
A disgruntled data analyst decides that the best response to losing his contract is to steal the entire company payroll database and demand $2.5 million in Bitcoin – signing his extortion emails from a company called “Loot.”
Meanwhile, two people drive up to the entrance of the UK’s nuclear submarine base at Faslane and politely ask if they can have a look around. Tourists? Spies? Something in between?
Plus: Female Muslim punk rock group, and a little red book that might save your sanity in a post-truth world.
All this and more in episode 460 of the “Smashing Security” podcast with cybersecurity veteran and keynote speaker Graham Cluley, and special guest Jenny Radcliffe.
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This transcript was generated automatically, probably contains mistakes, and has not been manually verified.
And there's two people doing the same job but vastly different salaries, and one of them may be much better than the other in your point of view.
Hello, hello, and welcome to Smashing Security, Episode 460. My name's Graham Cluley.
You are about the social engineering, you are about breaking into buildings, less so with sledgehammers and JCBs and more with your brain.
And unfortunately today I had to do that just in front of our podcast, but hopefully we can hear each other and all will be well.
We'll be hearing more about them later on in the podcast.
This week on Smashing Security, we won't be talking about how hackers paid to make a malicious link a top Google search result for people hunting for Claude AI plugins.
You'll hear no discussion of how cyber attackers crippled breathalyzer devices in the United States used to test people with drink driving convictions before they can drive their cars.
And we won't even mention how Chinese hackers are posing as a cybersecurity firm to steal millions of dollars of cryptocurrency.
So Jenny, what are you going to be talking about this week?
And I'm going to be talking about a disgruntled contractor who thinks he's found the perfect way to get what he deserves.
All this and much more coming up on this episode of Smashing Security.
Right, before we go any further, ThreatLocker is one of our sponsors this week, and they want to talk about something specific this week, Joe. They want us to talk about DAC.
They start with a misconfigured setting or a drifted policy or an exposed endpoint that nobody noticed.
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Unlike an actual duck, which would just quack and waddle off.
Now I'm thinking, now you've actually quacked like a duck on the podcast, surely no deepfake Joe could possibly do that?
It's tough, isn't it?
You know, the billionaires are making all their money and not necessarily sharing it around. Pay equality, salary transparency, it's important.
And if you've just been told your contract isn't going to be renewed, I think it's pretty understandable that people would feel hard done by.
You know, people would think, oh, for goodness sake, it's so hard getting a job. I was doing this work and now it's come to an end.
What is a bit less understandable, though, and harder to think is justifiable, is stealing your company's entire payroll database.
And until recently, he was contracted as a data analyst at an international tech firm headquartered in Washington, D.C.
Now, joining the dots, it doesn't take a lot of effort to work out who this is when you come to read the court documents.
We can work out that the company he was working for was a software-as-a-service company called Brightly. Formerly called School Dude.
And he was— usual kind of deal. He was given a laptop, access to the company network.
I mean, I remember, oh golly, this would have been about 30 years ago when I was in a fairly junior position in the cybersecurity company I was working for.
And I found out the HR department had left on the company network, not behind a password, but in a publicly accessible directory, a spreadsheet with everybody's salary in it.
I mean, I wasn't just looking for myself, but other people just thinking there's two people doing the same job, but vastly different salaries.
And one of them may be much better than the other in your point of view.
What's perhaps surprising is that he didn't wait until he was told his contract was coming to an end before he started stealing this sensitive information, this data which he had access to.
He started removing files without authorization as early as August 2023, the very month he started the job.
So, it wasn't that he had lost the job or was about to leave his position. He was doing it from the beginning. It's like he went to the company with a plan in the first place.
So, 10 days later, by December 10th, he'd worked his very last shift.
And would you know, the very next day, December 11th, he'd created a new Microsoft Outlook account under the name of Lüt.
I mean, that's quite a lot of emails. That's practically a Mailchimp newsletter campaign. And he sent these emails, which looked kind of official.
They had the subject line, "Loot data leak, DocuSign agreement attached." And this thing, I'll just read the start of these emails.
It said, "To whom it may concern, I am the founder of a company called Loot. We have recently partnered with your company to implement salary transparency within your organisation.
As you roll out your salary statements, we would like to share your organisation's salaries with everyone in the company because salary transparency is crucial as the cost of living rises.
