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016: Wonga wronga!

April 13, 2017
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Lisa Vaas

Hey, Graham.

Graham Cluley

Hello.

Carole Theriault

Now tell me about our sponsor this week, please.

Graham Cluley

Oh yes, we've got a lovely sponsor this week. It is Recorded Future. Yay! Yeah, those are the guys who produce the Cyber Daily newsletter, which you can get at recordedfuture.com/intel. And they go scouring the web looking for the latest information on new vulnerabilities and emerging threats, and then they deliver lots and lots of details about all that kind of stuff straight into your inbox.

Carole Theriault

Super.

Graham Cluley

Yeah.

Carole Theriault

Where can I get it?

Graham Cluley

Recordedfuture.com/intel.

Carole Theriault

Great.

Lisa Vaas

On with the show.

Unknown

Smashing Security, Episode 16: Wonga Ronga with Carole Theriault and Graham Cluley. Hello, hello, and welcome to another episode of Smashing Security, number 16, for the 13th of April, 2017. And as always, I'm joined by my buddy Carole. Hi, Carole.

Carole Theriault

Hello.

Graham Cluley

And we've got a special guest with us. Yes, we are joined by infosecurity journalist Lisa Vaas. How are you, Lisa?

Lisa Vaas

I am very well indeed, Graham. Thank you.

Graham Cluley

Great to have you on board.

Carole Theriault

Lovely. It's nice to have another woman on board.

Lisa Vaas

Oh, yeah. Am I the first other woman?

Carole Theriault

Yes. And you're very welcome.

Lisa Vaas

This is epic.

Graham Cluley

Personally, I would love to make this an all-female show. That would be my—

Carole Theriault

I agree.

Graham Cluley

Yeah.

Lisa Vaas

We'll order up the surgery for you, Graham.

Graham Cluley

So Lisa, of course you're a big fan of the show. I'm sure you're listening to it all the time, so you well know the score.

Lisa Vaas

Constantly.

Graham Cluley

What we try to do is we try and think about some of the interesting computer security stories we've seen over the last 7 days and give our opinions on them. And a few things have cropped up. But here's one which has really caught my eye. Have you guys ever heard of these things called IMSI catchers?

Carole Theriault

No.

Lisa Vaas

Yes.

Graham Cluley

No?

Lisa Vaas

Yes.

Graham Cluley

Oh, you see, Lisa knows all about these. Well, let me tell you, these are sneaky little devices which can spy upon mobile phone traffic. They sort of come in suitcase-sized boxes and they can use—

Carole Theriault

Suitcase-sized?

Graham Cluley

Yes.

Carole Theriault

I don't even know what—

Lisa Vaas

Okay.

Graham Cluley

Well, you know what size a suitcase is. Imagine a suitcase. Yeah, that's it, right? Yeah. And so that's how big they are. And they can act like a fake cell tower. And effectively they get between your phone and your cell phone provider's real cell towers, which means, of course, that they're fantastic for intercepting communications. They could also be used, of course, for sending fake messages to phones, not only intercepting messages, but also sending a fake message to someone, which could have interesting consequences. Now, in the wrong hands, I think you'd agree that is a pretty powerful bit of kit, isn't it?

Carole Theriault

Yeah. I mean, is it powerful enough to intercept thousands and tens of thousands, hundreds of thousands of communications at one time?

Graham Cluley

Well, certainly in the local area using that cell tower, yes, they would be intercepting all of that, depending on the power of the IMSI catcher.

Carole Theriault

I just think Central London or New York, it'd just be a bit busy.

Lisa Vaas

Well, actually, they just found them sprinkled around Ottawa.

Carole Theriault

Really?

Lisa Vaas

Around Parliament Hill. Yeah. And it's where you can drop on all the politicians.

Graham Cluley

Well, so these things are scattered around the world and they are used by different agencies. The good news is that the average Joe in the street isn't going to find it terribly easy to get hold of one themselves, right? They're pretty expensive. First of all, they can cost hundreds of thousands of dollars.

Carole Theriault

I'm not sure the average Joe wants one though.

