Fraud Intelligence Newsletter

June 2008

Table of Contents
Comcast.net domain name hijacked
Conference Round-up
- World Wide Web Conference
- AusCERT 2008
- APWG Counter eCrime Operations Summit II
- Authentication and Online Trust Alliance (AOTA) Summit 2008
- Identity Theft Technology Council (ITTC)
- Mail Anti-Abuse Working Group (MAAWG)
Upcoming Event Schedule

June 29 - July 2,
America's Credit Union Conference and Expo, New York, NY.  We are sponsors of the conference and will be an exhibitor.



Comcast.net domain name hijacked
Near midnight on May 28, two hackers gained control of Comcast's domain management account at Network Solutions.  The account controlled over 200 domains, including comcast.net, which hosts Comcast's consumer portal and handles e-mail for many of its 14 million subscribers.  The hackers kept control of the domain for over five hours.  They claim to have used a combination of social engineering and a technical hack to gain access to the account.  By Internet Identity's reckoning, the hackers made educated guesses about the password (social engineering) and used a brute force assault on the Network Solutions' log in page (technical hack) to find the right password.  At the time, Network Solutions did not lock out an account after high volume of failed log in attempts.  For a first-person account from the hackers of the takeover, please read http://blog.wired.com/27bstroke6/2008/05/comcast-hijacke.html

The implications of this domain name hijacking are scary. The hackers that took over Comcast.net did not have truly nefarious intentions, but they did make public a vulnerability that Internet Identity first alerted the registrar community about in September 2007. ICANN partially addressed this vulnerability with its SSAC Advisory on Registrar Impersonation Phishing Attacks (26 May 2008) http://icann.org/committees/security/sac028.pdf

The key takeaway is that a criminal can with moderate effort take over the legitimate domain of a financial institution to operate man-in-the-middle attacks or to replace the institutions legitimate site entirely. DNS and e-mail flow can also be hijacked.

The domain name is the weakest point in the security for financial institutions' websites. The attack against Comcast put a spotlight on this serious problem that has so far been ignored by industry and regulators alike.  Over 94% of financial institutions use consumer registrars that secure access to domain names with weak username/password systems that are often vulnerable to a brute force attack.  No consumer registrars even offer two-factor authentication.  To make matters worse, many institutions do not closely control who has access to their domain name accounts, so they do not even know where their vulnerabilities are.

If you wish to discuss this very serious vulnerability in greater depth, please contact us.

Conference Round-up
In recent weeks, Internet Identity has continued its strong leadership role within the anti-phishing industry by participating in conferences, panels, and education sessions around the world. At these events, we work together in collaboration with law enforcement, ISPs, registrars, CERTs, government agencies, and others who are fighting the phishing, malware and cybercrime problems that threaten business on the Internet. 

Through relationships and alliances we form through these organizations, we're able to leverage a wide array of resources on behalf of our clients, and help with the efforts to find and apprehend the criminals behind attacks.  We also learn the latest information and techniques to help further protect and educate our clients.  In today's threat-filled Internet environment, this collaborative approach has proven to be what works - no single organization can battle all the threats on its own.  Internet Identity is a strong believer in the collaborative approach, and continues to contribute significant time and intellectual resources to these collaborative organizations.

This edition of the FIN provides a summary of those conferences.  At publication time, Internet Identity representatives are also participating in the ICANN meetings in Paris, as well as the FIRST (Forum for Incident Response and Security Teams) Conference in Vancouver.  Reviews of those conferences will appear in the next FIN issue.

World Wide Web Conference - Beijing, China - April 21 - 25, 2008
President and CTO Rod Rasmussen took part in a panel discussion on e-crime threats at this important annual conference.  The conference brings together academics, industry, and thought leaders on the future of the Internet to discuss the latest trends, issues, and goals for the World Wide Web.  This year's event focused largely on Web 2.0 applications and all the interesting new ways of delivering web content and services they are leading towards.  Among other things, the e-crime panel focused on the dangers inherent with these new technologies for creating unprecedented exposure to web users if security isn't a major component of developing websites with these new tools.  Financial institutions and companies that are building transactional interfaces for Facebook should take heed.  
While in Beijing, Rasmussen was also able to spend a day at the headquarters of CNNIC, the Chinese domain registry in charge of the .CN domain zone.  CNNIC is very interested in working to curb phishing and e-crime abuse.  Rod's visit was a major step in creating a close relationship with them to assist them in their efforts.

AusCERT 2008 - Gold Coast Australia - May 19 - 23, 2008
Rod Rasmussen was invited to present at the AusCERT 2008 conference as the representative for the Anti-Phishing Working Group.  AusCERT has grown to be the leading Asia-Pacific regional security conference, and this year's proceedings saw over 1,200 participants engage in a full week of cutting edge sessions and workshops on cyber-security.  Rasmussen updated a special e-crime symposium on the APWG's current initiatives, and in the process extended Internet Identity's relationships with worldwide law enforcement and CERT members. 