So we and our partners aim to ensure that everyone is being paid accordingly, providing employees with the leverage they deserve while also adhering to federal government regulations."
And they were even set up so he said, look, your passwords to access DocuSign they're going to be the same as your employee ID number.
So he's reduced the friction as much as possible to let these people sign these things. So, you said, kind of professional, obviously very crooked, but kind of professional.
And then there were follow-up emails saying, urgent, 24 hours to respond.
There was another one where he said he'd be sending salary information to every VP via LinkedIn.
You know, one worker was told they weren't receiving a bonus while everyone else on their level was. So you can imagine the problems that would cause.
And then on December 18th, 2023, which is a famous date in the history of data breaches, because that was the date when the SEC introduced new laws on cyber incident disclosure.
What they did was they required publicly traded companies to report breaches within 4 days.
So on that day, the very day that law came in, he sent emails saying there was a new SEC law. You either have to report your breach or we will with the SEC.
So he's using that as extra pressure leverage.
That's what sometimes impresses me about the cybercriminals is, you know, if only they used their entrepreneurial skills, their imagination sometimes in a good legitimate cause, maybe the economy would be in a better place.
He's threatening to send pay gap emails every 2 hours until the company has complied and paid up. And he says, extremely firm, extremely firm. You've been— what?
Yes, he misspelled extremely twice. So crimes against spelling as well. But yeah, he's saying I can save your company stock if you just pay up $2.5 million.
Otherwise, this amount of money I'm demanding is going to increase every month by $100,000. So, a bit of a pickle the company found itself in. Do you think they should have paid up?
And it doesn't seem to be at first, but the minute you give it a bit of scrutiny, particularly with that $2.5 million in order to save company, each subsequent month and carrying a further $100,000.
As soon as you see that, you know that this is likely an insider and likely one person because a more organized group doesn't go for six figures, basically.
And I assume that was done to try and help the authorities trace where the money might be going to maybe help secure a conviction as well.
So some things we teach companies about how to be more secure and individuals how to be more secure, he wasn't putting into practice himself.
And of course, if you create an account on somewhere like Coinbase, they're going to ask you, well, who the hell are you? You know, provide some ID papers.
And he used his own personal details to verify. Bless him, you know.
And while, actually, while the FBI was searching the place, he sent a few more threatening emails to the company saying he would publish all the data if he was arrested.
He's not a nation-state hacking group member. He's not a member of a ransomware cartel. He is a contractor who had legitimate access to sensitive data, which he chose to abuse.
He abused that trust and tried to extort money from his workplace. And this is such a common problem. There's so much focus on outsiders rather than insiders.
And if you've got a bit of imagination, and if your own morality isn't that great, we do see things like this happen, and more creatively with less access than Cameron here had as well.
So yeah, it's just that we don't hear a lot about these things really. This one is good because we've got a lot of detail.
I think a lot of times these things can either be hushed up or the company itself doesn't quite discover how it was all happening, but quite often it will be the person that they, for legitimate reasons, gave a password to or granted too much access to an employee who then was able to cause the problem.
So, however good your perimeter defenses are, however patched your systems are, however many layers of multifactor authentication you've deployed, if the person sitting at the keyboard has decided to steal from you, it's difficult to stop them.
It's not straightforward.
And that means you need to get to know when people are behaving peculiarly.
And the same way that we've got all the kit to show when someone is doing something unusual, technically, online, we should really be observant of our employees and notice when someone is breaking a pattern or behaving strangely.
So, from a human sort of point of view, at line manager level, a team level, we really do need to know our people, and that does mean following up things like references and really talking to people that they've worked for before as well.
Otherwise, it is going to be difficult to detect these things, but it is sometimes possible. I think we miss that bit out.
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Now, this is significant for a couple of reasons, because it's, this base includes the UK's four Vanguard-class ballistic missile submarines.
No, they're the ones that carry Trident missiles, which—
But the timing of this is significant because as we know, there is a conflict in the Middle East at the moment.
And the two people who've driven to the entrance have been identified. One is apparently an Iranian man and the lady he was with is a Romanian woman.
And so that's really why this is kind of, the timing seems significant and it's kind of got more attention with some of our less scrupulous press immediately saying these are Iranian spies without any real knowledge of that.
'Cause one would think that if you wanted to break into a nuclear base, you probably wouldn't just drive up with the car and ask the guards on the door if you could have a quick look around.
