A security firm made headlines earlier this month when it boasted it had thwarted plans by organized Russian cyber criminals to launch an attack against multiple US-based banks. But a closer look at the details behind that report suggests the actors in question were relatively unsophisticated Nigerian phishers who’d simply registered a bunch of new fake bank Web sites.

The report was released by Colorado Springs, Colo.-based security vendor root9B, which touts a number of former National Security Agency (NSA) and Department of Defense cybersecurity experts among its ranks. The report attracted coverage by multiple media outlets, including, Fox News, Politico, SC Magazine and The Hill. root9B said it had unearthed plans by a Russian hacking gang known variously as the Sofacy Group and APT28. APT is short for “advanced persistent threat,” and it’s a term much used among companies that sell cybersecurity services in response to breaches from state-funded adversaries in China and Russia that are bent on stealing trade secrets via extremely stealthy attacks.

“While performing surveillance for a root9B client, the company discovered malware generally associated with nation state attacks,” root9B CEO Eric Hipkins wrote of the scheme, which he said was targeted financial institutions such as Bank of America, Regions Bank and TD Bank, among others.

“It is the first instance of a Sofacy or other attack being discovered, identified and reported before an attack occurred,” Hipkins said. “Our team did an amazing job of uncovering what could have been a significant event for the international banking community. We’ve spent the past three days informing the proper authorities in Washington and the UAE, as well as the CISOs at the financial organizations.”

However, according to an analysis of the domains reportedly used by the criminals in the planned attack, perhaps root9B should clarify what it means by APT. Unless the company is holding back key details about their research, their definition of APT can more accurately be described as “African Phishing Threat.”

The report correctly identifies several key email addresses and physical addresses that the fraudsters used in common across all of the fake bank domains. But root9B appears to have scant evidence connecting the individual(s) who registered those domains to the Sofacy APT gang. Indeed, a reading of their analysis suggests their sole connection is that some of the fake bank domains used a domain name server previously associated with Sofacy activity: carbon2u[dot]com (warning: malicious host that will likely set off antivirus alerts).

The problem with that linkage is although carbon2go[dot]com was in fact at one time associated with activity emanating from the Sofacy APT group, Sofacy is hardly the only bad actor using that dodgy name server. There is plenty of other badness unrelated to Sofacy that calls Carbon2go home for their DNS operations, including these clowns.

From what I can tell, the vast majority of the report documents activity stemming from Nigerian scammers who have been conducting run-of-the-mill bank phishing scams for almost a decade now and have left quite a trail.

For example, most of the wordage in this report from root9B discusses fake domains registered to a handful of email addresses, including “adeweb2001@yahoo.com,” adeweb2007@yahoo.com,” and “rolexzad@yahoo.com”.

Each of these emails have long been associated with phishing sites erected by apparent Nigerian scammers. They are tied to this Facebook profile for a Showunmi Oluwaseun, who lists his job as CEO of a rather fishy-sounding organization called Rolexzad Fishery Nig. Ltd.

The domain rolexad[dot]com was flagged as early as 2008 by aa419.org, a volunteer group that seeks to shut down phishing sites — particularly those emanating from Nigerian scammers (hence the reference to the Nigerian criminal code 419, which outlaws various confidence scams and frauds). That domain also references the above-mentioned email addresses. Here’s another phishy bank domain registered by this same scammer, dating all the way back to 2005!

Bob Zito, a spokesperson for root9B, said “the team stands by the report as 100 percent accurate and it has been received very favorably by the proper authorities in Washington (and others in the cyber community, including other cyber firms).”

I wanted to know if I was alone in finding fault with the root9B report, so I reached out to Jaime Blasco, vice president and chief scientist at AlienVault — one of the security firms that first published the initial findings on the Sofacy/APT28 group back in October 2014. Blasco called the root9B research “very poor” (full disclosure: AlienVault is one of several advertisers on this blog).

“Actually, there isn’t a link between what root9B published and Sofacy activity,” he said. “The only link is there was a DNS server that was used by a Sofacy domain and the banking stuff root9B published. It doesn’t mean they are related by any means. I’m really surprised that it got a lot of media attention due to the poor research they did, and [their use] of [terms] like ‘zeroday hashes’ in the report really blew my mind. Apart from that it really looks like a ‘marketing report/we want media coverage asap,’ since days after that report they published their Q1 financial results and probably that increased the value of their penny stocks.”

