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Zero Day

Ryan Naraine, Emil Protalinski and Dancho Danchev

Hacking attacks from China hit energy companies worldwide

By | February 10, 2011, 5:59am PST

Security researchers at McAfee have sounded an alarm for what is described as “coordinated covert and targeted cyberattacks” against global oil, energy, and petrochemical companies.

McAfee said the attacks begain November 2009 and combined several techniques — social engineering, spear phishing and vulnerability exploits — to load custom RATs (remote administration tools) on hijacked machines.follow Ryan Naraine on twitter

The attacks, which McAfee tracked to China, allowed intruders to target and harvest sensitive competitive proprietary operations and project-financing information with regard to oil and gas field bids and operations.

We have identified the tools, techniques, and network activities used in these continuing attacks—which we have dubbed Night Dragon—as originating primarily in China. Through coordinated analysis of the related events and tools used, McAfee has determined identifying features to assist companies with detection and investigation. While we believe many actors have participated in these attacks, we have been able to identify one individual who has provided the crucial C&C infrastructure to the attackers.

The company released a white paper to outline the attacks, which included the use of SQL injection and password cracking techniques.

A brief synopsis:

  • Company extranet web servers compromised through SQL-injection techniques, allowing remote command execution.
  • Commonly available hacker tools are uploaded on compromised web servers, allowing attackers to pivot into the company’s intranet and giving them access to sensitive desktops and servers internally.
  • Using password cracking and pass-the-hash tools, attackers gain additional usernames and passwords, allowing them to obtain further authenticated access to sensitive internal desktops and servers.
  • Initially using the company’s compromised web servers as command and control (C&C) servers, the attackers discovered that they needed only to disable Microsoft Internet Explorer (IE) proxy settings to allow direct communication from infected machines to the Internet.
  • Using the RAT malware, they proceeded to connect to other machines (targeting executives) and exfiltrating email archives and other sensitive documents.

McAfee’s researchers discovered that several locations in China leveraged C&C servers on purchased hosted services in the United States and compromised servers in the Netherlands to wage the attacks.

Targets included global oil, gas, and petrochemical companies, as well as individuals and executives in Kazakhstan, Taiwan, Greece, and the United States.

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Topics

Ryan Naraine is a journalist and social media enthusiast specializing in Internet and computer security issues.

Disclosure

Ryan Naraine

The most important disclosure is of my employment with Kaspersky Lab as a member of the global research and analysis team. Kaspersky Lab is a global company specializing in anti-malware and secure content management technologies. I do not own stocks or other investments in any technology company.

Biography

Ryan Naraine

Ryan Naraine is a journalist and social media enthusiast specializing in Internet and computer security issues. He is currently security evangelist at Kaspersky Lab, an anti-malware company with operations around the globe. He is taking a leadership role in developing the company's online community initiative around secure content management technologies.

Prior to joining Kaspersky Lab, Ryan was Editor-at-Large/Security at eWEEK, leading the magazine's and Web site's coverage of Internet and computer security issues and managing the popular SecurityWatch blog, covering the daily threats, vulnerabilities and IT security technologies. He also covered IT security, hacker attacks and secure content management topics for Jupiter Media's internetnetnews.com.

Ryan can be reached at naraine SHIFT 2 gmail.com. For daily updates on Ryan's activities, follow him on Twitter.

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RE: Hacking attacks from China hit energy companies worldwide
Splunge 23rd Feb 2011
If you think we (the US) are not doing the same thing, you are ignorant. Cyber-black ops teams are not that far-fetched. The next big war will probably start with web attacks and escalate. China will most likely be the instigator and from my POV, already has been. Time to crack the whip, but does ObamBam have the guts to do anything about it? Naw.
Those at least, could be identified.
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@DevGuy_z ...

The web server's OS is beside the point, as SQL injections were used to compromise the servers. Windows vs Linux isn't even applicable. Should be asking why the person in charge of said web servers didn't take proper steps to prevent SQL injections, such as validating queries before sending them.
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"And what will happen to China?"
WarhavenSC 10th Feb 2011
You may ask... nothing. This isn't the first time nor the last time they've been caught with their hand in the cookie jar. US debt is so beholden to China, we can't do anything.
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@WarhavenSC Actually, the portion of US debt that's chinese is not as large as domestic ownership. China is the largest foreign debt-holder, but domestic debt holders (Banks, investors, individuals, the fed) hold more US-government bonds than the combined foreign debt.
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So?
Zorched 10th Feb 2011
@snoop0x7b : Just because a greater proportion of debt is held domestically doesn't mean we wouldn't be in a World of Hurt if China suddenly decided to call in the markers because we ticked them off. Currently they hold about $900 Billion of our debt. If they called them in, where do you think we would come up with that on short notice? That's $2900 for every man, woman and child in this country.

