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U.S. Justice Department Shuts Down Rydox Cybercrime Marketplace

 

The U.S. Justice Department announced on Thursday the successful seizure and dismantling of Rydox, a notorious online marketplace for trafficking stolen personal information and cybercrime tools. In a coordinated operation with international law enforcement agencies, three individuals allegedly responsible for administering the site were arrested.

Since its inception in 2016, Rydox has been linked to over 7,600 illicit sales, generating significant profits by selling sensitive data such as credit card details, login credentials, and personally identifiable information (PII). Authorities reported that the platform offered 321,372 cybercrime products to a user base of more than 18,000 registered buyers, earning over $230,000 in revenue.

The Coordinated Crackdown

This operation involved multiple law enforcement agencies, including:

  • FBI’s Pittsburgh Office
  • Albania’s Special Anti-Corruption Body (SPAK)
  • National Bureau of Investigation (BKH)
  • Kosovo Special Prosecution Office
  • Kosovo Police
  • Royal Malaysian Police

Authorities apprehended two Kosovo nationals, Ardit Kutleshi (26) and Jetmir Kutleshi (28), in Kosovo. Both suspects will be extradited to the Western District of Pennsylvania to face charges including identity theft and money laundering. A third individual, Shpend Sokoli, was arrested in Albania and will face prosecution in his home country.

As part of the operation, law enforcement seized the domain Rydox.cc and its associated servers located in Kuala Lumpur, Malaysia. Additionally, U.S. authorities confiscated approximately $225,000 in cryptocurrency linked to the defendants, effectively dismantling the infrastructure supporting Rydox’s operations.

Global Cooperation in Combating Cybercrime

Eric Olshan, U.S. Attorney for the Western District of Pennsylvania, emphasized the importance of international collaboration in tackling cybercrime networks. “The harms can be devastatingly local,” Olshan stated, underlining how these crimes, though orchestrated globally, impact individuals and communities directly. He reiterated the Justice Department’s commitment to holding cybercriminals accountable.

Rydox has long symbolized the darker side of digital innovation, where stolen data is exploited for illicit profit. By providing a marketplace for cybercrime tools and sensitive information, it enabled thousands of buyers to commit fraudulent activities that affected both individuals and organizations.

Implications of the Takedown

The successful takedown of Rydox marks a significant victory in the fight against global cybercrime. It highlights the importance of multinational efforts in addressing online criminal networks. However, it also serves as a reminder of the persistent threats posed by similar platforms.

The arrests and dismantling of Rydox send a strong message to cybercriminals: no one is beyond the reach of international law enforcement agencies. This operation underscores the commitment of global authorities to combat cybercrime and protect victims from its devastating consequences.

Understanding Mimic Ransomware: Features, Threats, and Noteworthy Exploits

 


Mimic is a ransomware family first discovered in 2022. Like other ransomware, it encrypts files on a victim’s system and demands a cryptocurrency payment for the decryption key. What makes Mimic particularly concerning is its dual approach: it not only encrypts data but also exfiltrates it beforehand. This stolen data can be used as leverage, with attackers threatening to release or sell it if the ransom is not paid. 
 
Mimic is believed to reuse code from Conti, a well-known ransomware whose source code was leaked after the group publicly supported Russia’s invasion of Ukraine. While the exact origins of Mimic remain unclear, its operations appear to primarily target English- and Russian-speaking users.   
 

Exploitation of Legitimate Tools  

 
One of Mimic’s distinctive features is its exploitation of the API from Everything, a legitimate Windows file search tool developed by Voidtools. By leveraging this tool, the ransomware can quickly locate and encrypt files, increasing the efficiency of its attacks.   
 
Importantly, Mimic does not rely on victims having Everything pre-installed. Instead, it typically packages the tool along with additional malicious programs designed to:   
 
  • Disable Windows Defender to reduce system defenses. 
  • Misuse Sysinternals’ Secure Delete tool to erase backups, making file recovery more difficult. 

Indicators of Infection  

 
Victims of Mimic can identify an infection by the “.QUIETPLACE” extension added to encrypted files. Additionally, the ransomware leaves a ransom note demanding $3,000 in cryptocurrency to provide the decryption key.   
 