Graham Cluley

Well, no, but maybe the average Joe criminal or the organized criminal might want one, or indeed authoritarian states. And the reason why I'm talking about IMSI catchers in this particular episode is that there's just been released an undercover Al Jazeera investigation. Al Jazeera TV have uncovered that firms are prepared to break global sanctions to ship this kind of surveillance and spying equipment to dodgy authoritarian regimes around the world. And of course, they're going to be used against their citizens. They're going to be used by rogue nations to spy upon activists, political rivals, dissidents, and—

Carole Theriault

Are they naming and shaming the firms that are prepared to do this?

Graham Cluley

Yes, they are. So let's take a quick listen actually to some of the report right now. The communication of your targets. Send fake short messages. Our undercover reporter exposes the spy merchants willing to sell powerful eavesdropping equipment to anyone willing to pay. Europe's most advanced producers of spyware explain how they circumvent international sanctions with ease.

Lisa Vaas

First, we are okay with Iran. Of course, it's subject to export restrictions, but this is something that we can manage.

Graham Cluley

We hear of the damage that surveillance technology can do to democracy. These are the deals putting our privacy at risk.

Lisa Vaas

I find it unacceptable. I would like to see transparency in this very, very dark and dangerous market.

Graham Cluley

The safeguards protecting our private life are disappearing. These are the nuclear weapons of the 21st century. The surveillance state is the acid that eats out democracy from within. Inside the spyware game: big money, dirty tricks, and a legal structure unable to control who is spying on you. So the full report lasts something like 45 minutes, and I recommend people go and check it out on YouTube if you don't get Al Jazeera TV. But they do name and shame some of the companies who they spoke to, including companies in Italy. And you think, hang on, you know, what are the Italians doing, doing this kind of thing? Well, there are a number of agencies in Italy or corporations who are building surveillance equipment. There's a sort of mini industry out there.

Carole Theriault

Okay.

Graham Cluley

And what Al Jazeera discovered was it was relatively straightforward to buy millions of dollars worth of this surveillance equipment from three companies, two in Italy, one in China, and then they were buying it on behalf of governments in Iran and South Sudan. Iran, there are global sanctions against them. South Sudan, there's obviously been a lot of unrest and there's been a lot of spying upon people because of the many deaths which have been going on down there. And it's far easier for those sort of countries to get hold of this kind of equipment if they want. In one case, the Al Jazeera guy, what Al Jazeera actually did was they found an insider, someone who worked inside the industry. They called him only James. And so he's filmed throughout the report in sort of shadow and they've given him sort of a computer-y kind voice. But he was the guy who was actually meeting these guys, secretly filming them as they were discussing it. And he even came across one Chinese-based company who said, "We don't actually care who your customer is," which meant that potentially it may not just have been a dictatorship, it could have been an organized criminal gang, it could even have been terrorists who are using this information.

Carole Theriault

So what you're saying is there are standards set up and these companies are deliberately bypassing those sanctions.

Graham Cluley

So there are sanctions in place for a number of countries who are considered not the kind of people you should be giving surveillance equipment to. Also, you have to apply for export licenses. Any technology which is encrypting or decrypting information, you have to be very careful where you sell it around the world because it could be used potentially for these sort of nefarious purposes as well.

Carole Theriault

Yeah, makes sense.

Lisa Vaas

Yeah.

Graham Cluley

But what these companies are doing is, it appears they're doing, is that they are making it easier. They're finding ways for the regulations to be bypassed or ignored. They're using gray markets. And so what they might do is they say, look, you can't buy this directly from us in Italy. So we can't sell this to you in Sudan, for instance. But if you had a company in Tanzania who—

Carole Theriault

Like a partner or something, a business partner.

Graham Cluley

Either a business partner or something like that. If they bought it, then they could give it as a gift to Sudan, or they could give it to the people in Iran. Or you could buy it from our manufacturers in Turkey who may find it easier to get an export licence than we would in Italy because this kind of thing is— obviously governments are trying to crack down on this kind of thing, but it looks like these companies, so much money at stake, they are finding ways in order to sell it.

Carole Theriault

And these guys obviously been doing it quietly and they've just been outed and now they're scrambling.

