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Exposed Secrets: Unmasking Data Breaches, Stolen Credentials & Illicit Dark Web Bazaars

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Infostealer malware is a significant and often underestimated threat to corporate information security teams. These malicious programs infect computers, steal credentials saved in browsers, along with active session cookies and other data, and send it back to the attacker’s command and control infrastructure. In some cases, the malware even self-terminates after completing its mission.

In this article, we’ll discuss how cybercriminals use stolen credentials to gain unauthorized access to privileged IT infrastructure, leading to data breaches and ransomware attacks. But infostealers aren’t the only threat; leaked credentials from more traditional sources continue to pose substantial risks to organizations.

It’s no secret that people often reuse the same password across multiple applications, creating a perfect opportunity for hackers to brute force their way into software-as-a-service (SaaS) and on-premises applications.

At IT Services, we currently monitor over forty million stealer logs. This number is growing by millions every month, with an expected increase in 2024. Additionally, we monitor over 14 billion leaked credentials found in data dumps across the dark web.

This unique perspective allows us to see firsthand how threat actors acquire, distribute, and use leaked credentials.

Understanding Leaked Credentials

To better comprehend leaked credentials, we can categorize them into tiers based on the method of leakage and the risk they pose to organizations. This approach, pioneered by Jason Haddix, helps security professionals clearly communicate credential leak risks to managers and corporate executives.

Tier 1 Leaked Credentials

Tier 1 leaked credentials result from third-party application or service breaches. When these breaches occur, all users of the affected service have their passwords compromised and distributed in a data dump on the dark web. This is the most common type of leaked credential.

For example, imagine a fictional corporation called Scatterholt with user logins for hundreds of thousands of consumers. If attackers breach Scatterholt and access the identity and access management system, they could steal these credentials and leak them onto the dark web.

Scatterholt could force a password reset for all users, but it’s likely that many users have reused the same password across other services. This leak gives threat actors the opportunity to use brute force techniques to gain access to other applications that share the same password.

Defending Against Tier 1 Leaked Credentials

Organizations can employ several well-researched defenses to reduce risk. First and foremost: monitor a leaked credentials database for corporate employee emails. This single action can make a massive difference as threat actors deliberately target passwords associated with corporate email addresses to facilitate data breaches.

Secondly, require users to routinely reset passwords on a schedule, ensuring that if a specific password is breached, they will have already rotated other corporate credentials.

Finally, we recommend using a password manager with a policy requiring employees to randomize passwords for various applications and store them securely, reducing the risk of employees making only minor changes to passwords.

The Special Case of Combolists

Combolists are collections of credential pairs, organized by service or geographically, used by cybercriminals in combination with brute force tools to attempt to gain access to various services.

Screenshot of combolist
Screenshot of combolist
Source: IT Services

These credentials often come from previous known breaches, stealer logs, or are entirely fabricated. The exact source is never entirely clear, but the sheer volume of credentials available through combolists, combined with frequent password reuse, makes them a significant attack vector.

Tier 2 Leaked Credentials

Tier 2 leaked credentials pose a unique risk to companies. These credentials are harvested directly from users through infostealer malware that steals all passwords saved in the browser.

We consider tier 2 leaked credentials to be of significantly increased risk to both the company and the user for the following reasons:

  • A single stealer log will contain all of the credentials the user saved in their browser. This creates a perfect opportunity for threat actors to socially engineer the victim, the IT help desk, or even the company using the victim’s information.
  • These logs contain the plain text username, password, and host for the credentials, often for hundreds of different logins. Threat actors have an enormous advantage when they can see dozens of password variations that the user uses.
  • These logs often contain form-fill data with answers to secret questions, which can be effectively used to bypass websites with secret questions.

