Unemployment Fraud on the Darknet

In April 2020, within weeks of widespread lockdown and quarantine caused by the coronavirus or COVID-19 pandemic, the U.S. Bureau of Labor and Statistics reported that over 23.1 million people were unemployed across the United States. This surge in out-of-work adults caused record spikes in unemployment claims across state benefits systems, many of them unable to accommodate the increased demands in benefit requests.

Figure 1: Chart Derived from U.S. Bureau of Labor and Statistics (Source - Courtesy of Department of Numbers)

Figure 1: Chart Derived from U.S. Bureau of Labor and Statistics (Source – Courtesy of Department of Numbers)

As a result, fraudsters on the darknet and deep web quickly capitalized on flaws in the state-run unemployment benefits systems, directly compromising claimant accounts to redirect unemployment payments, submitting false unemployment claims using illegally obtained personally identifiable information (PII).

Aiding in the exploitation of these programs are the plethora of available detailed step-by-step instructions known as ‘methods’ or ‘sauce’ that are readily available for purchase across the darknet.

Serious fraud yields serious capital for cyber criminals

With record numbers of persons unemployed comes record financial programs to cover these claims. The Coronavirus Aid, Relief and Economic Security (CARES) Act, signed into law in March, 2020 at $2.2 trillion USD, provided multiple lines of funding for unemployed U.S. workers including $260 billion USD in direct funding for expanded unemployment insurance. 

  1. The original unemployment supplemental was known as the Federal Pandemic Unemployment Compensation (FPUC) program. This program provided an extra $600 per week for individuals who already qualified for state unemployment compensation from late January 2020 through July 31, 2020.   

  2. The Pandemic Emergency Unemployment Compensation (PEUC) funding program provided an extended benefit period to individuals who have exhausted their unemployment benefits under existing state or federal law, have no right to regular unemployment benefits under any state law or other compensation under any federal law.   

  3. The Pandemic Unemployment Assistance (PUA) program was setup to provide unemployment compensation to individuals who would not ordinarily qualify for unemployment such as: gig workers and freelancers, independent contractors and self-employed persons, or those who have exhausted all other rights to state or federal unemployment (including PEUC). Qualifying individuals were eligible to receive up to 39 weeks of benefits for being unemployed between January 27, 2020 and December 31, 2020. 

The difference between PEUC and PUA is that the PEUC essentially extends benefits by up to 13 weeks for individuals otherwise qualified to receive regular unemployment, but who have exhausted those benefits. DarkOwl has observed both programs mentioned extensively across the fraud community in the darknet and deep web.

In December 2020, the U.S. Government passed the Continued Assistance Act (CAA), totaling $900 billion, which extended the federal benefits of the CARES Act from December 27, 2020 to March 13, 2021. The CAA extended the benefits for an additional 11 weeks, and also provides an extra $300 per week for all benefits recipients. 

This act also included a new supplemental known as Mixed Earners Unemployment Compensation (MEUC) program intended to address gaps in the original stimulus package penalizing with those mixed income from multiple sources who receive lower unemployment benefits because they were only deemed eligible for regular state unemployment or PEUC due to their wage-based income.

The MEUC program is subject to state discretion and very few states have adopted the new payment terms of providing mixed income earners an extra $100 USD per week. 

Figure 2: 2020 to 2021 Enhanced Unemployment Benefit Programs Coverage Summary (Source)

Figure 2: 2020 to 2021 Enhanced Unemployment Benefit Programs Coverage Summary (Source)

Overview: Pandemic-related unemployment fraud on the darknet

“Sauce” for sale

On the darknet, fraudsters and cybercriminals have become intimately familiar with these programs offering elaborate guides and tutorials detailing how to fraudulently make claims against the different financial unemployment assistance programs. Described as “sauce,” fraudsters offer the methods for sale on darknet marketplaces, in private and public chatrooms, and on social media.

The going rate for a detailed unemployment fraud method varies between $200 and $300 USD and offered specifically by state, suggesting that different state unemployment systems may require unique techniques for direct exploitation.  

According to DarkOwl Vision, PUA is mentioned more often than PEUC, likely cause there is fewer historical work data reporting requirements for freelancers and sole proprietors covered by the PUA method and thus easier to defraud. DarkOwl has observed the PUA “sauce” for sale for the specific states listed below – with over 75% of the United States mentioned in offers across the darknet and deep web. This does not indicate that only these states have been exploited, but merely that these are the states observed advertised in the darknet communities DarkOwl has access to over the last year.

Pandemic Unemployment Assistance exploitation “how-to” guides are being sold for the following states:


AlabamaAlaskaArizonaArkansasCaliforniaColoradoFlorida GeorgiaHawaiiIllinois Indiana Iowa Kansas 
 
KentuckyLouisiana Maryland Massachusetts Michigan Minnesota MississippiNebraska Nevada New Jersey New York North Carolina North Dakota 
 
OhioOregonPennsylvaniaRhode IslandSouth CarolinaTennesseeTexasVermontVirginiaWashingtonWest Virginia Wyoming
Figure 3: Users on the darknet are selling PUA “sauce", or how-to guides for exploiting unemployment programs, for the states colored in red above

Figure 3: Users on the darknet are selling PUA “sauce”, or how-to guides for exploiting unemployment programs, for the states colored in red above

Fraudsters selling PUA and PEUC methods are highly adaptive and acutely aware of security methods states are implementing to combat fraud, often updating the “sauce” frequently with the latest and greatest information. This includes new offers of “backpay sauce” opportunities with the latest relief funding being approved for states that ran out of unemployment relief funds.

According to the most recent fraud group chatter, Ohio has been mentioned more frequently with the phrase “Ohio is lit and still paying” acknowledging that some states’ anti-fraud methods are not as effective as others.

Figure 4: Step by step guide to fraudulently file for benefits in Maryland (Source - Twitter)

Figure 4: Step by step guide to fraudulently file for benefits in Maryland (Source – Twitter)

Figure 5: Advertisement on darknet forum for unemployment insurance claim services (Source - DarkOwl Vision)

Figure 5: Advertisement on darknet forum for unemployment insurance claim services (Source – DarkOwl Vision)

Telegram and Social Media are playing a large part in the spread of this type of fraud

While the fraud community continues to thrive on Tor, many threat actors are active on chat platforms such as Telegram as well. Many popular fraud channels and supergroups contain users selling the latest sauce and new exploitation methods, including large Telegram communities with upwards of 100,000 members.

 
 

Fraudsters are also increasingly utilizing social media platforms like YouTube and Instagram. where they share videos detailing a variety of fraud related guides and topics. Many of these posts relay methods by which one could commit fraud and take a variety of formats, including:

a) personally narrating the steps in a video – which often entails revealing their voice,

b) sharing a video of a method written out in text with suggestions to ‘pause the video and read’

c) demonstrating the technique via captured video of their computer screen while candidly committing the fraud.

As can be seen in the YouTube video included above, these content providers often successfully navigate possible YouTube take-downs by stating the video is “for educational purposes only.” 

Unemployment fraud methods: How criminals are accessing and exploiting state unemployment systems

Hijacking the account of existing claimants using compromised commercial authentication data such as email addresses and passwords

Many fraudsters exploit individuals who have already submitted a claim, but this method may often require access to the email address associated with the unemployment claimant’s account for successfully changing the password and personal information for the claimant account. Many PEUC claimants register for their unemployment benefits then do not regularly visit the web portal to access their account.

Claimant victims might be tipped that their account has been compromised if they receive a password change notification from the system via email (for the states with such a system) but even those noticed may be overlooked. Once the criminal successfully gains access to the account, then they will quickly change the name and mailing address associated with the account along with the bank information where the existing claims are being paid. 

 
Figure 6: Screenshot provided as proof from fraudster claiming they had access to California's EDD claimant accounts with outstanding balance for purchase.

Figure 6: Screenshot provided as proof from fraudster claiming they had access to California’s EDD claimant accounts with outstanding balance for purchase.

 

Some criminals will foolishly attempt to use the exploited claimant account to extend benefits or submit new claims using the fraudulently information without the victim’s knowledge. This method often triggers most states fraud activity flags, which forces the account and payments into a hold state until the victim (or a fraudster) can verify their information and activity by calling the unemployment office directly.

 
Figure 7: Screenshot from Colorado Unemployment Benefits Website with Account Locked

Figure 7: Screenshot from Colorado Unemployment Benefits Website with Account Locked

 

Initiating new unemployment benefit claims using compromised fullz data of persons gainfully employed purchased from the deep web and darknet

Initiating new claims using fullz data is the most frequently mentioned method of committing unemployment fraud. In the latest tutorials fraudsters have shared on social media, the cybercriminals are very specific in their method, such as selecting fullz from key states that have the highest probability of paying the benefit.

Other advanced fraudsters leverage social engineering to research additional data on person behind the fullz they are intending to use like extracting their employer information (via targeted LinkedIn search) in order to append falsified historical w2 forms in attempts to validate the account’s legitimacy. Many victims are only discovering their information was compromised upon receiving a 1099-G tax form in their physical mailbox in January for taxes owed on benefit compensation they never received. 

Initiating new unemployment benefits claims using deceased fullz data purchased from the darknet and deep web

Many family and friends of the deceased do not monitor the financial status of their departed loved one, even often forgetting to cancel the credit cards for the deceased. With the fullz data of the deceased, this is usually enough to initiate a new unemployment benefit claim registered to bank account controlled by the fraudster and start receiving the $600 per week within days of the registration completion.

A U.S. Department of Labor report from the Assistant Inspector General in late February reported that over 91,000 social security numbers of deceased persons accounted for $58.7 million USD in unemployment insurance claims in 2020.

Compromising the state unemployment system via blackhat ‘hacking’ techniques or exploiting vulnerabilities of the benefit system and modifying claimant account information in the system database

DarkOwl has observed criminal sources alluding to this method in chatter on the darknet in recent months.  In July 2019, Maryland’s Department of Labor reported cybercriminals breached their agency’s unemployment database resulting in the potential compromise of over 78,000 claimant’s personal information including full names, social security numbers, dates of birth, and city or county of residence.

Earlier this year, Washington state reported that in December the State Auditor discovered a vulnerability in its unemployment benefit system computer file-transfer service used by the auditor’s office that allowed unknown “persons” to access  to data from over a million residents of Washington that submitted claims in 2020. The exposed information included claimant’s social security numbers, driver’s license numbers, bank account numbers and employment information, essentially comprehensive fullz data a cybercriminal could leverage to steal someone’s identity.

The critical vulnerability discovered was later reported to be associated with a third-party service provider, specifically Accellion’s File Transfer Application (FTA). In recent weeks, FTA’s critical vulnerability has been assessed as the behind a string of cyber attacks against corporations, governments, and universities around the globe and linked to the CL0P ransomware gang from the darknet.

Most of the fraudsters are not bold enough to use their own personal accounts, but instead utilize online banking applications such as Venmo and Bluevine. Others use prepaid debit cards like Netspend or an account owned by a trusted money mule to receive the unemployment funds. 

Remediation is an ongoing, near-daily process

Many of the state systems are identifying weaknesses in their unemployment benefits systems and implementing more rigorous identity protection measures. Many states now require claimants submit an identity authorization form including photograph of the person and official identification such as a passport or driver’s license. With the Colorado Department of Labor & Employment such steps have not previously been required prior to and in the early phases of the pandemic, but in recent weeks Colorado mandated every claimant (active or on hold) verify their identity with their “Program Identity Hold” system with their partner ID.me to help mitigate fraudulent claim activity by evaluating 50 different potential triggers.

According to recent reporting, Colorado has experienced inordinate volumes of fraudulent claims with over 1 million claims flagged for fraud – about 90% of their PUA claims – resulting in $7 billion in potential fraud payouts.

Figure 8: Source - DarkOwl Vision

Figure 8: Source – DarkOwl Vision

Unfortunately, DarkOwl analysts have witnessed fraudsters in Telegram conversations offer “ID.me” bypass methods for sale, demonstrating how the cyber threat continues to evolve in a continuous cat and mouse game. This offer was shared in a popular fraud supergroup as recently as early March, 2021.

DarkOwl has also observed some recent fraudsters suggest they have “fullz with id” meaning they have a photograph of the victim’s driver’s license to potentially satiate identity authorization requirements. This demonstrates that driver’s license information alone is insufficient for identity verification. It is reasonable to assume that even DMV drivers’ license database for some states could be compromised in the near future. California reported a data breach of their internal DMV data management system with 38 million database records of vehicle registration information stolen in early 2020.

Per the recent passing of the $1.9 trillion dollar stimulus package, the primary unemployment financial assistance programs are likely to continue well into 2021, with PUA and PEUC ending in early October 2021 and FPUC and MEUC continuing through early September, 2021. The continued money flow will inevitably mean continued fraud of the programs on the darknet, with new methods of committing these acts almost certain to emerge.


The Fraud Files: What is Fraud on the Darknet?

Due to the vast number of scams and scam-attempts that most of us encounter on a daily basis, today’s society has largely become desensitized to fraud as we understand it on the internet. However, very few understand how this criminal economy thrives extensively across the darknet where it takes on a variety of different formats that target individuals and corporations alike.

Darknet forums and marketplaces are replete with how-to guides, mentors, bank drops, and sensitive PII and credit card databases for sale. Straightforward as it may seem to understand the current fraud landscape – especially with these listings and discussions being so common – the reality is not so simple. Navigating this underground territory requires an understanding of terms and concepts that apply across the darknet landscape that not everyone might be familiar with.

As such, we’re beginning our “Fraud Files” with an introduction or educational primer on the types of fraud most prevalent and regularly discussed terms and topics across the deep web and darknet.

The Language of Fraud

Over the course of crawling and exploring fraud on the darknet and deep web, DarkOwl discovered a unique language across vendors and key fraud cybercriminals operating in this sphere.  Darknet marketplace advertisements of counterfeit and digital goods include numerous types of data for sale. Fraudsters are in the business of monetizing anything they can get their hands on and DarkOwl has observed frequent mentions of CVVs, bins, dumps, fullz, and bank drops – commodities which present varying degrees of financial returns.

