
Time itself comes under attack as a state-backed hacking gang spends two years tunnelling toward a nation’s master clock — with chaos potentially only a tick away.
Plus when ransomware negotiators turn to the dark side, what could possibly go wrong?
All this and more is discussed in episode 442 of the “Smashing Security” podcast with cybersecurity veteran and keynote speaker Graham Cluley, and special guest Dave Bittner.
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Hello, hello, and welcome to Smashing Security episode 442. My name's Graham Cluley.
I'm doing some speaking here and Well, I'm sort of the MC of the event.
I love doing events and things, but doing that and getting a podcast out the door, it's always a bit hairy.
But oh, the other thing which is accompanying me is they're actually doing some roadworks just outside my hotel window. So I do apologize.
There is a man with a pneumatic drill who's been at it for hours and is showing no signs of stopping.
This week on Smashing Security. We won't be talking about how 3 alleged members of the MeduZa stealer malware gang have been arrested by the authorities. What's unusual about that?
It's a Russian malware gang and they've been arrested by Russian authorities.
You'll hear no discussion of how a new wave of mobile malware in Eastern Europe is exploiting Android's NFC payment features to relay and clone contactless transactions.
And we won't even mention how a technical goof revealed the personal information of players of the UK's People's Postcode Lottery to complete strangers.
Now Dave, what are you going to be talking about this week?
Okay, before we go any further, I need to share a quick word with you about one of our sponsors today, Vanta. You know how everyone's got an AI assistant these days?
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So don't forget, vanta.com/smashing. And thanks to Vanta for sponsoring this week's episode. On with the show. Now, Dave, I've got to ask you a personal question.
Do you ever feel like time is kind of out to get you?
You seem to have this sort of ongoing battle with time.
You know, it happens to us all, Dave. Don't worry about it.
I'd love to be able to sit down without having to announce it with a, you know, all those kinds of things. I noticed that I have knees.
When I was a young man, I never noticed that I had knees. You know, they just kept to themselves and did what they were supposed to do.
Now they draw attention to themselves, especially when I'm at a conference or something.
And if I had one piece of wisdom that I would share with you, it's that no good comes from turning back the clock.
Things can go badly wrong if you do accidentally return to your youth. I can imagine you there, you were in the 1950s, inventing rock and roll, bumping into your teenage mother.
I've seen the movie.
For instance, there was a highly organized, state-backed hacking group who for two years was creeping into part of a nation's most critical pieces of infrastructure.
Not a nuclear reactor, not a missile base, not even Amazon customer service trying to get a callback as to why haven't you delivered me this?
You claim you've delivered it, but you haven't in reality. Nothing like that. Something far more sneaky and some would argue even more essential. They went after time itself.
So they were generating the official national time. Theirs was the clock which everyone else was judged by.
And it's used for everything from telecoms and stock markets to the electricity grid, defence systems. It's really essential.
You all want to know exactly what the right time is, otherwise you've got a problem, haven't you?
And it's basically the pulse that can help keep a whole country alive. And somebody tried to hijack it.
Investigators say that the attackers spent months in preparation, exploiting a vulnerability in a phone messaging system to compromise employees' smartphones.
And of course, once they did that, they got hold of the workers' login credentials, their passwords, and they quietly slipped into this agency's network.
And over the next two years, starting in March 2022, the hackers allegedly deployed an entire arsenal of something like 42 customized specialist hacking tools.
Each tool had a specific job: probing, escalating privileges, exfiltrating data, burrowing deeper into the internal systems with one goal in sight.
Their goal was to reach the heart of the system, the ultra-precise piece of infrastructure that generated their country's official time.
And if the hackers had succeeded, as I said, the results could have been catastrophic.
Could be network outages, stock exchange mess-ups, power failures, traffic chaos, self-driving cars turning up before their passengers, Netflix thinking it's 2016, your Fitbit thinking you're 137 years old.
Everything could go bonkers.
