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Government

CIA, FBI Launch Manhunt For WikiLeaks Source (cbsnews.com) 29

An anonymous reader quotes CBS: CBS News has learned that a manhunt is underway for a traitor inside the Central Intelligence Agency. The CIA and FBI are conducting a joint investigation into one of the worst security breaches in CIA history, which exposed thousands of top-secret documents that described CIA tools used to penetrate smartphones, smart televisions and computer systems. Sources familiar with the investigation say it is looking for an insider -- either a CIA employee or contractor -- who had physical access to the material... Much of the material was classified and stored in a highly secure section of the intelligence agency, but sources say hundreds of people would have had access to the material. Investigators are going through those names.
Homeland security expert Michael Greenberger told one CBS station that "My best guest is that when this is all said and done we're going to find out that this was done by a contractor, not by an employee of the CIA."
Crime

DOJ: Russian 'Superhacker' Gets 27 Years In Prison (thedailybeast.com) 49

According to the Justice Department, a 32-year-old Russian "superhacker" has been sentenced to 27 years in prison for stealing and selling millions of credit-card numbers, causing more than $169 million worth of damages to business and financial institutions. The Daily Beast reports: Roman Valeryevich Seleznev, 32, aka Track2, son of a prominent Russian lawmaker, was convicted last year on 38 counts of computer intrusion and credit-card fraud. "This investigation, conviction and sentence demonstrates that the United States will bring the full force of the American justice system upon cybercriminals like Seleznev who victimize U.S. citizens and companies from afar," said Acting Assistant Attorney General Kenneth Blanco said in a statement. "And we will not tolerate the existence of safe havens for these crimes -- we will identify cybercriminals from the dark corners of the Internet and bring them to justice."
Security

Teenage Hackers Motivated By Morality Not Money, Study Finds (theguardian.com) 73

Teenage hackers are motivated by idealism and impressing their mates rather than money, according to a study by the National Crime Agency. From a report: The law enforcement organisation interviewed teenagers and children as young as 12 who had been arrested or cautioned for computer-based crimes. It found that those interviewed, who had an average age of 17, were unlikely to be involved in theft, fraud or harassment. Instead they saw hacking as a "moral crusade", said Paul Hoare, senior manager at the NCA's cybercrime unit, who led the research. Others were motivated by a desire to tackle technical problems and prove themselves to friends, the report found. Speaking to BBC Radio 4's Today programme, Hoare said: "They don't understand the implications on business, government websites and individuals."
Crime

US Prepares Charges To Seek Arrest of WikiLeaks' Julian Assange (cnn.com) 356

An anonymous reader quotes a report from CNN: U.S. authorities have prepared charges to seek the arrest of WikiLeaks founder Julian Assange, U.S. officials familiar with the matter tell CNN. The Justice Department investigation of Assange and WikiLeaks dates to at least 2010, when the site first gained wide attention for posting thousands of files stolen by the former U.S. Army intelligence analyst now known as Chelsea Manning. Prosecutors have struggled with whether the First Amendment precluded the prosecution of Assange, but now believe they have found a way to move forward. During President Barack Obama's administration, Attorney General Eric Holder and officials at the Justice Department determined it would be difficult to bring charges against Assange because WikiLeaks wasn't alone in publishing documents stolen by Manning. Several newspapers, including The New York Times, did as well. The investigation continued, but any possible charges were put on hold, according to U.S. officials involved in the process then.
The U.S. view of WikiLeaks and Assange began to change after investigators found what they believe was proof that WikiLeaks played an active role in helping Edward Snowden, a former NSA analyst, disclose a massive cache of classified documents.
Attorney General Jeff Sessions said at a news conference Thursday that Assange's arrest is a "priority." "We are going to step up our effort and already are stepping up our efforts on all leaks," he said. "This is a matter that's gone beyond anything I'm aware of. We have professionals that have been in the security business of the United States for many years that are shocked by the number of leaks and some of them are quite serious. So yes, it is a priority. We've already begun to step up our efforts and whenever a case can be made, we will seek to put some people in jail." Meanwhile, Assange's lawyer said they have "had no communication with the Department of Justice."
Facebook

Navy, Marines Prohibit Sharing Nude Photos In Wake of a Facebook Scandal (fortune.com) 131