Card Verification Values (CVVs)

In the carding industry – one of the largest fraud segments of the darknet – the card verification values or CVVs are a precious commodity to fraudsters. The CVV appears on credit and debit cards and consists of a three-digit number on the back of Visa, Mastercard, and Discover card brands or a four-digit numeric sequence located often on the front of American Express credit card brands. These numbers are also sometimes referred to as card security codes (CSC). There is also a second generation of card verification values known as CVV2 generated by a secondary process that makes them slightly harder to guess. (Source

Bank Identification Numbers (BINs)

BINs or Bank Identification Numbers (a.k.a. Issuer Identification Number (IINs)) are another critical commodity of the fraud industry, especially with criminals focused on carding. The first six numbers on credit and debit cards identify the bank issuing the card, the country of issuance, the card type, and category. The ISO Register of BINs/IINs for US banks is managed by the American Bankers Association and is not generally available to the public; yet an open-source database has been setup and available for limited personal search and mentioned frequently on the deep web. (Source)

Dumps/“Dumpz”

Dumps or “dumpz” are one of the most popular and readily traded commodities in the darknet and across the deep web, consisting of large pre-compiled lists of stolen financial data. Most often, dumps consist of credit card data of varying completeness such as: a) credit card dumps or CC dumps consisting of datasets of credit card numbers with expiration and bank information, b) CVV dumps consisting of a list of known credit card numbers with expiration and CVV and c) Pin dumps consisting of a list of known credit card numbers with expiration and personal pin identifiers known only to the cardholder and bank for additional security.

Dumps may also include whether or not the credit card is VBV, which is Visa’s “Verified By Visa” additional security measures for online purchases, often consisting of a security pass phrase or key answer to a personal security question only know to the cardholder and the financial institution. Non-VBV Visa credit cards are preferred in the fraud community.

Popular darknet “dumps” provider, D. Trump advertising dumps for sale on a darknet forum

Popular darknet “dumps” provider, D. Trump advertising dumps for sale on a darknet forum

One popular “dumps” provider is known on the darknet as D. Trump, observed advertising their services across various deep web and darknet hidden services since Trump’s Presidential election back in 2016. Their forum posts insinuates that the compiled dumps data is “sniffed from their botnet” and their advertisements include a twist on Trump’s MAGA-theme with the catchphrase, “Make Dumps Great Again.”

Fullz

“Fullz” is a general term that indicates a comprehensive package of information to create a “full” picture of the subject matter. A highly coveted underground criminal commodity, fullz often consist of large, pre-compiled lists of stolen financial information along with critical personally identifiable information (PII), needed for account verification and criminal manipulation. The PII often includes the full name of the victim, billing address with zip code (for U.S. addresses), and phone numbers. Even more lucrative fullz also include personal pin codes. the victim’s mother’s maiden name for enhanced security. Sometimes fullz will include answers to security questions for accessing banks web customer portal or mobile app. Some fraudsters include deceased people in their fullz offerings as families rarely think to cancel the credit of dead relatives.

There are several darknet hidden services and deep web domains that specialize in trading “fullz”. One market known as “FullzBuy” with logo design using the yellow pricetag like Best Buy has fullz lists ready to purchase to include state driver’s license databases, social security numbers, and one listing stated it was stolen from a loan company, increasing the value and likelihood the data is recent.

 
Example “fullz” captured directly from the deep web site, Fullz Buy.

Example “fullz” captured directly from the deep web site, Fullz Buy.

 

Bank Drops

Bank Drops are another popular commodity on the darknet, especially for cyber criminals and fraudsters looking to turn their hacked bank credentials into cash. While some carding enthusiasts take dumps and fullz and turn them into fake credit cards to purchase goods or debit cash from an ATM, others exploit compromised account information through quiet bank transfers to bank drops via money mules.

In the last year, fraudsters discovered how to successfully leverage a mule’s mobile money transfer app such as Venmo and Cashapp to transfer cash directly from the stolen fullz account, removing upwards of $1000 USD daily from the victim, often wit…

In the last year, fraudsters discovered how to successfully leverage a mule’s mobile money transfer app such as Venmo and Cashapp to transfer cash directly from the stolen fullz account, removing upwards of $1000 USD daily from the victim, often without their knowledge.

Money Mules

Money Mules or simply, “Mules” are individuals recruited by “mule herders” to help conceal the originating identity of the cybercriminal or fraudster and often key to turning the fraudulently acquired credit card and bank information into cash.

Many mules operate in lengthy fraud mule chains and networks and mules sometimes are completely unaware they are participating in a complex criminal enterprise. Many mules innocently respond to an innocuous “work from home” solicitation to help a so-called legitimate company send and receive funds from foreign customers, in exchange for a percentage of the transfer. In actuality, the company website and job posting is all fake, including the signed work contract, and their accounts are obscuring the identities of cyber financial criminals around the world.

Other mules knowingly assist in the fraud and set up a series of bank accounts, receiving funds from the fraud chain, cash out the transfers and send the monies along to the intended recipients using services such as Western Union.

The S’s of Fraud

Curiously, there have been an increase in fraud advertisements discussing techniques and malware delivery methods that coincidentally start with the letter ‘S’ – Notably: Swiping, Smishing, SIM Swapping and Skimming.

Swiping

Swiping is a term used by many of the younger-aged fraudsters which involves using stolen merchant account information or credit card data to make fraudulent purchases and having them delivered to an address, sometimes referred to as a “drop” (usually not associated with the criminal or the victim) where no one is home and the goods are then collected by the would-be swiping cybercriminal.

Swiping may also refer to the process of using stolen debit card information to collect cash out of an ATM. Variations of this process have been popularized across deep web enthusiasts in the hip hop culture spurring a completely new genre of “scam rap” where the technique is woven into the lyrics of rap songs. DarkOwl has observed this with young scam-rappers such as Teejayx6, as shown in the video below.

 
 

Smishing

Smishing is a form of phishing via SMS where cybercriminals hope the victim will click on malicious links in SMS text messages. There are numerous anonymous SMS spam services that will deliver these links readily for a small charge advertised across the darknet.

These smishing texts can take many forms such as a bank notification, mobile service cancellation scam, or fake delivery notice that leads the victim to providing personal information that will be traded on the darknet or install malware to spy and remotely control the victim’s mobile device.

SIM Swapping

SIM Swapping (a.k.a. SIM Splitting, port-out scam, or simjacking) occurs when a criminal takes over the mobile phone account of its victim often through directly social engineering the mobile carrier using publicly available PII of the victim compromised and leaked on the darknet. The phone number’s text messages and calls are then rerouted to a different sim and device controlled by the criminal in order to further breach the security of 2-factor authentication (2FA) security services that can lead to email, bank, and cryptocurrency account compromise and theft. In these times of uncertainty and rampant digital crime, authentication apps such as Authy, Lastpass, and even Google or Microsoft Authenticators are safer than relying solely on SMS 2FA for secondary security.

Signs Your Sim has been Swapped

This list originated from Norton Security.

  1. You’re unable to place calls or texts. The first big sign that you could be a victim of SIM swapping is when your phone calls and text messages are not going through. This likely means fraudsters have deactivated your SIM and are using your phone number.

  2. You’re notified of activity elsewhere. You will know you’re a victim if your phone provider notifies you that your SIM card or phone number has been activated on another device.

  3. You’re unable to access accounts. If your login credentials no longer work for accounts like your bank and credit card accounts, you likely have been taken over. Contact your bank and other organizations immediately.

Skimming

Skimming is a type of credit card information theft that involves installation of a small device attached to a legitimate credit card transaction device, such as a credit card machine at a merchant, gasoline pump, or ATM. When the card is inserted or swiped for the legitimate transaction, the card data including the full number, expiration, and card holder’s name is harvested and rerouted to the malicious cybercriminal’s computer or networked server. The information is then used to make fraudulent transactions digitally or with a counterfeit credit card. A skimmer device installed on a gas pump or ATM is often noticeable as the hardware will protrude out past the payment key panel as the device must sit on top and affixed to the installed credit card reader. Many pumps in the U.S. now include a visible security label that will change colors or provide noticeable indication if it has been tampered with. Often fraudsters specializing in skimming turn the skimmed magnetic data into dumps for resale in the darknet. Skimming devices are also sold on darknet forums and marketplaces.

Fraud is Hardly Simple

Many of us associate the idea of fraud with the Nigerian Prince email scam tricking the most vulnerable population to send money via wire transfers to businesses and persons that do not really exist or have the needs that they have begged for help with.

While that is one form of limited wire fraud, the fraud industry has evolved into a complex darknet ecosystem with numerous categories and potential financial outlets to target including: personal identity fraud, bank fraud, carding and counterfeiting, merchant-level fraud, and government-program fraud.

According to a Federal Trade Commission’s report published in late 2020, imposter scams and online shopping fraud present the highest reported financial losses to businesses and individuals. The origins of their fraud data between darknet, deep web, and surface web) was not specified in this impact report.

Digital Theft – Stolen Identities

As we mentioned earlier, data is money and cyber-fraudsters are readily targeting individuals to increase their earnings by stealing from victim’s bank, credit and online-merchant accounts. This is achieved through hijacking or performing an “account takeover” of the victim’s bank or credit account and liquidating the funds via bank drops and money mules.

Other forms of personal identity fraud occur when key personally identifiable information of a victim, such as one’s U.S. social security number, home address, and mother’s maiden name is used to open new lines of credit or even worse, mortgages compromising the victim’s credit score in the process. This is why regular monitoring of one’s credit score, particularly to watch for any “known addresses” listed in the report that do not belong to the credit holder, is a strategic action to take in detecting identity fraud.

 

 
FTC’s assessment of identity fraud by categories for data through 2019. DarkOwl assesses fraud against government docs, benefits, and employment  will increase since the pandemic.

FTC’s assessment of identity fraud by categories for data through 2019. DarkOwl assesses fraud against government docs, benefits, and employment will increase since the pandemic.

 

The same 2020 FTC report states that credit card fraud is the most common type of identity theft in their dataset, occurring in over 30% of all identity theft reports. Bank, lease/loan, utilities, and government programs were also included in this list. DarkOwl assesses these financial distributions will shift with Government Programs and Employment Benefits compromising a larger percentage of fraud given the pandemic climate and rampant fraud methods available.

Carding – Unauthorized Purchases by Fraudsters

As we mentioned earlier, data is money and cyber-fraudsters are readily targeting individuals to increase their earnings by stealing from victim’s bank, credit and online-merchant accounts – account data that trades readily on the darknet as dumps, fullz, and CVVs. In the simplest of terms, carding involves the illegal use of a card by unauthorized persons to purchase a product and there are a couple of different paths a cyber-fraudster can take with this information they’ve purchased or found in the underground.

  1. Some fraudsters might use the account information such as web login username or the account number to employ blackhat criminal hijacking of the victim’s account with the merchant online and making fraudulent purchases

  2. Others take the stolen card numbers (dumps, fullz, bins) and make purchases illegally digitally and have the goods shipped to a drop address. Many of these purchases, especially if they are of low dollar value go completely unnoticed by the victim as few people actually review their purchases on their credit card statement each month.

  3. Some more sophisticated criminals will take the data and create counterfeit credit cards for use in-person directly at a merchant. Often the fraudsters purchase large quantities of high-end electronics and expensive goods for resale or trade.

Many of the card list contain card numbers that have already been flagged as stolen or deactivated; for this reason, many darknet carding services often advertise their dumps or fullz are “fresh”, meaning the numbers have been acquired recently and less likely to be deactivated. There are several deep web sites solely setup for the purchase of card verification (alive or dead). There is also a special Skype number carding fraudsters call to verify the card is active via an automated service.

A Most Unusual Financial Opportunity

In late January, one creative carding criminal posted on a darknet criminal forum the offer to sell 180 GB of audio stolen from a merchant’s phone payment processing system collected over the last 6 years. At least 70% of the recorded calls supposedly include exploitable PII such as, first name, last name, registered address, phone number, e-mail, date of birth, card number, expiration date, and CVV.

The fraudster only asked for $2,400 USD in cryptocurrency for the entire dataset and subsequently lowered the price in the following weeks after receiving criticism for the “valids” and very little interest from the community.

Screen Shot 2021-03-02 at 5.24.27 PM.png
[ENGLISH TRANSLATION] 
I will sell about 180 GiB (200k files) of conversation records merged from the server of the service for processing orders by phone (YUS). Calls made between 2015 and 2021, mp3 format, distributed in folders with the date of the call. Also, almost every folder has a txt or csv with a list of caller names. The caller's phone number is used as the file name. Calls in English and not much in Spanish(no more than 5%). Not all calls contain complete information on the holder and CC, but about 70% of the call records contain information such as, first name, last name, address, phone number, mail, date of birth, card number, expiration date, cvv. Of course, there are a lot of overdue CC's in the calls made in 2015-2019. Also, the total valid for CC is 10-15%, at least I did it so I rewrote a couple of hundred calls in text form to check the valid. Walid did not meet my expectations, and this is the reason for the sale. 
I want $2,400 for everything. I accept BTC, ETH, and XMR. If you need sample files, I will ask you to put money in the guarantor or deposit, as I am happy to conduct transactions through the guarantor.
I am ready to answer any questions in the PM

Merchants and banks have had to increase their insurance to account for the increasing criminal activity around carding. When a victim does discover their information has been compromised and illegal purchases made, they often report the unauthorized purchase to the credit card company – who will often freeze the account and issue a new card – prior to cancelling the illegal transaction from the credit statement as a part of the financial institution’s zero liability guarantee, established with the Fair Credit Billing Act in the U.S. Sometimes it’s helpful to also contact the merchant and notify them that a claim has been submitted with the credit company.

