code on a Palo Alto firewall from a remote location with root privileges.
Communications

FCC's Own Chief Technology Officer Warned About Net Neutrality Repeal (politico.com) 152

Margaret Harding McGill, reporting for Politico: The Federal Communications Commission's own chief technology officer expressed concern Wednesday about Republican Chairman Ajit Pai's plan to repeal the net neutrality rules, saying it could lead to practices that are "not in the public interest." In an internal email to all of the FCC commissioner offices, CTO Eric Burger, who was appointed by Pai in October, said the No. 1 issue with the repeal is concern that internet service providers will block or throttle specific websites, according to FCC sources who viewed the message. "Unfortunately, I realize we do not address that at all," Burger said in the email. "If the ISP is transparent about blocking legal content, there is nothing the [Federal Trade Commission] can do about it unless the FTC determines it was done for anti-competitive reasons. Allowing such blocking is not in the public interest."
Security

Author of BrickerBot Malware Retires, Says He Bricked 10 Million IoT Devices (bleepingcomputer.com) 145

An anonymous reader writes: The author of BrickerBot -- the malware that bricks IoT devices -- has announced his retirement in an email to Bleeping Computer, also claiming to have bricked over 10 million devices since he started the "Internet Chemotherapy" project in November 2016. Similar to the authors of the Mirai malware, the BrickerBot developer dumped his malware's source code online, allowing other crooks to profit from his code. The code is said to contain at least one zero-day. In a farewell message left on hundreds of hacked routers, the BrickerBot author also published a list of incidents (ISP downtimes) he caused, while also admitting he is likely to have drawn the attention of law enforcement agencies. "There's also only so long that I can keep doing something like this before the government types are able to correlate my likely network routes (I have already been active for far too long to remain safe). For a while now my worst-case scenario hasn't been going to jail, but simply vanishing in the middle of the night as soon as some unpleasant government figures out who I am," the hacker said.
Cloud

Trump Administration Calls For Government IT To Adopt Cloud Services (reuters.com) 204

According to Reuters, The White House said Wednesday the U.S. government needs a major overhaul of information technology systems and should take steps to better protect data and accelerate efforts to use cloud-based technology. The report outlined a timeline over the next year for IT reforms and a detailed implementation plan. One unnamed cloud-based email provider has agreed to assist in keeping track of government spending on cloud-based email migration. From the report: The report said the federal government must eliminate barriers to using commercial cloud-based technology. "Federal agencies must consolidate their IT investments and place more trust in services and infrastructure operated by others," the report found. Government agencies often pay dramatically different prices for the same IT item, the report said, sometimes three or four times as much. A 2016 U.S. Government Accountability Office report estimated the U.S. government spends more than $80 billion on IT annually but said spending has fallen by $7.3 billion since 2010. In 2015, there were at least 7,000 separate IT investments by the U.S. government. The $80 billion figure does not include Defense Department classified IT systems and 58 independent executive branch agencies, including the Central Intelligence Agency. The GAO report found some agencies are using systems that have components that are at least 50 years old.
Open Source

Avast Launches Open-Source Decompiler For Machine Code (techspot.com) 105

Greg Synek reports via TechSpot: To help with the reverse engineering of malware, Avast has released an open-source version of its machine-code decompiler, RetDec, that has been under development for over seven years. RetDec supports a variety of architectures aside from those used on traditional desktops including ARM, PIC32, PowerPC and MIPS. As Internet of Things devices proliferate throughout our homes and inside private businesses, being able to effectively analyze the code running on all of these new devices becomes a necessity to ensure security. In addition to the open-source version found on GitHub, RetDec is also being provided as a web service.

Simply upload a supported executable or machine code and get a reasonably rebuilt version of the source code. It is not possible to retrieve the exact original code of any executable compiled to machine code but obtaining a working or almost working copy of equivalent code can greatly expedite the reverse engineering of software. For any curious developers out there, a REST API is also provided to allow third-party applications to use the decompilation service. A plugin for IDA disassembler is also available for those experienced with decompiling software.

Security

Maker of Sneaky Mac Adware Sends Security Researcher Cease-and-Desist Letters (zdnet.com) 85

Zack Whittaker, writing for ZDNet: The maker of a sneaky adware that hijacks a user's browser to serve ads is back with a new, more advanced version -- one that can gain root privileges and spy on the user's activities. News of the updated adware dropped Tuesday in a lengthy write-up by Amit Serper, principal security researcher at Cybereason. The adware, dubbed OSX.Pirrit, is still highly active, infecting tens of thousands of Macs, according to Serper, who has tracked the malware and its different versions for over a year. Serper's detailed write-up is well worth the read. [...] TargetingEdge sent cease-and-desist letters to try to prevent Serper from publishing his research. "We've received several letters over the past two weeks," Serper told ZDNet. "We decided to publish anyway because we're sick of shady 'adware' companies and their threats."
Botnet

Mirai IoT Botnet Co-Authors Plead Guilty (krebsonsecurity.com) 31

Three hackers responsible for creating the massive Mirai botnet that knocked large swathes of the internet offline last year have pleaded guilty. Brian Krebs reports: The U.S. Justice Department on Tuesday unsealed the guilty pleas of two men (Editor's note: three men) first identified in January 2017 by KrebsOnSecurity as the likely co-authors of Mirai, a malware strain that remotely enslaves so-called "Internet of Things" devices such as security cameras, routers, and digital video recorders for use in large scale attacks designed to knock Web sites and entire networks offline (including multiple major attacks against this site). Entering guilty pleas for their roles in developing and using Mirai are 21-year-old Paras Jha from Fanwood, N.J. and Josiah White, 20, from Washington, Pennsylvania. Jha and White were co-founders of Protraf Solutions LLC, a company that specialized in mitigating large-scale DDoS attacks. Like firemen getting paid to put out the fires they started, Jha and White would target organizations with DDoS attacks and then either extort them for money to call off the attacks, or try to sell those companies services they claimed could uniquely help fend off the attacks. Editor's note: The story was updated to note that three men have pleaded guilty. -- not two as described in some reports.

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