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'Nearest Neighbour Attack': Russian Hackers Breach US Firm Wi-Fi

 


Russian state-sponsored hacking group APT28 (Fancy Bear/Forest Blizzard/Sofacy) has employed a novel "nearest neighbor attack" to breach enterprise WiFi networks from thousands of miles away. The attack, first detected on February 4, 2022, targeted a U.S. company in Washington, D.C., involved in Ukraine-related projects. Cybersecurity firm Volexity identified the intrusion, highlighting APT28’s innovative approach to bypass multi-factor authentication (MFA).

Details of the Attack

APT28 initiated the attack by breaching a nearby organization’s WiFi network, exploiting dual-home devices such as laptops or routers with both wired and wireless connections. These devices allowed the hackers to connect to the target’s WiFi network. By daisy-chaining access to multiple organizations, the hackers were able to connect to the victim's wireless network and move laterally across the system.

The hackers were able to bypass multi-factor authentication on the company’s WiFi network, despite being physically located thousands of miles away. Once within range, they compromised access to three wireless access points near the target’s conference room windows and used remote desktop protocol (RDP) from an unprivileged user to roam across the network.

Exfiltration and Data Theft

The attackers dumped Windows registry hives (SAM, Security, and System) using a script called servtask.bat, compressing them into a ZIP file for exfiltration. This process allowed APT28 to gather sensitive data without causing significant disruptions to the target network. The focus of the attack was on individuals and projects related to Ukraine, in line with Russia’s geopolitical interests.

Volexity's investigation revealed that APT28 was particularly interested in data from individuals with expertise in Ukraine-related projects. This highlights the targeted nature of the attack, aimed at collecting intelligence from a specific field of work.

Implications and Security Measures

The attack underscores the need for robust WiFi security and network segmentation. APT28’s ability to exploit physical proximity and dual-home devices highlights the growing sophistication of cyberattacks. Organizations should consider the following measures:

  • Enhance WiFi network encryption and authentication protocols.
  • Implement strict network segmentation to limit lateral movement.
  • Regularly audit devices with dual wired and wireless connections.
  • Monitor for unusual network activity and lateral movements.

APT28’s "nearest neighbor attack" serves as a reminder of the advanced techniques used by state-sponsored hackers. Vigilance, along with layered cybersecurity defenses, is crucial in defending against such sophisticated attacks.

Data of 2.5 Lakh Customers Sent to Personal Account by CFPB Employee

 

The Wall Street Journal reported that a consumer financial protection bureau (CFPB) employee sent records containing private information to a personal email address that included confidential supervisory information from 45 other financial institutions as well as personal information on roughly 256,000 customers at one financial institution.

The agency, which was already under siege from Republican lawmakers, presented the breach to Congress as a catastrophic incident. 

The emails contained customer information from seven businesses, although the majority of the personal data was linked to customers at one unnamed institution, a CFPB spokeswoman told the Journal. 

The incident was discovered by the agency for the first time in February, and it was revealed to lawmakers on March 21, according to the Journal. The reason the employee, who was later fired, forwarded the emails to a personal account was not disclosed by the CFPB. 

According to the CFPB, the personal information includes two spreadsheets with names and transaction-specific account numbers that were used internally by the financial institution, which downplays the severity of the data theft.

According to the representative, the spreadsheets do not contain the customers' bank account details and cannot be utilised to access a customer's account. As of Wednesday, the former CFPB employee had not complied with a request to erase the emails. Republican lawmakers seized on the data leak and demanded additional information from Director Rohit Chopra in statements they released. 

The CFPB has expanded enforcement efforts against the mortgage industry under Chopra, which has increased compliance expenses.

In October, Mortgage Bankers Association President and CEO Bob Broeksmit described the agency as a "judge, jury, and executioner all rolled into one." 

He urged the government to "establish clear and consistent standards, providing notice and comment when enacting rules." Unfortunately, the Bureau does not often follow this reasonable procedure, announcing new legal responsibilities without formal process or deliberation, enforcing novel and untested legal theories, and making it extremely difficult for businesses to grasp their legal obligations." 

Additionally, the agency is battling constitutional issues on various fronts. The agency's funding structure—by which it is funded by the Fed as opposed to appropriations legislation enacted through Congress—will be decided by the Supreme Court in a case that will be heard there. The agency's financing source was ruled to be illegal in 2022 by a panel of Trump appointees on the Fifth Circuit U.S. Court of Appeals. 

The funding provisions for the CFPB were found to be constitutional in March by the Second Circuit U.S. Court of Appeals, which includes the districts of Connecticut, New York, and Vermont.