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Mitigating the Risks of Shadow IT: Safeguarding Information Security in the Age of Technology

 

In today’s world, technology is integral to the operations of every organization, making the adoption of innovative tools essential for growth and staying competitive. However, with this reliance on technology comes a significant threat—Shadow IT.  

Shadow IT refers to the unauthorized use of software, tools, or cloud services by employees without the knowledge or approval of the IT department. Essentially, it occurs when employees seek quick solutions to problems without fully understanding the potential risks to the organization’s security and compliance.

Once a rare occurrence, Shadow IT now poses serious security challenges, particularly in terms of data leaks and breaches. A recent amendment to Israel’s Privacy Protection Act, passed by the Knesset, introduces tougher regulations. Among the changes, the law expands the definition of private information, aligning it with European standards and imposing heavy penalties on companies that violate data privacy and security guidelines.

The rise of Shadow IT, coupled with these stricter regulations, underscores the need for organizations to prioritize the control and management of their information systems. Failure to do so could result in costly legal and financial consequences.

One technology that has gained widespread usage within organizations is ChatGPT, which enables employees to perform tasks like coding or content creation without seeking formal approval. While the use of ChatGPT itself isn’t inherently risky, the lack of oversight by IT departments can expose the organization to significant security vulnerabilities.

Another example of Shadow IT includes “dormant” servers—systems connected to the network but not actively maintained. These neglected servers create weak spots that cybercriminals can exploit, opening doors for attacks.

Additionally, when employees install software without the IT department’s consent, it can cause disruptions, invite cyberattacks, or compromise sensitive information. The core risks in these scenarios are data leaks and compromised information security. For instance, when employees use ChatGPT for coding or data analysis, they might unknowingly input sensitive data, such as customer details or financial information. If these tools lack sufficient protection, the data becomes vulnerable to unauthorized access and leaks.

A common issue is the use of ChatGPT for writing SQL queries or scanning databases. If these queries pass through unprotected external services, they can result in severe data leaks and all the accompanying consequences.

Rather than banning the use of new technologies outright, the solution lies in crafting a flexible policy that permits employees to use advanced tools within a secure, controlled environment.

Organizations should ensure employees are educated about the risks of using external tools without approval and emphasize the importance of maintaining information security. Proactive monitoring of IT systems, combined with advanced technological solutions, is essential to safeguarding against Shadow IT.

A critical step in this process is implementing technologies that enable automated mapping and monitoring of all systems and servers within the organization, including those not directly managed by IT. These tools offer a comprehensive view of the organization’s digital assets, helping to quickly identify unauthorized services and address potential security threats in real time.

By using advanced mapping and monitoring technologies, organizations can ensure that sensitive information is handled in compliance with security policies and regulations. This approach provides full transparency on external tool usage, effectively reducing the risks posed by Shadow IT.

Android Flaw Exposes DNS Queries Despite VPN Kill Switch

 


Several months ago, a Mullvad VPN user discovered that Android users have a serious privacy concern when using Mullvad VPN. Even with the Always-On VPN feature activated, which ensures that the VPN connection is always active, and with the "Block connections without VPN" setting active, which acts as a kill switch that ensures that only the VPN is the one that passes network traffic, it has been found that when switching between VPN servers, Android devices leak DNS queries. 

It is important to understand that enabling the "Block Connections Without VPN" option (also known as the kill switch) ensures that all network traffic and connections pass through an always-connected VPN tunnel, preventing prying eyes from tracking all Internet activity by users. During the investigation, Mullvad discovered that even with these features enabled in the latest version of Android (Android 14), a bug still leaks some DNS information. 

As a result, this bug may occur when you use apps that make direct calls to the getaddrinfo C function. The function provides protocol-independent translation from a text hostname to an IP address through the getaddrinfo function. When the VPN is active (and the DNS server is not configured) or when the VPN app re-configures the tunnel, crashes or is forced to stop, Android leaks DNS traffic. 

This leakage behaviour is not observed by apps that are solely based on Android's API, such as DNSResolver, Mullvad clarified. As a result, apps such as Flash Player and Chrome that currently have support for getting address information directly from the OS are susceptible to this issue since they can access the address information directly. This is rather concerning since it goes against what you would expect from the OS, even if security features are enabled. 

Users may want to use caution when using Android devices for sensitive tasks, and may even want to employ additional protective measures until Google addresses this bug and issues a patch that is compatible with both original Android and older versions of Android, in light of the severity of this privacy issue. 

The first DNS leak scenario, which occurs when the user changes the DNS server or switches to a different server, is easily mitigated if the VPN app is set to use a bogus DNS server at the same time. It has also failed to resolve the VPN tunnel reconnect DNS query leak, which is a significant issue for all other Android VPN apps because this issue is likely to affect all other VPN apps as well. 

