credential stuffing

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Enterprise security attackers are one password away from your worst day

If the definition of insanity is doing the same thing over and over and expecting a different outcome, then one might say the cybersecurity industry is insane.

Criminals continue to innovate with highly sophisticated attack methods, but many security organizations still use the same technological approaches they did 10 years ago. The world has changed, but cybersecurity hasn’t kept pace.

Distributed systems, with people and data everywhere, mean the perimeter has disappeared. And the hackers couldn’t be more excited. The same technology approaches, like correlation rules, manual processes and reviewing alerts in isolation, do little more than remedy symptoms while hardly addressing the underlying problem.

The current risks aren’t just technology problems; they’re also problems of people and processes.

Credentials are supposed to be the front gates of the castle, but as the SOC is failing to change, it is failing to detect. The cybersecurity industry must rethink its strategy to analyze how credentials are used and stop breaches before they become bigger problems.

It’s all about the credentials

Compromised credentials have long been a primary attack vector, but the problem has only grown worse in the midpandemic world. The acceleration of remote work has increased the attack footprint as organizations struggle to secure their network while employees work from unsecured connections. In April 2020, the FBI said that cybersecurity attacks reported to the organization grew by 400% compared to before the pandemic. Just imagine where that number is now in early 2021.

It only takes one compromised account for an attacker to enter the active directory and create their own credentials. In such an environment, all user accounts should be considered as potentially compromised.

Nearly all of the hundreds of breach reports I’ve read have involved compromised credentials. More than 80% of hacking breaches are now enabled by brute force or the use of lost or stolen credentials, according to the 2020 Data Breach Investigations Report. The most effective and commonly-used strategy is credential stuffing attacks, where digital adversaries break in, exploit the environment, then move laterally to gain higher-level access.

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Shape Security’s latest product protects smaller businesses from credential stuffing

Shape Security has been helping big companies stay safe from fraudulent activities like password reuse and bot traffic on their publicly facing websites and apps. The company now wants to help smaller companies have that same type of protection, and today it announced a new cloud service called Connect aimed at that market.

“We’re an enterprise-focused company that protects the majority of large U.S. banks, the majority of the largest airlines, similar kinds of profiles with major retailers, hotel chains, government agencies and so on. We specifically protect them against automated fraud and abuse on their consumer-facing applications — their websites and their mobile apps,” Shuman Ghosemajumder, Shape Security CTO explained.

The company has taken that same type of protection and packaged it for smaller businesses. “What we’re doing with the new product, which is called Connect, is automating those aspects which we have provided with the high-end [product], and are making it easier to deploy and run,” Ghosemajumder said.

He said that they get protection against the same kind of high-end, automated fraud that the large enterprise customers get, as well as protection against DDoS attacks, scraping and so on.

The company is best known for stopping the act of credential stuffing, a sophisticated kind of strike where attackers continually try to get onto a website or app using stolen usernames and passwords. In addition, they tend to use a variety of computers and IP addresses to mask the attack. In fact, Sumit Agarwal, who is co-founder and chief operating officer at Shape, coined the term when he was working at the Department of Defense in a previous position before he helped launch the company.

A product like Connect can help expand Shape’s market by moving beyond the large enterprises that have been its primary target up until now. While it provides a similar level of service, it delivers it in a way that makes it easier for these smaller organizations to consume, while still enabling them to take advantage of the advanced security techniques that would typically be out of their reach.

Shape Security was founded in 2011, but spent several years developing the core product before emerging from Stealth in 2014. It currently has 300 employees and has raised $132 million, according to Crunchbase data. The most recent round was $26 million in November.

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After account hacks, Twitch streamers take security into their own hands

Twitch has an account hacking problem.

After the breach of popular browser game Town of Salem in January, some 7.8 million stolen passwords quickly became the weakest link not only for the game but gamers’ other accounts. The passwords were stored using a long-deprecated scrambling algorithm, making them easily cracked.

It didn’t take long for security researcher and gamer Matthew Jakubowski to see the aftermath.

In the weeks following, the main subreddit for Amazon-owned game streaming site Twitch — of which Jakubowski is a moderator — was flooded with complaints about account hijacks. One after the other, users said their accounts had been hacked. Many of the hijacked accounts had used their Town of Salem password for their Twitch account.

Jakubowski blamed the attacks on automated account takeovers — bots that cycle through password lists stolen from breached sites, including Town of Salem.

“Twitch knows it’s a problem — but this has been going on for months and there’s no end in sight,” Jakubowski told TechCrunch.

Credential stuffing is a security problem that requires participation from both tech companies and their users. Hackers take lists of usernames and passwords from other breached sites and brute-force their way into other accounts. Customers of DoorDash and Chipotle have in recent months complained of account breaches, but have denied their systems have been hacked, offered little help to their users or shown any effort to bolster their security, and instead washed their hands of any responsibility.

