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 Ne'er-Do-Well News

The CEO of a South Carolina technology firm has pleaded guilty to 20 counts of wire fraud in connection with an elaborate network of phony companies set up to obtain more than 735,000 Internet Protocol (IP) addresses from the nonprofit organization that leases the digital real estate to entities in North America. In   show more ...

2018, the American Registry for Internet Numbers (ARIN), which oversees IP addresses assigned to entities in the U.S., Canada, and parts of the Caribbean, notified Charleston, S.C. based Micfo LLC that it intended to revoke 735,000 addresses. ARIN said they wanted the addresses back because the company and its owner — 38-year-old Amir Golestan — had obtained them under false pretenses. A global shortage of IPv4 addresses has massively driven up the price of these resources over the years: At the time of this dispute, a single IP address could fetch between $15 and $25 on the open market. Micfo responded by suing ARIN to try to stop the IP address seizure. Ultimately, ARIN and Micfo settled the dispute in arbitration, with Micfo returning most of the addresses that it hadn’t already sold. But the legal tussle caught the attention of South Carolina U.S. Attorney Sherri Lydon, who in May 2019 filed criminal wire fraud charges against Golestan, alleging he’d orchestrated a network of shell companies and fake identities to prevent ARIN from knowing the addresses were all going to the same buyer. Each of those shell companies involved the production of notarized affidavits in the names of people who didn’t exist. As a result, Lydon was able to charge Golestan with 20 counts of wire fraud — one for each payment made by the phony companies that bought the IP addresses from ARIN. Amir Golestan, CEO of Micfo. On Nov. 16, just two days into his trial, Golestan changed his “not guilty” plea, agreeing to plead guilty to all 20 wire fraud charges. KrebsOnSecurity interviewed Golestan about his case at length last year, but he has not responded to requests for comment on his plea change. By 2013, a number of Micfo’s customers had landed on the radar of Spamhaus, a group that many network operators rely upon to help block junk email. But shortly after Spamhaus began blocking Micfo’s IP address ranges, Micfo shifted gears and began reselling IP addresses mainly to companies marketing “virtual private networking” or VPN services that help customers hide their real IP addresses online. But in a 2020 interview, Golestan told KrebsOnSecurity that Micfo was at one point responsible for brokering roughly 40 percent of the IP addresses used by the world’s largest VPN providers. Throughout that conversation, Golestan maintained his innocence, even as he explained that the creation of the phony companies was necessary to prevent entities like Spamhaus from interfering with his business going forward. Stephen Ryan, an attorney representing ARIN, said Golestan changed his plea after the court heard from a former Micfo employee and public notary who described being instructed by Golestan to knowingly certify false documents. “Her testimony made him appear bullying and unsavory,” Ryan said. “Because it turned out he had also sued her to try to prevent her from disclosing the actions he’d directed.” Golestan’s rather sparse plea agreement (first reported by The Wall Street Journal) does not specify any sort of leniency he might gain from prosecutors for agreeing to end the trial prematurely. But it’s worth noting that a conviction on a single act of wire fraud can result in fines and up to 20 years in prison. The courtroom drama comes as ARIN’s counterpart in Africa is embroiled in a similar, albeit much larger dispute over millions of wayward African IP addresses. In July 2021, the African Network Information Centre (AFRINIC) confiscated more than six million IP addresses from Cloud Innovation, a company incorporated in the African offshore entity haven of Seychelles (pronounced, quite aptly — “say shells”). AFRINIC revoked the addresses — valued at around USD $120 million — after an internal review found that most of them were being used outside of Africa by various entities in China and Hong Kong. Like ARIN, AFRINIC’s policies require those who are leasing IP addresses to demonstrate that the addresses are being used by entities within their geographic region. But just weeks later, Cloud Innovation convinced a judge in AFRINIC’s home country of Mauritius to freeze $50 million in AFRINIC bank accounts, arguing that AFRINIC had “acted in bad faith and upon frivolous grounds to tarnish the reputation of Cloud Innovation,” and that it was obligated to protect its customers from disruption of service. That financial freeze has since been partially lifted, but the legal wrangling between AFRINIC and Cloud Innovation continues. The company’s CEO is also suing the CEO and board chair of AFRINIC in an $80 million defamation case. Ron Guilmette is a security researcher who spent several years tracing how tens of millions of dollars worth of AFRINIC IP addresses were privately sold to address brokers by a former AFRINIC executive. Guilmette said Golestan’s guilty plea is a positive sign for AFRINIC, ARIN and the three other Regional Internet Registries (RIRs). “It’s good news for the rule of law,” Guilmette said. “It has implications for the AFRINIC case because it reaffirms the authority of all RIRs, including AFRINIC and ARIN.”

 Trends, Reports, Analysis

In a recent survey, researchers found that 30% of K-12 school districts do not have a cloud security platform in place to monitor and protect the data stored in cloud applications.

 Trends, Reports, Analysis

Ethical hackers have prevented $27bn worth of cybercrime during the COVID-19 pandemic, according to new research by California crowdsourced cybersecurity platform Bugcrowd.