You know, you feel like, oh, I've somehow lost 14 years or something. I feel like I've woken up in a coma. I'm totally and utterly confused.
Now, officials say the hackers operated mainly between midnight and dawn, bouncing their attacks through servers in the United States and Europe and Asia to hide their origins.
They faked digital certificates to bypass security defenses and antivirus programs, and they used strong encryption because they didn't want to leave any breadcrumbs.
I've left breadcrumbs late at night in the past. It's got me into all sorts of trouble, so I don't think you want to do that.
Eventually, the authorities claimed that they spotted the attack, cut the command and control links, upgraded their defenses, neutralized the threat.
And the good news is they say that they've sorted it out. And they say they have ironclad evidence linking the hack to a foreign intelligence agency.
But you know, a hack like this, I think there are certain countries who you'd naturally point a finger at. So China, Russia, Iran, North Korea, those sort of people, right?
Or in Germany, they have these PTB atomic clocks. But here's the thing. The country claiming to have been attacked is actually China.
And the alleged attacker, Dave Bittner of Maryland—
And China says that it caught the operation as it was happening and it's gone public. It posted about it, 'cause this is how they make announcements in China.
They posted it on WeChat. So if you're a cyber criminal, you post up on Telegram. If you're China, you post up on WeChat.
But of course, that's not the way it works, is it? It's always a policy.
Well, we're never going to confirm or deny anything because if we deny some things, then one time when we don't deny it, you're going to know that we're confirming it.
It hasn't been written about that much. It didn't really make the headlines.
And there has been a lot of skepticism, just like you've expressed there, a little bit of caution, because I think the media are nervous about just simply reporting China's allegation.
Yeah, there's a long history of Western nations calling out cyberattacks from Russia and China and North Korea and Iran, and it's become almost routine.
To point fingers in those directions and sanctions to be imposed. But now we are seeing China flip this script using the same playbook against the United States.
And it's almost like, well, you know, can we believe you? Have you actually given us the evidence to be convinced?
By the way, I saw that this story actually broke just before I think Donald Trump visited Asia and was over there doing some sort of agreement with China.
So again, you have to wonder, is this some jockeying around which was happening? In the run-up to that event.
And if we were caught in there with our hands in the cookie jar, then I suspect China would call it out.
But as you point out, they've released no evidence other than the accusation. So all we have is an accusation.
It is not just about technical evidence.
And it is so difficult with cybersecurity to properly identify who was responsible beyond all doubt, because it could have been Belgium, quite frankly, who are bouncing it off some laptop in Florida before going into China and trying to break into Beijing time.
Quite why Belgium would want to do that or not, I'm not sure, but it's always possible.
Is it saying to them, yeah, we've been in your system for two years and hey, if we're in your clock system, if we're in your time system, who knows where else we are?
Maybe you need to be looking over your shoulder. We did this at a time of our choosing, at our leisure, and yeah, you caught us.
We find China all over our systems pretty regularly, so I guess this is just a regular part of espionage these days.
Yeah, letting themselves be caught, say, we were here, we could be anywhere else as well, which means that of course they then begin to distrust all manner of systems which could have been compromised by other nations.
There's this old joke about the thief who breaks into someone's house and doesn't steal anything, but just rearranges all the furniture and how, how disconcerting that would be for someone to come home and find, right?
He obviously thought they were all rubbish.
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And thanks to Material Security for supporting the show. Right, let's get on with the rest of the show. Dave, what's your story for us this week?
This story centers on some folks who work professionally as ransomware negotiators.
And according to the FBI, this pair of men, one Kevin Martin, who was a ransomware negotiator at a company called DigitalMint, and Ryan Goldberg, who was an incident response manager for Signia, allegedly they joined forces with a third accomplice to extort businesses for millions.
So the investigators say that they use ransomware to lock down corporate servers, and they hit a Florida medical company and demanded $10 million in ransom.
Indeed, you might say that they were experts about this subject. They had spoken at cybersecurity conferences.