Taking Money Directly From “Big Brother”

W2 Tax Forms for Sale to Commit Tax Fraud (Source: DarkOwl Vision)

W2 Tax Forms for Sale to Commit Tax Fraud (Source: DarkOwl Vision)

Since the COVID-19 pandemic hit the U.S. and suddenly millions of citizens were out of work, DarkOwl analysts have observed an increase in government-specific fraud against government subsidized programs such as State Unemployment, Pandemic Unemployment Assistance, the Small Business Association, and even personal Stimulus Payments from the Internal Revenue Service (IRS). Many cyberfraudsters view themselves as cyber vigilantes and are personally more willing to scam the government out of funds instead of their neighbor next door. In December, USA Today reported there had been an estimated $36 Billion USD stolen across U.S. unemployment benefits.

 The upcoming tax-season is another market for opportunistic fraudsters who have obtained sensitive PII from the darknet. Some fraudsters with access to SSNs and fullz data, will file taxes ahead of the victim and steal the refund payment from the government. This complicates the victim’s standing with the IRS considerably as they attempt to recover their refund and their account with the IRS.

One popular darknet vendor using the pseudonym, “@OsamaFBG” has been selling a COVID-19 stimulus check template and method for as little as $50 USD over the last year, since the IRS first started distributing checks to U.S. Citizens. Source: 62f077c9fbf3185ab831ac578f46d117. Another offered a method guaranteed to fraud upwards of $100,000 USD “easily” from the SBA’s relief grant program for as little as $300 USD.

 
Offer for a method to Fraud the Small Business Administration's COVID Relief Grants Vision (Source: DarkOwl Vision)

Offer for a method to Fraud the Small Business Administration’s COVID Relief Grants Vision (Source: DarkOwl Vision)

 

Conclusions

The fraud industry is a vibrant and thriving ecosystem across the darknet and deep web. Financial cyber criminals will continue to exploit vulnerabilities across all financial systems and continue to trade and sell victim’s personal data and accounts for continued financial gain. Scams and carding fraud are key segments of this market while government benefits and unemployment system fraud have skyrocketed in the pandemic.

Curious to learn more? Check out our “Fraud on the Darknet” webinar to see live fraud-related searches using our darknet analyst dashboard.

The Rise of Android-Specific Malware on the Darknet

2020: the year of the “RAT”

While 2020 has largely become known for the surge in large and small-scale ransomware attacks, which skyrocketed indiscriminately across industries, our analysts have also witnessed an increase in the offers of Android-based Remote Access Trojans/Tools (RATs). These criminally-masterminded digital weapons are used not only to extract information from and spy on Android mobile devices, but are also often the attack vector through which many of the ransomware variants that have been deployed in recent attacks were delivered.

Android-specific malware, especially if deployed alongside a “crypter,” is one of many credible threats to commercial and government organizations that utilize devices with the Android operating system. DarkOwl discovered that threat actors are successfully deploying mobile ransomware such as “Sauron Locker” and RATs such as AhMyth, disguised as a COVID-19 testing app, designed to ‘exfiltrate’ or extract the contents of the mobile device without knowledge of the user, and further ‘extort’ the user locking the device until cryptocurrency ransom is paid.

Android Malware On The Darknet: A Conscious Intention

As discussed in previous reporting, a threat actor that plans offensive operations against a unique range of targets will utilize whatever cyber weapons and tools that are available in their arsenal to destabilize and/or damage their targets. Targets ranging from everyday citizens, government officials, healthcare workers, lawyers, etc. The open-source nature of the Android OS provides an excellent starting point for direct software exploration and ultimate exploitation of vulnerabilities in the technology. This opportunity is not exclusive to nation state actors and their proxies, but amateur cybercrime enthusiasts who are entering the underground malware development community are perfectly capable with the right motivation such as political agenda or social movement to utilize such exploits in their inventory of cyber tools. 

The successful implementation of distributing malware and exploiting device vulnerabilities lies in the obscuration and obfuscation methods employed. Deep web and darknet forum users also have the option to purchase DNS hosting services for anonymous port forwarding for their malware, VPNs, RDPs, remote administration tools, ransomware, as well as the specific crypter needed to make the malware fully undetected or undetectable.

RATs on the darknet: Common variants for offer

CERBERUS

Since 2019, one of the most widely discussed RATs has been is Cerberus, particularly in the context of targeting banking applications supported by the Google Play store and Android mobile operating systems.

The Cerberus RAT is capable of deep surveillance within the victim’s device, interfering with the encrypted communications the phone has with its apps, and outside. An update to the RAT appeared in 2020 (v2) that has additional security-evasion functionalities, such as stealing two-step authentication (2FA) codes from apps like Google Authenticator.

Essentially, the Cerberus RAT is capable of intercepting and recording a victim’s mobile phone’s unlock pattern or PIN, Google Authenticator codes, and intercepting SMS messages necessary to perform a two-step authentication. Similarly, this malware can embed itself between the victim and their mobile banking application sitting and waiting to extract any and all the necessary data to perform bank fraud.

Figure 1: In early October 2020, a Telegram user “blutheCA” posted a link to the Cerberus V2 source code on the IndianAnons supergroup channel. (Source - DarkOwl Vision)

Figure 1: In early October 2020, a Telegram user “blutheCA” posted a link to the Cerberus V2 source code on the IndianAnons supergroup channel. (Source – DarkOwl Vision)

In late July 2020, the developers of Cerberus decided to get out of the banking fraud business, apparently due to internal group conflicts and subsequent fracture, and the main developer offered their entire operation, including the source code and C2 network, for auction. Unfortunately, no one was interested in taking on their criminal operations and the developers instead released the source code of the Cerberus malware into the wild. The auction was marketed on popular darknet malware forum, exploit, with a starting price of $25,000 USD and advertised monthly profit of $10,000 USD. The developers stated they were including “the source code of the apk, the source code of the module, the source code of the admin panel, their servers, the customer base with an active license, the contact list of customers, the contact list of those who wanted to purchase the product, and a lot of additional information.”

Other users on the forum suggested that Google Play released a security update that is capable of detecting Cerberus’s main module signature and this RAT was no longer viable without software changes.

ALIEN

Within weeks of the Cerberus source code leaks, a fork of the initial variant of Cerberus (v1) called Alien surfaced for sale on the darknet. In addition to all the main capabilities that Cerberus provided, Alien also included a keylogger, device application installs, removals, and service start and stop, 2FA authenticator stealer, and device notification sniffer. The Alien RAT successfully installs and leverages the commercial TeamViewer application in its operation on the victim’s mobile device providing the threat actors full remote control and observation of the device and its owner’s behaviors. (Source)

A longtime user of the darknet forum, exploit, using the pseudonym “megabyte” first offered a three-month license to use the Alien Android RAT on August 14, 2020 for $4,500 USD.

AHMYTH

Over the last three years, AhMyth is another malicious Android RAT that has been actively traded and discussed on the darknet. Its repositories on github.com were updated as recently as three months ago. The RAT includes an electron-framework based server-side desktop application and the APK installers for the client or victim’s Android device. The developer is active on Twitter under the handle @AhMythDev and states their location is Oman.

The AyMyth RAT features:

•A file manager allowing the threat actor to view the contents of the victim’s device including firmware

•Access to victim device’s browser data, cookies and web browsing history

•Remote access to the victim’s device microphone and camera

•Remote access to all device call logs

•SMS access – allows the threat actor to not only read but also send SMS text messages from the victim’s device

•GPS location data – allows for the threat actor to track the geographical location of the victim.

 
Figure 2: Screenshot of AhMyth repository on GitHub (Source - hxxps://github.com/AhMyth/AhMyth-Android-RAT)

Figure 2: Screenshot of AhMyth repository on GitHub (Source – hxxps://github.com/AhMyth/AhMyth-Android-RAT)

 

ROGUE

Figure 3: Advertisement for Rogue RAT (Source: DarkOwl Vision)

Figure 3: Advertisement for Rogue RAT (Source: DarkOwl Vision)

Earlier this year, open source reporting indicated that the developers of the Rogue RAT had been circulating the malware across darknet forums for rent for as little as $29 USD per calendar month and offering discounts such as $45 for 3 months and lifetime memberships. According to researchers, the Rogue RAT exploits Google’s Firebase development platform to conceal its malevolence and Android’s Accessibility Services to bypass restrictions on tracking user actions and registers its own notification service to view such messages on the infected device; an exploitation technique observed with other Android malware strains.

The seller of the RAT, known as “Triangulum” released version 6.2 of the malware on deep web forums back in April 2020, and its source code emerged too, revealing that the Rogue RAT does not appear to be a unique malware codebase, but instead an update to an earlier variant known as DarkShades.

COVID-THEMED (DISGUISED) RATS

Figure 4: Screenshot from Twitter (Source: https://twitter.com/LukasStefanko/status/1306143556281737217/photo/4)

Figure 4: Screenshot from Twitter (Source: https://twitter.com/LukasStefanko/status/1306143556281737217/photo/4)

Given the ‘open-source’ nature of the AhMyth Android RAT, DarkOwl analysts have observed several malicious Android RAT variations based on the AhMyth source code. For example, a malicious fake Indian-based COVID app for Android surfaced in 2020 with remarkable similarities to the AhMyth RAT. The command-and-control (C2) server’s IP address is hard-coded as has been identified as a private IP address: 192.168.1.99:1234 and public IP of: 122.10.114.159. (Source)

Other Twitter users observed the AhMyth RAT disguised as a COVID-19 testing app. Observations came to light in September 2020 in France when a fake website mimicking legitimate services surfaced with a C2 domain identified as hxxp://tweensangoma.servebbs[.]com:22222.

Security researchers assess that Pakistani hacking group, Transparent Tribe, has been actively exploiting COVID-related tracking and monitoring applications for serving up malicious mobile malware. Their targets are often Indian government organizations and persons, explaining why the malware was found alongside Indian-specific COVID tracking apps. The group does not exclusively target Indian organizations as their victims. Multiple darknet sources state the group has successfully attacked more than 1,000 victims in over 27 countries and present as a formidable criminal cyber organization.

Internet security company DomainTools discovered that an Android app called “COVID19 Tracker,” which disguised itself as a coronavirus outbreak geo-tracking tool was actually ransomware that locked the users phone and demanded a payment of $100 in bitcoin within 48 hours, according to reporting.

More recently, a relatively new darknet user named “Shade Me” listed MD5 hashes used as indicators of compromise (IOCs) for twelve COVID-titled Android RATs. Their post, titled, “Most popular Android Threats 2020” was published to a popular deep web forum in September, 2020. Both Covid-Ahmyth and Covid-Cerberus were included in the list. GitHub user sk3ptre shared the same list including the live strains of the malware on their GitHub repository at hxxps://github.com/sk3ptre/AndroidMalware_2020.

Deeper dive: Android-specific ransomware on the darknet

With all the publicity around ransomware attacks of corporate networks around the world in 2020, few realize that mobile devices such as Android and iOS are susceptible to ransomware attack. Law Enforcement indicated they knew of this and warned in their intelligence briefings in the BlueLeaks collection leaked by DDoSecrets in mid-2020.

Users on the darknet discussion forum, dread also confirm that sophisticated Android-based ransomware is in development by some of the most prolific ransomware criminal gangs in the underground.

Android ransomware is hard, I think maze is working on some currently but I’m not sure how far they’ve got.

— User /u/overload on darknet forum Dread, (Source: DarkOwl Vision)

After considerable review of the popular Android-specific ransomware payloads available for sale or use on the darknet and deep web, DarkOwl analysts believes Android-based ransomware and device locking will be a noteworthy feature of standalone ransomware payloads, RATs and banking botnets.

There is a plethora of free and pay2play downloads available from notable threat actors and well-respected darknet hidden services, accompanied by instructions on how to use the ransomware. The availability of detailed instructions facilitates the most novice malware fanatic to put such malicious code to action without much effort.

SAURON LOCKER

Figure 5: Offer for Sauron Locker on Deep Web Forum (Source - DarkOwl Vision)

Figure 5: Offer for Sauron Locker on Deep Web Forum (Source – DarkOwl Vision)

Sauron Locker has been observed distributed to Android devices on a cracked version of the popular mobile game, Clash Royale originally developed by Supercell. The unsuspecting victims hoping to get the free-cracked version on third-party websites are instead delivered the malicious ransomware and their devices locked with ransomware demands displayed. Sauron Locker also includes geographical location detection, allowing it to provide custom ransomware notes and payment demands based on the location of its victims. Researchers have observed the locker demand higher ransoms for victims in the US than in Europe or Russia.

Sauron Locker was most recently advertised on a popular hacking deep web forum by the user, blackhatrussia. DarkOwl analysts have observed blackhatrussia frequently distributing various strains of malware, including Sauron Locker, on hacking forums and their personal website. Sauron Locker is advertised to work on Android devices from 4.4 kit kat to Android 9.0 pie. blackhatrussia accepts payment for the malware exclusively via several cryptocurrencies including: Bitcoin, Litecoin, and Dogecoin. Interestingly, on the threat actor’s personal website, Sauron Locker appears to be available free of charge with three unique download links that may or may not also infect the user in the process of download.

In November 2020, DarkOwl also uncovered another Sauron Locker specific thread on one of the most respected darknet forums, by the user, Cold_Killer. Instead of providing the source code for the ransomware directly. Cold_Killer is requesting $60 USD in cryptocurrency in order to merely use Sauron Locker. The download links are included in the thread, which presumably are password protected, and credentials are handed over once a payment is provided.

 
Figure 6: Offer for Sauron Locker on Deep Web Forum (Source - DarkOwl Vision)

Figure 6: Offer for Sauron Locker on Deep Web Forum (Source – DarkOwl Vision)

 

Not too surprisingly, DarkOwl also discovered a Sauron Locker thread on additional deep web forums (pictured above), by the user speedwap4. This thread is almost an exact copy of blackhatrussia’s. The user speedwap4 included their Telegram contact information “@MegaFunds” in the advertisement for future discussion. The Telegram handle has been associated with other darknet actors across the darknet carding and hacking communities including Bitcoin stealers.

