A shockwave went through the financial world when ransomware group LockBit claimed to have breached the US Federal Reserve, the central banking system of the United States.

On LockBit’s dark web leak site, the group threatened to release over 30 TB of banking information containing Americans’ banking data if a ransom wasn’t paid by June 25:

“Federal banking is the term for the way the Federal Bank of America distributes its money. The Reserve operates twelve banking districts around the country which oversee money distribution within their respective districts. The twelve cities which are home to the Reserve Banks are Boston, New York City, Philadelphia, Richmond, Atlanta, Dallas, Saint Louis, Cleveland, Chicago, Minneapolis, Kansas City and San Francisco.

33 terabytes of juicy banking information containing American’s banking secrets.”

The statement ends expressing the group’s disappointment about a negotiator who apparently offered to pay $50,000.

So, you can imagine that everyone was anticipating the end of the countdown that signalled the release of the stolen data with bated breath.

However, when that deadline passed and the data was released, people who looked at the data found it did not, in fact, belong to the Federal Reserve but instead to a particular financial organization: Evolve Bank & Trust.

All the links lead to directories containing data that seems to belong to Evolve.

There hasn’t been enough time to do a full analysis of the huge amount of data, but it appears it is only remotely tied to the Federal Reserve by some included links to a Federal Reserve press link from mid-June.

At that time, the US Federal Reserve Board penalized Evolve Bancorp and its subsidiary, Evolve Bank & Trust, for multiple “deficiencies” in the bank’s risk management, anti-money laundering (AML) and compliance practices.

According to the Federal Reserve statement released at the time:

“In addition, Evolve did not maintain an effective risk management program or controls sufficient to comply with anti-money laundering laws and laws protecting consumers.”

So, as expected, LockBit drew a lot of attention under false pretences.

The group was disrupted by law enforcement in February of 2024 and their activity diminished as a result. As the ThreatDown monthly ransomware review of May review pointed out:

“While LockBit is technically still alive, it’s fair to say the group is not what it was: Not only are its attacks dwindling, but in early May law enforcement also revealed the identity of alleged LockBit leader Dmitry Khoroshev, aka LockBitSupp. LockBitSupp, who is now subjected to a series of asset freezes and travel bans, also has a reward of up to $10 million over his head for information that leads to his arrest.”

And recently the FBI announced it had over 7,000 LockBit decryption keys in its possession, allowing it to help victims to recover data encrypted by the gang in past attacks. LockBit ransomware has impacted over 1,800 US victims, according to FBI stats.

Back to the data, it’s good news it appears not to be from the Federal Reserve. However, it’s not good news for customers of Evolve Bank & Trust and their data may well have been stolen and published. And it’s a lot of data.

Update June 28, 2024

Mercury has notified customers that the data stolen from Evolve Bank & Trust, included some account numbers, deposit balances, business owner names, and emails associated with Mercury and other fintech accounts.

“Affected Mercury customers have been notified of the breach and the preventative steps we are taking to keep customer funds secure.”

It is as of yet unknown which “other fintech accounts” may be involved. We’ll keep you updated on this developing story. For now, there’s no official statement from Evolve, but there are general things to know if you think you have been involved in a data breach.

Protecting yourself after a data breach

There are some actions you can take if you are, or suspect you may have been, the victim of a data breach.

• Check the vendor’s advice. Every breach is different, so check with the vendor to find out what’s happened, and follow any specific advice they offer.
• Change your password. You can make a stolen password useless to thieves by changing it. Choose a strong password that you don’t use for anything else. Better yet, let a password manager choose one for you.
• Enable two-factor authentication (2FA). If you can, use a FIDO2-compliant hardware key, laptop or phone as your second factor. Some forms of two-factor authentication (2FA) can be phished just as easily as a password. 2FA that relies on a FIDO2 device can’t be phished.
• Watch out for fake vendors. The thieves may contact you posing as the vendor. Check the vendor website to see if they are contacting victims, and verify the identity of anyone who contacts you using a different communication channel.
• Take your time. Phishing attacks often impersonate people or brands you know, and use themes that require urgent attention, such as missed deliveries, account suspensions, and security alerts.
• Consider not storing your card details. It’s definitely more convenient to get sites to remember your card details for you, but we highly recommend not storing that information on websites.
• Set up identity monitoring. Identity monitoring alerts you if your personal information is found being traded illegally online, and helps you recover after.

Check your digital footprint

Malwarebytes has a new free tool for you to check how much of your personal data has been exposed online. Submit your email address (it’s best to give the one you most frequently use) to our free Digital Footprint scan and we’ll give you a report and recommendations.

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We don’t just report on threats – we help safeguard your entire digital identity

Cybersecurity risks should never spread beyond a headline. Protect your—and your family’s—personal information by using identity protection.

