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Zero Day

Ryan Naraine, Emil Protalinski and Dancho Danchev

Researchers expose complex cyber espionage network

By | April 7, 2010, 3:07pm PDT

Summary: A newly released report “Shadows in the Cloud”, details the the inner workings of complex cyber espionage network, that was systematically stealing sensitive documents/correspondence from the Indian government, the United Nations, as well as Dalai Lama’s offices.

Security researchers from the Information Warfare Monitor (Citizen Lab and SecDev) and the ShadowServer Foundation, have released the findings from their eight month investigation, “Shadows in the Cloud”, detailing the inner workings of complex cyber espionage network that was systematically stealing sensitive documents/correspondence from the Indian government, the United Nations, as well as Dalai Lama’s offices, from January to November 2009.

More details on attack vectors used, the command and control infrastructure, and the victim analysis based on the recovered documents, some of which are marked as SECRET, RESTRICTED and CONFIDENTIAL:

  • Shadows in the Cloud documents a complex ecosystem of cyber espionage that systematically compromised government, business, academic, and other computer network systems in India, the Offices of the Dalai Lama, the United Nations, and several other countries. The report also contains an analysis of data which were stolen from politically sensitive targets and recovered during the course of the investigation. These include documents from the Offices of the Dalai Lama and agencies of the Indian national security establishment. Recovery and analysis of exfiltrated data, including one document that appears to be encrypted diplomatic correspondence, two documents marked “SECRET”, six as “RESTRICTED”, and  five as “CONFIDENTIAL”. These documents are identified as belonging to the Indian government. However, we do not have direct evidence that they were stolen from Indian government computers and they may have been compromised as a result of being copied onto personal computers. The recovered documents also include 1,500 letters sent from the Dalai Lama’s office between January and November 2009. The profile of documents recovered suggests that the attackers targeted specific systems and profiles of users.

Just like the majority of targeted malware attacks, this one was also relying on client-side exploits (Report: Malicious PDF files comprised 80 percent of all exploits for 2009) served through different file types (PDF, PPT, DOC) using a relevant topic of interest to Indian and Tibetan communities, which were then spamvertised to the victims of interest.

What’s particularly interesting about the cyber espionage facilitating network in question, is the mix of legitimate and purely malicious infrastructure in an attempt to not only increase the life cycle of the campaign, but also, to make it harder for network administrators to detect the malicious use of popular free email service providers, as well as social networks.

According to the report:

  • During our investigation we found that such intermediaries included Twitter, Google Groups, Blogspot, Baidu Blogs, and blog.com. The attackers also used Yahoo! Mail accounts as a command and control component in order to send new malicious binaries to compromised computers. In total, we found three Twitter accounts, five Yahoo! Mail accounts, twelve Google Groups, eight Blogspot blogs, nine Baidu blogs, one Google Sites and sixteen blogs on blog.com that we being used as part of the attacker’s infrastructure. The attackers simply created accounts on these services and used them as a mechanism to update compromised computers with new command and control server information.

The practice of blending legitimate infrastructure into the malicious mix is nothing new. In fact, in 2009 cybercriminals continued demonstrating their interest in abusing legitimate services such as Twitter, Google Groups, Facebook as command and control servers, as well as Amazon’s EC2 as a backend.

Moreover, although the report is logically emphasizing on the actual attack vectors used in this particular cyber espionage network, there’s another attack vector that’s been trending over the past few years, having an identical cyber espionage potential to the targeted attacks in general.

The attack vector in question, is the client-side exploits serving embassy, with the following international embassies serving malware to their visitors over the past few years as an example of the trend:

Who visits the web site of a particular embassy next to the people looking for information? It’s the embassy staff itself, as well as other high-profile visitors. Therefore, a compromised web site of an embassy, which make in fact act as the weakest link in case it’s insecure and open to exploitation compared to a failed targeted attack, could be on purposely used as an attack vector for a particular cyber espionage campaign.