This association with Bitcoin stealers might explain the origins of observations by some researchers where Sauron Locker is installed alongside a cryptocurrency miner that readily consumes the victim’s device’s resources, data, and bandwidth as it uses these to mine for digital currencies like Bitcoin.

XERXES ANDROID BOTNET

In early February, a Telegram post included a link to the Xerxes Android Botnet advertised by a malware developer known as @zEdHacKs. Interestingly, this same name was used as a password to access the software download link shared on a similar hacking-focused Telegram group back in 2019. In addition to a device locker, this botnet is advertised to also include an SMS Stealer, App Downloader, Credit Card Grabber, and Notification Sender. DarkOwl has not confirmed how effective this malware is once deployed on a victim’s device.

 
Figure 7: Advertisement posted on Telegram for the Xerxes Android Botnet (Source: DarkOwl Vision)

Figure 7: Advertisement posted on Telegram for the Xerxes Android Botnet (Source: DarkOwl Vision)

 

OXYN-ANDROID-BOT

The Oxyn-Android-Bot is similarly advertised to include the OX-Locker ransomware in addition to exfiltration of banking and personal data of the victim’s Android device. This malware variant also includes harvest of the geolocation data of the device and notification manipulation, a technique discussed in detail in a Microsoft report published late last year, advising on the dangers of a ransomware strain they call MalLocker.B that hijacks the incoming call notification for exploitation. (Source)

The creator of the Oxyn-Android-Bot is active across many of the key darknet communities and like other malware developer, leverages GitHub to distribute information the malware, in addition to darknet and deep web criminal forums and Telegram channels.

The latest price range for this malware was $1200 to $2,000 USD depending on the type of customer support package purchased.

Figure 8: Oxyn-Android-Bot (Source: GitHub)

Figure 8: Oxyn-Android-Bot (Source: GitHub)

COVIDLOCKER & WANNALOCKER

Figure 9: Telegram advertisement for CovidLocker (Source: Telegram)

Figure 9: Telegram advertisement for CovidLocker (Source: Telegram)

DarkOwl became aware of these Android Ransomware strains by name after they appeared for download on a hacker Telegram channel last October.

The offer included links to download the ransomware’s source code and decryption passkeys. The community where this ransomware was discovered offers tutorials and mentorship – along with several “ransomware builder” collections for those in the early-stages of learning how to write and deploy malicious malware for financial gain.

Like Oxyn’s bot, DarkOwl has not verified the degree of severity or specific technical details of this ransomware variants’ features.

Threat Attack Vector for Android OS Attacks

Easy Delivery Method

Android ransomware can be delivered via malicious app download, as observed with Sauron Locker or via SMS message. In 2019, malware developers delivered their ransomware via malicious posts to popular Android-developer focused boards on Reddit and XDA Developers. (Source)

Network-wide deployment against employee devices is not impossible. A successful phishing or vishing attack against users can give threat actors full control of the device. Once inside the device, lateral movement within the network can infect multiple devices at once. Just recently IBM uncovered a phishing attack using a very similar strategy. 

Figure 10: Example of a phishing email, which is a common threat deployment vector for RATs (Source - https://securityintelligence.com/wp-content/uploads/2020/12/1606993218.jpeg)

Figure 10: Example of a phishing email, which is a common threat deployment vector for RATs (Source – https://securityintelligence.com/wp-content/uploads/2020/12/1606993218.jpeg)

 

“FUD” (no, not that FUD) MALWARE

As previously mentioned, there are a number of readily available “crypters” available for use against Android OS and used in conjunction with Android RATs. DarkOwl analysts discovered users on Telegram sharing an APK crypter that includes an anti-virus bypass coded in Java in 2020, allegedly by DedSec hacking crew (though there is some suspicion that this might be a case of alias hijacking).

They describe this malware variant as “Fud” – which in this case is intended to stand for “fully undetectable.”

Figure 11: “[Fud]APK Crypter” for sale (Source -DarkOwl Vision)

Figure 11: “[Fud]APK Crypter” for sale (Source -DarkOwl Vision)

An Ever-Evolving Threat

At the end of 2020, DarkOwl analysts were informed by darknet sources of a Cyberpunk 2077 related ransomware in circulation across the video gaming community. Shortly after the debut of the popular cyberpunk game, cybercriminals uploaded a “fake” Cyberpunk 2077 Android app to a fake website impersonating the Google Play store that installed BlackKingdom Coderware, developed by Telegram user “@Codersan” that subsequently encrypted all the device’s files, including the embarrassing selfies and displayed a ransom note for $500 USD before files can be recovered.

In early January, DarkOwl detected the source code for this malware with the filename: coderware.ransomware_py, confirming it was developed in Python, posted on a popular darknet hacking forum. The forum user included criticism of the code, stating it was “script kiddie ransomware.” 

Figures 12 & 13: Screen captures of the Cyberpunk2077 malware offered on Google Play Store.

Figures 12 & 13: Screen captures of the Cyberpunk2077 malware offered on Google Play Store.

Researchers at Kapersky first detected the ransomware in the wild and noted that the files can be easily decrypted using any RC4 decryptor. Luckily, there are a number of decrpyters readily available on GitHub along with the apk file and malware sample: hxxps://github.com/dot-sec/Cyberpunk2077-android-malware.

This Cyberpunk 2077 fake ransomware delivery app is completely unrelated to the ransomware attack that the developers of the Witchers series have been battling since February 9th, earlier this month. The CD PROJEKT RED Twitter account (@CDPROJEKTRED) shared an update including the ransom note which included threats to release the source code of their popular game series. 

Figure 14: Screenshot from Twitter  (Source: https://twitter.com/CDPROJEKTRED/status/1359048125403590660?s=19)

Figure 14: Screenshot from Twitter (Source: https://twitter.com/CDPROJEKTRED/status/1359048125403590660?s=19)

As DarkOwl has observed and historically reported, the darknet and deep web are home to an extensive malware economy, with marketplaces and forums that offer a wide range of malware, threats, and viruses. Sellers not only offer a variety RATs as described above, but also VPN services, exploits, crypters and ransomware, along with all the educational materials and personalized support: private guides, tutorials, and mentors for hire – ready to educate those newly entering the underground cyber-criminal industry.  

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Shiny Leaks and Criminals: SolarWinds, Seller13 and ShinyHunters

During review of recent darknet hidden service domains collected from Tor, DarkOwl analysts discovered a new ‘leaks-focused’ marketplace called “Dark Leaks Market” featuring a wide range of leaked databases and documents from recently ransomed corporate organizations. An underground forum user, using the alias “Seller13” shared the URL for the marketplace while promoting their most recent acquisition of documents identified as “Solar Winds Data Leak” consisting of critical client information related to SolarWinds customers.

In late December 2020, DarkOwl discovered an advertisement identified as “The Solar Winds Data Leak” on the Dark Leak Market for $85,000 USD. The database was listed as including “highly confidential tools leaked documents with worldwide client list and their deals” as well as “usernames passwords of their networks, email id’s and their conversations – [including] Top secret information about their affairs.”

While the database is listed for sale for $85,000 USD the advertisement further states they are offering to sell this data to those who offer highest price bid and will be sold to only two of them. As of January 3, 2021, the price had dropped to 0.5 BTC, or approximately $16,000 USD according to historical Bitcoin prices during the same time.

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Who is Seller13?

The “Who Are We” section of the market identifies the group as a “team” of “cybersecurity enthusiasts, cryptopunks, entrepreneurs and businessmen” who are clearly non-English speaking cyber criminals as apparent by the significant number of grammatical and spelling errors throughout their operations’ description. This suggests that “Seller13” is not a lone-wolf style cybercrime enthusiast, but instead a group of criminals working together to infiltrate commercial networks and capitalize on crimes across the darknet.

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DarkOwl also uncovered an encrypted chat channel, hosted by Seller13 and only accessible by invitation, where they are even more exuberant about their acquisition of SolarWinds related leaks. Their latest comments, posted in the early hours of the week before New Year’s, suggests that they were in the process of purchasing SolarWinds “hacked database and information” and were going to resell it in parts of 1 to 5 GB increments.

As of January 3, 2020, Seller13 stated they were uploading the SolarWinds data to mega.nz.

Using DarkOwl Vision, analysts discovered that a user with the pseudonym of “Seller13” has an extensive history of activity on the darknet, including a deep web forum discussing weapons popular with native Russian speakers.

DarkOwl detected advertisements from early as 2011 on a deep web forum selling various small arms and accessories, including MMG Thompson M1 and the RP 46. This suggests that not only is Seller13 possibly from Eastern Europe, they have a history of criminal activity and extensive connections with cyber criminal organizations that have been historically active across the darknet and deep web.

Compromised commercial website data shared on popular deep web forum, RaidForums links the alias “Seller13” to several email addresses, such as: [email protected], [email protected], and [email protected]. DarkOwl has little to no confidence that the email address: [email protected] is connected to the darknet actor, Seller13, based on the commercial website where it was obtained. However, the hotmail.de email was more interestingly associated with the pseudonym “Seller13” in a data breach called “l33t crew members” from 2017.

A connection to REvil?

Ironically many of the databases offered for sale on the Dark Leak Market and advertised on Seller13’s Telegram channel have been previously observed as data obtained via ransomware attacks by the ubiquitous REvil criminal organization out of Eastern Europe. DarkOwl analysts recorded victims such as Kenneth Copeland and Agromart, as previously advertised on the “Happy Blog” darknet hidden service published by the REvil group back in 2020.

It is unconfirmed whether Seller13 is a legitimate darknet vendor of actual criminally obtained data or just another darknet scammer who is in the business of capitalizing on popular commercial datasets, such as SolarWinds and will simply take their customer’s cryptocurrency and never deliver any meaningful data. DarkOwl has surmised several possibilities around Seller13’s ultimate intentions and how they obtained the data they have listed on their hidden service: did Seller13 obtained the data via purchase with intent to resale? Are they acting as an agent of REvil, given the negative publicity received by the ransomware group? Lastly, is Seller13 a legitimate member of the REvil team that has spun off to start the Dark Leak Market?

Regardless of who they really are, the advertised databases outside of REvil confirms that once a victim has been compromised there is no assurance that their data will stay with the group that stole it.

Seller13 Rebranding as ShinyHunters Affiliate

Since the initial detection of Seller13 on the darknet and Telegram, DarkOwl recently discovered the threat group launching a concerted rebranding of their cybercriminal commercial operation from “Seller13” to “S# Hunters.” Their activity across Telegram and the darknet now references @Omn1p0t3nt for additional contact and speaks of the availability of numerous “Shiny Leaks” on offer. Their current and historical advertisements on public darknet hidden services alludes to the availability of “ransomware setup, source codes, and dark web marketplace scripts” for sale further connecting this group of threat actors to ransomware criminal groups.

ShinyHunters is a pseudonym affiliated with an infamous darknet threat actor group who has released significant volumes of databases from compromised commercial websites around the world – databases containing millions of leaked email addresses and passwords, and personally identifiable information (PII) such as full names, addresses, credit card data, and IP address. News of their most recent database leak, from online dating service, MeetMindful was discussed in recent information security open-source reporting.

ShinyHunters has been extremely active across many Russian and English speaking darknet and deep web networks and communications, including Telegram for the last couple years. DarkOwl has also observed the group actively selling leaked databases on Empire Market where an offer for “First Stage Mindful 2M” – likely affiliated with the MeetMindful database leak, was offered for sale as early as May 2020 for $1300 USD.

 
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According to some darknet sources, ShinyHunters has supposedly also previously used the moniker, Prosox, who has been active since at least 2018 with a “team of Moroccan hackers” across the deep web, Telegram, and Discord. They are most notorious for defacing YouTube titles via a zero-day vulnerability now patched by the content provider.

After careful review of the Dark Leak Markets and the advertisements for “Shiny Leaks” the threat actor now calling themselves “S# Hunters” has posted across various hidden services on Tor, there is strong probability this threat actor is merely scammer, capitalizing on the public media attention the real “ShinyHunters” darknet cybercriminal group is receiving.

In some of their most recent posts, they refer and give credit to a Telegram user known as @Omn1p0t3nt, who they state acquired hacked “Fire Eye Tools” presumably from the SolarWinds and Sunburst exploits. This pseudonym is extremely similar to another popular deep web threat actor and administrator of RaidForums, knowns as “Omnipotent” without the “l33t” spelling, further suggesting a scammer’s psychological game is in the works.

DarkOwl will continue to follow as more information is available.

Cyber Weapons on Darknet Marketplaces and Forums

Underground markets of the darknet provide an extensive inventory of illegal goods for sale, including and certainly not limited to drugs, weapons, hackers and assassins for hire. In the “Digital Goods” section of most marketplaces, one will find an array of malware, bots, and services for conducting offensive information operations against a victim network or targeted information system.

While many of these are tools are considered ‘commercially’ available products and services for any interested anonymous darknet buyer with the cryptocurrency to purchase in hand, nation state-level cyber threat actors are certainly one potential consumer for any of these products with the intent to add these digital weapons to their repository of cyber tools.

[Quick Read: Darknet posts show SolarWinds has been a target, and has open servers that trace back to Russia]

As we’ve recently reported in our findings regarding the SolarWinds hack, monitoring the darknet for these types of tools and malicious discussions enables organizations to understand when and if they’re a target, and prepare accordingly.

For example, in the case of SolarWinds, we have evidence that they have been a target by hackers for a number of years. A few searches in DarkOwl Vision’s database of darknet content reveal glaring potential indicators of compromise that, when taken seriously, could have been leveraged by their customers as a cue to safeguard themselves against what ultimately resulted in the devastating hack that transpired this year.

There are many more cyber weapons at Nation-State threat actors’ disposal on the darknet

The digital goods section of most darknet marketplaces are broad in their offerings, suggesting that a ‘digital good’ consists of any product or service delivered virtually, unlike the purchase of an illegal weapon or illicit drugs that are delivered to a physical address. As such, the digital goods section of many marketplaces includes Adobe PDF files guides, lifetime website memberships and subscriptions, and digitized programming books with little to no value to a sophisticated nation state cyber actor. Most of these are innocuous instructions for the most novice to the underground criminal operations, such as carding, identity fraud, basic social engineering, and technical ‘hacking’ manuals covering basic network penetration.