Two weeks after the Australian privacy watchdog filed a lawsuit against Medibank for failure to protect personal information of its citizens in a 2022 data breach, the Information Commissioner's office this week made public a comprehensive analysis of the security failures that led to the incident. Medibank, a prominent Australian health insurance provider, faced a devastating cyberattack in October 2022 that compromised the personal data of 9.7 million current and former customers. According to the report from the Office of the Australian Information Commissioner (OAIC), the attack was likely caused by a lack of basic cybersecurity measures like requiring its workers to use multi-factor authentication to log onto its VPN.

The Sequence of Events in the Medibank Breach

The attack on Medibank began when an IT service desk operator at a third-party contractor used his personal browser profile on a work computer and inadvertently synced his Medibank credentials to his home computer. This home device was infected with information-stealing malware, which allowed hackers to obtain these credentials, including those with elevated access permissions. The attackers first breached Medibank’s Microsoft Exchange server using these credentials on August 12, 2022, before logging into Medibank’s Palo Alto Networks Global Protect VPN. Incidentally, the VPN did not require multi-factor authentication (MFA), making it easier for the attackers to gain access. It was only in mid-October that Medibank brought in a threat intelligence firm to investigate a Microsoft Exchange ProxyNotShell incident, when they discovered data was previously stolen in a cyberattack.

"During the Relevant Period, the Admin Account had access to most (if not all) of Medibank's systems, including network drives, management consoles, and remote desktop access to jump box servers (used to access certain Medibank directories and databases)." - the OAIC report.

Security Failures and Missed Alerts

Lack of Multi-Factor Authentication (MFA)

One of the critical failures in the Medibank breach was the health insurer’s neglect to implement MFA for VPN access. The OAIC report said that during the relevant period, the VPN was configured to allow access with just a device certificate or a username and password. It did not require the additional security layer provided by MFA. This oversight significantly lowered the barrier for unauthorized access.

Operational and Alert Management Failures

Despite receiving several security alerts from their Endpoint Detection and Response (EDR) software about suspicious activities on August 24 and 25, these alerts were not appropriately triaged or escalated. This delay allowed the attackers to continue their operations undetected for an extended period, which ultimately led to the exfiltration of approximately 520 gigabytes of sensitive data from the company's MARS Database and MPLFiler systems.

Data Compromised and Consequences

The stolen data included highly sensitive information such as customers' names, dates of birth, addresses, phone numbers, email addresses, Medicare numbers, passport numbers and extensive health-related data. The exposure of such information has severe implications for the affected individuals, ranging from identity theft to potential misuse of medical data in various frauds and scams. The attackers linked to the ransomware gang BlogXX, which is believed to be an offshoot of the notorious REvil group, leaked the data on the dark web. This incident not only caused significant distress to millions of Australians but also highlighted the grave consequences of inadequate cybersecurity measures.

Legal and Regulatory Actions Follow

The OAIC said that Medibank was aware “of serious deficiencies in its cybersecurity and information security,” prior to the hack. For example, citing an Active Directory Risk Assessment report from Datacom in June 2020, OAIC said Medibank had an excessive number of individuals who had access to Active Directory (being the Microsoft directory service used for management of all Medibank users, group policies and domains).

"A number of individuals had been given excessive privileges to perform simple daily routines, and that MFA had not been enabled for privileged and nonprivileged users which was described as a “critical” defect."

Given the nature and the volume of the data Medibank stores and collects, “it was reasonable” for the company to adopt the security measures recommended by Australia’s privacy regulator, but “these measures were not implemented, or, alternatively, not properly implemented or enforced, by Medibank,” OAIC said.

Thus, in response to the breach and the negligence that led to it, Australia's data protection regulator OAIC, announced legal action against Medibank for failing to protect personal information. The company faces potential fines exceeding AU$2 million.

A spokesperson for the health insurer did not detail the plan of action against the lawsuit but earlier told The Cyber Express that ”Medibank intends to defend the proceedings.”

Medibank Hacker Sanctioned and Arrested

Earlier this year, the U.S., Australia, and the U.K. sanctioned Aleksandr Gennadievich Ermakov, believed to be behind the 2022 Medibank hack. Ermakov, also known by aliases such as AlexanderErmakov and JimJones, was subsequently arrested by Russian police along with two others for violating Article 273, which prohibits creating or spreading harmful computer code. Extradition of Ermakov is unlikely given the current political climate.

Lessons and Recommendations

The Medibank breach underscores several critical lessons for organizations regarding cybersecurity: 1. Implementation of Multi-Factor Authentication: Utilizing MFA for all access points, especially VPNs, is essential. MFA adds an additional layer of security, making it significantly harder for attackers to exploit stolen credentials. 2. Proper Alert Management: Organizations must ensure that security alerts are promptly and effectively managed. Implementing robust procedures for triaging and escalating suspicious activities can prevent prolonged unauthorized access. 3. Regular Security Audits: Conducting regular security audits to identify and rectify vulnerabilities is crucial. These audits should include evaluating the effectiveness of existing security measures and compliance with best practices. 4. Employee Training: Continuous training for employees on cybersecurity best practices, including safe browsing habits and the importance of using corporate credentials responsibly, is vital to minimize the risk of breaches originating from human error.

