Iran hit by global cyber attack that left U.S. flag on screens

FILE PHOTO: A man types on a computer keyboard in front of the displayed cyber code in this illustration picture taken on March 1, 2017. REUTERS/Kacper Pempel/Illustration/File Photo

DUBAI (Reuters) – Hackers have attacked networks in a number of countries including data centers in Iran where they left the image of a U.S. flag on screens along with a warning: “Don’t mess with our elections”, the Iranian IT ministry said on Saturday.

“The attack apparently affected 200,000 router switches across the world in a widespread attack, including 3,500 switches in our country,” the Communication and Information Technology Ministry said in a statement carried by Iran’s official news agency IRNA.

The statement said the attack, which hit internet service providers and cut off web access for subscribers, was made possible by a vulnerability in routers from Cisco which had earlier issued a warning and provided a patch that some firms had failed to install over the Iranian new year holiday.

A blog published on Thursday by Nick Biasini, a threat researcher at Cisco’s Talos Security Intelligence and Research Group, said: “Several incidents in multiple countries, including some specifically targeting critical infrastructure, have involved the misuse of the Smart Install protocol…

“As a result, we are taking an active stance, and are urging customers, again, of the elevated risk and available remediation paths.”

On Saturday evening, Cisco said those postings were a tool to help clients identify weaknesses and repel a cyber attack.

Iran’s IT Minister Mohammad Javad Azari-Jahromi posted a picture of a computer screen on Twitter with the image of the U.S. flag and the hackers’ message. He said it was not yet clear who had carried out the attack.

Azari-Jahromi said the attack mainly affected Europe, India and the United States, state television reported.

“Some 55,000 devices were affected in the United States and 14,000 in China, and Iran’s share of affected devices was 2 percent,” Azari-Jahromi was quoted as saying.

In a tweet, Azari-Jahromi said the state computer emergency response body MAHER had shown “weaknesses in providing information to (affected) companies” after the attack which was detected late on Friday in Iran.

Hadi Sajadi, deputy head of the state-run Information Technology Organisation of Iran, said the attack was neutralized within hours and no data was lost.

(Reporting by Dubai newsroom, additional reporting by Dustin Volz in Washington; editing by Ros Russell and G Crosse)

U.S. Energy Department forming cyber protection unit for power grids

Former Texas Governor Rick Perry, U.S. President-elect Donald Trump's pick to lead the Department of Energy, meets with Senate Majority Leader Mitch McConnell (R-KY) on Capitol Hill in Washington, U.S. January 4, 2017. REUTERS/Jonathan Ernst

WASHINGTON (Reuters) – The U.S. Department of Energy (DOE) said on Wednesday it is establishing an office to protect the nation’s power grid and other infrastructure against cyber attacks and natural disasters.

President Donald Trump’s budget proposal unveiled this week included $96 million in funding for the Office of Cybersecurity, Energy Security, and Emergency Response.

Energy Secretary Rick Perry said the DOE “plays a vital role in protecting our nation’s energy infrastructure from cyber threats, physical attack and natural disaster, and as secretary, I have no higher priority.”

Last July, the DOE helped U.S. firms defend against a hacking campaign that targeted power companies including at least one nuclear plant. The agency said that the attacks did not have an impact on electricity generation or the grid, and that any impact appeared to be limited to administrative and business networks.

The previous month, the U.S. Department of Homeland Security and the Federal Bureau of Investigation had issued an alert to industrial companies, warning that for months hackers had targeted nuclear reactors and other power industry infrastructure, using tainted emails to harvest credentials and gain access to networks.

In some cases hackers succeeded in compromising the networks of their targets, but the report did not identify specific victims.

Nuclear power experts, such as Dave Lochbaum at the Union of Concerned Scientists nonprofit group, have said reactors have a certain amount of immunity from cyber attacks because their operation systems are separate from digital business networks. But over time it would not be impossible for hackers to potentially do harm, he said.

(Reporting by Timothy Gardner; Editing by Jeffrey Benkoe)

‘Jackpotting’ hackers steal over $1 million from ATM machines across U.S.: Secret Service

A hooded man holds a laptop computer as blue screen with an exclamation mark is projected on him in this illustration picture taken on May 13, 2017.