Basic Network Exploitation Tools

A darknet marketplace consumer can also purchase any number of basic network protocols and tools for maintaining anonymity such as anonymous servers, VPNs and bulk proxies. It is unlikely a foreign nation will need such simplified tools; however, there are also vendors selling more advanced versions of the same type of tools, in packages such as KeyLogger Script Collections and CIA forensics expert tool – Magnet IEF on White House Market, or the FBI Hacking and Forensic Toolkit for exploiting mobile phones for sale by the vendor breadsdrugged on DarkMarket. This package is advertised to include KONBOOT authentication bypass, Oxygen Forensics which retrieves deleted texts and extracts data from all the popular mobile-phone cloud providers.

Then, there are also commercially available remote access trojans and bots that nation states could leverage for more sophisticated attacks and espionage. The Anubis Bot, Azorult 3.3 AZORult Trojan (Version 3.3), and Spy MAX v1.0 – Android RAT are all currently available for sale across many darknet marketplaces and accessible via instant download link delivered upon purchase.

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Historically, nation states readily target mobile phones for espionage and intelligence collection. This was publicly revealed when the Kingdom of Saudi Arabia’s (KSA) intelligence and government officials were caught using the Pegasus malware against WhatsApp and iPhone messaging platforms, developed by an Israeli security firm, to target dissident journalists. Recent reporting from Toronto’s Citizen’s Lab details how the Saudi government targeted 36 journalists from Al Jazeera earlier this year.

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Cobalt Strike is a popular software emulation environment designed to execute targeted attacks and emulate the post-exploitation actions of advanced threat actors and readily for sale on the darknet. Recent open source reporting suggests Chinese hackers sponsored by the Chinese government have been actively using Cobalt Strike to enable backdoor access to a number of compromised networks and information systems for the deployment of additional tools on the network in the future.

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Banking Malware for Large Scale Financial Industry Attacks

Some nation states, such as North Korea have been known to leverage banking malware for cyber-operations to recoup financial gain from the economic impact of international sanctions. Vendor leaguemode on DarkMarket offers the GozNym 2.0 banking bot for purchase for $1500 USD per build. The same vendor also sells ATM malware that is deployed via EMV (Europay, Mastercard, and Visa, i.e. “chipped”) debit cards on the same market for $1,000 USD per card.

Tools to support the targeted phishing of international banks based in North America, such as CHASE and CIBC of Canada is also currently available for sale on darknet markets. The digital good includes the HTML and CSS for scam websites for a number of prominent banks, including detailed administrator panels. These websites could be used by nation states to conduct targeted attacks against financial institutions.

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Ransomware for Offensive Cyber Operations

One information operations technique nation states could employ is simply shutting down critical operations of a competitor country’s critical corporations and industries. WannaCry (aka GonnaCry) ransomware successfully crippled the UK’s National Health System and is currently for sale on White House Market for $150 USD.

The source code for another effective ransomware, known as KingLocker, is also available for purchase and could be customized by a nation state to conduct a large scale campaign against a target industry or country.

The ransomware could be coupled with country-specific business directories, also for sale on darknet marketplaces for targeted in-country deployment. Multiple vendors on White House Market sale leaked databases, such as Dubai’s enterprises and UAE business directory costs as little as $129 USD. Meanwhile, Russia’s industry data with business names, domains, and contact information is only slightly more at $160 USD.

Targeted Phishing and Disinformation Campaigns – Credentials and PII

In the same way leaked organizational information for sale on the darknet could be instrumental for launching ransomware attacks, other critical country-specific information could be leveraged for targeted phishing and disinformation campaigns.

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On DarkFox, the vendor GoldApple on DarkFox sells numerous combo lists and US-state level voter registration data. The same vendor offers over 570,0000 (0.57 Million) emails from Japanese citizens for as little as $10 USD that could be for targeted attacks and disinformation campaigns.

One vendor offers a list of millions of US mobile phone customers personal information, including social security numbers and carrier that could be used for spamming and disinformation for $229 USD. The same vendor also has another 8 million Chinese phone numbers for only $200 USD.

Another vendor offers Taiwan’s Ministry of Civil Service database of employees which could be used for targeted phishing to infect government networks for espionage for €69 EUR.  

A database containing information for a US Intelligence agency is advertised for sale on White House Market for a mere $100 USD.  According to the advertisement and the hackers who obtained this information, it was stolen from a cloud server owned by the US government. The database contains thousands of records of critical detailed information associated with the vendors providing goods and services to the agency. This information could be invaluable for a targeted information operations attack by a nation-state.

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Most nation-state sponsored human intelligence operations require fake identification and passports. Vendors on the darknet offer fake US passports with biometric data for sale for a starting price of $2,000 USD. The advertisement, sold by vendor topvendor on White House Market states that all their identifications have machine-readable data zones, three layer security UV hologram which will readout correctly when scanned at borders. The vendor also offers detailed advice on travel routes and social engineering methodologies for interacting with customs officials.   

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As we reported earlier this year, social media manipulation is an increasingly popular trend by nation state actors to conduct disinformation and propaganda campaigns against their adversaries. Accounts on most all prominent social media platforms are readily available for sale across most darknet marketplaces with digital goods. Long-term established accounts with more ‘followers’ and historical influence are more coveted. One can purchase 1,000 LinkedIn followers for as little as $15 USD on ToRReZ, which could be essential for a nation-state level social engineering or espionage attack, while 50,000 Instagram followers cost upwards of $350 USD. A Facebook campaign to disseminate a particular propaganda agenda is also available for as little as $380 USD from the vendor, etimbuk on the ToRReZ market.

Unique Exploits for Field Operations

One vendor on White House Market using the pseudonym unglued, recently posted a 12-Watt Frequency Generator for sale on the marketplace. The hand-held device could be utilized by a threat actor to jam and potentially interfere with the operation of a wide range of frequencies including those used by mobile phones, Bluetooth devices, and GPS receivers. Nation-states wanting to conduct in-field operations could greatly benefit from such a device. The unit sells for $1,200 USD.

Still the most prevalent cyber weapon: credentials

Exposed credentials will continue to be one of the most prominent threat attack vector for organizational networks by cyber campaign operators, large and small.

According to recent Wall Street Journal reporting, the initial compromise to FireEye was through employee VPN credentials and luckily, the employee alerted IT security when their account had been accessed via an unrecognized device which kickstarted the SolarWinds investigation.

“Hours later, the National Security Agency, America’s top cyberspy organization, issued a broader warning to defense agencies and contractors about vulnerabilities such as those exposed by the SolarWinds attack. Hackers, it said, were finding ways to forge computer credentials to gain wider access across networks and steal protected data stored on in-house servers and cloud data centers. The approach, the NSA said, may have been used in an attack on VMware Inc. software used in national security circles that the spy agency warned about earlier this month.” – Wall Street Journal

DarkOwl also discovered darknet users talking about key open source reporting regarding the attack, more specifically, Vinoth Kumar posted to social media that he found a public Github repo leaking credentials belonging to SolarWinds since June 2018.

DarkOwl also discovered darknet users talking about key open source reporting regarding the attack, more specifically, Vinoth Kumar posted to social media that he found a public Github repo leaking credentials belonging to SolarWinds since June 2018.

Leveraging vulnerabilities uncovered in the Microsoft platform, nation-state hackers behind the SolarWinds attack also accessed key leadership emails at U.S. Treasury Department and other critical U.S. government agencies.

DarkOwl Vision has indexed over 6,100 documents containing compromised e-mail addresses and passwords for federal employees using the treasury.gov email domain.

Contact us to learn more about how you can monitor the darknet for exposed credentials using DarkOwl Vision

Evidence of SolarWinds Vulnerabilities on the Darknet

In light of the large-scale nation-state sponsored attack against U.S. government networks, and critical commercial sectors of the U.S. supply chain, our analysts reviewed historical darknet content for any SolarWinds related activity. We uncovered an extensive amount of content containing SolarWinds and Orion-specific vulnerabilities and zero-days across darknet exploit marketplaces and discussion forums, many of which could be devastating if exploited at scale.

Most notably, DarkOwl analysts also uncovered SolarWinds product documentation and application executables stored on unsecured FTP servers successfully collected by DarkOwl’s platform back in late 2019. The FTP servers contained not only SolarWinds-specific server files, but also Microsoft’s dotnetfx.exe file, a critical executable for installing operating system updates.

Source DarkOwl Vision: 8581ed393d5aabc9da818b2b3455c450

Source DarkOwl Vision: 8581ed393d5aabc9da818b2b3455c450

Upon further investigation, we traced the IP address of these open FTP servers to the internet service provider, JSC “Severen-Telecom” (severen.ru) in the Northwestern Federal District of Saint Petersburg, Russia.

In addition to the potential tie linking these files to campaigns conducted out Russia, we also have a great deal of evidence to show a suspicious amount of interest in SolarWinds vulnerabilities across the deep web and darknet. In fact, based on the extent of our analysts findings on the darknet alone, we have reason to believe that SolarWinds has likely been a cyber target for quite some time, though a large extent of these indicators that SolarWinds was being targeted transpired in late 2019 and early 2020. For example DarkOwl Vision has collected 98 documents from a single popular zero-day marketplace with mentions of SolarWinds-specific vulnerabilities since February 2020 (shown below).

Example of SolarWinds Cross Site Scripting Vulnerability, posted on the darknet in May of 2020

Example of SolarWinds Cross Site Scripting Vulnerability, posted on the darknet in May of 2020

Example of SolarWinds SQL Injection Exploit, posted on the darknet in May of 2020

Example of SolarWinds SQL Injection Exploit, posted on the darknet in May of 2020

In addition, our analysts have also noted that there was a great number of users on deep web forums that have displayed a particular interest in understanding critical information security applications and intrusion detection systems, with shares of ‘cracked’ versions of SolarWinds Security Event Manager application as recently as July 2020 (pictured below).

Source DarkOwl Vision: b7c107a767fa84498e5661e22d261c9a

Source DarkOwl Vision: b7c107a767fa84498e5661e22d261c9a

In recent days, DarkOwl has witnessed several darknet users across English and Russian-speaking forums discussing key open source reporting regarding the attack, more specifically, Vinoth Kumar’s posted to social media that he uncovered a public Github repo leaking credentials belonging to SolarWinds since June 2018.

(Source in Vision: bc257bc48dd0452f7ea3412d0288f588)


The Digital Economy of Disinformation: Darknet Threat to Election Security

In previously published analysis, we outlined the economies of social media and disinformation-as-a-service on the darknet, highlighting how there is now a significant ecosystem across the underground internet feeding the enterprise of mis-and disinformation for financial profit and political gain.

With the 2020 Presidential and General Election rapidly approaching, we decided to take a closer look in this report at the vulnerabilities to election security openly discussed on the darknet, including voter registration data and security risks to ballot tallying technologies, along with recommendations on the remediation both concerned individuals and state election officials can take.

Editors Note: DarkOwl is politically neutral and has no intention to further promote misinformation that the upcoming U.S. election is in jeopardy with increased use of mail-in ballots, but instead using a wide-body of intelligence, primarily captured by the company’s 24/7/365 crawls of the darknet and deep web, seeks to inform and educate the public and the information security community of information available on the darknet and our subsequent intelligence findings and recommendations.

Ballot Tallying Technology Discussions on the Darknet

PRIMER ON ELECTION TECHNOLOGIES

Election day ballot marking and tallying technology in use widely varies from state-to-state:

Optical Scan Paper Ballot Systems
These include both mark sense and digital image scanners where voters manually mark paper ballots that are hand fed into and tabulated with these scanners at the polling location or transferred to and collated at a centralized location.

Direct Recording Electronic (DRE) Systems
These use touchscreen terminals to record the votes, which are stored in the device’s internal memory and then transferred to a centralized location for tabulation. Some of these systems use internal modems for wireless data transmission. Most DREs include a paper receipt or ballot of the voter’s selection, but as many as 15 states have districts that use DREs without paper trail. 

Ballot Marking Devices (BMD) and Systems
These are designed to help disabled voters who might be unable to vote using other methods. Some of these devices include a touchscreen interface with audio and other features similar to DREs.

Punch Card Voting Systems
These require the voter to punch holes in cards using a supplied punch device. Cards are then feed into a computerized vote tabulating device or counted manually in a ballot box. These systems are less common in the U.S.

TIP: You can check what voting options are available to you here: https://verifiedvoting.org/verifier/#mode/navigate/map/ppEquip/mapType/normal/year/2020

DARKNET CHATTER INCLUDES DISCUSSIONS ON ELECTION TECHNOLOGY VULNERABILITIES

While a few states still rely on the manual counting of paper ballots, most lean on a number of ballot tallying technologies manufactured by three principle vendors: Election Systems and Software (ES&S), Dominion Voting, and Hart InterCivic. We have observed darknet chatter around all three of the aforementioned ballot tabulation vendors.

The security and veracity of these election technologies have been widely discussed equally at information security conferences and in underground communities of the darknet. Some technology exploitation demonstrations in the past resulted in big sweeping changes in the technologies employed by some specific states. For example, in 2017 Virginia’s Department of Elections recommended decertifying all of the state’s DRE machines after hackers at DefCon’s Voter Village that summer “pwned” them in record time exploiting numerous vulnerabilities in the systems.

Many DREs include printers that produce a paper trail for election auditing, but there are no options for comparing what is printed on the paper with the voter’s selections and what has been stored in the machine’s attached memory card that is used for the official record. Voters can increase their ownership of their vote by verifying that the information printed on a receipt or paper ballot after using the DRE is accurate before handing it over to the poll workers for official casting.

Pictured: “The absence of evidence is not evidence of absence” — A darknet user comments that fraud is completely possible with the eSlate voting machine’s dependence on Microsoft Access databases without encryption or authentication.

