Did Hackers Attack Water System?

Federal investigators are investigating a report that hackers managed to remotely shut down a utility’s water pump in central Illinois last week, in what could be the first known foreign cyber attack on a U.S. industrial system.

The November 8 incident was described in a one-page report from the Illinois Statewide Terrorism and Intelligence Center, according to Joe Weiss, a prominent expert on protecting infrastructure from cyber attacks.

The attackers obtained access to the network of a water utility in a rural community west of the state capital Springfield with credentials stolen from a company that makes software used to control industrial systems, according to the account obtained by Weiss. It did not explain the motive of the attackers.

He said that the same group may have attacked other industrial targets or be planning strikes using credentials stolen from the same software maker.

The U.S. Department of Homeland Security and the Federal Bureau of Investigation are examining the matter, said DHS spokesman Peter Boogaard.

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DoJ Charges Clickjacking Perpetrators

The U.S. Department of Justice is charging seven individuals with 27 counts of wire fraud and other computer-related crimes, accusing the group of hijacking 4 million computers across 100 countries in a sophisticated clickjacking scam.

According to the indictment, the defendants had set up a fake Internet advertising agency, entering into agreements with online ad providers that would pay the group whenever its ads where clicked on by users. The group’s malware, which it had planted on millions of user computers, would redirect the computers’ browsers to its advertisements, thereby generating illicit revenue.

The malware worked by capturing and altering the results of a user’s search engine query. A user would search for a popular site, such as ones for Netflix, the Wall Street Journal, Amazon, Apple iTunes and the U.S. Internal Revenue Service. Whenever the user would click on the provided link, however, the browser would be redirected to another website, one that the group was paid to generate traffic for.

The malware the group used also blocked antivirus software updates, which left users vulnerable to other attacks as well, according to the DOJ.

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Mobile Security Threats Continue To Grow

According to industry analysts, mobile device shipments will exceed a billion devices in 2015 and will rapidly outrun PC shipments. That’s great news for end user convenience, mobility, and work-anywhere productivity. But it also means that enterprises must prepare for the fact that the criminals will target these devices with attack exploits, spyware,
and rogue applications.

And while IBM’s IT security research team, X-Force, predicts a modest 33 software exploits targeting mobile devices in the year ahead, that’s roughly twice the number of such attack code released in the past year.

The group also sees a number of other troubling mobile security trends. First, when software flaws do surface, many mobile phone makers do not rapidly deploy software patches to devices; malicious apps are often distributed through third-party app markets. Another troubling trend is that some mobile malware can collect end user’s personal information for use in phishing attacks.

An example of vulnerabilities that would make such attacks possible are the two recent Android security flaws that were reported to affect popular handsets including the AT&T Samsung Galaxy SII and various HTC devices.

The security find announced by security researcher Trevor Eckhart, called HTClogger (logging tools introduced by handset maker HTC) that could leak email account information, user location, phone numbers, and messaging logs.

Handset maker HTC said, in a statement, that it is working to quickly issue an update to its customers. “HTC is working very diligently to quickly release a security update that will resolve the issue on affected devices. Following a short testing period by our carrier partners, the patch will be sent over-the-air to customers, who will be notified to download and install it. We urge all users to install the update promptly,” the company said.

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Citigroup Hackers Pocketed $2.7 million

Citigroup suffered about $2.7 million in losses after cybercriminals uncovered a way to lift credit card numbers from its website and make fraudulent transactions.

Citi acknowledged the breach earlier this month, saying hackers had gained accessed to more than 360,000 Citi credit card accounts of U.S. customers. The hackers didn’t breach Citi’s main credit card processing system, but were reportedly able to obtain the numbers, along with the customers’ names and contact information, by logging into the Citi Account Online website and guessing account numbers.

Until now, it wasn’t revealed if any fraud had occurred as a result of the theft. But Citi confirmed Friday that there were losses of $2.7 million from about 3,400 accounts.

The bank has said its customers will not be liable for the fraudalent transactions and losses as a result of them.

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