Blasco’s comments may sound harsh, but it is true that root9B Chairman Joe Grano bought large quantities of the firm’s stock roughly a week before issuing this report. On May 14, 2015, root9B issued its first quarter 2015 financial results.

There is an old adage: If the only tool you have is a hammer, you tend to treat everything as if it were a nail. In this case, if all you do is APT research, then you’ll likely see APT actors everywhere you look.

The St. Louis Federal Reserve today sent a message to those it serves alerting them that in late April 2015 attackers succeeded in hijacking the domain name servers for the institution. The attack redirected Web searches and queries for those seeking a variety of domains run by the government entity to a Web page set up by the attackers in an apparent bid by cybercrooks to hijack online communications of banks and other entities dealing with the regional Fed office.

The communique, shared by an anonymous source, was verified as legitimate by a source at another regional Federal Reserve location.

The notice from the St. Louis Fed stated that the “the Federal Reserve Bank of St. Louis has been made aware that on April 24, 2015, computer hackers manipulated routing settings at a domain name service (DNS) vendor used by the St. Louis Fed so that they could automatically redirect some of the Bank’s web traffic that day to rogue webpages they created to simulate the look of the St. Louis Fed’s research.stlouisfed.org website, including webpages for FRED, FRASER, GeoFRED and ALFRED.”

Requests for comment from the St. Louis Fed so far have gone unreturned. It remains unclear what impact, if any, this event has had on the normal day-to-day operations of hundreds of financial institutions that interact with the regional Fed operator.

The advisory noted that “as is common with these kinds of DNS attacks, users who were redirected to one of these phony websites may have been unknowingly exposed to vulnerabilities that the hackers may have put there, such as phishing, malware and access to user names and passwords.”

The statement continues:

“These risks apply to individuals who attempted to access the St. Louis Fed’s research.stlouisfed.org website on April 24, 2015. If you attempted to log into your user account on that date, it is possible that this malicious group may have accessed your user name and password.

The St. Louis Fed’s website itself was not compromised.

“Out of an abundance of caution, we wanted to alert you to this issue, and also make you aware that the next time you log into your user account, you will be asked to change your password. In addition, in the event that your user name and password are the same or similar as those you use for other websites, we highly recommend that you follow best practices and use a strong, unique and different password for each of your user accounts on the Internet. Click https://research.stlouisfed.org/useraccount/forgotpassword/step1 to change your user account password now.”

According to Wikipedia, the Federal Reserve Economic Data (FRED) is a database maintained by the Research division of the Federal Reserve Bank of St. Louis that has more than 247,000 economic time series from 79 sources. The data can be viewed in graphical and text form or downloaded for import to a database or spreadsheet, and viewed on mobile devices. They cover banking, business/fiscal, consumer price indexes, employment and population, exchange rates, gross domestic product, interest rates, monetary aggregates, producer price indexes, reserves and monetary base, U.S. trade and international transactions, and U.S. financial data.

FRASER stands for the Federal Reserve Archival System for Economic Research, and reportedly contains links to scanned images (PDF format) of historic economic statistical publications, releases, and documents including the annual Economic Report of the President. Coverage starts with the 19th and early 20th century for some economic and banking reports.

According to the Federal Reserve, GeoFred allows authorized users to create, customize, and share geographical maps of data found in FRED.

ALFRED, short for ArchivaL Federal Reserve Economic Data, allows users to retrieve vintage versions of economic data that were available on specific dates in history.

The St. Louis Federal Reserve is one of twelve regional Fed organizations, and serves banks located in the all of Arkansas and portions of six other states: Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee. According to the reserve’s Web site, it also serves most of eastern Missouri and southern Illinois.

No information is available at this time about the attackers involved in this intrusion, but given the time lag between this event and today’s disclosure it seems likely that it is related to state-sponsored hacking activity from a foreign adversary. If the DNS compromise also waylaid emails to and from the institution, this could be a much bigger deal. This is likely to be a fast-moving story. More updates as they become available.

When it comes to reporting on breaches involving customer accounts at major brands, the news media overall deserves an F-minus. Hardly a week goes by when I don’t hear from readers about a breathless story proclaiming that yet another household brand name company has been hacked. Upon closer inspection, the stories usually are based on little more than anecdotal evidence from customers who had their online loyalty or points accounts hijacked and then drained of value.