Pictured: “The absence of evidence is not evidence of absence” — A darknet user comments that fraud is completely possible with the eSlate voting machine’s dependence on Microsoft Access databases without encryption or authentication.

Texas reportedly had issues in the 2018 midterms with its Hart eSlate voting machines as voters in more than 80 counties reported seeing their choices flip to the other party’s candidate for Senate when they tried to cast a straight ticket. Hart InterCivic responded as user error and touch screen sensitivities. 

A similar issue was experience in NorthHampton County, Pennsylvania when election officials had to move to hand counting paper ballots well into the morning after their ES&S’s ExpressVote XL machines were acting “finicky” and deleting candidate selections.

Hart’s eSlate machines are widely criticized in comments across anonymous discussion forums in the darknet. One anonymous user commented that fraud was completely possible with the machine’s dependence on Microsoft Access databases without encryption or authentication.

A prominent malware developer on the deep web recently suggested that his customized Remote Access Trojans (RATs) could be easily used to infect election systems as they asserted the machines were likely still vulnerable to Remote Code Execution exploits via the Windows LNK files, also known as shortcut files. However, Microsoft released patches for both Windows 7 and Windows 10 operating systems earlier this year, to which DarkOwl assesses election officials and technology vendors would very likely patch their systems accordingly well before the general election, thus the successful use of such a threat is highly improbable.

Users on a darknet hacking forum discuss that antivirus and malware detection software is not usually available on the older DRE systems such as ES&S’s DS850 8000 ballot-per-hour central counting machine. The post author stated how malware infection would require physical access to the machine or a compromised insider to load any malicious software. They also discussed adding an air-gap module to the malware via a “replacement USB” drive to the state’s elections office, including sending the USB using packaging to replicate the voting system manufacture tagged as a “firmware update.” 

As reported at the end of September, someone recently stole two ES&S USB drives and a laptop belonging to an on-site employee for the company from an elections warehouse in East Falls Philadelphia. According to ES&S’s website, their ExpressVote XL machines are shipped with proprietary USB flash drives containing encrypted data signed with FIPS-compliant, security keys to prevent tampering and the possibility of overwrite or change to the system firmware, even if malware is loaded on a replacement USB sent to the officials.

Pictured: Early ES&S system deployment diagram that suggest many older devices were equipped with an internal modem for communicating results to a centralized communications server at the state board of elections for preliminary dissemination an…

Pictured: Early ES&S system deployment diagram that suggest many older devices were equipped with an internal modem for communicating results to a centralized communications server at the state board of elections for preliminary dissemination and predictions for media outlets. (Source)

The threat to the security of voting and tabulation machines is exponentially reduced by keeping the devices off of the internet and restricting physical access to trusted employees and election workers. Early system deployment diagrams provided by ES&S (and obtained by Vice) suggested many of their older devices were equipped with an internal modem for communicating results to a centralized communications server at the state board of elections for preliminary dissemination and predictions for media outlets.

These diagrams also suggest they rely on Windows 2008 R2 server and Windows 7, which would have most likely been updated by the 2020 election year.

Kevin Skoglung from the National Election Defense Coalition (NEDC), an election security advocacy group stated they found over 35 voting systems left online across 10 different states for several months. Some of the machines discovered online, likely due to technical maintenance and calibration servicing, were in crucial swing states like Florida and Michigan.

This summer, the NEDC sent coalition letters to states across the country outlining a list of immediate actions to secure the voting process before the 2020 general election: (Source: https://www.electiondefense.org/reports)
  • Ban all voting technologies that are connected to the Internet or disconnect their modems immediately, and scan systems for viruses that may have already been inserted.
  • Place sufficient emergency back-up ballots for all voters in case electronic voting machines break down, or for those who don’t wish to vote on touch screen voting machines.
  • Print hard copy back-up of electronic poll books in all precincts.
  • Disinfect and limit the use of touchscreen machines to mitigate the spread of COVID-19 and avoid long lines on election day.

Darknet Exposure of Voter Registration Data and Election Technology Company Credentials

EXPOSED ELECTION VENDOR DATA & THIRD PARTY RISK

All three of the principle ballot tabulation vendors have darknet exposure of corporate credentials, e-mail addresses and passwords, of their employees.

  • Exposed ES&S Credentials: 468

  • Exposed Dominion Voting Credentials: 94

  • Exposed Hart InterCivic Credentials: 218 

“The more I look at this the more I think it’s our guys. How to infiltrate and find voter fraud, hack the system?”

“The more I look at this the more I think it’s our guys. How to infiltrate and find voter fraud, hack the system?”

Corporate exposure of employee information is often the first step for exploiting a target corporation, via directed spear-phishing and social engineering. Tyler Technologies, a Texas-based software company whose products are used to display state and local election results, has over 2,000 corporate e-mail addresses in DarkOwl Vision’s database as of time of writing. 

While their exposed credentials may not be related to this recent incident, it is worth noting that only a few weeks ago, in late September, Tyler Technologies was hit with RansomExx, a malicious strain of ransomware that began circulating the darknet in late May and early June of this year.

The ransomware, specified as “ransom.exx” in the source code, is distributed through an unsecured RDP configuration, opening a malicious attachment via email, fake updates and downloads, and malicious advertising. Tyler Technologies ended up paying the ransom to recover the encrypted data.

[Pictured] Anonymous users, aka “anons” on a darknet controversial imageboard and safe haven for Q-conspiracy theorists, discussed the Tyler Technologies breach within hours of Reuters’ public announcement of the attack against Tyler Technologies.

One user surmised the attack might have originated within the Q-community while another posted multiple doxes, identifying key management and leadership at the company.

EXPOSED VOTER DATA

U.S. voter registration information has been widely circulated across darknet forums and channels for potentially nefarious purposes. Earlier this year, DarkOwl detected U.S. voter registration databases for the states of Michigan, Florida, North Carolina, and Colorado being shared freely and sometimes sold on popular deep web forums, but this was certainly not the first exposure of U.S. voter registration data on the darknet.

Pictured: Darknet advertisement for voter North Carolina registration databases

Pictured: Darknet advertisement for voter North Carolina registration databases

In the leaked police files known as the “BlueLeaks” files, that were released on the darknet earlier this year, official documentation speaks of how state voter registration data could be misused and specifically mentions how a malicious actor could leverage voter names, e-mail addresses, and telephone numbers to connect with new audiences and market personalize advertisements according to their views on specific topics, propensity to vote, and other factors. This information coupled with a foreign adversary’s disinformation campaign could be utilized to register fake social media accounts, seed content, and amplify distribution of content of interest to targeted audiences.

In 2018, a verified user using the pseudonym Omnipotent shared Kansas’ database of 4.1 million voters’ registration data including voter IDs, full names, physical addresses, previous addresses, dates of birth, genders, voter status and voter history. Omnipotent suggested the data was collected by gaining access to the state’s official SSH and SFTP servers and downloaded the data directly.

While most threat actors are less interested in disinformation and would utilize voter registration data for financial gain via identity fraud or scamming, one darknet source suggested that if any state’s SFTP and servers were insecure to the point of file download and SSH access, then there was nothing preventing the voter registration databases from also being altered. By introducing minor errors to key districts, especially in swing states, as little as 1% of the total records, or preventing as few as 1 in 100 voters from voting, due to errors in their recorded registration information, could change a state’s outcome on election day.

Luckily, most states have the option for provisional ballots and any voter registration discrepancies can be resolved with verification of identity. The FBI has validated that some states’ voter registration servers have been infiltrated in recent years, but in a recent advisory suggests that any release of such widely publicly available data has no potential impact to the credibility of the democratic election process. (Source)

Pictured: Voter registration databases traded on the darknet, color-coded by darknet vendor and forum (unless otherwise specified).

Pictured: Voter registration databases traded on the darknet, color-coded by darknet vendor and forum (unless otherwise specified).

Disinformation on Election Credibility likely to persist into media coverage on night of election

While voter registration data can obviously be used to conduct targeted disinformation campaigns, it is important to understand the other vectors with which disinformation can be spread by leveraging other security vulnerabilities described in this report. For example, in the case of Tyler Technologies, actors could potentially take advantage of these known vulnerabilities to intercept early voter reporting data and manipulate it before it reaches the media, which could then lead to unintentional false reporting by the press on which incumbent is in the lead. This could be especially impactful to would-be voters, who may choose not to cast their vote if they think their candidate is leading by a wide enough margin.

It is also worth noting that the attack on Tyler Technologies took place within days of the FBI and its Cybersecurity and Infrastructure Security Agency (CISA) issuing a public warning that they had intelligence indicating that foreign actors would likely spread disinformation the day of and days immediately after the election, specifically regarding the election’s credibility – in an effort to actively undermine the democracy of the country.

Knowing the scale of disinformation-as-a-service offerings available on the darknet the use of proxy media outlets for foreign propaganda information operations and the economies of bulk social media accounts in support of disseminating and controlling a false narrative, it is understandable why the FBI emphasized the importance of using only the most reliable information sources and not sharing and circulating controversial information about the election. 

DarkOwl would add the emphasis of importance of voting early regardless of what preliminary local media outlets may suggest about the projected outcomes of an election. The FBI has released a further advisory on how foreign information proxies, including pseudo-academic online journals may be leveraged to disseminate articles with misleading and unsubstantiated information in order sow disbelief in democratic election process.

Given the depth of political dissent DarkOwl has observed across darknet forums and discussion boards, domestic terrorist groups and conspiracy theorists will also inadvertently support these narratives and further exacerbate discord across the country through social media platforms and large group chats. 

The best way to avoid becoming a victim and pawn in the ongoing psychological, via information, warfare around us is to cast your vote, refuse to engage, disseminate or proliferate any controversial election information on social media; remain calm and unite with those that you may deeply disagree with – remembering the words of Helen “Jo” Cox that “we are far more united and have far more in common than that which divides us.”

 
FOREIGN ADVERSARIES TAKE CREDIT
“In 2016, the U.S. was unprepared at all levels of government for a concerted attack from a determined foreign adversary on our election infrastructure,”
-Senator Richard Burr (R-NC) member of the Senate Intelligence Committee
In another popular darknet discussion board, one user discussed how in 2012, Vladimir Putin publicly decried how the U.S. had encouraged local protestors to claim Russia’s presidential elections were rigged and suggested that Putin was actively seeking payback by discrediting American elections. This was further supported by a lengthy post on a now defunct darknet forum back in 2016, by a Russian darknet threat actor on how easily the U.S. election system could be hacked by Putin and his cyber warriors. The author, using the moniker alex_61, outlined flaws in the voter registration process and duplication of registration data across states, the exploitation of absentee ballots, the ease at which DRE software at the time based on Windows 2000 could be compromised remotely via the polling location’s wi-fi, sending “fake” software upgrades that contain malware to the state election officials, and the lack of national election oversight and auditing as potential opportunities for mass manipulation that the Russian government was fully capable of.  

REMEDIATION: Security recommendations for voters and election officials 

As we mentioned throughout the report, despite threats to the US election systems discussed on the darknet, there are plenty of steps voters and election officials can and are actively taking to mitigate any risks to the credibility of the election. Voters can proactively take steps to ensure their information is accurate on their voter registration rosters.

Check your voter registration information online ASAP 

  • All U.S. voters should confirm the accuracy of their voter registration information before arriving to their local voting sites on election day. If voting in person, bringing photo identification and proof of residence with you to the voting site helps in the case any errors require a provisional ballot. Instructions on how to verify one’s registration information by state can be found at: https://www.usa.gov/confirm-voter-registration 

While ballot tallying and DRE machines are not connected to the internet during active elections on November 3rd, districts across states are actively securing their information networks to prevent any disruption or intrusion. MSSPs such as DarkOwl’s partner, CyberDefenses, LLC, help harden election networks and setup redundant network systems as day-of distributed denial of service (DDoS) attacks have occurred in previous election cycles. They also proactively provide education to election officials and poll workers on best physical and network security practices, help reorganize their networks to the most secure configurations, and conduct information assurance testing of many of state’s election networks across the country.

During conversations with CyberDefenses, LLC, technical leadership advise a top down strategy for the Secretaries of States they support and are less worried about physical network security and more concerned about election credibility disinformation campaigns by foreign and domestic threat actors. Earlier this year, they witnessed a concerted Black SEO campaign, like those advertised on underground forums and marketplaces, where threat actors intentionally buried the official vote411.org domain, a key national-level election information website, using SEO manipulation. Fake domains containing incorrect information, resolving to IP addresses across Russia, appeared ahead of the official website in Google search results until counter-SEO was implemented. BlackSEO and URL hijacking are key tools of many disinformation as a service offerings across the darknet. Domestic terrorists and foreign threat actors are also actively conducting heavy reconnaissance of election networks to uncover potential vulnerabilities that can be leveraged in an election credibility disinformation campaign.

Any risk to the security of voting machines is proactively remediated by many election officials and their technical support in the weeks leading up to the election, on making sure all electronic voting machines have been updated with the latest versions of application software and firmware with minimum exposure to the internet. Election officials, their technical support and on-site machine vendors conduct software updates by bringing small numbers of the machines online to push the installs and immediately taking them offline to reduce the network exposure of the devices.

Election vendor officials are also advised to be suspicious of and verify any and all packages received from device vendors or third-parties, no matter how credible they appear to ensure any mailed USB “firmware updates” are legitimate and not a malicious phishing attempt.

On the day of the election, officials are also advised to place sufficient emergency back-up ballots for all voters in case electronic voting machines break down or behave unpredictably. Officials should also print hard copy back-ups of the electronic poll books in all precincts for any real-time registration or poll book roster manipulation. Many districts also rely on “sneaker-net” the day of the election calling in and hand-carrying ballot tallies to avoid any inadvertent data exposure. 

Consider your voting options depending on where you live

As an individual if you have concerns about the security of your local election systems in use, first, if paper ballots are printed as formal record of your candidate selections, then take time to review what has been recorded carefully after using a DRE machine. Secondly, if you live in one of the few states that only have DREs without paper trails or one of the handful of states that still have some districts with DREs without a paper trail contact your state representatives and insist on a public audit. 