By Dustin Volz

WASHINGTON (Reuters) – A coordinated group of hackers likely tied to international criminal syndicates has pilfered more than $1 million by hijacking ATM machines across the United States and forcing them to spit out bills like slot machines dispensing a jackpot, a senior U.S. Secret Service official said on Monday.

Within the past few days there have been about a half-dozen successful “jackpotting” attacks, the official said.

The heists, which involve hacking ATMs to rapidly shoot out torrents of cash, have been observed across the United States spanning from the Gulf Coast in the southern part of the country to the New England region in the northeast, Matthew O’Neill, a special agent in the criminal investigations division, told Reuters in an interview.

The spate of attacks represented the first widespread jackpotting activity in the United States, O’Neill said. Previous campaigns have been spotted in parts of Europe and Latin America in recent years.

“It was just a matter of time until it hit our shores,” O’Neill said.

Diebold Nixdorf Inc and NCR Corp, two of the world’s largest ATM makers, warned last week that cyber criminals are targeting ATMs with tools needed to carry out jackpotting schemes.

The Diebold Nixdorf alert described steps that criminals had used to compromise ATMs. They include gaining physical access, replacing the hard drive and using an industrial endoscope to depress an internal button required to reset the device.

A confidential U.S. Secret Service alert seen by Reuters and sent to banks on Friday said machines running XP were more vulnerable and encouraged ATM operators to update to Windows 7 to protect against the attack, which appeared to be targeting ATMs typically located in pharmacies, big box retailers and drive-thrus.

While initial intelligence suggested only ATMs running on outdated Windows XP software were being targeted, the Secret Service has seen successful attacks within the past 48 hours on machines running updated Windows 7, O’Neil said.

“There isn’t one magic solution to solve the problem,” he said.

A local electronic crimes task force in the Washington, D.C., metropolitan area first reported an unsuccessful jackpotting attempt last week, O’Neill said.

A few days later another local partner witnessed similar activity and “developed intelligence” that indicated a sustained, coordinated attack was likely to occur over the next two weeks, O’Neill said. He declined to say where that partner was located.

Jackpotting has been rising worldwide in recent years, though it is unclear how much cash has been stolen because victims and police often do not disclose details.

(Reporting by Dustin Volz in Washington, D.C.; Editing by David Gregorio)

ATM makers warn of ‘jackpotting’ hacks on U.S. machines

: A man types on a computer keyboard in front of the displayed cyber code in this illustration picture taken on March 1, 2017.

By Jim Finkle

(Reuters) – Diebold Nixdorf Inc and NCR Corp, two of the world’s largest ATM makers, have warned that cyber criminals are targeting U.S. cash machines with tools that force them to spit out cash in hacking schemes known as “jackpotting.”

The two ATM makers did not identify any victims or say how much money had been lost. Jackpotting has been rising worldwide in recent years, though it is unclear how much cash has been stolen because victims and police often do not disclose details.

The attacks were reported earlier on Saturday by the security news website Krebs on Security, which said they had begun last year in Mexico.

The companies confirmed to Reuters on Saturday they had sent out the alerts to clients.

NCR said in a Friday alert that the cases were the first confirmed “jackpotting” losses in the United States. It said its equipment had not been targeted in the recent attacks, but that it was still a concern for the entire ATM industry.

“This should be treated by all ATM deployers as a call to action to take appropriate steps to protect their ATMs against these forms of attack,” the alert said.

Diebold Nixdorf said in a separate Friday alert that U.S. authorities had warned the company that hackers were targeting one of its ATM models, known as Opteva, which went out of production several years ago.

A confidential U.S. Secret Service alert sent to banks said the hackers targeted stand-alone ATMs typically located in pharmacies, big box retailers and drive-thru ATMs, Krebs on Security reported.

Diebold Nixdorf’s alert described steps that criminals had used to compromise ATMs. They include gaining physical access, replacing the hard drive and using an industrial endoscope to depress an internal button required to reset the device.

Reuters was unable to obtain a copy of the Secret Service report and an agency representative declined comment. Officials with the Federal Bureau of Investigation could not immediately be reached.