In many cases, victims feel compelled to pay the ransom, particularly when backups have been deleted or compromised.   
 

The Emergence of Elpaco   

 
A new variant of Mimic, known as Elpaco, has recently been detected. This variant is associated with attacks that involve brute-forcing Remote Desktop Protocol (RDP) credentials. Once access is gained, attackers exploit the *Zerologon* vulnerability (CVE-2020-1472) to escalate privileges and deploy the ransomware.   
 
Reports of Elpaco infections have surfaced in countries such as Russia and South Korea, underscoring the expanding reach and evolving capabilities of this ransomware family.   
 

The Importance of Vigilance 

 
Although tools like Everything and Secure Delete are not inherently harmful, Mimic’s misuse of these legitimate programs highlights the need for continuous vigilance. Cybercriminals are increasingly finding ways to exploit trusted software for malicious purposes. 
 
As Mimic and its variants continue to evolve, implementing robust cybersecurity measures—including regular system updates, strong authentication protocols, and comprehensive backup strategies—remains essential to mitigating the risk of ransomware attacks.

UN Report: Telegram joins the expanding cybercrime markets in Southeast Asia

 


According to a report issued by the United Nations Office for Drugs and Crime, dated October 7, criminal networks across Southeast Asia are increasingly turning to the messaging platform Telegram for conducting comprehensive illegal activities. It says Telegram, due to big channels and seemingly insufficient moderation, becomes the attraction of the underworld for organised crime and its resultant transformation in the ways of operating global illicit operations.

An Open Market for Stolen Data and Cybercrime Tools

The UNODC report clearly illustrates how Telegram has become a trading platform for hacked personal data, including credit card numbers, passwords, and browser histories. Cybercriminals publicly trade on the large channels of Telegram with very little interference. In addition, it has various software and tools designed to conduct cybercrime such as fraud using deepfake technology and malware used for copying and collecting users' data. Moreover, money laundering services are provided in unauthorised cryptocurrency exchanges through Telegram.

An example was an ad to be placed on Telegram stating that it was moving USDT cryptocurrency, stolen and with $3 million daily transactions, to cash in on criminal organisations involved in transnational organised crime in Southeast Asia. According to reports, these dark markets are growing increasingly omnipresent on Telegram through which vendors aggressively look to reach criminal organisations in the region.

Southeast Asia: A hub of fraud and exploitation

According to the UNODC reports, this region in Southeast Asia has become an important base for international fraudulent operations. Most criminal activities within the region relate to Chinese syndicates located within heavily fortified locations and use trafficked individuals forced into labour. It is estimated that the industry generates between $27.4 billion and $36.5 billion annually.

The move comes as scrutiny of Telegram and its billionaire founder, Russian-born Pavel Durov, is intensifying. Durov is facing legal fallout in France after he was charged with abetting crime on the platform by allowing the distribution of illegal content after he tightened his regulations in France. The case has sparked debates on the liability of tech companies for the crimes happening on their platform, and the line between free speech and legal accountability.

It responded to the increasing pressure by promising cooperation with legal authorities. The head of Telegram, Durov, stated that Telegram will share the IP addresses and phone numbers of users whenever a legal request for them is required. He further promised to cancel some features on the platform that have been widely misused for illicit activities. Currently, more than a billion people worldwide are using Telegram, and it has so far not reacted publicly to the latest report from the UNODC.

A Perfect Fertile Ground for Cybercrime

For example, as personal data becomes more and more exposed to fraudulent exploitation and fraud schemes through Telegram, for instance, the Deputy Representative for Southeast Asia and the Pacific at UNODC highlighted the perils of the consumer getting to see. In this respect, Benedikt Hofmann, free access and anonymity developed an ideal setting for criminals towards the people's data and safety.

Innovation in Criminal Networks

The growth in Southeast Asia's organised crime to higher levels may indicate criminals will be armed with new, more varying technologies-most importantly malware, generative AI tools, and deepfakes-to commit sophisticated cyber-enabled fraud. In relation to innovation and adaptability, investigation by UNODC revealed over 10 specialised service providers in the region offering deep fakes technology for use in cybercrime cases.