 

The Digital Economy of Disinformation on the Darknet: Controlling the Narrative

As we introduced in our previous blog post, DarkOwl analysts have observed a now well-established digital economy in the darknet around the trade of social media accounts and its influencers – accounts sold in bulk that could be easily leveraged for a dis- or mis-information campaign by a foreign government or agency with malicious intention.

In this blog, we look at how the darknet is rife with “disinformation as a service” type offerings, and how technology such as blockchain is now being leveraged to persistently disseminate false narratives to the public.

Clarifying the meaning of “disinformation campaigns”

Put simply, a disinformation campaign is a psychological operation to manipulate a target’s perception regarding select topics using strategic methods to disseminate false and half-truths via various media mediums. Usually, these campaigns are multifaceted and comprehensive, using a mix of Social Media account activity and illegitimate news publications in which disinformation can be disguised in a highly sophisticated and believable fashion.

CONSENSUS CRACK DEVELOPMENT

Social media continues to be a powerful tool for conducting disinformation campaigns, especially since access to large quantities of pre-verified, fake social media accounts continue to be readily available for purchase on the darknet. By having agency over large volumes of fake social media accounts, perpetrators are able to facilitate what the historical COINTEL “Gentleman’s Guide to Forum Spies” calls, Consensus Crack Development. This is a disinformation tactic in which agents under the guise of a fake account make claims in a post on social media or forum which appears legitimate, towards some objective truth, but has a generally weak premise without substantive proof to back the claim of the post.

Once content has been posted/stated as truth, alternative fake accounts also under the agent’s control post comments both agreeing and disagreeing, presenting both viewpoints initially, and the dialogue between the fake accounts continue until the intended consensus is solidified.

Disinformation as a Service: a darknet exclusive

The darknet is a known playground for disinformation campaigns and its users are fairly wise to detecting disinformation, especially across anonymous image boards where a number of controversial groups like Qanon participate. One anonymous user on endchan advised, “don’t be fooled by disinformation, they almost always use truth but wrap it in disinformation,” noting the prevalence of outrageous conspiracy theories historically across the internet.

Screen Shot 2020-10-08 at 10.53.24 AM.png

Of more concern is DarkOwl’s discovery of a number of Ukrainian and Russian-speaking disinformation-as-a-service providers across the darknet with a considerable footprint for information-manipulation related offers and discussions.

While most service providers’ advertisements read like a commercial mass media company, specializing in promoting the brand and image of a person or business, these providers solicit customers on cybercrime focused darknet forums, where the skills for online branding and mass marketing are leveraged for malicious intention, such as the demise of competitors’ brand and subsequent reputation.

To illustrate how these disinformation services are structured and advertised, we’ve put together a brief profile for three different vendors who are profiting in this space.

DARKNET VENDOR A: A SAMPLE MENU OF DISINFORMATION AND REPUTATION INFLUENCE OFFERINGS

One noteworthy disinformation-as-a-service provider also markets both reputation promotion and destruction services. English translations of the offerings on their brochure read:

pt2-4.png

We are offering to erase:

  • News

  • Pages from websites

  • Results from search engines

  • YouTube videos

  • Negative comments on forums

  • Personal information on forums

  • Telephone numbers from databases

  • Social media profiles (OK.ru, VK, Instagram & others)

We will create positive reputation for a company or identity. We can:

  • Create a positive reputation for a company

  • Create a positive reputation for individuals

  • Improve reputation for search engines such as Yandex & Google

  • Provide reputation monitoring across the web

We are offering anti-reputation services for a company or identity. We can:

  • Create anti-reputation for a company, service or individual

  • Create and post negative content and optimize it for search engines

  • Post negative reviews and write negative comments on social media

  • Create multiple negative narratives and experiences to legitimize the claims

  • We will orchestrate the story (theatre) and can listen to your suggestions regarding anti-reputation

  • This type of service is more complex and offered as a package for sale for results (and needed outcome)

We can create disruptions to the daily operations of a company. We can:

  • Spam them by flooding them with questions on their site to contact them

  • Continuously call the company from various phone lines and speak nonsense

  • Every minute from different IP addresses

  • Harass via website chat bots -send delivery companies fake addresses

  • We will take the company where it started!

DARKNET VENDOR B: A SPECIALIST IN WHATSAPP CAMPAIGNS

Another reputable vendor on a popular Russian underground forum offers targeted customized messaging via WhatsApp, mass social media information management, via credible social media accounts on OK.ru, Facebook and Instagram in bulk, as well as content removal from search engines using targeted critical search engine optimization (SEO).

Their offer describes their automated social media services as a “a network of controlled biorobots that can convey to the masses any information you need.”

In the summer 2018, WhatsApp messages widely circulated in rural Indian communities were the cause of a number of violent mob-lynchings where strangers were attacked and wrongly accused of child kidnappings.  WhatsApp countered the disinformation-sparked violence by limiting the number of times a message could be forwarded and the size of WhatsApp groups. (Source)

DARKNET VENDOR C: A PIONEER IN USING BLOCKCHAIN TECHNOLOGY TO PROPAGATE DISINFORMATION CONTENT ACROSS THE INTERNET

“Information without the possibility of being deleted” - Blockchain is now being leveraged to conduct persistent disinformation campaigns 

Another notable vendor states that they employ a “blockchain-based botnet” to conduct persistent disinformation campaigns. DarkOwl analysts assess that this vendor has been active across many of the key Russian and Ukrainian-speaking darknet forums for several years and in late 2019 debuted a commercial enterprise around their public relation services, listing their partnerships with leading mass media across Russia, CIS, Europe and the USA and political campaigns and elections as some of their specialties.

Screen Shot 2020-10-08 at 11.05.03 AM.png

The vendor, who submits their forum posts primarily in Ukrainian, marketed their blockchain based approach by stating in an advertisement earlier this year that they can offer “information without the possibility of deletion. The vendor further stated that by utilizing their services and executing a disinformation program based on the blockchain, they are able to prevent the deletion of content for either the promotion of a business or the “funeral” of a competitor.

As of early 2020, the vendor offered such services for $500 USD for promotion or $700 for competitor disinformation.

After more targeted conversations and technical research on their approach, DarkOwl’s analysts discovered using the blockchain for on-chain data storage is not-only reliably secure, but potentially turns the blockchain into a politically and architecturally decentralized ‘cloud’ for data preservation and persistence.

Blockchain data storage technology uses the BitTorrent protocol, breaking up the files into individual transactions or 1MB segments for Bitcoin (i.e. blocks) and stores them across multiple instances, preserving the content contained therein as information on the blockchain cannot be modified. Blockchain data storage works best with smaller sized files, as consistent with a modern HTML/CSS website where video files and media may be more cost-prohibitive. For security purposes, the vendor did not specify which blockchain (Bitcoin, Ethereum) they prefer for their disinformation botnet.

 
 
NOTE: A popular darknet news source speaks of a Politico report from 2019 of Volodymyr Zelenskyy’s controversial election and how Facebook struggled to contain disinformation’s spread. Vendor C claims their services were instrumental in the social media disinformation circulated around the 2019 Ukrainian Presidential Election. According to the report, one Facebook account with the most influence had over 100,000 followers and ran a video claiming (Zelenskyy, Presidential candidate at the time) would allow Russia to take over the country with a violent military operation.

Source DarkOwl Vision: 30e9408d811ba5bbbf3c10b809da6107

 
 

A More Subtle and Simple Disinformation Technique: URL hijacking

Aside from content creation and social media manipulation, doxing and disseminating information in mass, DarkOwl’s partner, CyberDefenses, Inc. has recently also uncovered a number of state and local election-related domains where criminals leverage URL hijacking and typo squatting to manipulate the narrative of the original source. Disinformation agents register a fake domain, spelling the domain name similar to the original, often simply swapping an uppercase “I” (pronounced ‘eye’) instead of a lowercase “l” (L), copy and replicate the exact website design color scheme and HTML/CSS layout as the original, but change extremely subtle content, such as a single campaign policy or contact information to misinform and misdirect the malicious website visitors and potential voters for that candidate.

Depending on the efficacy of the malicious copy website’s SEO, the fake domain can sometimes emerge ahead of the original in popular search engine results for related keywords. URL hijacking can cause subtle election interference that can easily go undetected.

Other times, disinformation actors don’t even bother to use the darknet to sell their disinformation-as-a-service offerings. This happens most often in the context of financially-motivated actors who create disinformation or other sensationalist content in order to drive clicks to their ad-supported websites. DarkOwl recently  spoke to cyber threat investigation company Nisos regarding their research into domains created in the North Macedonian town of Veles, which became famous during the 2016 US election cycle for US-focused disinformation created purely for financial motivations.

Nisos found that while there were indeed a number of the more than 1000 active domains created in Veles that still focused on US politics, there were an even greater number hosting sensationalist health-related content, suggesting that health-related disinformation was likely more lucrative than political disinformation. Nisos also uncovered an extensive curriculum offered by an enterprising local web developer that provided detailed training regarding how to monetize such domains and market them on social media platforms.

Nisos’s findings suggest that while the focus on disinformation as an election threat may diminish after the 2020 US election cycle, disinformation actors will probably still deploy the disinformation tactics learned in political campaigns to spread disinformation for financial gain on topics of perennial interest such as health issues, gossip news, and other tabloid topics.

Financially motivated actors will hone tactics and techniques in between election cycles that may fly below the radar of election-focused disinformation watchers. Yet because they are constantly evolving their tactics as a result of the cat-and-mouse game of evading detection by internet companies, these actors may resurface during the next major election cycle using tactics that are unrecognizable to researchers who are accustomed to the 2020 version of disinformation actor tactics. “Pay attention to the ones doing it for money” says Nisos researcher Matt Brock. “There will be a Darwinian selection process that will occur largely below the radar of disinformation researchers currently focused on threats to election integrity, but the tactics of the fittest financially-motivated survivors will likely spread to the next generation of ideologically-motivated disinformation actors in ways that we will miss if we’re not paying attention now.” 

Also on the Darknet: Personal Forensics & Dirt Digging

Given the popularity of doxing services on the darknet, underground forums are also a popular resource for finding help in uncovering dirt on competitors and political candidate rivals. Earlier this month, one anonymous user on a darknet forum, reached out openly in the public thread asking for help “digging up information on people” specifying two US Congressional candidates by name they were interested in. DarkOwl was unable to confirm whether this user’s request for assistance was satiated.

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Election Disinformation Warnings Prominent

The U.S. government and its intelligence community of agencies publicly acknowledge the active dissemination of, and subsequent impacts caused by sharing, misleading information up until the election date and the days immediately thereafter. In recent weeks, both the CIA and FBI have published warnings in relation to foreign actors spreading disinformation around the imminent 2020 Presidential Election with the intention to discredit the elections’ legitimacy warning the public on sharing online content across social media networks. (Source)

Anonymous networks with digital markets, forums, and image boards, facilitate the spread of such misinformation as apparent with the volume of tools and services on offer, and the number of criminal actors prominent in these sinister underground communities. In 2018, an internal, for-official-use-only, article prepared by the Department of Homeland Security that was subsequently leaked on the darknet indicated that the US government has been fully aware of customizable tools available for sale on the dark web that could “enhance a malign influence operation aimed at interfering with the 2018 US midterm elections by creating a seemingly legitimate and professionally made graphics displaying falsified election results.”

DarkOwl’s Vision system successfully captured the 2018 advertisement, submitted by an anonymous user of the darknet forum with over 10 years forum experience, along with the product’s description detailing the broadcast. Similar offers for Election Night 2020 templates have been spotted, but their proliferation has not been ascertained.

(English Translation of original post)

"Election Night 2018" is a fully customizable template that contains everything you need to create a great, bright video dedicated to the election. "Election Night 2018" is incredibly easy to set up, so you can create a professional broadcast show in a very short time, regardless of whether you are creating a show for the presidential election or Federal and regional.” 

Source, DarkOwl Vision: be1fe1114d27b9ab9fd262ca43e4dcf0

Earlier in 2020, the U.S. State Department utilized its “Rewards for Justice” program to solicit any tips from residents of known Eastern-block countries (Russia, Ukraine, Belarus) that could potentially assist authorities prevent possible digital election interference.

Russian-speaking users on a darknet forum, popular for cyber-crime coordination and malware trading, discussed the U.S. diplomats’ targeted request for information in detail, stating it was sent via bulk SMS text-message to residents of Saratov, Krasnodar, Vladivostok, Ulyanovsk, Chelyabinsk, Perm and Tyumen in Russia. One user suggested they should absurdly exploit the program by hiring a random homeless person to pretend to be a KGB or Fancy Bear sponsored hacker, equipping them with a laptop with hacker-like toolkits installed and signs with potential information the department would pay for.

A New Age of Disinformation: State Sponsored Propaganda to Conspiracy Theories

The concept of information operations via state-sponsored propaganda campaigns is hardly novel, but the lack of internet moderation and a mass transition into social media and digital dependent age, especially over the last two decades, has amplified the proliferation of disinformation in mass, especially as related to particular geo-political agendas and mass social ideology construction. Society’s lack of media literacy and critical thinking skills outside one’s personal area of expertise compounds the complexities of navigating the seas of digital propaganda.

In August, the U.S. Department of State Global Engagement Center (GEC) issued a Special Report outlining the Pillars of Russia’s Disinformation and Propaganda Ecosystem that details the complex information network of official government communications, state-funded global messaging, proxy resources, weaponized social media and cyber-enabled disinformation used by the Russian government in its global information operations campaigns.

Notably, the U.S. State Department report highlighted forgeries and cloned websites (URL hijacking) – consistent with DarkOwl and CyberDefenses’ observed research – as key cyber-enabled disinformation methods used by the Russian government.