You know, we think it might be a museum, a point of interest, in fact, on the Clyde. And could we go and do it? No, you know.
Because I just want this for my social media.
And are being charged on Monday, 23rd. So, they're going to court on that day.
So, we don't really know, and there's no more comment other than, they seem to drive off, this is their nationality and age, and there are charges.
So there's an investigation they're not going to comment on.
But it really piqued my interest as someone who does in fact specialise in physical infiltrations, because I've been asked—
So one of the things to understand is this is taken so seriously, even if it fails, even if it turns out to be, you know, couple of tourists who thought it was, I don't know, a naval museum or something.
Because the most sensitive systems are often not online. You have to physically access the systems in order to steal things, in order to do things.
And so, when I'm asked, oh, does physical infiltration matter as much anymore? It does, depending on how sensitive the data is. It does matter.
If you've got very sensitive data, it probably isn't all online anyway. You have to physically access them, or going back to our friend Cameron, or use insiders.
And if someone is already inside, there are so many possibilities in terms of security breaches. You know, you can steal things, you can sabotage things.
If you think of what happened with Palestine Action Group in Brizenorton just a few months ago, they sabotage planes. It can be very serious.
Those planes could then have, you know, the theory being those planes could have malfunctioned, they could have hit our service people, et cetera.
They probably don't have a USB port.
But in terms of intelligence gathering, everything else, physical intrusion is very serious because, if someone ever manages it, the consequences can be far more serious than even a cyberattack and more immediate.
So my interest is piqued.
I am looking forward to finding out whether or not this is two people who thought it was some sort of museum, or whether it was in fact two tourists who unfortunately managed to pick exactly the wrong place and exactly the wrong time to attempt to take a selfie by a nuclear submarine?
And we can focus far too much on defending certain perimeters and maybe not the physical perimeters. Right. Let's take a moment to talk about one of today's sponsors, Meta.
So picture this. You need to set up a network for a new office. Suddenly you're juggling ISPs, floor plans, hardware configuration. Oh, what a headache. It's basically a second job.
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Full visibility and control. None of the tedious legwork.
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. Now, Jenny, I've known you for a long time. What I don't really know about you though is what kind of music are you into?
But I also like some sort of medieval choral stuff from Germany.
Girl groups from the '60s.
What's up with all this spitting and shouting and lack of melody? And I just, I had a bit of a problem with it. I'm a gentle soul. I think we all know that.
But maybe I've had something of a revelation because, as listeners may remember, some weeks ago now, I was extolling the virtues of a Channel 4 TV show called We Are Lady Parts.
Are you familiar with We Are Lady Parts?
And after watching the series, I've been listening to their music because the people who appeared in the TV show did, it seems, form an actual band, learnt how to play instruments, and their music is on Spotify.
And most mornings— Most mornings in the shower, I've been enjoying the We Are Lady Parts band. So I want to give them another plug because I've been listening to them on Spotify.
So even if you haven't seen the TV show, you can enjoy this band because I think they're great.
And they've got songs "Voldemort Under My Headscarf," "Bashir with the Good Beard," "Ain't No One Gonna Honor Kill My Sister But Me." And it's all delivered in this punky, thrashy style.
And I have to say, it's a great way to start my morning and energise myself up for the battles ahead. And I've greatly enjoyed it.
And so my recommendation is go and listen to We Are Lady Parts. Go and check out their songs on Spotify. Other streaming services are available, of course.
And that is my pick of the week.
So it's one to give to teenagers and people who really don't want to read too much and just want something easy.
So not misinformation, not mistakes, disinformation that is deliberately being put out there to get you to believe a lie for whatever reason, political, social, whatever.
But in this world at the moment, it can feel sometimes like we're drowning in this and there's nothing we can do about people who believe this disinformation, why it's there.
And he gives a little history of all of the methodology of leading people to believe lies for a cause. Links it all back to things like 1920s Soviet campaigns and things like that.
Brings it right up to date to the point just before the election in 2024. And it's looking at a crystal ball. It's amazing.
But what he does is he talks about the need for algorithmic transparency in social media.
And he shows how the tactics haven't really changed, argues that it's urgent and necessary to try and fight this disinformation and think more critically.
But here's the thing that I thought was wonderful.
