Dropbox Beefs Up Security

Two-factor authentication is widely regarded as a best practice for security in the online world, but Dropbox has announced a new feature that’s designed to make it even more secure.

Whereas two-step verification most commonly involves the user’s phone for the second authentication method, Dropbox’s new U2F support adds a new means of authenticating the user via Universal 2nd Factor (U2F) security keys instead.

What that means is that users can now use a USB key as an additional means to prove who they are.

“This is a very good advancement and adds extra security over mobile notifications for two-factor authentication,” said Rich Mogull, Securosis CEO.

“Basically, you can’t trick a user into typing in credentials,” Mogull explained. “The attacker has to compromise the exact machine the user is on.”

For most users, phone-based, two-factor authentication is “totally fine,” he said. “But this is a better option in high-security environments and is a good example of where the FIDO standard is headed.”

Security keys provide stronger defense against credential-theft attacks like phishing, Dropbox said.

“Even if you’re using two-step verification with your phone, some sophisticated attackers can still use fake Dropbox websites to lure you into entering your password and verification code,” the company explained in a blog post. “They can then use this information to access your account.”

Security keys, on the other hand, use cryptographic communication and will only work when the user is signing in to the legitimate Dropbox website.

Dropbox users who want to use the new feature will need a security key that follows the FIDO Alliance’s Universal 2nd Factor (U2F) standard. That U2F key can then be set up with the user’s Dropbox account along with any other U2F-enabled services, such as Google.

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Anthem Gets Hacked

Health insurer Anthem Inc, which has nearly 40 million U.S. customers, has confirmed that hackers had breached one of its IT systems and stolen personal information relating to current and former consumers and employees.

The No. 2 health insurer in the United States said the breach did not appear to involve medical information or financial details such as credit card or bank account numbers.

The information accessed during the “very sophisticated attack” did include names, birthdays, social security numbers, street addresses, email addresses and employment information, including income data, the company said.

Anthem said that it immediately made every effort to close the security vulnerability and reported the attack to the FBI. Cybersecurity firm FireEye Inc FEYE. said it had been hired to help Anthem investigate the attack.

The company did not say how many customers and staff were affected, but the Wall Street Journal earlier reported it was suspected that records of tens of millions of people had been taken, which would likely make it the largest data breach involving a U.S. health insurer.

Anthem had 37.5 million medical members as of the end of December.

“This attack is another reminder of the persistent threats we face, and the need for Congress to take aggressive action to remove legal barriers for sharing cyber threat information,” U.S. Rep. Michael McCaul, a Republican from Texas and chairman of the Committee on Homeland Security, said in a statement late Wednesday.

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U.S. And Britain Ramping Up Cyber Defense

The U.S. and Britain are increasing their collaboration to thwart digital threats. They are planning to launch more attacks against each other to test their defenses and scare away possible enemies.

The U.S. and the U.K. have been working together to prevent cyber attacks for some time, but are going to increase the collaboration. They will combine their expertise to set up “cyber cells” on both sides of the Atlantic to increase sharing information about threats and to work out how to best protect themselves and create a system that lets hostile states and organization know they shouldn’t attack, said U.K. prime minister David Cameron in an interview published by the BBC.

Cyber attacks “are one of the biggest modern threats that we face,” according to Cameron who is visiting Washington for talks with U.S. president Barack Obama. One of the topics high on the agenda is digital security.

The countries will increase the “war games” launched at each other to test defenses. “It is happening already but it needs to be stepped up,” Cameron said, adding that British intelligence service GCHQ and the U.S. equivalent NSA have know-how that should be shared more.

“It is not just about protecting companies, it is also about protecting people’s data, about protecting people’s finances. These attacks can have real consequences to people’s prosperity,” he said.

However, in order to protect companies and citizens better, increased snooping powers to track terrorists on social networks are necessary, said Cameron. He is planning to discuss this issue with Obama and U.S. companies including Google and Facebook.

The increased cooperation between the countries comes in the wake of the Sony hack and the apparent hacking of the U.S. Central Command’s Twitter account by ISIS (Islamic State of Iraq and Syria), which posted tweets threatening families of U.S. soldiers and claiming to have hacked into military PCs.

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Criminals Remotely Erasing Smartphone Data

Smartphones taken as evidence by police in the UK are being wiped remotely by crooks in order to remove potentially incriminating data, an investigation has uncovered.

Dorset police told the BBC that six devices were wiped within the space of a year while they were being kept in police custody, and Cambridgeshire, Derbyshire, Nottingham and Durham police also confirmed similar incidents.

The technology being used was originally designed to allow device owners to remove sensitive data from phones or tablets if they are lost or stolen.

“We have cases where phones get seized, and they are not necessarily taken from an arrested person, but we don’t know the details of these cases as there is not a reason to keep records of this,” a spokeswoman for Dorset police told the BBC.