Pony up, dude. I certainly can't.
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Zorched, the US invests heavily overseas, too
AllKnowingAllSeeing 10th Feb 2011
It's kind of a wash: China calls in our debt, we call in someone else's, they call in someone else's who in turn calls in China's.
Zorched: The US government issues little on-demand debt (savings bonds being one exception). If China "decided to call in the markers" they'd have to sell the debt on the open market, for whatever the debt it worth at the time. We are a hostage of the Chinese.
I am confused here.....Why in the name of dog would any corporation have their extranet servers loaded with private information that once compromised would allow an enemy to "harvest sensitive competitive proprietary operations and project-financing information"? Even worse, Why would these corporations have their extranet connected to their intranet? It is simple planning to merely separate the two nets physically so that it is impossible to ever reach an executive's personal computer from outside. The stupidity here is enormous and close to unbelievable!
@rovolet the answer to your question is simple, the network administration and planning (and prety much everything else) is outsourced to China so everything is arranged in such a way that it can be reached remotely.
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@rovolet

it is probably more complicated than the diagram shown here... such as an SQL database whose data must be accessible from both sides, from the outside for customer orders, orders status checks, etc., from the inside to update and fulfill those records... that SQL server then at some point must have a connection to both internal and external servers...

however, there are other aspects i find much more troublesome, such as simply disabling the IE proxy settings allowing direct internet access. if you are going to go to the trouble of setting up a proxy for logging and security purposes, you also block (at minimum) outbound access from everything that is supposed to route through the proxy, if not kill the route altogether and make the proxy multi-homed. i know my office segments are not routed to the internet at all, so to get back out, it is either back through the proxy, or compromising a router somewhere on the network to add the outbound route back in
@rovolet
I'm tempted to ask if you noticed there was an oil spill last year.
They hit individuals in Kazakhstan?! BORAT, THEY HACKED YOUR iPOD!
That's funny.... I've always thought that the drilling software was not designed with security in mind (I used to work on oil rigs). Pason, etc. are going to have to be thinking about security now.
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Not really...
james347 10th Feb 2011
...this is the US forging packets to only appear that it is coming from China to create fear and loathing within the mindless masses of this country. Or something to that effect.
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@james347

hell of a forgery mission then... to the extent that it would have been much easier to hire a team to go to China and do the hack from there so the trace logs in various countries don't have to be faked... possibly cheaper too, and better plausible deniability, especially if said team meets 'unfortunate accidents' shortly after doing the hack

:P
@james347
Or maybe the Chinese came to the US and forged packets that looked like they came from China so they could convince conspiracy theorists that there really is a conspiracy.
@pupkin_z

Excellent point!!! As more and more corporations seem to outsource their IT groups to foreign countries as the be-all-end-all cost saving measure. I guess that when they were counting their profits they failed to look at the big picture.
AND::::: All of this information is totally valid, even if it is easy to get at.
Sometimes I wonder about you.
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BUT THE RED CHINESE ARE OUR FRIENDS
klumper 10th Feb 2011
BUT THE RED CHINESE ARE OUR FRIENDS
BUT THE RED CHINESE ARE OUR FRIENDS
BUT THE RED CHINESE ARE OUR FRIENDS
BUT THE RED CHINESE ARE OUR FRIENDS
I SWEAR, THE RED CHINESE ARE OUR FRIENDS! [*pant, pant*]

[Join the multi-national corpo rats and repeat ad nauseam]
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Funny...
SonofaSailor 10th Feb 2011
After Egypt pulled the plug on the internet, and Lieberman's bill got a whole new world of exposure...

this week we're seeing all kinds of hacks, breaches, etc.

NASDAQ, now energy? what's next? NORAD?

I wonder how many more headlines we'll see in an effort to spur some support for the Kill Switch bill
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Inscrutible
kidtree 10th Feb 2011
Somebody needs to scrute those guys, and fast.
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known about it for years
walkerjian@... 10th Feb 2011
went blue in the face trying to tell people. Who to tell? Got laughed at for my trouble. There are entire schools being trained to hack in Asia, right now, from a very early age... I want to internet to be organised so that I can firewall entire countries, just switch them off, physically disconnect them, until they learn to be civil. I also want the *ssholes who sold the server time to the hackers to be tried for treason - not Brad Manning and Assange. Net neutality my *ss, track the traitors - they know who they are - and savage them instead.
@walkerjian@...
What are you talking about?
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Doing us a favor in the long-run
jefmud 11th Feb 2011
It is from their foes, not their friends, that cities learn the lesson of building high walls and ships of war. -- Aristophanes
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Be there done that but good analysis
diocyde 11th Feb 2011
This is old news that has been reported, however it is good analysis. One of the reasons AV companies do not have real good contextual knowledge of APT samples is because the victims/forensics and IR responders do not submit them due to tipping off the attackers and having them pivot before an effective response can get launched. For expansions on the problems this causes and effective cyberwar strategies check out www.conanthedestroyer.net

DIOCYDE
Let them hack on. The free world gets to find out how smart they are. Maybe the FW will learn something. Maybe it will prompt some US hacking genius to hack them.
If you think we (the US) are not doing the same thing, you are ignorant. Cyber-black ops teams are not that far-fetched. The next big war will probably start with web attacks and escalate. China will most likely be the instigator and from my POV, already has been. Time to crack the whip, but does ObamBam have the guts to do anything about it? Naw.

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