He gives you 10 ways to do it as a single person, 10 ways that you can actually understand how disinformation is disseminated, how it works, and what you can do as a person to try and combat it in your own community, in your circle of friends and family.
And I just thought it's so short, it's really easy to read, it's well written, and it gives you some background, some examples of what social media platforms can do to combat disinformation and why they should be doing it.
And then how you can sort of sit in the pub and kind of argue against someone who believes something that is not true and that they're being led astray, whether that's political or something else.
And so in that short pocketbook of 144 pages, you really get a sort of a masterclass, but an easy one, in how to combat some of the things that are sort of going wrong in the media, the world, and online.
And I thought it was very easy to read, very nice approach, given that it actually gives you some action points at the end. So, On Disinformation by Lee McIntyre.
It's a little red book, which is not why I like it, but it's a little red book and it's available everywhere. And I really recommend it.
It'll take you no more than an hour or two to read. And it's a great thing.
And I would recommend, can I just say, actually buying the physical book and holding a book in your hand and putting a little red book in your pocket because there is something kind of grounding and real and unusual about that these days.
I found that quite nice as well. So there you go. That's my pick of the week.
It's actually saying, and this is what you can do to help protect yourself against it.
Thank you so much for joining us this week. I'm sure lots of our listeners would love to find out what you're up to, Jenny, and follow you online.
What's the best way for people to do that?
So at the moment, things seem a bit quiet, but that's because things are noisy elsewhere. But follow me online and I'll update everyone shortly as to what I'm up to.
And don't forget to ensure that you never miss another episode.
Follow Smashing Security in your favorite podcast apps such as Apple Podcasts, Spotify, and Pocket Casts for episode show notes, sponsorship info, guest lists, and the entire back catalog of 460-odd episodes.
Check out smashingsecurity.com. Until next time, cheerio, bye-bye.
And thanks so much to Jenny Radcliffe for joining us this week and to this episode's sponsors, ThreatLocker, Vanta, and Meta.
And of course, to the following chums who are amongst those lovely souls who've signed up for Smashing Security Plus. So please put your hands together for, let's see who we got.
Khadijatan Kazimierzak. Whose name we've absolutely pronounced correctly and definitely succeeded with that.
Bravo Whiskey, who appears to be a big fan of the NATO phonetic alphabet, maybe because their real name is somehow harder to say than Khadijatan Kazimierzak.
Dmitry, he's back again, still just Dmitry, no last name, still very mysterious. Saital, who doesn't believe in capital letters. Tall letters.
Matt H, who's our favorite Matt, apart from Matt Cotton. Lisa, just Lisa. Did you see Lisa? Yes, I saw Lisa. Iconic timeless 1970s song there for some of you.
Sian Puttick, who has our sympathy for spending a lifetime probably spelling her first name to people on the phone.
Sean, who probably sometimes has people misspell his name as Sian. Marwan Khatheah, and finally Gary Heather, which it just sounds lovely really.
Probably runs a garden center in the Cotswolds, something like that. Anyway, we love you all.
As members of Smashing Security Plus, they not only get episodes of the podcast earlier than the great unwashed public and also ad-free episodes as well, but they also get the chance to have their names pulled out the hat and their names mocked.
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Go on, go and tell them. Tell someone today. Say, hey, I listen to this podcast. It's really marvelous. This chap called Graham rambling on about cybersecurity.
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Well, until we chat again next time, toodle-oo, bye-bye.
Host:
Graham Cluley:
Guest:
Jenny Radcliffe:
Episode links:
- A Top Google Search Result for Claude Plugins Was Planted by Hackers – 404 Media.
- Iowa-based Intoxalock cyberattack disrupts calibration service for interlock users – DysruptionHub.
- China hacker group leaks $7M crypto theft operation targeting wallet supply chains – Crypto News.
- Federal Jury Convicts Charlotte Man For Cyber Extortion Scheme That Targeted International Technology Company – DOJ.
- Iranian and Romanian charged after allegedly trying to enter UK nuclear naval base – Sky News.
- LadyParts – Spotify.
- On Disinformation: How to Fight for Truth and Protect Democracy – Lee McIntyre.
- Smashing Security merchandise (t-shirts, mugs, stickers and stuff)
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Theme tune: “Vinyl Memories” by Mikael Manvelyan.
Assorted sound effects: AudioBlocks.