 Companies to Watch

The round, which brought total funding raised to date to nearly $58m, was led by JMI Equity, with participation from Felicis Ventures, Silverton Partners, and Ridge Ventures.

 Malware and Vulnerabilities

Netgear addressed a pre-authentication buffer overflow issue in its SOHO devices that can be exploited by an attacker on the local area network to execute code remotely with root privileges.

 Trends, Reports, Analysis

To avoid detection, most bait attacks are launched using new accounts from Gmail, Hotmail, and Yahoo! Mail. The analysis by Barracuda reveals that 91% of phishers use Gmail to launch bait attacks.

 Security Culture

The university will provide free instruction through two different avenues: the GenCyber Warrior Academy and the Advancing GenCyber Education for North Georgia Teachers (AGENTs) of Change camp.

 Trends, Reports, Analysis

Research from CrowdStrike reveals that Golang-based malware increased by 80% between June and August. Cryptominers had the largest share, accounting for 70% of the total malware samples detected.

 Trends, Reports, Analysis

Last week, some 300 WordPress sites witnessed a wave of attacks, displaying fake encryption notices and asking for a ransom of 0.1 Bitcoin. 

 Malware and Vulnerabilities

The attackers are using legitimate-looking apps (such as utility apps, password managers, app launchers, or data savers), where users are lured into downloading malicious apps laden with malware. 

 Malware and Vulnerabilities

The malware accesses cellular webpages (payment endpoints) by mobile data and carries out unauthorized payment transactions. Additionally, it steals OTPs used as authentication for transactions.

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Wireshark is a GTK+-based network protocol analyzer that lets you capture and interactively browse the contents of network frames. The goal of the project is to create a commercial-quality analyzer for Unix and Win32 and to give Wireshark features that are missing from closed-source sniffers. This is the source code release.

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Suricata is a network intrusion detection and prevention engine developed by the Open Information Security Foundation and its supporting vendors. The engine is multi-threaded and has native IPv6 support. It's capable of loading existing Snort rules and signatures and supports the Barnyard and Barnyard2 tools.

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Red Hat Security Advisory 2021-4730-02 - The binutils packages provide a collection of binary utilities for the manipulation of object code in various object file formats. It includes the ar, as, gprof, ld, nm, objcopy, objdump, ranlib, readelf, size, strings, strip, and addr2line utilities.

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Ubuntu Security Notice 5151-1 - It was discovered that Mailman incorrectly handled certain URL. An attacker could possibly use this issue to execute arbitrary code. It was discovered that Mailman incorrectly handled certain inputs. An attacker could possibly use this issue to expose sensitive information.

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Red Hat Security Advisory 2021-4725-03 - OpenShift Virtualization is Red Hat's virtualization solution designed for Red Hat OpenShift Container Platform. This advisory contains OpenShift Virtualization 2.6.8 images.

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Red Hat Security Advisory 2021-4722-03 - OpenShift Virtualization is Red Hat's virtualization solution designed for Red Hat OpenShift Container Platform. This advisory contains OpenShift Virtualization 2.6.8 RPMs.

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Red Hat Security Advisory 2021-4723-04 - The binutils packages provide a collection of binary utilities for the manipulation of object code in various object file formats. It includes the ar, as, gprof, ld, nm, objcopy, objdump, ranlib, readelf, size, strings, strip, and addr2line utilities.

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Nation-state operators with nexus to Iran are increasingly turning to ransomware as a means of generating revenue and intentionally sabotaging their targets, while also engaging in patient and persistent social engineering campaigns and aggressive brute force attacks. No less than six threat actors affiliated with the West Asian country have been discovered deploying ransomware to achieve their

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Networking equipment company Netgear has released yet another round of patches to remediate a high-severity remote code execution vulnerability affecting multiple routers that could be exploited by remote attackers to take control of an affected system. Tracked as CVE-2021-34991 (CVSS score: 8.8), the pre-authentication buffer overflow flaw in small office and home office (SOHO) routers can lead

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Organizations have been worrying about cyber security since the advent of the technological age. Today, digital transformation coupled with the rise of remote work has made the need for security awareness all the more critical. Cyber security professionals are continuously thinking about how to prevent cyber security breaches from happening, with employees and contractors often proving to be the

 Guest blog

If the UK Government gets its way, IT service vendors and other cloud-based service providers may soon be required to adopt new measures to strengthen their cybersecurity, amid rising concerns about supply chain risks. Read more in my article on the Tripwire State of Security blog.

 Data loss

Booking.com got hacked five years ago, and didn't tell its customers... but now we know who might have been behind it. Bossware rears its ugly head again in the workplace, spying on employees. And did you receive a warning email from the FBI? All this and much more is discussed in the latest edition of the   show more ...

award-winning "Smashing Security" podcast by computer security veterans Graham Cluley and Carole Theriault, joined this week by Brian Klaas of the "Power Corrupts" podcast.

2021-11
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