The latest example of this came last week from a story that was responsibly reported by Bob Sullivan, a former MSNBC journalist who’s since struck out on his own. Sullivan spoke with multiple consumers who’d seen their Starbucks card balances emptied and then topped up again.

Those customers had all chosen to tie their debit accounts to their Starbucks cards and mobile phones. Sullivan allowed in his story one logical explanation for the activity: These consumers had re-used their Starbucks account password at another site that got hacked, and attackers simply tried those account credentials en masse at other popular sites — knowing that a fair number of consumers use the same email address and password across multiple sites.

Following up on Sullivan’s story, the media pounced, suggesting that Starbucks had been compromised. In a written statement, Starbucks denied the unauthorized activity was the result of a hack or intrusion into its servers or mobile applications.

“Occasionally, Starbucks receives reports from customers of unauthorized activity on their online account,” the company wrote. “This is primarily caused when criminals obtain reused names and passwords from other sites and attempt to apply that information to Starbucks. To protect their security, customers are encouraged to use different user names and passwords for different sites, especially those that keep financial information.”

In most cases, a flurry of fraudulent account activity targeting a major brand is preceded by postings on noob-friendly hacker forums about large numbers of compromised accounts for sale, and the publication of teachable “methods” for extracting value from said hacked accounts.

Unsurprisingly, we saw large numbers of compromised Starbucks accounts for sale in the days leading up to the initial story about the Starbucks fraud, as well as the usual “methods” explaining to clueless ne’er-do-wells about how to perpetrate fraud against hacked accounts. Here’s another noob-friendly thread explaining how to cash out compromised Subway accounts; how long until we read media reports shouting that Subway has been hacked?

To be sure, password re-use is a major problem, and it’s a core driver of fraud like this. Also, companies like Starbucks, Hilton Honors, Starwood and others certainly could be doing more — such as offering customers two-step authentication — to protect accounts. Indeed, as these recurring episodes show, affected brands take an image hit when customers have their accounts hijacked through password re-use, because the story inevitably devolves into allegations of a data breach at the brand involved.

But it works both ways: consumers who re-use passwords for sites holding their payment data are asking for trouble, and will get it eventually.

For helpful hints on picking strong passwords (or outsourcing that to third-party software and/or services), check out this primer. For further reading about how penny-ante punks exploit password re-use and trick media outlets into falsely reporting breaches, see How to Tell Data Leaks from Publicity Stunts.

mSpy, the makers of a dubious software-as-a-service product that claims to help more than two million people spy on the mobile devices of their kids and partners, appears to have been massively hacked. Last week, a huge trove of data apparently stolen from the company’s servers was posted on the Deep Web, exposing countless emails, text messages, payment and location data on an undetermined number of mSpy “users.”

mSpy has not responded to multiple requests for comment left for the company over the past five days. KrebsOnSecurity learned of the apparent breach from an anonymous source who shared a link to a Web page that is only reachable via Tor, a technology that helps users hide their true Internet address and allows users to host Web sites that are extremely difficult to get taken down.

The Tor-based site hosts several hundred gigabytes worth of data taken from mobile devices running mSpy’s products, including some four million events logged by the software. The message left by the unknown hackers who’ve claimed responsibility for this intrusion suggests that the data dump includes information on more than 400,000 users, including Apple IDs and passwords, tracking data, and payment details on some 145,000 successful transactions.

The exact number of mSpy users compromised could not be confirmed, but one thing is clear: There is a crazy amount of personal and sensitive data in this cache, including photos, calendar data, corporate email threads, and very private conversations. Also included in the data dump are thousands of support request emails from people around the world who paid between $8.33 to as much as $799 for a variety of subscriptions to mSpy’s surveillance software.

It’s unclear exactly where mSpy is based; the company’s Web site suggests it has offices in the United States, Germany and the United Kingdom, although the firm does not appear to list an official physical address. However, according to historic Web site registration records, the company is tied to a now-defunct firm called MTechnology LTD out of the United Kingdom.

Documents obtained from Companies House, an official register of corporations in the U.K., indicate that the two founding members of the company are self-described programmers Aleksey Fedorchuk and Pavel Daletski. Those records (PDF) indicate that Daletski is a British citizen, and that Mr. Fedorchuk is from Russia. Neither of the men could be reached for comment.