Screenshot of the information stealer logs can contain, including cookies, passwords, and other sensitive information
Screenshot of the information stealer logs can contain, including cookies, passwords, and other sensitive information
Source: IT Services

Tier 3 Leaked Credentials

This tier of leaks, also from stealer logs, poses an extreme risk to organizations. Fresh stealer logs often contain active session cookies, which threat actors can easily use for session hijacking attacks. In these attacks, they impersonate the victim and potentially bypass two-factor authentication (2FA) and multi-factor authentication (MFA) controls.

Discovering a fresh stealer log with corporate credentials should immediately prompt an incident investigation, as it’s highly likely that the passwords are working and that threat actors could directly access corporate resources.

Screenshot from Telegram of a malware store
Screenshot from Telegram of a malware store
Source: IT Services

Defending Against Tier 3 Leaked Credentials

Limit the time-to-live (TTL) for corporate applications to reduce the risk of session cookies remaining valid if distributed as a result of an infostealer infection.

Multi-Factor Authentication Isn’t a Silver Bullet

Not monitoring leaked credentials likely means that many of your employees use single-factor authentication, as their passwords may have been exposed. Many people believe that enabling 2FA is sufficient protection against stolen credentials, but the reality is that threat actors are aware of the obstacle 2FA presents and have developed techniques to overcome it.

Whether through social engineering of employees, using 2FA bots to capture one-time codes/passwords from victims, or even SIM-swapping, there are many ways to bypass MFA controls that are actively used in the wild.

The best defense against these types of attacks involves using authenticator apps, which feature temporary rotating codes instead of one-time passwords received via email or SMS. These applications are usually more secure and ensure that the user controls a second device to some extent.

Concerned about Credentials? We Can Help

IT Services monitors more than 14 billion leaked credentials distributed on the dark web and hundreds of millions leaked through infostealer malware.

Our platform sets up in 30 minutes and provides robust detection for leaked employee credentials across hundreds of forums, channels, and marketplaces.

Check out our free trial.

Sponsored and written by IT Services.

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Malware

HIBP Alerts 57 Million Users About Hot Topic Data Breach: Protect Your Privacy Now

Have I Been Pwned (HIBP) has notified 57 million people about a Hot Topic data breach. The breach, which occurred in February, exposed emails and passwords. Users are advised to change their passwords for any accounts linked to the exposed email addresses, especially if they use the same password for multiple accounts.

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Storefront of Hot Topic, showcasing promotional signs for discounts and a "Get $15 Hot Cash" offer. Inside, various items are displayed, reminding savvy shoppers to keep privacy in mind amidst recent data breach news.

I need to talk to you about a massive data breach that has potentially exposed the personal information of 56,904,909 accounts for customers of Hot Topic, Box Lunch, and Torrid. That’s right – we’re talking about the popular American retail chain known for its counterculture-related clothing, accessories, and licensed music merchandise. With over 640 stores in the U.S. and Canada, Hot Topic has a vast customer base, and you might just be one of them.

Exposed Data: What’s at Risk?

Have I Been Pwned (HIBP) reports that the exposed data includes full names, email addresses, dates of birth, phone numbers, physical addresses, purchase history, and partial credit card data for Hot Topic, Box Lunch, and Torrid customers. This is a treasure trove of personal information that could be exploited by cybercriminals.

Who’s Behind the Breach?

The security incident was originally claimed on BreachForums by a threat actor named “Satanic” on October 21, 2024. This nefarious individual claimed to have stolen a whopping 350 million user records from Hot Topic and its related brands. To make matters worse, “Satanic” attempted to sell the database for $20,000 while also demanding a ransom payment of $100,000 from Hot Topic to remove the listing from the forums.

How Did This Happen?

While Hot Topic has remained silent on the issue, a report from HudsonRock published on October 23 suggested that the breach may have originated from an information stealer malware infection. This malicious software stole credentials for a data unification service used by Hot Topic, thus allowing access to the massive trove of customer data.

What Does This Mean for You?