Russian cyber security firm Group IB has reported that cyber criminals remotely attacked cash machines in more than a dozen countries across Europe in 2016. Similar attacks were also reported that year in Thailand and Taiwan.

(Reporting by Jim Finkle in Toronto; Additional reporting by Dustin Volz in Washington; Editing by Susan Thomas)

U.S. government warns businesses about cyber bug in Intel chips

U.S. government warns businesses about cyber bug in Intel chips

By Stephen Nellis and Jim Finkle

(Reuters) – The U.S. government on Tuesday urged businesses to act on an Intel Corp alert about security flaws in widely used computer chips as industry researchers scrambled to understand the impact of the newly disclosed vulnerability.

The Department of Homeland Security gave the guidance a day after Intel said it had identified security vulnerabilities in remote-management software known as “Management Engine” that shipped with eight types of processors used in business computers sold by Dell Technologies Inc, Lenovo Group Ltd, HP Inc, Hewlett Packard Enterprise Co and other manufacturers.

Security experts said that it was not clear how difficult it would be to exploit the vulnerabilities to launch attacks, though they found the disclosure troubling because the affected chips were widely used.

“These vulnerabilities affect essentially every business computer and server with an Intel processor released in the last two years,” said Jay Little, a security engineer with cyber consulting firm Trail of Bits.

For a remote attack to succeed, a vulnerable machine would need to be configured to allow remote access, and a hacker would need to know the administrator’s user name and password, Little said. Attackers could break in without those credentials if they have physical access to the computer, he said.

Intel said that it knew of no cases where hackers had exploited the vulnerability in a cyber attack.

The Department of Homeland Security advised computer users to review the warning from Intel, which includes a software tool that checks whether a computer has a vulnerable chip. It also urged them to contact computer makers to obtain software updates and advice on strategies for mitigating the threat. (http://bit.ly/2zqhccw)

Intel spokeswoman Agnes Kwan said the company had provided software patches to fix the issue to all major computer manufacturers, though it was up to them to distribute patches to computers users.

Dell’s support website offered patches for servers, but not laptop or desktop computers, as of midday Tuesday. Lenovo offered fixes for some servers, laptops and tablets and said more updates would be available Friday. HP posted patches to its website on Tuesday evening.

Security experts noted that it could take time to fix vulnerable systems because installing patches on computer chips is a difficult process.

“Patching software is hard. Patching hardware is even harder,” said Ben Johnson, co-founder of cyber startup Obsidian Security.

(Reporting by Stephen Nellis; Editing by Cynthia Osterman and Grant McCool)

Travelers says it is in ‘right spot’ for cyber insurance exposure

Travelers says it is in 'right spot' for cyber insurance exposure

By Suzanne Barlyn

(Reuters) – Travelers Cos Inc <TRV.N> plans to stick to its recent growth pace for sales of cyber insurance, which protects businesses against hacking and other liabilities, despite potential to boost it, as the insurer assesses risks in the segment, its head of specialty insurance said on Monday.

“We feel like we’re just in the right spot,” Thomas Kunkel, the insurer’s president of bond and specialty insurance, said during an investor meeting in Connecticut.

Travelers has increased its cyber business at a 40 percent compound annual growth rate since 2011 and could quicken the pace, Kunkel said. “It would not be hard,” he said.

But Travelers must be “respectful and prudent” about the risks involved in cyber, Kunkel said.

Insurers have said the growing sophistication of hackers alongside a still-evolving cyber insurance industry makes it difficult to quantify their potential cyber-related losses.

About three-quarters of cyber policies that Travelers writes cover up to $1 million in damages, while nearly a quarter cover between $1 million and $5 million, the company said.

“We manage our limits very closely,” Kunkel said.

Equifax Inc <EFX.N>, which compiles credit information about consumers and assigns them scores, disclosed in September that cyber criminals had breached its systems between mid-May and late July and stolen the sensitive information of 145.5 million people. The hack is among the largest ever.

Regulation will also drive demand for cyber insurance, particularly in the financial services sector, Fitch Ratings said in a report on Monday.