A spokeswoman for Derbyshire police also confirmed one incident of a device being remotely wiped while in police custody.

“We can’t share many details about it, but the case concerned romance fraud, and a phone involved with the investigation was remotely wiped,” she said. “It did not impact upon the investigation, and we went on to secure a conviction.”

Software that enables this remote wiping has been available from a variety of security firms for some time now.

For example, BitDefender announced a product a while back intended to track  lost or stolen Android devices. Not only did it allow users to connect remotely and ‘wipe’ data from a web profile via the internet, but to activate commands with text messages.

Pen Test Partners’ digital forensics expert, Ken Munro, said it is common practice to immediately put devices that are seized as evidence into a radio-frequency shielded bag to prevent any signals getting through and stop remote wipes.

“If we can’t get to the scene within an hour, we tell the client to pop it in a microwave oven,” he said. “The microwave is reasonably effective as a shield against mobile or tablet signals – just don’t turn it on.”

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Hackers Infiltrate Jimmy Johns

Sandwich restaurant chain Jimmy John’s said there was a potential data breach involving customers’ credit and debit card information at 216 of its stores and franchised locations on July 30.

An intruder stole log-in credentials from the company’s vendor and used the credentials to remotely access the point-of-sale systems at some corporate and franchised locations between June 16 and Sept. 5, the company said.

The chain is the latest victim in a series of security breaches among retailers such as Target Corp, Michaels Stores Inc and Neiman Marcus.

Home Depot Inc  said last week some 56 million payment cards were likely compromised in a cyberattack at its stores, suggesting the hacking attack at the home improvement chain was larger than the breach at Target Corp.

More than 12 of the affected Jimmy John’s stores are in Chicago area, according to a list disclosed by the company.

The breach has been contained and customers can use their cards at its stores, the privately held company said.

Jimmy John’s said it has hired forensic experts to assist with its investigation.

“Cards impacted by this event appear to be those swiped at the stores, and did not include those cards entered manually or online,” Jimmy John’s said.

The Champaign, Illinois-based company said stolen information may include the card number and in some cases the cardholder’s name, verification code, and/or the card’s expiration date.

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Can Android Fight Cyber Threats With A.I.?

A security firm called Zimperium has launched mobile software that learns from smartphones to fend off malicious cyber attacks.

Claiming to be the first security software to be powered by artificial intelligence (AI), the app is called zIPS, with the “IPS” standing for “intrusion prevention system”. The aim of the AI is to better spot malware before it causes harm or spreads to other devices.

The zIPS software works whether the smartphone is offline or online and can protect against malicious apps, such as those that can self-modify, and network attacks like a “man in the middle” attack where a hacker intercepts data being sent between one user and another.

“With zIPS, corporations will now have the opportunity to use [bring your own device] as an advantage to their security. zIPS is the first security solution that can combat modern cyber-attacks on mobile,” said Zimperium’s founder and CEO Zuk Avraham. “There is already evidence of attacks that are happening to infiltrate organisations, which only zIPS can prevent.”

Prior to working on the Android app, Avraham worked as a security researcher for the Israeli Defense Forces and Samsung electronics before setting up Zimperium in response to what he thinks is a poor selection of good mobile security software.

According to MIT Technology Review, Zimperium said that there have as yet been no programs that can detect, notify and protect against cyber attacks deployed through mobile devices.

The zIPS Android app has arrived in the Google Play store for all Android devices at a time when malware on Android is at an all time high.

Last year, Trend Micro warned that Google’s Android mobile operating system is so beset by cyber criminals creating malicious apps that the malware was on track to hit the million mark before the end of 2013.

The firm said that this was attributable to hackers seeking to exploit Android’s growing global user base.

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Phishing Attacks Increasing

Security researchers at Kaspersky Lab have reported significant growth in phishing attacks over the last year.

In a study entitled “The Evolution of Phishing Attacks”, Kaspersky said it found 37.3 million out of its 50 million customers running its security products that were at risk of being phished from 2012 to the present, an 87 percent increase over the same period between 2011 and 2012.

“The nature of phishing attacks is such that the simplest types can be launched without any major infrastructure investments or in-depth technological research,” Kaspersky said in the report.

“This situation has led to its own form of ‘commercialization’ of these types of attacks, and phishing is now being almost industrialized, both by cybercriminals with professional technological skills and IT dilettantes.”

The security firm explained that overall, the effectiveness of phishing, combined with its profitability for criminals and how simple the process is to undertake has led to a steadily rising number of these types of incidents.

Kaspersky noted that most of the victims in 2012-2013 were located in just ten countries, that is, Russia, the US, India, Germany, Vietnam, the UK, France, Italy, China and Ukraine. These 10 countries were home to 64 percent of all phishing attack victims during this time.