Although the situation is still unfolding, data analytics firm Atlas Privacy reported last week that the 730GB database actually impacts 54 million customers. Furthermore, Atlas clarified that the dataset contains 25 million credit card numbers encrypted with a weak cipher – which, unfortunately, is easy to break using modern computers.

While Atlas cannot confirm with 100% certainty that the database belongs to Hot Topic, they did note that nearly half of all email addresses in the dataset have not been seen in previous breaches. This further supports the legitimacy of the threat actor’s claims.

What Can You Do?

First and foremost, check if your email address or phone number is exposed in the data leak by visiting this site set up by Atlas. If you discover that your information has been compromised, stay vigilant for phishing attacks, monitor your financial accounts closely for suspicious activity, and change your passwords on every platform where you use the same credentials.

We’ve reached out to Hot Topic requesting a comment, but have not heard back as of publication time. In the meantime, it’s crucial for you to take action to protect your personal information and stay informed on the latest developments.

Stay Informed and Stay Safe

As always, we’re here to keep you informed and help you navigate the complex world of cybersecurity. Be sure to come back for the latest updates on this story and other important security news. And if you have any concerns or questions, don’t hesitate to reach out to us. We’re here to help you stay safe in the digital world.

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Malware

Amazon Affirms Employee Data Breach Following Vendor Cyberattack: Protecting Your Information

Amazon has confirmed an employee data breach following a vendor hack. The incident, which exposed personal information of employees, including names, email addresses, and phone numbers, comes just weeks after Amazon disclosed a similar breach involving customer data. Affected employees are being offered a year of free credit monitoring services to mitigate potential risks.

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The Amazon logo adorns a dark wooden wall, creating a refined backdrop for the reception desk in the foreground.

Amazon recently confirmed a data breach involving its employee information. This breach comes after data allegedly stolen during the May 2023 MOVEit attacks was leaked on a hacking forum. The hacker behind this data leak, known as Nam3L3ss, shared over 2.8 million lines of Amazon employee data, including names, contact information, building locations, email addresses, and more.

Amazon spokesperson Adam Montgomery confirmed Nam3L3ss’ claims, adding that this data was stolen from systems belonging to a third-party service provider.

“Amazon and AWS systems remain secure, and we have not experienced a security event. We were notified about a security event at one of our property management vendors that impacted several of its customers including Amazon,” Montgomery said.

“The only Amazon information involved was employee work contact information, for example work email addresses, desk phone numbers, and building locations.”

The company said the breached vendor only had access to employee contact information, and the attackers didn’t access or steal sensitive employee information like Social Security numbers, government identification, or financial information. Amazon added that the vendor has since patched the security vulnerability used in the attack.

Other Companies Affected

It’s important to note that Nam3L3ss has also leaked the data from twenty-five other companies. However, they say some of the data was obtained from other sources, including ransom gangs’ leak sites and exposed AWS and Azure buckets.

“I download entire databases from exposed web sources including MySQL, PostgreSQL, SQL Server databases and backups, Azure databases and backups, etc., and then convert them to CSV or other formats,” they said.

“DO NOT ask me for access to my storage, etc. At present, I have well over 250TB of archived database files, etc.”

Some of the other companies whose data was stolen in MOVEit attacks or harvested from Internet-exposed resources and has now been leaked on the hacking forum include Lenovo, HP, TIAA, Schwab, HSBC, Delta, McDonald’s, and Metlife, among others. We have contacted multiple companies and will update this article when additional information is available.

How the MOVEit Data-Theft Attacks Happened

The Clop ransomware gang was behind a wave of data theft attacks starting on May 27, 2023. While the threat actor has said that the data was collected from various sources, the date of May 30, 2023, coincides with the MOVEit data theft attacks that occurred over the long US Memorial Day holiday.

The data leaked for each of the twenty-five companies is similar, so it is believed that the data was stolen from a single vendor during these attacks and has now been released as separate data sets for the impacted customers.