An anonymous reader quotes a report from Fortune: The Navy and Marine Corps issued new regulations that ban members from sharing nude photographs following a scandal involving military personnel sharing intimate pictures of their female colleagues -- some of which were taken without their knowledge -- in a secret Facebook group. The new statute, which was signed Tuesday by Acting Navy Secretary Sean Stackley, went into effect immediately and will be made permanent when the next edition of the Navy's regulations is printed, according to Navy Times. Military courts will handle violations of the new rule. The crackdown comes after a Facebook group was uncovered featuring naked photos of female service members. The group was eventually shut down by Facebook after a request from the Marine Corps. The Center for Investigative Reporting found that some of the photographs posted on the Facebook group may have been taken consensually, but others may not have been.
Communications

Microsoft's Skype Is Most Used Messaging Service For Cyber Criminals, Study Finds (securityledger.com) 57

chicksdaddy quotes a report from The Security Ledger: Cyber criminals lurk in the dark recesses of the internet, striking at random and then disappearing into the virtual ether. But when they want to talk shop with their colleagues, they turn to Redmond, Washington-based Microsoft and its Skype communications tools, according to an analysis by the firm Flashpoint. Mentions of different platforms were used as a proxy for gauging interest in and use of these messaging services. Flashpoint analysts looked, especially, for invitations to continue conversation outside of cyber criminal marketplaces, like references to ICQ accounts or other platforms. The survey results show that, out of a population of around 80 instant messenger platforms and protocols, a short list of just five platforms accounts for between 80% and 90% of all mentions within the cyber underground. Of those, Microsoft's Skype was the chat king. It ranked among the top five platforms across all language groups. That, despite the platform's lack of end-to-end encryption or forward secrecy features and evidence, courtesy of NSA hacker Edward Snowden, that U.S. spies may have snooped on Skype video calls in recent years, The Security Ledger reports. The conclusion: while security is a priority amongst thieves, it isn't the sole concern that cyber criminals and their associates have. In fact, sophisticated hacking communities like those in Russia to continue to rely on legacy platforms like ICQ when provably more secure alternatives exist. The reason? Business. "These cyber criminals have a lot of different options that they're juggling and a lot of factors that weigh on their options," said Leroy Terrelonge III, the Director of Middle East and Africa Research at Flashpoint. "We might suspect that cyber criminals use the most secure means of communication all the time, that's not what our research showed."
United States

Steve Ballmer's New Project: Find Out How the Government Spends Your Money (theverge.com) 249

Former Microsoft CEO Steve Ballmer isn't satisfied with owning the Los Angeles Clippers and teaching at Stanford and USC. On Tuesday, the billionaire announced USAFacts, his new startup that aims to improve political discourse by making government financial data easier to access. A small "army" of economists, professors and other professionals will be looking into and publishing data structured similarly to the 10-K filings companies issue each year -- expenses, revenues and key metrics pulled from dozens of government data sources and compiled into a single massive collection of tables. From a report on The Verge: The nonpartisan site traces $5.4 trillion in government spending under four categories derived from language in the US Constitution. Defense spending, for example, is categorized under the header "provide for the common defense," while education spending is under "secure the blessing of liberty to ourselves and our prosperity." Spending allocation and revenue sources are each mapped out in blue and pink graphics, with detailed breakdowns along federal, state and local lines. Users can also search for specific datasets, such as airport revenue or crime rates, and the site includes a report of "risk factors" that could inhibit economic growth. The New York Times has the story on how this startup came to be.
Crime

Researchers Find 25,000 Domains Used In Tech Support Scams (onthewire.io) 85

An anonymous reader writes: Three doctoral students at Stony Brook University spent eight months analyzing internet scammers who pose as remote tech support workers (usually pretending to be from Microsoft of Apple). Their research revealed more than 25,000 scam domains and thousands of different scam phone numbers. "Although victims of these scams can be anywhere, the researchers found that 85.4% of the IP addresses in these scams were located across different regions of India," reports On The Wire, "with 9.7% located in the United States and 4.9% in Costa Rica. Scammers typically asked users for an average of $291, with prices ranging from $70 to $1,000."

The researchers even called 60 of the con artists to study their technique, and concluded most were working in large, organized call centers. They use remote access tools, and in fact two popular tools were used in 81% of the scams, according to the paper. "We found that, on average, a scammer takes 17 minutes, using multiple social engineering techniques mostly based on misrepresenting OS messages, to convince users of their infections..."