Graham Cluley

Well, now of course they're issuing the statements and, oh well, you know, even if our salesperson said that, he had no authority and we would have acted entirely within the law. Well, I'll let you be your own judge when you watch the video as to how believable you actually find that. In one case, one of the companies actually said this guy who came to us and talked to us about purchasing this, we identified him as potentially an employee of a rival firm. And so we were just stringing him along, and we were never planning to sell anything to him. And you're kind of like, come on. The truth is money talks in this business, and people are prepared to do anything if the right greenbacks are on the table.

Carole Theriault

Well, yeah. And I guess it's quite a good idea. It's quite good that it's the size of a suitcase, because it's not something you can just hide out easily without it being detected in a corporate or political environment.

Graham Cluley

And in some cases, what they're doing is they're packaging the tools as dual-use technology. So they may claim, oh, this isn't an IMSI catcher, this is a Wi-Fi router.

Carole Theriault

Yeah.

Graham Cluley

But they'll do special versions which don't have the logo on the box because they're paranoid about the box being identified and it being worked out where it came from. They're producing documentation without the logos on of the company again. So it's sort of white-labeled stuff because they don't want it coming back to them because potentially not only could they be making tens of millions of euros, but also potentially they could end up serving jail time as well.

Carole Theriault

Hmm.

Graham Cluley

So it's a pretty sick world out there. And obviously there will be people listening to our podcast who work in security and may even work for some of these firms who produce this kind of technology. And I guess what we're really saying is if you're one of those people, I'm sure from time to time you're questioning whether you're doing the right thing. And I'd argue that you know, you need to change your company from the inside or you need to get out of that company.

Lisa Vaas

Could I just insert a quick, interesting tidbit I found when I was writing about this stuff as it was happening up in Canada? And that is that the way that they found these catchers sprinkled throughout town and at Montreal Airport was that they used this gadget called CryptoPhone that's out of a German company. I forget the name. It actually kind of turns the tables. It actually can find the use of IMSI catchers in an area. The CBC, in their investigation, talked to the U.S. supplier of these devices to catch these things, and he analyzed the stuff they were finding in Ottawa and Montreal and said, oh, this has got the stamp of a Chinese IMSI catcher. I just found it interesting to see this, you can actually find something that catches the catchers with that CryptoPhone.

Graham Cluley

Well, as is often the case, I suppose, in computer security and privacy, it's a bit of an arms race, isn't it? As one side develops something to snoop upon the other, the other side will attempt to find ways to detect that they are being snooped upon. Okay, Lisa, what have you got up your sleeve for us today?

Lisa Vaas

Okay, well, I don't know if you guys saw this thing on Slashdot, but it was this huge database, nearly a million records of mostly diabetics was found online. And a developer left this telemarketer— well, the telemarketer went out of business, didn't pay its filing fees in Florida and just went belly up. And a developer who was working with the telemarketer for some reason left with a copy of the database. And we're talking about a database that has incredibly sensitive information in it. It's got Social Security numbers, names, email addresses, whether you're on insulin or not. Do you have sleep apnea? Are you being assisted by a healthcare aide or by a child? What's their name? So what springs to your mind? Probably what springs to my mind is this is just a goldmine for phishers. So, you know, somebody could call you up and it's happened in the past, somebody would call you and they know your doctor's name, and yes, doctor's names were included in this recently exposed database.

Carole Theriault

How did the telemarketers— where was the database from? Did it belong to the telemarketers, or were they working in cahoots with some other firm?

Lisa Vaas

ZDNet did a really good investigation with databreaches.net, and they also joined up with haveibeenpwned, you know, that lookup site where you can find out if your stuff's been exposed in a breach. So the database did belong to the telemarketer. So it comes from them. They didn't necessarily break any laws. There aren't necessarily— databreaches.net, which is run by this licensed healthcare professional who's really interested in security when it comes to medical stuff, pointed out that we don't know that any laws have been broken. What it sounds more to me is sort of this neglect of data.

Graham Cluley

Lisa, let me understand. The developer has got the data. And what did he do with it? I mean, okay, so it's bad that he's got it.