Expanding Investigations Across Asia

Another area of concern discussed in the UNODC report is the increasing investigation by law enforcement agencies in other parts of Asia. For example, South Korean authorities are screening Telegram for its role in the commission of cybercrimes that include deepfake pornography. Meanwhile, in India, a hacker used Telegram chatbots to leak private data from Star Health, one of the country's largest insurers. This incident disclosed medical records, IDs, and even tax details. Star Health sued Telegram.

A Turning Point in Cybersecurity

The UNODC report opens one's eyes to the extent the challenge encrypted messaging presents toward the fight against organised crime. Thus, while criminal groups will continue and take full advantage of platforms like Telegram, tech companies remain on their toes about enforcing control measures over illegal activity while trying to balance concerns to address user privacy and safety.


Port of Seattle Faces $5.9 Million Ransom Demand in Rhysida Cyberattack

 

The Port of Seattle is confronting a severe cybersecurity crisis as the Rhysida ransomware group demands a ransom of 100 bitcoins (approximately $5.9 million). Rhysida, which has gained notoriety for targeting organizations worldwide, released screenshots of stolen documents, claiming they possess sensitive data such as scanned U.S. passports, Social Security numbers, and tax forms. The group has threatened to sell this data on the dark web if their ransom demands are not met within a week. 

In a joint statement with Seattle-Tacoma International Airport, the Port of Seattle has made it clear they will not pay the ransom, despite threats to publicly release the stolen data. A Port spokesperson emphasized that refusing to comply is part of their firm stance against negotiating with cybercriminals. The extent of the data breach is still under investigation, but Rhysida’s involvement suggests a sophisticated attack that exploited vulnerabilities in the port’s systems. The attack was initially detected on August 24, leading to widespread service disruptions. 

Critical systems were impacted, including baggage handling, check-in kiosks, ticketing, Wi-Fi, and digital display boards, creating significant inconvenience for travelers. The port responded swiftly, isolating affected systems to prevent further breaches. This disruption highlights the real-world consequences of ransomware attacks on essential infrastructure, raising concerns about cybersecurity preparedness in public sectors. Rhysida operates as a ransomware-as-a-service group, enabling other cybercriminals to use its platform for extortion. The group, active since June 2023, has a history of targeting multiple sectors, including government, healthcare, and critical infrastructure, with a focus on the U.S. 

According to cybercrime research platform eCrime.ch, Rhysida has claimed nearly 150 victims since its emergence, demonstrating its rapid growth and effectiveness in breaching high-value targets. The breach at the Port of Seattle emphasizes the growing threat of ransomware attacks on critical infrastructure and serves as a wake-up call for organizations to prioritize cybersecurity measures. Authorities, cybersecurity experts, and the port’s internal IT team are working together to assess the full impact of the attack and develop strategies to restore normal operations. Given the evolving tactics of ransomware groups like Rhysida, this incident underscores the urgent need for comprehensive security strategies and employee training to protect against future breaches. 

In light of this attack, cybersecurity agencies have warned other U.S. ports and critical infrastructure organizations to strengthen their defenses against similar threats. This breach represents a broader trend of ransomware groups targeting critical infrastructure, which, if left unchecked, could have far-reaching implications on national security and economic stability. The Port of Seattle’s refusal to pay the ransom aligns with federal guidelines discouraging negotiations with cybercriminals, but it remains to be seen whether this approach will mitigate the impact of the breach or provoke further retaliation from Rhysida. 

The incident serves as a stark reminder that cybersecurity threats are increasingly sophisticated, requiring organizations to adapt their defense strategies to safeguard sensitive data and operations.

Kawasaki Motors Europe Targeted by RansomHub Ransomware Attack

 

Kawasaki Motors Europe has been targeted by a ransomware attack orchestrated by the RansomHub gang, causing significant disruption to its services. The company, responsible for distributing and selling Kawasaki’s motorcycles across Europe, swiftly responded by isolating its servers to contain the threat. IT teams collaborated with external cybersecurity experts to analyze and cleanse systems of any lingering malware. Kawasaki aims to have 90% of its server infrastructure back online shortly, ensuring that business operations, including dealerships and supply chains, remain unaffected. 

