Case studies in global criminal attacks: McColo & CheckFreea
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1 Case studies in global criminal attacks: McColo & CheckFreea Rod Rasmussen, President & CTO Internet Identity, APWG Industry Liaison E Crime and Abuse of the DNS Forum: Session 2. Criminal Attacks & Abuse Response Today March 4, 2009
2 Overview Intro Summary of CheckFree attack Analysis of CheckFree attack History of McColo and its demise Battling the Srizbi botnet
3 First Responder Viewpoint My company provides mitigation services for organizations victimized by on line fraud and e crime This is largely a private sector activity law enforcement does not shutter abuse directly as a rule Must work with community and find the right people to shut down criminal websites/domains/e mail/bots Must determine type of fraud site Hacked machine Bogus webhosting account (stolen credit card used) Bogus domain registered to use botnet 3
4 Internet Ecosystem Backbone Provider Courtesy: Greg Aaron ISP/Webhost Organization with Network Closeness to problem Scale and Reachability Webmaster or Site Owner 4
5 Who is CheckFree? Largest provider of on line billpay services in the U.S. 1.4 billion transactions handled annually (160K/hr) Process over 75% of all ACH transactions in U.S. Serve 22 of top 25 U.S. Financial Institutions Direct integration with thousands of payment websites Banks, CU s, utilities, e commerce companies
6 Attack Summary What the attacker did: took control of several CheckFree domain names via their domain management account changed authoritative DNS for domains pointed all hostnames to malware server in Ukraine
7 Attack Summary Result: CheckFree visitors redirected to malware site All visitors to CheckFree domain names Billpay customers of client FI s (from THEIR sites) Some customers directly infected Most customers blocked from using billpay services
8 Attack Summary CheckFree regained control of domains after about 8 hours Persistent nature of DNS caused attack effects to linger for 48 hours longer Impact was far reaching Numerous Credit Unions and banks shut down Bill Pay services for a day or longer Tens of thousands of individuals exposed to potential malware infection
9 The CheckFree Infrastructure Uses Domain Name Service (DNS) to its advantage Sample paradigm: FI_NAME.checkfree.com Strength: Easy to set up new customers Strength: Can load balance and rearrange IP addresses without customers needing to know Weakness: DNS must remain reliably controlled
10 Accessing the BillPay Server CU #1 website cu1.checkfree.com Util #2 website util2.checkfreeweb.com Bank #3 website Ecom #4 website bank3.mycheckfree.com ecom4.checkfree.com BillPay server Site #5 website site5.checkfree.com
11 Accessing the BillPay Server CU #1 website Util #2 website cu1.checkfree.com util2.checkfreeweb.com Weakness: Reliance on accurate DNS records Bank #3 website Ecom #4 website bank3.mycheckfree.com ecom4.checkfree.com BillPay server Site #5 website site5.checkfree.com
12 Normal DNS Resolution Member s Web Browser wsecu.checkfree.com? ISP Resolver NS?? com NS checkfree.com NS Website server
13 CheckFree attack attack Member s Web Browser wsecu.checkfree.com ? ISP caches ISP Resolver for NS2 days?? bad guy changes.com Root NS NS entry checkfree.com NS NSns1.checkfree.com ns76.worldnic.com Malware.exe broken too Ukrainian IP address BillPay Malicious server server
14 Attack Summary Step 1 Attacker took control of several CheckFree domains by breaking into the password protected domain management account at Network Solutions obtained the password by phishing or malware Network Solutions customers phished 6 weeks before keylogger software could easily steal this info
15 Attack Summary Steps 2 & 3 Attacker changed authoritative DNS for domains Name servers changed to Network Solutions free Name Server service on ns##.worldnic.com Attacker pointed A records for all hostnames to malware server in Ukraine Used Network Solutions free DNS tools
16 CheckFree s response Actually very good responsive and thorough CheckFree regained control of DNS in about 8 hours Had to work with registrar CheckWho? process was complicated due to admin e mail address defined under checkfree.com domain no verification via e mail possible But... the attacker set the TTL for the bad DNS to 48 hours the bad DNS settings were in use for up to 56 hours depending upon ISP
17 Attack Motivation Attack appeared related to phishing attacks six weeks prior that targeted Network Solutions and enom Dozens of domains from those registrars were also compromised and pointed to the Ukrainian malware server at exact same time Motivation appears to have been malware distribution not disruption of a majority of the U.S. online bill pay systems!