“As the cyber insurance market develops, competition is likely to erode profit margins,” Fitch said.

Some insurers who ultimately enter the cyber market may lack underwriting experience and take on risks that could exceed their capital, Fitch said.

Events that could trigger large claims include cyber attacks on electronic grids and transportation systems, or hacks of large data storage clouds, Fitch said.

Insurer American International Group Inc <AIG.N> said on Oct. 26 that it was reviewing all types of coverage it offers to gauge its exposure to cyber risk.

AIG will start including cyber coverage as part of its commercial casualty insurance during the first quarter of 2018, Tracie Grella, global head of cyber risk insurance, said at the time.

The move would boost rates but also make it clearer how customers are covered if they are the victim of a security breach.

Many commercial insurers offer stand-alone cyber coverage, but it is not yet a standard addition to most other policies, such as property and casualty.

(Reporting by Suzanne Barlyn in New York; Editing by Lisa Von Ahn and Matthew Lewis)

NotPetya hackers likely behind BadRabbit attack: researchers

NotPetya hackers likely behind BadRabbit attack: researchers

By Jack Stubbs

MOSCOW (Reuters) – Technical indicators suggest a cyber attack which hit Russia and other countries this week was carried out by hackers behind a similar but bigger assault on Ukraine in June, security researchers who analyzed the two campaigns said on Wednesday.

Russia-based cyber firm Group-IB said the BadRabbit virus used in this week’s attack shared a key piece of code with the NotPetya malware that crippled businesses in Ukraine and worldwide earlier this year, suggesting the same group was responsible.

The BadRabbit attack hit Russia, Ukraine and other countries on Tuesday, taking down Russia’s Interfax news agency and delaying flights at Ukraine’s Odessa airport.

Multiple cyber security investigators have linked the two attacks, citing similarities in the malware coding and hacking methods, but stopped short of direct attribution.

Still, experts caution that attributing cyber attacks is notoriously difficult, as hackers regularly use techniques to cover their tracks and sometimes deliberately mislead investigators about their identity.

Security researchers at Cisco’s Talos unit said BadRabbit bore some similarities with NotPetya as they were both based on the same malware, but large parts of code had been rewritten and the new virus distribution method was less sophisticated.

They confirmed BadRabbit used a hacking tool called Eternal Romance, believed to have been developed by the U.S. National Security Agency (NSA) before being stolen and leaked online in April.

NotPetya also employed Eternal Romance, as well as another NSA tool called Eternal Blue. But Talos said they were used in a different way and there was no evidence Bad Rabbit contained Eternal Blue.

“It is highly likely that the same group of hackers was behind (the) BadRabbit ransomware attack on Oct. 25, 2017 and the epidemic of the NotPetya virus, which attacked the energy, telecommunications and financial sectors in Ukraine in June 2017,” Group-IB said in a technical report.

Matthieu Suiche, a French hacker and founder of the United Arab Emirates-based cyber security firm Comae Technologies, said he agreed with the Group-IB assessment that there was “serious reason to consider” that BadRabbit and NotPetya were created by the same people.

But some experts have said the conclusion is surprising as the NotPetya attack is widely thought to have been carried out by Russia, an allegation Moscow denies.

Ukrainian officials have said the NotPetya attack directly targeted Ukraine and was carried about by a hacking group widely known as Black Energy, which some cyber experts say works in favor of Russian government interests. Moscow has repeatedly denied carrying out cyber attacks against Ukraine.

The majority of BadRabbit’s victims were in Russia, with only a few in other countries such Ukraine, Bulgaria, Turkey and Japan.

Group-IB said some parts of the BadRabbit virus dated from mid-2014, however, suggesting the hackers used old tools from previous attacks. “This corresponds with BlackEnergy timeframes, as the group started its notable activity in 2014,” it said.

(Additional reporting by Eric Auchard; Editing by Jim Finkle/Mark Heinrich)

Adobe warns that hackers are exploiting its Flash software

The logo of the anti-virus firm Kaspersky Lab is seen at its headquarters in Moscow, Russia September 15, 2017

TORONTO (Reuters) – Adobe Systems Inc warned on Monday that hackers are exploiting vulnerabilities in its Flash multimedia software platform in web browsers, and the company urged users to quickly patch their systems to prevent such attacks.