Court documents (PDF) obtained from the U.S. District Court in Jacksonville, Fla. regarding a trademark dispute involving mSpy and Daletski state that mSpy has a U.S.-based address of 800 West El Camino Real, in Mountain View, Calif. Those same court documents indicate that Daletski is a director at a firm based in the Seychelles called Bitex Group LTD. Interestingly, that lawsuit was brought by Retina-X Studios, an mSpy competitor based in Jacksonville, Fla. that makes a product called MobileSpy.

U.S. regulators and law enforcers have taken a dim view of companies that offer mobile spyware services like mSpy. In September 2014, U.S. authorities arrested a 31-year-old Hammad Akbar, the CEO of a Lahore-based company that makes a spyware app called StealthGenie. The FBI noted that while the company advertised StealthGenie’s use for “monitoring employees and loved ones such as children,” the primary target audience was people who thought their partners were cheating. Akbar was charged with selling and advertising wiretapping equipment.

“Advertising and selling spyware technology is a criminal offense, and such conduct will be aggressively pursued by this office and our law enforcement partners,” U.S. Attorney Dana Boente said in a press release tied to Akbar’s indictment.

Akbar pleaded guilty to the charges in November 2014, and according to the Justice Department he is “the first-ever person to admit criminal activity in advertising and selling spyware that invades an unwitting victim’s confidential communications.”

Unlike Akbar’s StealthGenie and some other mobile spyware products, mSpy advertises that its product works even on non-jailbroken iPhones, giving users the ability to log the device holder’s contacts, call logs, text messages, browser history, events and notes.

“If you have opted to purchase mSpy Without Jailbreak, and you have the mobile user’s iCloud credentials, you will not need physical access to the device,” the company’s FAQ states. “However, there may be some instances where physical access may be necessary. If you purchase mSpy for a jailbroken iOS phone or tablet, you will need 5-15 minutes of physical access to the device for successful installation.”

A public relations pitch from mSpy to KrebsOnSecurity in March 2015 stated that approximately 40 percent of the company’s users are parents interested in keeping tabs on their kids. Assuming that is a true statement, it’s ironic that so many parents have now unwittingly exposed their kids to predators, bullies and other ne’er-do-wells thanks to this breach.

Microsoft today issued 13 patch bundles to fix roughly four dozen security vulnerabilities in Windows and associated software. Separately, Adobe pushed updates to fix a slew of critical flaws in its Flash Player and Adobe Air software, as well as patches to fix holes in Adobe Reader and Acrobat.

Three of the Microsoft patches earned the company’s most dire “critical” rating, meaning they fix flaws that can be exploited to break into vulnerable systems with little or no interaction on the part of the user. The critical patches plug at least 30 separate flaws. The majority of those are included in a cumulative update for Internet Explorer. Other critical fixes address problems with the Windows OS, .NET, Microsoft Office, and Silverlight, among other components.

According to security vendor Shavlik, the issues address in MS15-044 deserve special priority in patching, in part because it impacts so many different Microsoft programs but also because the vulnerabilities fixed in the patch can be exploited merely by viewing specially crafted content in a Web page or a document. More information on and links to today’s individual updates can be found here.

Adobe’s fix for Flash Player and AIR fix at least 18 security holes in the programs. Updates are available for Windows, OS X and Linux versions of the software. Mac and Windows users, the latest, patched version is v. 17.0.0.188. 

If you’re unsure whether your browser has Flash installed or what version it may be running, browse to this link. Adobe Flash Player installed with Google Chrome, as well as Internet Explorer on Windows 8.x, should automatically update to the latest version. To force the installation of an available update, click the triple bar icon to the right of the address bar, select “About Google” Chrome, click the apply update button and restart the browser.

The most recent versions of Flash should be available from the Flash home page, but beware potentially unwanted add-ons, like McAfee Security Scan. To avoid this, uncheck the pre-checked box before downloading, or grab your OS-specific Flash download from here. Windows users who browse the Web with anything other than Internet Explorer may need to apply this patch twice, once with IE and again using the alternative browser (Firefox, Opera, e.g.).

If you run Adobe Reader, Acrobat or AIR, you’ll need to update those programs as well. Adobe said it is not aware of any active exploits or attacks against any of the vulnerabilities it patched with today’s releases.