 A key take-away from their report is how a multi-faceted information ecosystem “allows for the introduction of numerous variations of the same false narratives” an approach consistent with the saying “Repeat a lie often enough and it becomes the truth“, assessed as the principle law of propaganda historically attributed to Nazi Germany’s Minister of Propaganda, Joseph Goebbels. This was witnessed most recently with the height of the COVID-19 pandemic where at least four global, “independent” news outlets: Global Research, SouthFront, New Eastern Outlook, and Strategic Culture Foundation – assessed by the GEC as “Kremlin-aligned disinformation proxies” – circulated hundreds of articles stating COVID-19 was a U.S. sponsored bio-weapon deployed against China, including defamation of Bill Gates and the CIA’s involvement. The proxies’ website and social media reach was reported considerable, with the “Canadian” Global Research outlet averaging over 350,000 readers per article during a three month period in early 2020.

Seeing how disinformation campaigns control the narrative by spreading lies across social media and sometimes even trusted internet news outlets, along with our discovery of the prevalence of sophisticated disinformation-as-a-service providers portends that mere content removal to mitigate a disinformation campaign, especially outside of a social media platform, will quickly no longer become an available option. Blockchain-based biorobots and artificial intelligence operating out of Russia and eastern-Europe are just the latest cyber soldiers of the global psychological war of the information age.

Brief primer on voter registration info on the darknet

For the last two years, U.S. voter registration information has been widely circulated across darknet forums and channels for potentially nefarious purposes. Earlier this year, DarkOwl detected U.S. voter registration databases for the states of Michigan, Florida, North Carolina, and Colorado being shared freely. Some databases are packaged in sets of key states and sold on popular deep web forums and marketplaces by popular darknet vendors such as GoldApple.

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This is certainly not the first exposure of U.S. voter registration data on the darknet en mass:

  • In December 2015, millions of personal voters’ information was exposed on the darknet, when security researcher Chris Vickery and databreaches.net discovered over 191 million U.S. voters’ data available after a marketing firm supporting one of the political campaigns had a mis-configured database. The owner of the database was never identified. (Source)

  • In summer 2017, another 198 million voters’ information was exposed after researchers discovered an unprotected AWS S3 bucket containing the voter rosters. The voter information had been archived by Deep Root Analytics, TargetPoint Consulting, Inc., and Data Trust, three data mining companies supporting the Republican Party. Rosters of statewide voter data are made readily available to political campaigns and their marketing affiliates for free for targeted campaigning and canvasing. The value of such databases, especially one containing hundreds of millions of U.S. voters’ personal data would be worth several hundred thousand dollars to darknet cyber criminals who could leverage the information for traditional financial cyber crime.

Interestingly, just earlier this month another darknet user also shared a database containing the personal information for millions of political contributors and donors on a popular hacking forum. The information in the database included the full name of the donor, physical address, age, phone number, income, gender and donor type. The user did not specify which campaign this data was stolen from. The post was removed by forum moderators as other users suggested the author was a “criminal hacker” and this data was acquired through malicious intrusions of a political database. The post did not specify where the information originated or which campaign it was from.

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In the meantime, DarkOwl analysts have witnessed several conversations on popular right-wing leaning deep web discussion boards regarding the domain: http://donaldtrump.watch. Anonymous users and supporters of Trump stated the domain was active and contained personally identifiable information of the President and GOP financial contributors. WHOIS domain history has a redacted owner for privacy and suggests a 2018 creation date; archives of the website from late 2019, suggested it was created in response to the President’s Impeachment and is simply a “Donor locator map for the impeached Chief Executive Donald J. Trump. – Data Provided by the FEC.gov.” The Federal Election Commission does record all contributions made to any candidate, campaign contributions are not private, and the data held by the FEC can be requested typically for marketing and canvasing use.

The website is setup with an alphabetized address and name search capability indentifying contributors by name, their address, the specific dollar amount of their donations, and last donation date. There are numerous postive and negative comments about the Trump donor website across deep web and darknet discussion groups. Some commented on their neighbor’s donations.

Huh, two of the neighbors I like each donated about a grand to Trump. I didn't take either of them for Trump supporters. One guy in my neighborhood is unusually enthusiastic, it would seem.

Many users stated the information on the website was false, incorrect or dated back in 2016, while other users confirmed their families’ information was correct on the website and expressed concern about potential property damage. Analysis of the donations suggests the information is accurate up through August 31, 2020.

Regardless of exactly when the website appeared and the motive behind its author’s, the website information could be used to target, intimidate and frighten Trump supporters similarly to how earlier this month the FBI announced attribution to Iran for an email campaign sent to non-Trump supporters in Florida, threatening them to vote for Trump and signed by the controversial right-wing extremist group, The Proud Boys.

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The BlueLeaks files, released earlier this year and containing files from hundreds of police departments, speak of how state voter registration data could be misused and specifically mentions how a malicious actor could leverage voter names, e-mail addresses, and telephone numbers to connect with new audiences and market personalize advertisements according to their views on specific topics, propensity to vote, and other factors. This information coupled with a foreign adversary’s disinformation campaign could be utilized to register fake social media accounts, seed content, and amplify distribution of content of interest to targeted audiences. [READ MORE]

The Digital Economy of Disinformation: Sale of Fake Social Media Accounts on the Darknet

Underground markets of the darknet provide an extensive inventory of illegal goods for sale, including drugs, weapons, hackers and assassins for hire. Also commonly found in darknet marketplaces are a variety of “digital goods,” most notably log-in access credentials for social media accounts across a multitude of sectors. One can as easily purchase credentials for Amazon Prime accounts as they can the credentials of a PayPal account, or an iTunes account that belonged to a previous owner.

What DarkOwl analyst observed as decidedly more prevalent this year is the increase in the existence of completely falsified social media accounts, the creation of which entails posting content to them regularly, generating likes/followers/credibility based on strategic activity, enlisting tools such as SMS verification services to standard bypass security measures, and then selling these powerful “ready-to-go” accounts to eager would-be buyers on the darknet.

After witnessing a surge in the number of fake, pre-packaged social media accounts being advertised for sale over the last year, we took a closer look and found that the demand for these types of accounts has shaped into a sophisticated market, giving individuals with potentially malicious intentions the tools they need to not only obtain social media accounts, but also to leverage them for persistent disinformation campaigns.

Before these purchased accounts can be used to spread and influence others, however, there are a number of hurdles that criminals must cross first: including obtaining accounts that appear to be genuine (i.e. have a history of regular posts and photos), have sufficient clout (i.e. have a number of followers), and navigate security challenges such as two-factor authentication requirements.

Bulk accounts for sale 

The economy of fake, compromised, or otherwise manipulated social media accounts is a booming business. Traditionally, these compromised credentials belong to an unwitting former account holder whose password got in the hands of the wrong individual. 

However, our analysts have recently noticed a surge in an equally if not now more prevalent type of social media darknet marketplace listing. These are that of curated social media accounts that have been created expressly for the purpose of being sold in the future.

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The result is another niche economy in which both “fresh” (newly created) and “aged” (accounts with pre-generated followers, or similar) social media accounts are available for purchase across a variety of forums and marketplaces on the darknet.

In taking a closer look at what these listings have in common, we were able to conclude that the demand and price for some social media accounts is closely related to the perceived level of influence and social media platform popularity.

Key takeaways from our observations:

  • Of all the social media platform account information listed for sale, YouTube accounts seem to be the most popular overall

  • Reddit accounts are also in high demand and are priced based on the amount of Reddit ‘karma’ the account comes with – with some listings advertising accounts with over 50,000 karma points

  • In one case, we observed a Russia-based supplier advertising over 30,000 accounts for sale across Facebook and Twitter alone

  • In addition to fake accounts created with the aim of selling to the highest bidder – who is then to free to use it to their own accord, a number of darknet vendors continue to offer “combo-lists” (usernames and password combinations) of hacked or leaked account data, many of which were likely retrieved via reused passwords that were compromised in another commercial data breach

  • Facebook and TikTok accounts tend to cost the most across most social media account brokers, followed closely behind by LinkedIn, Reddit, and Instagram

  • In addition to social media platforms, we also observed vendors selling Gmail accounts, which notably require security measures such as two-factor authentication (2FA)

This chart captures the average price per listing based on data from a major darknet vendor shop that specializes in curated accounts across all major social media platforms. Many of these accounts are being sold in bulk, and are broken out by the a…

This chart captures the average price per listing based on data from a major darknet vendor shop that specializes in curated accounts across all major social media platforms. Many of these accounts are being sold in bulk, and are broken out by the age and quality of the accounts for each platform.

As a result, listings reveal a complex pricing model based on a number of factors, including how much content has been posted from them, how many followers the account comes with, and if the advertised account comes with a toolkit allowing the purchaser to bypass security measures such as 2FA.

2FA measures have Created Demand for “Phone Verified Accounts”

Due to the onset of 2FA requirements across multiple platforms, the digital economy of social media accounts has had to adapt. Now, instead of just selling usernames and credentials, vendors are advertising Phone Verified Accounts (PVAs), or accounts that have already been formally associated with a phone number and unique IP address.

For example, if someone were to log into their Gmail account from their personal computer in their home, they will likely be required to allow Gmail to text them a log-in code, which they then enter back into their Gmail account to gain access. In doing so, Gmail then has confirmed this individual’s phone number and IP address, and their account is thereby Phone Verified. Notably, this process requires a mobile device or some other means by which to receive a SMS text.

Google began employing phone verification requirements for account registration as early as 2015. Also in 2015, Facebook began encouraging its users to associate a phone number with their account, and in 2019 made verification via SMS a requirement for all new registrants. Now, both Instagram and Facebook also employ phone verification via SMS with new account registrations and will often block accounts setup using virtual or privatized IP addresses or if accounts are created on the same IP address within a short period of time.

These continued increases in security measures have driven the demand for phone-verified social media accounts, which don’t come cheap. We have steadily observed darknet forum users offering account verification services for accounts created in the USA, UK and China on Facebook, Telegram, Instagram, Gmail and others.

One such current listing offers “High Quality Facebook Marketplace Accounts” for sale. Each account comes with:

– Anywhere between 2 to 9 years of daily activity

– Over 1,000 friends/followers

– An associated email address

– An associated Facebook password

– 10 backup 2FA codes

– The date of birth needed for account verification and/or recovery.

The phone verification account market has been thriving since these platforms instilled such security protocols, even outside of the darknet. Examples of such vendors include:

  • On the surface web, PVACreator (pvacreator.com) provides PVA accounts for a variety of platforms and the one-time, single use account price ranges from $62 to $348 USD depending on the platform. Users of their service can sign-up for unlimited accounts across all the sites they have access for $1200.

  • Rental property management software, Hemlane is the most expensive website PVAs are available for, while most run on average $100 USD each. 

  • On a popular deep web forum, one user offered access to a SaaS-like platform called, GramCreator for creating Instagram PVAs in mass for a flat fee. GramCreator’s marketing material highlights their ability to protect their users interest and evade detection by Instagram.

Because an SMS service is necessary to create a PVA, the widespread marketing of PVAs has subsequently driven the demand for SMS services, which we are increasingly seeing on offer across the darknet.

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Traditionally, SMS services have been employed by scammers and phishing-focused cybercriminals, who will then spam mobile phones with targeted, malicious phone calls and texts. In doing so, they are then able to siphon users personal information and/or compromise their mobile device or home network when connected to wi-fi. 

Now, SMS services enable entrepreneurs in the social media account economy to combine social media account credentials with new, unique SMS-enabled phone numbers that have been pre-associated with the credentials, thereby allowing any purchaser of these pre-made social profiles to bypass 2FA challenges.

Bots are also in high demand

In looking at the vendors in this space, we also observed that the digital economy for social media bots is thriving. For example, on the underground market OpenBazaar, a number of vendors sell Instagram and YouTube promotion bots to increase a fresh social media account’s views and likes.

Other offers guarantee to “drive over 10,000++ of real, genuine human traffic” from search engine and social networking sites in 100 days for as little as $5 USD.

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Not only that, but bot services appear to be getting more sophisticated and have evolved to be more persistent. On Telegram, some developers offer exclusive access to their automatic traffic generator programs for website and social media platforms. 

Other, older darknet market solicitations advertise social media bots that can auto-generate 400 to 600 likes per hour.  The longevity of these auto-generated likes and followers is uncertain. Adding to the notion that they may not be reliable is the case of one darknet forum user, who recently posted that all 100 Instagram followers that they had purchased from a similar service had disappeared after a single week. Comments on the thread from other social media bot providers stated if they used their service, they would refund a significant percentage of the purchase price if the follower left.

On a popular Russian criminal darknet forum, members also discuss the employment of social media crawlers such as Saveogram to crawl and harvest content from the real Instagram accounts of influencers, which they then used as a template to recreate and modify messages in accordance with their larger disinformation goals. Earlier this year, TikTok deleted Kendall Jenner’s verified account after it turned out the account was fake. The fake account gained over half a million followers in less than 2hrs of the account creation.

Impact of the “pre-packaged” social media account engine

In the last decade the proliferation of social media applications from Facebook and Twitter to now controversial TikTok, is rampant with one or more applications on nearly every adult’s smartphone, connecting people around the world through follows, likes, and retweets. Keeping abreast of current news via social media is increasingly popular. In late 2019, a Pew Center research study concluded that 55% of adults in the US rely on social media to get their news, while a follow-up study conducted from October 2019 through July 2020 indicates that nearly one in five US-based adults receive political and election related coverage exclusively via social media. Facebook, Twitter and Reddit lead the platforms with the most news-centric userbase.

Users acknowledge the impact of false and misleading information on these sites. In 2016 and the months leading up to the US Presidential Election, social media was flooded with false political advertisements assessed by the Special Counsel’s Investigation to be mostly engineered by agents of the Russian Government. While we understand that nation-state governments actively conduct disinformation campaigns, spreading the propaganda of their choosing in increasingly creative and cunning means, the disinformation methods of government intelligence agencies are now readily available to those needing such services commercially on the darknet.

In this initial report, we focused on how fraudulent social media accounts are traded and sold on the darknet. Stay tuned for our follow-up pieces that will detail how these accounts are leveraged to execute disinformation content campaigns, and what potential impacts this underground economy will have on the upcoming US-elections.

 

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