The warning came after cyber security firm Kaspersky Lab Inc said a group it was tracking, BlackOasis, used the previously unknown weakness on Oct. 10 to plant malicious software on computers before connecting them back to servers in Switzerland, Bulgaria and the Netherlands.

Kaspersky said the malware, known as FinSpy or FinFisher, is a commercial product typically sold to nation states and law enforcement agencies to conduct surveillance.

Kaspersky said its assessment of BlackOasis shows it is targeting Middle Eastern politicians and United Nations officials engaged in the region, opposition bloggers and activists, and regional news correspondents with the latest version of FinSpy.

The company said victims have so far been observed in Russia, Iraq, Afghanistan, the United Kingdom, Iran and elsewhere in Africa and the Middle East.

Adobe said it had released a Flash security update to fix the problem, which affected Google’s Chrome and Microsoft’s Edge and Internet Explorer browsers as well as desktop versions.

Adobe said in July that by the end of 2020 it would retire its once-ubiquitous technology used to power most of the media content found online.

It was heavily criticized by late Apple CEO Steve Jobs, with alternatives such as HTML5 emerging in recent years and several web browsers now requiring users to enable Flash before running it.

On Google’s Chrome, the most popular web browser, Flash was used daily by 17 percent of desktop users, down from 80 percent in 2014, Google said at the time Adobe announced its retirement.

 

(Reporting by Alastair Sharp in Toronto, additional reporting by Sonam Rai in Bengaluru; Editing by Sriraj Kalluvila and David Gregorio)

 

Trump administration to order agencies to adopt new email security standards

Jeanette Manfra, Acting Deputy Undersecretary for Cybersecurity at the DHS, testifies about Russian interference in U.S. elections to the Senate Intelligence Committee in Washington, U.S., June 21, 2017.

By Dustin Volz

WASHINGTON (Reuters) – The Trump administration on Monday will order federal agencies to adopt common email security standards in an effort to better protect against hackers, a senior Department of Homeland Security official said.

DHS Assistant Secretary for Cybersecurity Jeanette Manfra, speaking at an event in New York, said the agency would issue a binding directive to require implementation of two cyber security measures, known as DMARC and STARTTLS, intended to guard against email spoofing and phishing attacks.

The new requirements are “discrete steps that have scalable, broad impact” that will improve federal government cyber security, Manfra said.

DMARC, or domain-based message authentication, reporting and conformance, is a popular technical standard that helps detect and block email impersonation, such as when a hacker might try to pose as a government official or agency.

STARTTLS is a form of encryption technology that protects email traveling between servers, making it more difficult for a third-party to intercept.

 

(Reporting by Dustin Volz; Editing by Chizu Nomiyama and Bill Trott)

 

Researchers uncover flaw that makes Wi-Fi vulnerable to hacks

A magnifying glass is held in front of a computer screen in this picture illustration taken in Berlin May 21, 2013

(Reuters) – Belgian researchers have discovered a flaw in a widely used system for securing Wi-Fi communications that could allow hackers to read information that was previously understood to be encrypted, or infect websites with malware, they said on Monday.

Researchers Mathy Vanhoef and Frank Piessens of Belgian university KU Leuven disclosed the bug in the WPA2 protocol, which secures modern Wi-Fi systems used by vendors for wireless communications between mobile phones, laptops and other connected devices with Internet-connected routers or hot spots.

“If your device supports Wi-Fi, it is most likely affected,” they said on a website, www.krackattacks.com, that they set up to provide technical information about the flaw and methods for attacking vulnerable devices.

It was not immediately clear how difficult it would be for hackers to exploit the bug, or if the vulnerability has previously been used to launch any attacks.

The Wi-Fi Alliance, an industry group that represents hundreds of Wi-Fi technology companies, said the issue “could be resolved through a straightforward software update.”

The group said in a statement it had advised members to quickly release patches and recommended that consumers quickly install those security updates.

 

 

(Reporting by Jim Finkle in Toronto; editing by Susan Thomas)