The lines between cybercrime, and cyber espionage keep getting thinner, with financially-motivated cybercriminals today, in the best position to become information brokers of stolen high value data tomorrow, or even worse - set up the foundations for cyber espionage as a service propositions.

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Dancho Danchev is an independent security consultant and cyber threats analyst, with extensive experience in open source intelligence gathering, malware and cybercrime incident response.

Disclosure

Dancho Danchev

More details on Dancho Danchev's current and past professional affiliations, can be found in his LinkedIn profile.

Biography

Dancho Danchev

Dancho Danchev is an independent security consultant and cyber threats analyst, with extensive experience in open source intelligence gathering, and cybercrime incident response. He's been an active security blogger since 2007, and maintains a popular security blog sharing real-time threats intelligence data with the rest of the community on a daily basis. More details on Dancho Danchev's current and past professional affiliations, can be found in his LinkedIn profile. You can also follow him on Twitter

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RE: Researchers expose complex cyber espionage network
FAULKNE 13th Oct
Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.
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Total compromised computers: 44!?
AzuMao 7th Apr 2010
WOW!

This must surely be the biggest cyber-espionage operation of all time!
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It's not about the numbers
iTeaBoy 8th Apr 2010
It's about the placement, maintaining access, and the information accessible from the compromised computers that matters.

A hacker only needs 1 computer inside an organisations network.

Espionage not like bot herding/leasing or spamming.

The idea is to keep a low profile, go undetected for as long as possible, and gather as much information as possible. It could be argued that 44 was too many computers, and the reason they were discovered.

As Dancho says, it's an interesting development/transition in terms of cyber crime/espionage.
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It's not about the numbers
enawn 12th Apr 2010
This is exactly correct. Someone got greedy. Some N.U.G. or newbie made a mistake in hacking or cracking. iTeaBoy understands this. I hope everyone else catches on!!!
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Contributr
Quality of the infected hosts, over the quantity of the infected hosts, with evidence of cyber espionage done against the victims in this campaign.

In fact, one PC per high profile victim would have achieved a similar effect.
Oops, there goes the whole argument of "Windows only gets hacked more
because there are tons of little desktops running it all over the place".
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Errrr... No!
iTeaBoy 9th Apr 2010
If your intention is to infect/own as many devices as possible you would obviously target the biggest market.

If your intention is to steal specific information you identify a few targets, sneak in as quietly and low key as you can, and get as much infomation as you can without being detected.

Two very different goals with two very different methods.
Really? Seriously? You are a newbie. Arrrrgh! You need to read more!!! You are missing the whole point. You are in the forest, but you can't see it for all of the trees!!!!
  • Flagged
Thank you so much for your sharing. replica watches
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Okay, seriously..
AzuMao Updated - 7th Apr 2010
..if you're going to delete the comment I'm replying to, delete my reply too. sad
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Thanks, Adobe!
terry flores 8th Apr 2010
Of course, the article conveniently neglects to mention that US agents use similar methods, but hey, they are the good guys, right?
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only the Feds are running ever lower on funds as they squeeze us for every conceivable nickel we're worth in this crash n burn economy. Problem is, the tax paying sheeple have fewer funds to hand over than ever.

So many surveillance projects, so few funds... pfffft.
..going after bad guys, instead of people who choose to eat harmless plants.
  • Flagged
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You and your harmless plants
klumper 8th Apr 2010
Only you have a point, more so when it comes to priorities. How did that all go wrong in this country?
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Is this driftwood time or what...
still not nice 8th Apr 2010
..going after bad guys, instead of people who choose to eat harmless plants.

One can only imagine what you're 'eating...'

lol... grin
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a higher priority for extermination than murderers.
  • Flagged
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Well
techvirago 8th Apr 2010
The United States may be predominantly Christian, and a lot of our laws may be based on the Bible, but not all of them are.