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The Partners in Mission Foodbank will relocate to a nearby building with twice the space as its current one early next year, its executive director announced Monday. Read More

On Wednesday June 12, 2024, a well-known dark web data broker and cybercriminal acting under the name “Sp1d3r” offered a significant amount of data allegedly stolen from Truist Bank for sale.

Truist is a US bank holding company and operates 2,781 branches in 15 states and Washington DC. By assets, it is in the top 10 of US banks. In 2020, Truist provided financial services to about 12 million consumer households.

The online handle of the seller immediately raised the suspicion that this was yet another Snowflake related data breach.

The post also mentions Suntrust bank because Truist Bank arose after SunTrust Banks and BB&T (Branch Banking and Trust Company) merged in December 2019.

For the price of $1,000,000, other cybercriminals can allegedly get their hands on:

• Employee Records: 65,000 records containing detailed personal and professional information.
• Bank Transactions: Data including customer names, account numbers, and balances.
• IVR Source Code: Source code for the bank’s Interactive Voice Response (IVR) funds transfer system.

IVR is a technology that allows telephone users to interact with a computer-operated telephone system through the use of voice and Dual-tone multi-frequency signaling (DTMF aka Touch-Tone) tones input with a keypad. Access to the source code may enable criminals to find security vulnerabilities they can abuse.

Given the source and the location where the data were offered, we decided at the time to keep an eye on things but not actively report on it. But now a spokesperson for Truist Bank told BleepingComputer:

“In October 2023, we experienced a cybersecurity incident that was quickly contained.”

Further, the spokesperson stated that after an investigation, the bank notified a small number of clients and denied any connection with Snowflake.

“That incident is not linked to Snowflake. To be clear, we have found no evidence of a Snowflake incident at our company.”

But the bank disclosed that based on new information that came up during the investigation, it has started another round of informing affected customers.

Protecting yourself after a data breach

There are some actions you can take if you are, or suspect you may have been, the victim of a data breach.

• Check the vendor’s advice. Every breach is different, so check with the vendor to find out what’s happened and follow any specific advice they offer.
• Change your password. You can make a stolen password useless to thieves by changing it. Choose a strong password that you don’t use for anything else. Better yet, let a password manager choose one for you.
• Enable two-factor authentication (2FA). If you can, use a FIDO2-compliant hardware key, laptop or phone as your second factor. Some forms of two-factor authentication (2FA) can be phished just as easily as a password. 2FA that relies on a FIDO2 device can’t be phished.
• Watch out for fake vendors. The thieves may contact you posing as the vendor. Check the vendor website to see if they are contacting victims, and verify the identity of anyone who contacts you using a different communication channel.
• Take your time. Phishing attacks often impersonate people or brands you know, and use themes that require urgent attention, such as missed deliveries, account suspensions, and security alerts.
• Consider not storing your card details. It’s definitely more convenient to get sites to remember your card details for you, but we highly recommend not storing that information on websites.
• Set up identity monitoring. Identity monitoring alerts you if your personal information is found being traded illegally online, and helps you recover after.

Check your exposure

While matters are still unclear how much information was involved, it’s likely you’ve had other personal information exposed online in previous data breaches. You can check what personal information of yours has been exposed with our Digital Footprint portal. Just enter your email address (it’s best to submit the one you most frequently use) to our free Digital Footprint scan and we’ll give you a report.

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We don’t just report on threats – we help safeguard your entire digital identity

Cybersecurity risks should never spread beyond a headline. Protect your—and your family’s—personal information by using identity protection.

Guardian: Mass casualty incidents caused by the Israeli military offensive in southern Gaza are becoming normalised in the west and leading to a sense of fatalism inside Gaza itself, according to Sam Rose, the director of planning for the Palestinian relief agency UNRWA (after its school in Nuseirat was bombed by Israeli forces) || Democracy Now: "Apocalyptic": 40 Killed in Israeli Airstrike on U.N. School Sheltering Displaced Palestinians in Gaza || BBC: US urges Israel to be transparent over Gaza school strike || Sky News UK: Experts told Sky News the [bomb] fragment [at Gaza school strike] can be identified as part of an American-made GBU-39 bomb; NPR: Israel used a U.S.-made bomb in a deadly U.N. school strike in Gaza [ground reporting that concurs] || MEMO (reporting of a Yedioth Ahronoth article): UN adds Israel to blacklist for harming children in conflict zones || ICYMI: Aharon Barak steps down as Israel's nominated judge to the ICJ case; Israel's Attorney-General urges Netanyahu to form commission of inquiry to provide legal cover from international judicial investigations such as through the ICC; Which ten countries have joined South Africa's case against Israel at the ICJ?

This is the fresh thread for the coverage of the violence in the Occupied Palestinian Territories. The previous thread (worth a check of the last 50 comments or so for there continues to be fresh news).

ABN Amro discloses data breach after third-party services provider AddComm suffers a ransomware attack.

The post ABN Amro Client Data Possibly Stolen in AddComm Ransomware Attack appeared first on SecurityWeek.