DigitalMint fired the gentleman who worked with them, and Signia says that they have nothing to do with this and they're working with law enforcement, which is good.
Goldberg is in custody. Mr. Martin was released on bond. And the prosecutors say that these attacks spanned about 2 years before the FBI caught up with them.
And one of them tried to flee to Paris on a one-way flight but got stopped at the airport.
But I have often wondered, Graham, and I'm curious for your insights on this, your take on this, how many cybersecurity professionals out there in the back corner of their mind have as a backup plan, right?
Just in case the retirement savings doesn't work out, right? In case the Social Security just— they can't meet ends meet, right?
How many of them just have in the back of their minds what I would call nuisance ransomware, right? A few hundred bucks a month, just enough to make ends meet.
Not enough that you would draw law enforcement to your front door.
I doubt that I have the technical capabilities to pull off such a thing, although I'm a fairly quick learner, but I think someone like you, Graham, who has—
I'm just putting it out there as a possibility.
So listen, so when you started telling me this story about these guys who were involved in ransomware negotiations and then they turned a bit rogue, I didn't imagine that they were actually planting ransomware on victims' computers to steal the money.
I thought they were somehow trying to exploit the ransomware attacks which were being brought to their attention.
So people are coming to them saying, we've been hit, can you negotiate for us?
I thought you were going to say that the negotiators were going to speak to the ransomware gang and say, look, I'm negotiating for these guys, right?
How about we do a little bit of a deal? They're going to pay me X, but I'll give you Y. 'But I'll tell them this is a really good deal for them, and you still get some money.' Right.
You know, clearly these negotiators are getting paid somehow, but I wondered if maybe—
Here is the bitcoin account that you need to make the deposit in." Right. And then they make the deposit, and the negotiators come back and say, "Bad news."
I remember one case, there was a company near Oxford which got hit by a ransomware attack, a genuine ransomware attack.
They brought in their IT team to deal with it, as you would expect. And one of the IT guys went into the email of the chief executive who had received the ransom note.
He changed the email which they had received from the ransomware gang to change the bitcoin address to be one which he controlled rather than the ransomware gang.
And then he was turning up at these meetings inside the company. Should we pay the ransomware guys or not? And he was going, "Well, you know, it's difficult, isn't it?
But maybe you should."
It does seem a little bit, a bit like Dog the Bounty Hunter or something. It just feels a little bit unorthodox.
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Could be a funny story, a book that they've read, a TV show, a movie, a record, a podcast, a website, or an app. Whatever they wish.
It doesn't have to be security related necessarily.
I've got wide interests, wide interests. And one of them is a board game called Micro Macro Crime City. So it's a physical board game and it looks really simple.
What you get is this huge printed map full of tiny cartoon people. Now, both you and I, Dave, are going to find this difficult because you do need your reading glasses for this.
But what you have is this giant city in cartoon form, and you can see all these people going about their lives, walking the dog, shopping, robbing banks, that kind of thing.
And hidden within the illustration are dozens of crimes to solve. And you're given a short case file and a clue, and you scan the map.
It's a bit like scanning a great big Where's Wally sort of thing. Piecing together what happened and this character is here. Where was he earlier on?
You can look around and say, ah, he was walking down here and he had a baguette in his pocket or whatever it was. And he— oh, there he is hitting someone over the head with it.
Or you see different things which are going on, or people who are having affairs, or someone who's spying on someone else. It's wonderful.
And you follow these characters through the streets, the parks, the dark alleyways of the city in this charming art form. And what really hooks you is how cleverly it's designed.
You just observe, you reason, you argue with whoever you're playing with about whether that man was carrying a baguette or not, or whether it was a bit of steel drainpipe.
And you think, oh, well, he was there at the murders. Was he at the murder scene 10 minutes later? It's hard to tell.
But it's the kind of game where you suddenly realize you've been hunched over a table for an hour looking at these tiny little pixel-sized clues and wishing you did have a magnifying glass.