The RansomHub group, a rising cybercriminal organization, claimed responsibility for the attack and added Kawasaki to its extortion portal on the dark web. According to the threat group, 487 GB of data was stolen, and they threatened to leak this information if their demands weren’t met. The data theft’s scope, particularly whether it includes sensitive customer details, remains unclear. Despite these developments, Kawasaki has not commented on the situation or responded to inquiries from cybersecurity analysts and reporters. 

RansomHub has gained significant traction in recent months, filling the void left by the now-defunct BlackCat/ALPHV ransomware operation. This has resulted in a surge of attacks against high-profile organizations, with RansomHub’s affiliates targeting critical sectors such as healthcare, retail, and manufacturing. The group’s growing notoriety was highlighted in a joint advisory issued by the FBI, CISA, and the Department of Health and Human Services, which reported over 200 victims of the ransomware group in the U.S. alone since February. The attack on Kawasaki emphasizes the evolving threat posed by ransomware groups and the importance of proactive cybersecurity measures. 

For businesses like Kawasaki, robust security protocols, regular updates, and swift incident response are critical in mitigating the risk of data breaches. The company’s efforts to cleanse infected servers highlight the importance of collaboration between internal IT teams and external cybersecurity experts in recovering from attacks. To protect against future breaches, organizations must invest in advanced threat detection technologies, ensure comprehensive patch management, and prioritize employee cybersecurity training. 

With cybercriminal groups like RansomHub becoming increasingly organized and opportunistic, adopting a layered defense strategy is vital for reducing exposure to such attacks. Kawasaki’s situation serves as a reminder of the growing challenges organizations face in safeguarding sensitive data from evolving cyber threats and the need for constant vigilance in a rapidly changing digital landscape.

Massive Data Breach Exposes Personal Information of 2.9 Billion People Worldwide

 

No matter how cautious you are online, your personal data can still be vulnerable, as demonstrated by a recent data breach that exposed the information of 2.9 billion people. This alarming incident was brought to light as part of a class action lawsuit filed earlier this month. The lawsuit, submitted to the U.S. District Court for the Southern District of Florida, claims that the personal data, including full names, addresses, and Social Security Numbers, was compromised by a public records data provider named National Public Data, a company specializing in background checks and fraud prevention.  

The stolen data, which includes detailed personal information dating back 30 years, was taken by a cybercriminal group known as USDoD. According to the complaint, these hackers attempted to sell the vast collection of data on the dark web for $3.5 million. Given the enormous number of people affected, it is likely that the data includes individuals not only from the U.S. but from other countries as well. National Public Data allegedly obtained this massive amount of personal information through a process known as scraping, a technique used to collect data from websites and other online sources. The troubling aspect of this case is that the company reportedly scraped personally identifiable information (PII) from non-public sources, meaning many of the individuals affected did not voluntarily provide their data to the company. 

One of the plaintiffs, a California resident, became aware of the breach after receiving a notification from an identity theft protection service that his information had been leaked on the dark web. As part of the lawsuit, this plaintiff is seeking a court order for National Public Data to securely dispose of all the personal information it acquired through scraping. Additionally, the plaintiff is asking for financial compensation for himself and other victims, along with the implementation of stricter security measures by the company. In the wake of such a breach, the exposed data could be used by hackers to commit various forms of identity theft and fraud. While National Public Data has yet to issue a formal statement, it is likely that the company will be required to notify affected individuals of the breach. These notifications are expected to arrive by mail, so it is important to monitor your mailbox closely. 

Typically, companies responsible for data breaches offer affected individuals free identity theft protection or credit monitoring for a period of time. Until such services are offered, it is crucial to be vigilant in checking your emails and messages, as hackers may use the stolen data to conduct phishing attacks. Additionally, carefully monitoring your bank and financial accounts for any signs of unauthorized activity is recommended. 