18 How TTL prolongs attack TTL tells resolving DNS servers how long to keep IP address ISPs run these for most users Can t update from outside ISP must refresh cache of one or all domains No standard process for doing this available By the way, customers machines cache DNS data too...
19 DNS Vulnerabilities Member s Web Browser wsecu.checkfree.com? many ways to ISP Resolver poison DNS Resolvers resolvers??? Root NS entry set by domain.com account NS checkfree.com NS many ways to poison or hack DNS servers Website server
20 Lessons learned Entire online infrastructures rely on the DNS to work and the DNS is vulnerable to attack Domain name registrations are vulnerable DNS can be compromised via the registrar account System to system hand offs should be verified every time just in case a rogue system has taken over
21 Many thanks to Brian Krebs (washingtonpost.com) Alex (fireeye.com) A host of security researchers everywhere 21
22 What is (was) McColo? Mid level size webhosting provider US Based (San Jose, California) Offered typical range of hosting services Looked pretty normal at first glance However A favorite haunt of ESTDomains IPs on lots of black lists A top area of study for security researchers
23 McColo: E crime Central
24 McColo gets attention Security researchers and spam hunters deal with McColo support for many months (years) Open discussions within community on veracity of provider, getting LE action, best approach Increasing direct pressure Brian Krebs calls upstream providers to interview on story and provides wealth of evidence Other researchers report concurrently Hurricane Electric, Global Crossing Providers de peer McColo, isolating from Internet 24
25 Nov 12, McColo Knocked Offline
26 Spam Drops 50 75% Overnight SpamHaus
27 Spam Drops 50 75% Overnight SpamCop
28 Retail Fraud Rates Plummet Ori Eisen, founder of 41st Parameter, said close to a quarter of a million dollars worth of fraudulent charges that his customers battle every day came to a halt. "It stopped completely that night," Eisen said, referring to a drop in fraudulent activity linked to purchases of high value merchandise with stolen credit and debit cards on Nov. 11, the day McColo was shut down. Brian Krebs
29 Source of Fraud Proxies
30 E Mail Address Harvesting statistics from Project Honey Pot suggest that crawler bots hosted at McColo are responsible for more than 30 million spam messages sent to the project's e mail traps since June The project estimates that each e mail address harvested by bots at McColo could expect to receive an additional 2,000 junk e mail messages a year as a result. Such activity could have major implications for businesses that list large numbers of employee e mail addresses on their Web sites.
31 Botnet owners respond Pre arranged emergency peering via shell organization allows brief re peering of McColo Many botnets re establish control of their bots and update the IPs of C&C servers to new ones Primarily offshore netblocks Operations hampered (not full update) but not knocked out due to back door access Biggest spamming botnet not updated Srizbi Estimates this network responsible for 30 50% of all spam at the time 31
32 The Srizbi Domain Gambit FireEye had reverse engineered Srizbi code Had normal C&C hardcoded to IPs at McColo Backup mechanism was to look for instructions on servers hosted on one of several domains Set of 40 or so domains Rotated every 3 days, for total set of approx. 120 FireEye cracked the algorithm for which backup domains would be queried Domains were NOT registered already! 32
33 Keeping Srizbi down FireEye starts registering all upcoming domains for Srizbi backup access to keep bad guys away Successful for several weeks but getting expensive! Able to research size of botnet, exposures and report Arrangement made to permanently rotate out Srizbi domains via domain registration community Unfortunate gap occurs bad guys register some domains and update large swath of the botnet Good news, still not re using 33
34 Srizbi is not the only one Botnet herders have incorporated this technique Conficker 250 domains per day 2 variants = 500 per day Some legitimate domains come up in algorithm Big effort launched to block with Microsoft working with several registries and registrars What next and how do we deal with this from a policy and operational context? 34
35 Some take aways Criminals can be very smart Use the DNS system to their advantage Are exploiting several weak points in the systems DNS was not designed for security/authentication on its own Everyone is involved in some way Thank You! 35
36 Case studies in global criminal attacks: McColo & CheckFree Rod Rasmussen, President & CTO Internet Identity, APWG Industry Liason rod.rasmussen <at> internetidentity.com E Crime and Abuse of the DNS Forum: Session 2. Criminal Attacks & Abuse Response Today March 4, 2009
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