Jakubowski, working with fellow security researcher Johnny Xmas, said Twitch no longer accepting email addresses to log in and incentivizing users to set up two-factor authentication would all but eliminate the problem.

The Russia connection

In new research out Tuesday, Jakubowski and Xmas said Russian hackers are a likely culprit.

The researchers found attackers would run massive lists of stolen credentials against Twitch’s login systems using widely available automation tools. With no discernible system to prevent automated logins, the attackers can hack into Twitch accounts at speed. Once logged in, the attackers then change the password to gain persistent access to the account. Even if they’re caught, some users are claiming a turnaround time of four weeks for Twitch support to get their accounts back.

On the accounts with a stored payment card — or an associated Amazon Prime membership — the attackers follow streaming channels they run or pay a small fee to access, of which Twitch takes a cut. Twitch also has its own virtual currency — bits — to help streamers solicit donations, which can be abused by the attackers to funnel funds into their coffers.

When the attacker’s streaming account hits the payout limit, the attacker cashes out.

The researchers said the attackers stream prerecorded gameplay footage on their own Twitch channels, often using Russian words and names.

“You’ll see these Russian accounts that will stream what appears to be old video game footage — you’ll never see a face or hear anybody talking but you’ll get tons of people subscribing and following in the channel,” said Xmas. “You’ll get people donating bits when nothing is going on in there — even when the channel isn’t streaming,” he said.

This activity helps cloak the attackers’ account takeover and pay-to-follow activity, said Xmas, but the attackers would keep the subscriber counts low enough to garner payouts from Twitch but not draw attention.

“If it’s something easy enough for [Jakubowski] to stumble across, it should be easy for Twitch to handle,” said Xmas. “But Twitch is staying silent and users are constantly being defrauded.”

Two-factor all the things

Twitch, unlike other sites and services with a credential stuffing problem, already lets its 15 million daily users set up two-factor authentication on their accounts, putting much of the onus to stay secure on the users themselves.

Twitch partners, like Jakubowski, and affiliates are required to set up two-factor on their accounts.

But the researchers say Twitch should do more to incentivize ordinary users — the primary target for account hijackers and fraudsters — to secure their accounts.

“I think [Twitch] doesn’t want that extra step between a valid user trying to pay for something and adding friction to that process,” said Jakubowski.

“The hackers have no idea how valuable an account is until they log in. They’re just going to try everyone — and take a shotgun approach.”
Matthew Jakubowski, security researcher and Twitch partner

“Two-factor is important — everyone knows it’s important but users still aren’t using it because it’s inconvenient,” said Xmas. “That’s the bottom line: Twitch doesn’t want to inconvenience people because that loses Twitch money,” he said.

Recognizing there was still a lack of awareness around password security and with no help from Twitch, Jakubowski and Xmas took matters into their own hands. The pair teamed up to write a comprehensive Twitch user security guide to explain why seemingly unremarkable accounts are a target for hackers, and hosted a Reddit “ask me anything” to let users to ask questions and get instant feedback.

Even during Jakubowski’s streaming sessions, he doesn’t waste a chance to warn his viewers about the security problem — often fielding other security-related questions from his fans.

“Every 10 minutes or so, I’ll remind people watching to set-up two factor,” he said.

“The hackers have no idea how valuable an account is until they log in,” said Jakubowski. “They’re just going to try everyone — and take a shotgun approach,” he said.

Xmas said users “don’t realize” how vulnerable they are. “They don’t understand why their account — which they don’t even use to stream — is desirable to hackers,” he said. “If you have a payment card associated with your account, that’s what they want.”

Carrot and the stick

Jakubowski said that convincing the users is the big challenge.

Twitch could encourage users with free perks — like badges or emotes — costing the company nothing, the researchers said. Twitch lets users collect badges to flair their accounts. World of Warcraft maker Blizzard offers perks for setting up two-factor, and Epic Games offers similar incentives to their gamers.

“Rewarding users for implementing two-factor would go a huge way,” said Xmas. “It’s incredible to see how effective that is.”

The two said the company could also integrate third-party leaked credential monitoring services, like Have I Been Pwned, to warn users if their passwords have been leaked or exposed. And, among other fixes, the researchers say removing two-factor by text message would reduce SIM swapping attacks. Xmas, who serves as director of field engineering at anti-bot startup Kasada — which TechCrunch profiled earlier this year — said Twitch could invest in systems that detect bot activity to prevent automated logins.

Twitch, when reached prior to publication, did not comment.

Jakubowski said until Twitch acts, streamers can do their part by encouraging their viewers to switch on the security feature. “Streamers are influencers — more users are likely to switch on two-factor if they hear it from a streamer,” he said.

“Getting more streamers to get on board with security will hopefully go a much longer way,” he said.

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