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Zero Day

Ryan Naraine, Emil Protalinski and Dancho Danchev

Under malware attack: Smart cards used by U.S. government agencies

By | January 12, 2012, 11:06am PST

Summary: A new version of the Sykipot Trojan is targeting smart card readers made by ActivIdentity, a company that provides authentication software to several high-profile agencies and businesses around the world.

Security researchers have nabbed a new variant of an well-known backdoor Trojan called Sykipot targeting the smart cards used by U.S. government employees to access restricted servers and networks.

According to a warning from Alienvault Labs, the latest strain of Sykipot is linked to the kinds of extremely targeted attacks originating in China and aimed at U.S. government agencies.

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We have seen how the attackers are implementing different techniques to bypass two-factor authentication with smartcard/PIN to access protected resources on the victimʼs network. By capturing the PIN for the smartcard and binding the certificate, malware can silently use the card to authenticate to secure resources, so long as the card remains physically present in the card reader.

“While trojans that have targeted smart cards are not new, there is obvious significance to the targeting of a particular smart card system in wide deployment by the US DoD and other government agencies, particularly given the nature of the information the attackers seem to be targeting for exfiltration,” Alienvault said.

The company said this attack is targeted at smart card readers made by ActivIdentity, a company that provides authentication software to several high-profile agencies and businesses around the world.  The New York Times reports that ActivIdentity’s smart cards are used by employees at the Defense Department, Department of Homeland Security, Coast Guard, Social Security Administration, Treasury Department and other government agencies, along with businesses including Monsanto, BNP Paribas and Air France.

In this latest Sykipot malware run, Alienvault said the modus operandi of the attackers is to list the certificates present on the victim’s computer (including the smart cards) and to steal the PIN using a keylogger module.  THis information is then used to log onto remote resources protected with certificates and smart cards.

In the past the Sykipot malware has been seen exploiting zero-day vulnerabilities in Adobe Reader.  Over on Threatpost, Paul Roberts has a really good story on the intricacies of these high-end espionage attacks.

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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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I agree with this content now-a-days all people using smart cards and the attackers are simply ruining off and this has to be considered for more secure
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This has been obvious for years.
jessepollard 13th Jan
And had been reported during the prototyping phase.

Any external (to the smartcard) use of the PIN is insecure.
Well, If we keep paying China to build our security sensitive devices, what do you expect to happen?
@Jaytmoon

Get real.... these things are done mainly by American companies, this is not just a problem with China-made stuff.

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