Crime

Investigation Finds Inmates Built Computers, Hid Them In Prison Ceiling (cbs6albany.com) 257

An anonymous reader quotes a report from WRGB: The discovery of two working computers hidden in a ceiling at the Marion Correctional Institution prompted an investigation by the state into how inmates got access. In late July, 2015 staff at the prison discovered the computers hidden on a plywood board in the ceiling above a training room closet. The computers were also connected to the Ohio Department of Rehabilitation and Correction's network. Authorities say they were first tipped off to a possible problem in July, when their computer network support team got an alert that a computer "exceeded a daily internet usage threshold." When they checked the login being used, they discovered an employee's credentials were being used on days he wasn't scheduled to work. That's when they tracked down where the connection was coming from and alerted Marion Correctional Institution of a possible problem. Investigators say there was lax supervision at the prison, which gave inmates the ability to build computers from parts, get them through security checks, and hide them in the ceiling. The inmates were also able to run cabling, connecting the computers to the prison's network. Furthermore, "investigators found an inmate used the computers to steal the identify of another inmate, and then submit credit card applications, and commit tax fraud," reports WRGB. "They also found inmates used the computers to create security clearance passes that gave them access to restricted areas."
Government

US Dismantles Forensic Science Commission (washingtonpost.com) 281

hondo77 writes a report via Washington Post: Thought the Trump Administration's war on science was just about climate change? Think again. "Attorney General Jeff Sessions will end a Justice Department partnership with independent scientists to raise forensic science standards and has suspended an expanded review of FBI testimony across several techniques that have come under question, saying a new strategy will be set by an in-house team of law enforcement advisers," reports Washington Post. The National Commission on Forensic Science, "jointly led by Justice and the Commerce Department's National Institute of Standards and Technology (NIST) has prompted several changes," including "new accrediting and ethical codes for forensic labs and practitioners" and the FBI abandoning "its four-decade-long practice of tracing bullets to a specific manufacturer's batch through chemical analyses after its method were scientifically debunked." "The availability of prompt and accurate forensic science analysis to our law enforcement officers and prosecutors is critical to integrity in law enforcement, reducing violent crime, and increasing public safety," Sessions said in the statement. "We applaud the professionalism of the National Commission on Forensic Science and look forward to building on the contributions it has made in this crucial field."
Government

Should The FBI Have Arrested 'The Hacker Who Hacked No One'? (thedailybeast.com) 227

Last week The Daily Beast ran an article about the FBI's arrest of "the hacker who hacked no one." In December they'd arrested 26-year-old Taylor Huddleston, "the author of a remote administration tool, or RAT, called NanoCore that happens to be popular with hackers." It's been "linked to intrusions in at least 10 countries," reported Kevin Poulsen, but "as Huddleston sees it, he's a victim himself -- hackers have been pirating his program for years and using it to commit crimes."

The article quotes Huddleston's lawyer, as well as a Cornell law professor who warns of the "chilling effect" of its implications on programmers. But it also says security experts who examined the software are "inherently skeptical" of Huddleston's claim that the software was intended for legal use, since that's "a common claim amongst RAT authors." Security researcher Brian Krebs also sees "a more complex and nuanced picture" after "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."

Click through for the rest of the story.
Privacy

WikiLeaks Reveals Grasshopper, the CIA's Windows Hacking Tool (thenextweb.com) 87

An anonymous reader quotes a report from The Next Web: In case you haven't had your dose of paranoia fuel today, WikiLeaks released new information concerning a CIA malware program called "Grasshopper," that specifically targets Windows. The Grasshopper framework was (is?) allegedly used by the CIA to make custom malware payloads. According to the user guide: "Grasshopper is a software tool used to build custom installers for target computers running Microsoft Windows operating systems." Grasshopper is designed to detect the OS and protection on any Windows computer on which it's deployed, and it can escape detection by anti-malware software. If that was enough for you to put your computer in stasis, brace yourself for a doozy: Grasshopper reinstalls itself every 22 hours, even if you have Windows Update disabled. As if this wasn't alarming enough, the Grasshopper user guide even states upfront that Grasshopper uses bits from a toolkit taken from Russian organized crime.
Electronic Frontier Foundation

London Police Ink Shadowy Deal With Industry On Website Takedowns (eff.org) 23

AmiMoJo writes: The EFF is warning about unregulated activity against websites by the Police Intellectual Property Crime Unit (PIPCU) of the City of London Police. A program called RogueBlock accepts notifications from IP holders, which the PIPCU then acts on, giving private companies legal jurisdiction over the entire internet, with appeals in the case of malicious reports and mistakes being extremely difficult to make. For example, Spanish sports streaming site Rojadirecta had its domain name seized by the U.S. government for over a year, despite the site being lawful in its native Spain. The EFF terms this kind of activity "Shadow Regulation."
Security