Mullvad also discovered in October 2022 that, every time an Android device connected to a WiFi network, the device leaked DNS queries (such as IP addresses and DNS lookups), since the device was performing connectivity checks. Even when the "Always-on VPN" feature was enabled with the "Block connections without VPN" option enabled, Android devices still leaked DNS queries.

The leak of DNS traffic can potentially expose users' approximate locations and the online platforms they use as well as their precise locations, posing a serious threat to user privacy. Since this is a serious issue, it may be best to stop using Android devices for sensitive activities or to adapt additional safeguards to mitigate the risk of such leaks until Google fixes the bug and backports the patch to older versions of Android to mitigate the risk.

Security Researchers Establish Connections Between 3AM Ransomware and Conti, Royal Cybercriminal Groups

 

Security researchers examining the operations of the recently surfaced 3AM ransomware group have unveiled strong connections with notorious entities like the Conti syndicate and the Royal ransomware gang.

The 3AM ransomware, also known as ThreeAM, has adopted a novel extortion strategy: publicly revealing data leaks to victims' social media followers and utilizing bots to respond to influential accounts on X (formerly Twitter), directing them to the compromised data.

Initially observed by Symantec's Threat Hunter Team in mid-September, 3AM gained attention after threat actors shifted from deploying LockBit malware. According to French cybersecurity firm Intrinsec, ThreeAM is likely affiliated with the Royal ransomware group, now rebranded as Blacksuit, consisting of former members of Team 2 within the Conti syndicate.

As Intrinsec delved into their investigation, they found substantial overlap in communication channels, infrastructure, and tactics between 3AM and the Conti syndicate. Notably, an IP address listed by Symantec as a network indicator of compromise led researchers to a PowerShell script for dropping Cobalt Strike on VirusTotal.

Further investigation uncovered a SOCKS4 proxy on TCP port 8000, a TLS certificate associated with an RDP service, and HTML content from 3AM's data leak site indexed by the Shodan platform. The servers involved were traced back to the Lithuanian hosting company, Cherry Servers, known for hosting malware despite having a low fraud risk.

Intrinsec's findings aligned with a report from Bridewell, connecting the IP subnet to the ALPHV/BlackCat ransomware operation. This group, not part of the Conti syndicate but allied, was identified as having ties to IcedID malware used in Conti attacks.

In addition to technical details, Intrinsec uncovered 3AM's experiment with a new extortion technique. The gang set up a Twitter account in August, using it to reply to tweets from victims and high-profile accounts, linking to the data leak site on the Tor network. Intrinsec suspected the use of a Twitter bot for a name-and-shame campaign, noting an unusually high volume of automated replies.

Despite 3AM's perceived lack of sophistication compared to Royal, the researchers cautioned against underestimating its potential for deploying numerous attacks. The article concludes with a broader context on the Conti syndicate, its dissolution, and the emergence of affiliated groups like Royal ransomware.

Hackers Leak 50 Million Records in 'Free Leaksmas' Spree

Just before Christmas, hackers leaked around 50 million records full of private information. They shared these leaks on the Dark Web under the name "Free Leaksmas." It seems like they were doing this to thank each other and attract new customers during the busy holiday season. 

According to cybersecurity company Resecurity, they noticed that right before Christmas Eve, various hackers released a lot of data all at once. Some of this data seemed to come from previous security breaches, but there were also new breaches involved. The information was either stolen or copied from people worldwide. 

“Numerous leaks disseminated in the underground cyber world were tagged with 'Free Leaksmas,' indicating that these significant leaks were shared freely among various cybercriminals as a form of mutual gratitude”, Resecurity wrote on its website. 

One of the largest data releases came from a hack at the Peruvian telecom company Movistar. In this data dump, there were about 22 million records with sensitive information like customer phone numbers and DNI numbers (which are the main IDs for people in Peru). 

Other big leaks around Leaksmas included one with 2.5 million records from a Vietnamese fashion store's customers and another with 1.5 million records from a French company's customers. 

“A significant event during the 'Leaksmas' in the Dark Web involved the release of a large dataset from Movistar, a leading telecommunications provider in Peru. This dataset contained over 22 million records, including customers' phone numbers and DNI (Documento Nacional de Identidad) numbers”, Resecurity added. 

Not all the shared data Resecurity noticed during the holidays were from recent hacks; some seemed to be from older incidents. For instance, there was info about customers from a Swedish fintech company, Klarna. The hackers might have gotten this data from a rumoured (though not officially confirmed) breach in 2022. 

Another example was a data dump with 2 million records from customers of a Mexican bank. Resecurity's analysis suggested it might have come from a breach in 2021 or 2022. Over the holidays, cybersecurity experts found groups like SeigedSec and "Five Families" sharing stolen data online. 

SeigedSec targeted critical infrastructure in Israel and claimed responsibility for a breach in the Idaho National Laboratory. "Five Families" stole records from a Chinese store due to labour issues. Some criminals selling credit card data offered discounts. Cybercriminals are keen on getting personal info and exploiting weaknesses in websites and software.