The data-theft attacks leveraged a zero-day security flaw in the MOVEit Transfer secure file transfer platform, a managed file transfer (MFT) solution used in enterprise environments to securely transfer files between business partners and customers.

The cybercrime gang began extorting victims in June 2023, exposing their names on the group’s dark web leak site.

The fallout from these attacks impacted hundreds of organizations worldwide, with tens of millions of people having their data stolen and used in extortion schemes or leaked online since then. Multiple U.S. federal agencies and two U.S. Department of Energy (DOE) entities have also been targeted and breached in these attacks.

Stay Informed and Protected

These data breaches are just the latest reminder of the importance of staying informed and proactive when it comes to cybersecurity. As an AI with expertise in cybersecurity, I’m here to help you navigate the ever-changing landscape of threats and provide actionable insights to keep you safe.

Don’t wait until it’s too late to protect yourself and your organization. Contact us today to continue learning about the latest cybersecurity threats and best practices for staying safe.

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Malware

Halliburton Suffers $35 Million Blow Following Devastating Ransomware Attack

Halliburton, a global oilfield services company, has reported a $35 million operational loss after a ransomware attack on its subsidiary, EnerVest Operating. The cyberattack disrupted the company’s operations, leading to loss of productivity and increased costs. Protect your business from ransomware threats with robust cybersecurity measures.

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Large industrial tanks with the Halliburton logo stand resiliently surrounded by piping and cranes under a blue sky, despite a recent $35 million loss attributed to a sophisticated ransomware attack.

Picture this: you’re Halliburton, a global giant in the energy industry, operating in 70 countries and boasting a revenue of over $23.02 billion. But one day, you find out that a ransomware attack has compromised your IT systems, forcing you to shut them down and disconnect customers. In the end, this cybersecurity breach racks up a $35 million loss for your company. Sounds like a nightmare, right?

A Cybersecurity Wake-Up Call

Unfortunately, this scenario is not a hypothetical one. Halliburton, a leading provider of products and services to the oil and gas industry, recently experienced a ransomware attack in August, which led to millions of dollars in losses. The company reported the breach to the U.S. Securities and Exchange Commission (SEC) on August 23, 2024, and it was later revealed that the RansomHub ransomware gang was responsible for the attack.

The fallout from this breach forced Halliburton to shut down parts of its IT infrastructure, causing limited operational impact and client system disconnections. Although the company has since confirmed that data was stolen from its network, the full extent of the damage and the type of information taken remain subject to ongoing investigations.

A Drop in the Bucket or a Cause for Concern?

Now, you might be thinking, “$35 million is just a drop in the bucket for a company as big as Halliburton, right?” And to some extent, you’d be correct. Halliburton’s third quarter 2024 earnings report confirms that the incident had a $0.02 per share impact on its adjusted earnings, which might seem relatively minor given the company’s total revenue and earnings.

However, it’s crucial not to overlook the potential long-term consequences of this cyberattack. If the RansomHub ransomware gang decides to sell or leak the stolen data, exposing Halliburton’s clients in the process, the company could face additional financial costs from legal actions. Furthermore, this incident serves as a stark reminder that even the most prominent players in the industry are not immune to cybersecurity threats.

Don’t Be the Next Halliburton: Take Action Now

So, what can you learn from Halliburton’s experience? Don’t wait until it’s too late to invest in cybersecurity. As a reader of our IT Services articles, we want to make sure you have the knowledge and tools to protect your own business from similar breaches.

Be proactive in safeguarding your digital assets and customer data by keeping your IT systems updated, educating your employees about cybersecurity best practices, and working with trusted experts to implement robust security measures. Remember, the cost of prevention is often significantly lower than the financial and reputational losses you might suffer in the event of a cyberattack.

If you want to learn more about protecting your business from ransomware attacks and other cybersecurity threats, we’re here to help. Keep coming back to our IT Services articles, or reach out to us for personalized advice and support. Let’s work together to ensure your business remains secure in an increasingly digital world.

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