It's sort of collaborative where you're playing with your friends, or I suppose you could see on a timer who manages to solve the different cases in a quicker time.
But they have just brought out a mobile version of this as well. Now that's anathema to me, obviously. I haven't downloaded it.
But it is available apparently for the iPhone and Android as well now. Haven't tried that out.
But the original board game version is really family friendly, and it's a different kind of thing to do.
And you can have some great fun trying to work out what has happened and to exercise your detective capabilities. I know how you like to exercise your little grey cells.
We used to get the Baltimore Sun newspaper delivered to our doorstep every day. In fact, I was a paperboy for the Baltimore Sun.
Anyway, the city of Baltimore was going to have their annual city fair where people would come together and there were rides and food.
And much like this drawing, there was a drawing like this game has with all the fun things to do at the fair.
And it was one of these drawings where you could spend a lot of time taking it in and looking and seeing what was all there. And the artist put lots of details.
Well, I was very excited to find that they were introducing for this Christmas season a nearly full-size Star Wars R2-D2, animated R2-D2 model.
So I joined a Facebook group dedicated to trying to find these Home Depot R2-D2s as they become available. And they turned me on to an online resource called trackalacker.com.
And the moment that it comes back in stock on the website, Trackalacker sends you a text message. It says spring into action and buy your thing.
Now I will say I still don't have my R2-D2.
Unfortunately, I was in the car, so I was unable to— I mean, as much as I wanted to slam on the brakes, pull over on the side of the road and buy my R2-D2, cooler heads prevailed and I did not do that.
So the system does work, right? But I was not able to respond quick enough and they were sold out by the time I was able to get somewhere safe.
So technically my pick of the week is Track-a-Lacker, but my sub-pick of the week is the Home Depot R2-D2, which if anybody happens upon one in stock, please let me know.
You shouldn't really be publicizing these Home Depot R2-D2s when you can't get ahold of one due to lack of stock because Smashing Security listeners, they are going to be racing to buy these and the Micro Macro Crime City game now.
You should have announced this after you've managed to get one.
I'm sure lots of our listeners would love to find out what you're up to follow you online, what is the best way for folks to do that?
You can find us on Blue Sky and you can find me, Graham Cluley, on LinkedIn. And don't forget to ensure you never miss another episode.
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Okey-dokey then, about time for me to turn off the microphone for this week, but I will speak again next week, and I hope you'll be there to listen. Toodaloo, bye-bye.
Host:
Graham Cluley:
Guest:
Dave Bittner:
Episode links:
- Alleged Meduza Stealer malware admins arrested after hacking Russian org – Bleeping Computer.
- Tap-and-Steal: The Rise of NFC Relay Malware on Mobile Devices – Zimperium.
- Postcode Lottery’s lucky dip turns into data slip as players draw each other’s info – The Register.
- Chinese Ministry of State Security MSS WeChat post – WeChat.
- China blames US for cyber break-in, claims America is world’s biggest bit burglar – The Register.
- Chicago firm that resolves ransomware attacks had rogue workers carrying out their own hacks, FBI says – Chicago Sun Times.
- MicroMacro: Crime City.
- Star Wars 3.5 foot animated LED R2-D2 – Home Depot.
- TrackaLacker.
- Smashing Security merchandise (t-shirts, mugs, stickers and stuff)
Sponsored by:
- Vanta – Expand the scope of your security program with market-leading compliance automation… while saving time and money. Smashing Security listeners get $1000 off!
- Material – Email security that covers the full threat landscape – stopping new flavors of phishing and pretexting attacks in their tracks, while also protecting accounts and data from exploit or exposure.
- Drata – The world’s most advanced Trust Management platform – making risk and compliance management accessible, continuous, and 10x more automated than ever before.
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Thanks:
Theme tune: “Vinyl Memories” by Mikael Manvelyan.
Assorted sound effects: AudioBlocks.