GitHub Repository Owners Targeted By Data-Stealing Malware (threatpost.com) 63

"Phishing emails zeroing in on developers who own Github repositories were infecting victims with malware capable of stealing data through keyloggers and modules that would snag screenshots," writes ThreatPost. An anonymous reader quotes their report: Researchers at Palo Alto Networks this week said that in mid-January, an unknown number of developers were targeted with emails purporting to be job offers. The attachments instead carried malicious .doc files containing an embedded macro. The macro executed a PowerShell command that would grab malware from a command and control site and execute it... [Senior threat researcher Brandon] Levene said it's unknown how widespread the January campaign was or why developers were targeted, but given the vast number of projects hosted on the platform, it would likely be an attractive target for either criminals and nation-state attackers.
Levene said the PowerShell script drops a binary named Dimnie, which has been around since 2014 but before January targeted primarily Russian-speaking targets. Someone who received two different emails said they appeared to be hand-crafted, according to Ars Technica, and referenced data changed that same day. They believe this suggests "a focused campaign explicitly targeting targets perceived as 'high return investments,' such as developers (possibly working on popular/open source projects)."
Crime

Rogue System Administrator Faces 10 Years In Prison For Shutting Down Servers, Deleting Core Files On the Day He Was Fired (techspot.com) 237

Joe Venzor, a former employee at boot manufacturer Lucchese, had a near total meltdown after he got fired from his IT system administrator position. According to TechSpot, he shut down the company's email and application servers and deleted the core system files. Venzor now faces up to 10 years in prison and a $250,000 fine. From the report: Venzor was let go from his position at the company's help desk and immediately turned volatile. He left the building at 10:30AM and by 11:30, the company's email and application servers had been shut down. Because of this, all activities ground to a halt at the factory and employees had to be sent home. When the remaining IT staff tried to restart them, they discovered the core system files had been deleted and their account permissions had been demoted. Eventually the company was forced to hire a contractor to clean up all of the damage, but this resulted in weeks of backlog and lost orders. While recovering from the attack was difficult, finding out who did it was simple. Venzor was clearly the prime suspect given the timing of the incident, so they checked his account history. They discovered he had collected usernames and passwords of his IT colleagues, created a backdoor account disguised as an office printer, and used that account from his official work computer.
Crime

Two Activists Who Secretly Recorded Planned Parenthood Face 15 Felony Charges (npr.org) 470

mi writes: California prosecutors on Tuesday charged two activists who made undercover videos of themselves interacting with officials of a taxpayer-supported organization with 15 felonies, saying they invaded privacy by filming without consent. State Attorney General Xavier Becerra, a longtime Congressional Democrat who took over the investigation in January, said in a statement that the state "will not tolerate the criminal recording of conversations." Didn't we just determine that filming officials is not merely a right, but a First Amendment right? The "taxpayer-supported organization" is Planned Parenthood, and the charges were pressed against David Daleiden and Sandra Merritt. Daleiden has called the charges "bogus," claiming that Planned Parenthood "has violated the law by selling fetal tissue -- an allegation that has been investigated by more than a dozen states, none of which found evidence supporting Daleiden's claim," reports NPR. "Daleiden claimed the video showed evidence that Planned Parenthood was selling that tissue, which would be illegal. Planned Parenthood said the footage was misleadingly edited and that the organization donates tissue following legal guidelines and with permitted reimbursements for expenses, which investigations have corroborated."
Crime

Indiana's Inmates Could Soon Have Access To Tablets (abc57.com) 133

An anonymous reader quotes a report from ABC57 News in South Bend, Indiana: Indiana is looking to help offenders who are behind bars. Soon, each inmate in the Hoosier state could have their own tablet. The Indiana Department of Correction says the tablet will help inmates stay connected with their families and improve their education. Offenders will be able to use the tablets to access any classwork, self-help materials or entertainment. Officials expect to use entertainment, like music or movies, to reward good behavior. The proposal was first filed in January. Apple iPad's or kindles won't be used. Instead, a company that makes tablets specifically for prisons or jails will be hired. One San Francisco based-company they may consider, Telmate, has a device that is used in more than 20 states, including some jails in Marshall County. INDOC is hoping a vendor will front the costs of the entertainment apps so taxpayers won't have to. INDOC also says it wants to avoid charging inmate fees because charging fees that they can't afford would defeat the purpose of the system. If the company selected pays, the vendor would be reimbursed and still earn a profit.
Privacy