This breach, which is nearly as significant as the 2013 Yahoo! breach that exposed the data of 3 billion people, is likely to have far-reaching consequences. Tom’s Guide has reached out to National Public Data for further information and will provide updates as the situation develops.

AT&T Paid Attackers $370K to Delete Stolen Customer Data

 

AT&T reportedly paid a hacker more than $370,000 to remove stolen customer data. In an extraordinary turn of events, the ransom may not have gone to those responsible for the breach.

Last Friday, AT&T disclosed that an April data breach had exposed the call and text records of "nearly all" of its customers, including phone numbers and call counts. In a filing with the Securities and Exchange Commission (SEC), AT&T claimed it has since tightened its cybersecurity measures and is working together with law authorities to investigate the incident.

It now appears that AT&T has taken additional steps in response to the intrusion. According to Wired, AT&T paid a ransom of 5.7 bitcoin to a member of the hacking group ShinyHunters in mid-May, which was worth little more than $373,000 at the time. In exchange for this money, the hacker allegedly deleted the stolen data from the cloud server where it was stored, as well as providing video footage of the act. 

However, there is no guarantee that the millions of people affected by the latest massive AT&T attack will be entirely safe, as digital data can be easily copied. The security expert who mediated negotiations between AT&T and the hacker told Wired that they believe the only complete copy of the stolen dataset was wiped. However, partial fragments may remain at large. 

Prior to AT&T's announcement of the incident, it was revealed that Santander Bank and Ticketmaster had also been penetrated using login credentials that had been taken by an employee of the independent cloud storage provider Snowflake. According to Wired, following the Ticketmaster breach, hackers may have infiltrated over 160 companies at once using a script.

Securing Sensitive Data: Lessons from Keytronic’s Recent Breach


Keytronic, a prominent printed circuit board assembly (PCBA) manufacturer, recently confirmed a significant data breach. The breach occurred after the Black Basta ransomware gang leaked over 500GB of the company’s stolen data. In this blog post, we delve into the details of the breach, its impact, and Keytronic’s response.

The Breach Details

Attack Timeline 

The breach came to light two weeks ago when Black Basta claimed responsibility for the attack. Keytronic had reported the cyberattack in an SEC filing over a month ago, on May 62.

Operational Disruption 

The attack disrupted Keytronic’s operations, limiting access to critical business applications. As a result, the company had to shut down domestic and Mexico operations for two weeks to address the incident.

Stolen Data

The stolen data included sensitive information such as human resources, finance, engineering, and corporate data. Black Basta shared screenshots of employees’ passports, social security cards, customer presentations, and corporate documents2.

As required by new SEC criteria, the Company has also stated that the attack and loss of production will have a material impact on its financial position in the fourth quarter of 2024, ending on June 29.

Impact and Response

Personal Information Compromised: Keytronic confirmed that personal information was stolen during the breach. The threat actor accessed and exfiltrated limited data from the company’s environment, including personally identifiable information.

Financial Implications: The resulting production loss could impact Keytronic’s financial condition for the fourth quarter, which ends on June 29. The company incurred approximately $600,000 in expenses for external cybersecurity experts, with more costs anticipated.

Lessons Learned

The company has already spent around $600,000 on hiring external cybersecurity experts and expects to pay more. While Keytronic could not identify a specific threat group, the Black Basta ransomware organization claimed the attack two weeks ago, revealing what they claim is all of the stolen data.

The threat actors say that the attack stole human resources, finance, engineering, and business data, and they have shared photos of employee passports and social security cards, as well as customer presentations and company documents.

Black Basta Ransomware

The Black Basta ransomware operation began in April 2022 and is thought to be made up of former members of the Conti ransomware operation, which broke into smaller groups after it shut down.

Black Basta has since grown to be one of the biggest and most damaging ransomware operations, responsible for a large number of attacks, including those against Capita, Hyundai's European division, the Toronto Public Library, the American Dental Association, and, most recently, a ransomware attack on U.S. healthcare giant Ascension.

Between April 2022 and May 2024, a ransomware campaign breached 500 businesses and stole data from at least 12 out of 16 key infrastructure sectors, according to CISA and the FBI.