In addition to a rise in the number of users attacked, the number of servers involved in phishing attacks also increased, Kaspersky said, without giving any exact numbers. Though the firm did reveal that internet giants like Yahoo, Google, Facebook and Amazon are the top targets of malicious users.

“Online game services, online payment systems, and the websites of banks and other credit and financial organizations are also common targets,” the firm added, warning users to stay vigilant when entering personal data.

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Google Updates It’s SSL Certificate

Google has announced plans to upgrade its Secure Sockets Layer (SSL) certificates to 2048-bit keys by the end of 2013 to strengthen its SSL implementation.

Announcing the news on a blog post today, Google’s director of information security engineering Stephen McHenry said it will begin switching to the new 2048-bit certificates on 1 August to ensure adequate time for a careful rollout before the end of the year.

“We’re also going to change the root certificate that signs all of our SSL certificates because it has a 1024-bit key,” McHenry said.

“Most client software won’t have any problems with either of these changes, but we know that some configurations will require some extra steps to avoid complications. This is more often true of client software embedded in devices such as certain types of phones, printers, set-top boxes, gaming consoles, and cameras.”

McHenry advised that for a smooth upgrade, client software that makes SSL connections to Google, for example, HTTPS must: “perform normal validation of the certificate chain; include a properly extensive set of root certificates contained […]; and support Subject Alternative Names (SANs)”.

He also recommended that clients support the Server Name Indication (SNI) extension because they might need to make an extra API call to set the hostname on an SSL connection.

He pointed out some of the problems that the change might trigger, and pointed to a FAQ addressing certificate changes, as well as instructions for developers on how to adapt to certificate changes.

F-secure’s security researcher Sean Sullivan advised, “By updating its SSL standards, Google will make it easier to spot forged certificates.

“Certificate authorities have been abused and/or hacked in the past. I imagine it will be more difficult to forge one of these upgraded certs. Therefore, users can have more confidence.”

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More Trojan Malware Found On Macs

Following the outbreak of the Flashback Mac Trojan, security researchers have identified two more cases of Mac OS X malware. The good news is most Mac owners have little reason to worry about them.

Both cases are variants on the same Trojan, called SabPub, Kaspersky Lab Expert Costin Raiu wrote on Securelist.

The first variant is known as Backdoor.OSX.SabPub.a. Like Flashback, this new threat was likely spread through Java exploits on Websites, and allows for remote control of affected systems. It was created roughly one month ago.

Fortunately, this malware isn’t a threat to most users for a few reasons: It may have only been used in targeted attacks, Raiu wrote, with links to malicious Websites sent via e-mail, and the domain used to fetch instructions for infected Macs has since been shut down.

Furthermore, Apple’s security update for Flashback helps render future Java-based attacks harmless. In addition to removing the Flashback malware, the update automatically deactivates the Java browser plug-in and Java Web Start if they remain unused for 35 days. Users must then manually re-enable Java when they encounter applets on a Web page or a Web Start application.

The second SabPub variant is old-school compared to its sibling. Instead of attacking through malicious Websites, it uses infected Microsoft Word documents as vector, distributed by e-mail.

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Apple Blasted For Not Blocking Stolen Certificates

A security researcher blasted Apple for what he called “foot dragging” over the DigiNotar certificate fiasco, and urged the company to act fast to update Mac OS X to protect users.

“We’re looking at some very serious issues [about trust on the Web] and it doesn’t help matters when Apple is dragging its feet,” said Paul Henry, a security and forensics analyst with Arizona-based Lumension.

Unlike Microsoft, which updated Windows Tuesday to block all SSL (secure socket layer) certificates issued by DigiNotar, Apple has not updated Mac OS X to do the same.

DigiNotar, one of hundreds of firms authorized to issue digital certificates that authenticate a website’s identity, admitted on Aug. 30 that its servers were compromised weeks earlier. A report made public Monday said that hackers had acquired 531 certificates, including many used by the Dutch government, and that DigiNotar was unaware of the intrusion for weeks.

Because almost all the people who were routed to a site secured with one of the stolen certificates were from Iran, many experts suspect that the DigiNotar hack was sponsored or encouraged by the Iranian government, which could use them to spy on its citizens.

Microsoft isn’t the only software maker to block all DigiNotar certificates: Google, Mozilla and Opera have also issued new versions of their browsers — Chrome, Firefox and Opera — to completely, or in Opera’s case, partially prevent users from reaching websites secured with a DigiNotar certificate.

Users of Safari on Mac OS X, however, remain at risk to possible “man-in-the-middle” attacks based on the fraudulently obtained certificates.

Because Safari relies on the underlying operating system to tell it which certificates have been revoked or banned entirely, Apple must update Mac OS X. The Windows edition of Safari, which has a negligible share of the browser market, taps Windows’ certificate list: That version is safe to use once Microsoft’s Tuesday patch is applied.

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