The presentations throughout the conference were top-notch, and the spirit of collaboration and desire to pool resources were pervasive.  Unfortunately, many sessions also showed some of the emerging threats we are facing, and in many areas things appear to be getting worse. The biggest buzz of the conference was the keynote address by John Stewart, Cisco's Chief Security Officer, where he declared anti-virus to be "completely wasted money".  While we still see tremendous value with A/V products, the newest malware and delivery methodologies to present tough challenges that need to be addressed differently.  One of the scariest of these threats is injections of malware onto your own trusted sites that then infect your own customers.  At Internet Identity, we're actively working on solutions to enable our clients to detect and fend off these types of threats.  

APWG Counter eCrime Operations Summit II  - Tokyo, Japan - May 26 - 27, 2008
The Anti-Phishing Working Group's meeting in Tokyo was a smashing success, with nearly 300 participants - its largest crowd yet.  The event received wide coverage on Japanese television, with three different film crews and several reporters there.  Rod Rasmussen's presentation with Greg Aaron of Afilias of their comprehensive study on phishing during 2007 made the evening news.  Interestingly, Japan does not have much of a traditional phishing problem targeting financial institutions, but rather a big one with on-line games.  It's a multi-billion dollar industry, and there is great value in obtaining compromised accounts for game play and actual cash-out of cyberworld artifacts in the real world. 

The APWG remains the most collaborative event we attend, and good progress was made in moving forward with industry data sharing.  In the spirit of collaboration, Rod stayed out till dawn learning all about singing Japanese Karaoke with the APWG leadership, people from JPCERT, AusCERT, Korea CERT, LaCaxia, and even the ICANN CTO.  According to Rod, "Terrance Park from Korea CERT was the only one who could actually sing at all, so it was certainly a collaborative effort to employ counter-measures (alcohol) to protect from a full assault on our network interfaces (ears)!"

Authentication and Online Trust Alliance (AOTA) Summit 2008 - Seattle, USA - June 4 - 5, 2008
The underlying theme of this year's AOTA Summit was about how businesses can  develop and maintain a strong, positive reputation online.  As one might expect, building a successful online reputation boils down to choosing and executing well those actions you control, and protecting yourself against outside actors looking to harm or take advantage of your reputation. 

Our CTO Rod Rasmussen again took the stage, participating in two panel discussions.  The first panel focused on the role of registrars, web hosts, and ISPs in the setup, ongoing operation, and response to online threats.  The second panel focused on the preventive and proactive response planning that organizations should be doing.

Since the Conference took place only 25 miles from our Tacoma headquarters, Internet Identity was able to host for a few hours at our offices both Dave Jevans, president of the APWG, and Gary Warner, one of the world's foremost authorities on phishing and currently the Director of Research in Computer Forensics at the University of Alabama-Birmingham.  Our two guests graciously participated in an impromptu and informative discussion about phishing with the Internet Identity deactivation team and staff.  We would like to thank both Dave and Gary for sharing their time and expertise with us.

Identity Theft Technology Council (ITTC) meeting - Menlo Park, CA, USA - June 11, 2008
The ITTC is a public private partnership initiative supported by the DHS's Science and Technology Directorate and SRI International. This series of meetings has developed a following of IT security thought leaders from the Federal Government, private industry, law enforcement, research and policy communities and venture capital.  Internet Identity's CEO Lars Harvey participated in a panel discussion about critical emerging cyber-security threats.  The hottest and most timely topic addressed by the panel was the domain takeover of Comcast.net, which generated much discussion about the responsibilities of registrars and domain owners.

Mail Anti-Abuse Working Group (MAAWG) - Heidelberg, Germany - June 10 - 12, 2008
Rod Rasmussen attended yet another meeting filled with great content and enthusiastic members - this one with wide attendance of the ISP and e-mail protection community.  Highlights included some fascinating presentations on the power of DNS in malicious activity detections, and work people are doing to extend "reputation" to domains, name servers, URLs, and even registrars.  Several big providers are testing DKIM at both sending and receiving ends - time to start working on a deployment solution if you're a phishing target!  Rod gave an update on the APWG Internet Policy Committee he co-chairs, and looks forward to some combined efforts from MAAWG on several fronts. 

If you want to learn more about protecting your organization from phone phishing, phishing, spear phishing, targeted malware and other attacks against your customers, please contact Internet Identity.

2010 Event Schedule

Jan 31 – Feb 3, BlackHat DC 2010 Briefings and Training, Arlington, VA

Feb 8 – 10, Credit Union Information Security Professionals Association (CUISPA) Annual Summit , Austin, TX.

Feb 15 – 18, Messaging Anti-Abuse Working Group (MAAWG) 18th General Meeting, San Francisco, CA.

March 1 – 5, RSA Conference, San Francisco, CA.

March 7 – 12, ICANN General Meeting No. 37, Nairobi, Kenya.  Rod Rasmussen will be attending as liaison for the APWG.

March 16 – 17, e-Crime Congress, London, UK.

April 12 – 14, Educause Security Professional Conference, Atlanta, GA

May 3 – 5, FS-ISAC, FSTC, BITS Annual Summit, St. Pete Beach, FL.

May 11 – 13, Anti-Phishing Working Group (APWG) Counter e-Crime Operations Summit 2010, São Paulo, Brazil.

View Full Event Schedule