By the way, try not to let that troll get to you.
He acts similarly to everyone.
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Too late
still not nice 13th Apr 2010
I already got his mom.

lol... grin

By the way, try not to let that troll get to you. He acts similarly to everyone.
  • Flagged
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China
ejhonda 8th Apr 2010
ChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaChinaC

So, who do you think could be behind it?
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re: China
CaptOska 8th Apr 2010


So, who do you think could be behind it?


the guys selling the shoes in the previous two posts, of course!
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LOL
ejhonda 8th Apr 2010
Code name: Ed Hardy
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I believe most of the cyber attacks are inside job. Paid informants who will take money in exchange for information.It is always easy if you have the right equipment to receive the signals from anywhere in space.
cloud computing will open more door for cyber thieves.
It's worse, this is the tip of the iceberg.

Why do I think this?

Sensitive personal information given securely to UK banks reaching Lahore (Pakistan) and used for attempted scams.

One scam appears to trawl a range of data for single older women living alone with good assets, they are then targeted by apparently single lonely men playing the "I love you scam".

A colleague has personal experience of this.


use Single older women have
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Oh Boy! Oh Boy!
Gradius2 8th Apr 2010
The end is near!
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Did anybody mention the elephant in the room?
thedavidmckenzie 8th Apr 2010
Microsoft.
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Chances are...
gypkap@... 8th Apr 2010
...that the "secure" data was on a Unix, BSD, AIX, Linux, or other Unix-like system. simply because Windows and MacOS have more known security holes. Even Unix can have security holes.
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no elephant
erik.soderquist 12th Apr 2010
When you have an insider of any form, the OS is irrelevant outside knowing in advance what you are writing for.

If the insider is a sysadmin, the insider can install whatever hostile package the bribe pays for as administrator or root, and once installed, it can easily be nearly undetectable.

Even if your insider is a grunt who only has a basic login, you still can gather invaluable detail on the network structure, and then a carefully crafted thumb drive could then be "accidentally" plugged into the wrong machine to facilitate a permissions escalation without exploiting an actual software vulnerability, just social engineering.

a lazy example: Joe has been assigned a laptop for a weeklong trip, and as he is to do presentations on the road which require demonstrating the ease of install of some new products, he?s been given admin access to the laptop with a block on connecting to the network at all. He stops at the briber's place and images the drive so the briber can evaluate it and write a malware pack for it. Joe does his demonstration and on the way back, stops off for the malware package, now already written for the detected environment. It gets installed, with rootkit self-hiding abilities. Joe return the laptop, the company removes his admin access and scans for all known malware at the time. As this is a newly written custom malware package, it goes undetected.

During the briber's analysis, she saw that Joe connects to 3 windows file servers, 2 Linux file servers, and 1 AIX application server. She wrote a custom package that could silently infect all 3 platforms if it gets admin access to these hosts.

The lab admin log in to do updates a month later, and the malware detects that it is now connected to the network with some admin privileges and infects the hosts that are detected and compiles a list of hosts that admin is not yet available on.

Joe starts seeing files pop up in his home directory; he copies these files to a thumb drive and deletes them from the server, goes home and emails them to the briber. Joe doesn?t know or care what these files are as long as the briber continues to pay.

The briber receives the files and writes new code for the malware system. The first round of files is nothing more than more detailed list of what is on the target company?s network, and the new code is a more finely crafted version of the malware. By this time, the v1.0 malware has found the proxy servers/internet gateways it can safely use by monitoring communications channels on everything that has been compromised and is able to pull updates from a number of legitimate public servers.

The v1.1 code is posted and the update self applies and spreads further, gathers more network data more quickly and delivers the details to new files in Joe?s home directory. Joe does his thing again, gets his payoff, and forgets about it.

v1.2 code is written with the new information, is posted to a different public server (avoid ever reusing an update delivery server for any single target), and now, the malware updates and contracts. Any host not actually of interest the malware removes itself from, keeping only very few select machines that are of high value to the attacker infected. This greatly reduces the chances that the malware would be detected. Machines typically of interest would be: internet gateway, any server with information like Social Security numbers or credit card numbers.

v1.3 is written and posted to add a deliver mechanism based on the network layout information that has been gathered and to start delivering the target data. At this point, Joe may or may not still be in the picture, the attacker has inside machines now, on a variety of platforms, that can continually reinfect each other as infection is found and removed, and detection of all infected machines at any given time is extremely difficult because each platform has a different malware binary? by v1.3, each infection is custom written to the machine it will be on, and therefore each infection will have a different signature even when on the same platform.