Some Of Hacker Group's Claims Of Having Access To 250M iCloud Accounts Aren't False (zdnet.com) 45

Earlier this week, a hacker group claimed that it had access to 250 million iCloud accounts. The hackers, who called themselves part of Turkish Crime Family group, threatened to reset passwords of all the iCloud accounts and remotely wipe those iPhones. Apple could stop them, they said, if it paid them a ransom by April 7. In a statement, Apple said, "the alleged list of email addresses and passwords appears to have been obtained from previously compromised third-party services," and that it is working with law enforcement officials to identify the hackers. Now, ZDNet reports that it obtained a set of credentials from the hacker group and was able to verify some of the claims. From the article: ZDNet obtained a set of 54 credentials from the hacker group for verification. All the 54 accounts were valid, based on a check using the site's password reset function. These accounts include "icloud.com," dating back to 2011, and legacy "me.com" and "mac.com" domains from as early as 2000. The list of credentials contained just email addresses and plain-text passwords, separated by a colon, which according to Troy Hunt, data breach expert and owner of notification site Have I Been Pwned, makes it likely that the data "could be aggregated from various sources." We started working to contact each person, one by one, to confirm their password. Most of the accounts are no longer registered with iMessage and could not be immediately reached. However, 10 people in total confirmed that their passwords were accurate, and as a result have now been changed.
Cellphones

Feds: We're Pulling Data From 100 Phones Seized During Trump Inauguration (arstechnica.com) 233

An anonymous reader quotes a report from Ars Technica: In new filings, prosecutors told a court in Washington, DC that within the coming weeks, they expect to extract all data from the seized cellphones of more than 100 allegedly violent protesters arrested during the inauguration of President Donald Trump. Prosecutors also said that this search is validated by recently issued warrants. The court filing, which was first reported Wednesday by BuzzFeed News, states that approximately half of the protestors prosecuted with rioting or inciting a riot had their phones taken by authorities. Prosecutors hope to uncover any evidence relevant to the case. Under normal judicial procedures, the feds have vowed to share such data with defense attorneys and to delete all irrelevant data. "All of the Rioter Cell Phones were locked, which requires more time-sensitive efforts to try to obtain the data," Jennifer Kerkhoff, an assistant United States attorney, wrote. Such phone extraction is common by law enforcement nationwide using hardware and software created by Cellebrite and other similar firms. Pulling data off phones is likely more difficult under fully updated iPhones and Android devices.
DRM

W3C Erects DRM As Web Standard (theregister.co.uk) 260

The World Wide Web Consortium (W3C) has formally put forward highly controversial digital rights management as a new web standard. "Dubbed Encrypted Media Extensions (EME), this anti-piracy mechanism was crafted by engineers from Google, Microsoft, and Netflix, and has been in development for some time," reports The Register. "The DRM is supposed to thwart copyright infringement by stopping people from ripping video and other content from encrypted high-quality streams." From the report: The latest draft was published last week and formally put forward as a proposed standard soon after. Under W3C rules, a decision over whether to officially adopt EME will depend on a poll of its members. That survey was sent out yesterday and member organizations, who pay an annual fee that varies from $2,250 for the smallest non-profits to $77,000 for larger corporations, will have until April 19 to register their opinions. If EME gets the consortium's rubber stamp of approval, it will lock down the standard for web browsers and video streamers to implement and roll out. The proposed standard is expected to succeed, especially after web founder and W3C director Sir Tim Berners-Lee personally endorsed the measure, arguing that the standard simply reflects modern realities and would allow for greater interoperability and improve online privacy. But EME still faces considerable opposition. One of its most persistent vocal opponents, Cory Doctorow of the Electronic Frontier Foundation, argues that EME "would give corporations the new right to sue people who engaged in legal activity." He is referring to the most recent controversy where the W3C has tried to strike a balance between legitimate security researchers investigating vulnerabilities in digital rights management software, and hackers trying to circumvent content protection. The W3C notes that the EME specification includes sections on security and privacy, but concedes "the lack of consensus to protect security researchers remains an issue." Its proposed solution remains "establishing best practices for responsible vulnerability disclosure." It also notes that issues of accessibility were ruled to be outside the scope of the EME, although there is an entire webpage dedicated to those issues and finding solutions to them.

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