I know many will think this is extremely farfetched, but it does happen, and has happened, and the reason it happens is the payoff vs. the investment.

Bribes: $3000-$5000 per payment, explicit 3 payments in this scenario
Custom code: $20,000 per version, 4 explicit versions in this scenario
Total cost to install: ~$100,000
Pay off: access to the target company?s database containing the employee identities and Social Security numbers.
There are identity theft prevention companies that give up to a $1,000,000 guarantee that they will prevent your identity from being stolen, so I will use that as the value. And we will say that this company is not a mega corp by any means. I?ll even go so far as to say it is a very small company, only 10 employees.

That means that employee database is worth $10,000,000 to the attacker. With a payoff of $10,000,000, is a $100,000 investment worth it? To a criminal skilled enough to orchestrate this, it most certainly is, and these techniques work at companies significantly larger than 10 employees?

With those stakes and payoffs, I don?t care what OS is there, it really doesn?t matter, they will code for whatever they find.

And yes, this scenario has played out, and led to many companies instituting policies requiring laptops to simply be wiped and reloaded when changing assignments rather than updating the existing install.
Or require authentication by more than one admin for potentially dangerous changes to be made.

Or you could implement a basic process of auditing so that anyone accepting such a bribe will be held immediately accountable for any resulting damages.

Or all of the above.
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all good ideas
erik.soderquist Updated - 13th Apr 2010
and i've implemented many of them.

the notable exception is the 'more than one admin' as i'm often the only admin now.

and in the scenario i described, the bribe-taker never had physical access to the servers, nor did the USB drive have the code on it.

the point wasn't how it could be blocked after the fact, but rather that precise targeted attacks are possible against any OS. if the attacker can get detailed knowledge of the target beforehand, an attack can be carefully crafted regardless of what OS is in use.

[edit to correct spelling]
Good reporting. At least now I know who to watch out for!

Oh, wait.
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CHINA HACKER CONNECTION;-)
IKE:) Updated - 8th Apr 2010
I had a good laugh about the "possibility" that the Chinese Government does not know anything... hahahaha
NOTHING, I repeat, NOTHING happens in China, and in the Internet which is not known and/or initiated by the Chinese Communist Corrupt Government, PERIOD.

Chinese who visit certain western websites too often may anticipate a visit by members of the PSB (Public Security Bureau), or (in)frequently just disappear.

How absolutely naive to think the CN Gov. will comment to charges against them are anything but blatant lies.

WAKE UP! They are still communists.
In David Scott?s words, everyone needs to be a mini-Security Officer today. I think Mr. Scott, the author, is right: Most individuals and organizations enjoy Security largely as a matter of luck. For some free insight, check out his blog, ?The Business-Technology Weave? ? you can Google to it, or search on the site IT Knowledge Exchange which hosts it. Anyone else here reading I.T. WARS? I had to read parts of this book as part of my employee orientation at a new job. The book talks about a whole new culture as being necessary ? an eCulture ? for a true understanding of security, being that most identity/data breaches are due to simple human errors. It has great chapters on security, as well as risk, content management, project management, acceptable use, various plans and policies, and so on. Just Google IT WARS ? check out a couple links down and read the interview with the author David Scott at Boston?s Business Forum. (Full title is I.T. WARS: Managing the Business-Technology Weave in the New Millennium). ?In the realm of risk, unmanaged possibilities become probabilities.? Great stuff.
Can you say Chinese Government? Its fairly obvious from the targets...
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