Lisa Vaas

He parked it on an Amazon Web Services instance on an IP address that he owned. And it points to, it was one of those intentions to have a business that provides database solutions for medical suppliers. But he said, he told Zach Whittaker over at ZDNet and the DataBreaches.net blogger that it just was, it was too gnarly, it was too hairy, the creation of things. So he shelved it. He left it on this AWS instance and it wasn't encrypted.

Graham Cluley

Oh, so it was accessible effectively to the world?

Lisa Vaas

Yeah, for months, for months.

Graham Cluley

Oh, for goodness sake.

Lisa Vaas

So how did somebody find it? Well, there's this Twitter user called Flash Gordon, who was playing around with Shodan. And you guys know what Shodan is. Yeah, it's that search engine for everything that's internet connected that comes up with this lovely index of insecure open services online.

Graham Cluley

So the message to developers and obviously to companies is don't be sloppy with data, you know, handle it with care, obviously. And once you no longer have any use for it, destroy it, etc. But what sort of advice can we give the regular man and woman in the street regarding? Well, you know, it's kind of tough.

Lisa Vaas

I mean, I'm a diabetic myself, so I'm very sensitive to how expensive the supplies are. And if you're in the US, my advice is move to Canada. If you can't move to Canada, then you've got to be really mindful of the information that you give telemarketers. I mean, these people are coming at elderly people who probably aren't real cash flush, and they're saying, oh, we've got these discount programs for diabetic supplies. Those supplies are super super expensive. I know lots of people in the Facebook forums for diabetics that say, oh, go to this one, go to that one. I would suggest that instead of handing over your doctor's name and your Social Security number, your taxpayer ID, all that jazz, just back away from somebody calling you or even making these calls. Talk to the drug companies themselves. If you're in the US, they know that it's an issue to pay for this stuff. And many of them have programs that can help. At least I am aware of such programs at insulin makers such as Lilly. When you think about somebody calling you and wanting really specific, really intimate knowledge about you, you don't even know if the caller is legitimate. If you think your details might've been doxxed, you can always go look up your email or your name on Have I Been Pwned? 'Cause Troy Hunt over there has uploaded the whole database.

Graham Cluley

Okay.

Lisa Vaas

And if you've been doxxed, if your information's out there, I would suggest a fraud alert. That's particularly important because there's no company left over that can pay for that fraud alert for you, or that's going to necessarily reach out and tell you that it's been done. I mean, they do have something like 391,000 unique email addresses in that database. And at least that's a start to reaching out to people, but who exactly is gonna do the reaching out now?

Graham Cluley

Right, so unlike a regular breach where hopefully a company would contact you and say, "Oops, sorry, we normally take security really seriously, but this time we goofed up," there is no company still existing to warn you. So we're really reliant upon journalists and podcasts and ZDNet and others to get the word out there. We've got this great resource in Have I Been Pwned run by Troy Hunt where people can enter their email address and find out if their details have potentially been leaked as a result of this, as well as obviously checking with many of the other breaches which have occurred. And generally, the advice to people is just be really careful of people ringing you up out of the blue, trying to sell you medication to do with your diabetes, right?

Lisa Vaas

Yep, yep.

Carole Theriault

Yeah, God.

Graham Cluley

What a terrible world it is. Carole, I hope—

Carole Theriault

It's not a very fun episode.

Graham Cluley

No, well, I'm hoping, Carole, that you've got a much more cheery thing to talk to us about, have you? No, not really. And I'm sorry about that, you know. I'll try and make it as light as possible. Okay, so I know how to start this.

Lisa Vaas

Wanga? You know, off the top of my head, I think it's a move that you do when you're doing Zumba dance. Is that correct? No, that's not it.

Carole Theriault

Wonga? No, wonga is a term we use in the UK to mean— Graham?

Graham Cluley

Money.

Carole Theriault

Exactly. Cash.

Graham Cluley

Spondoolies.

Carole Theriault

Exactly.

Lisa Vaas

Shinola. I don't know.

Graham Cluley

With a loan from wonga.com, you decide the amount you want, how long you want it for, and we tell you exactly how much it will cost. Upfront. Clear as day. So there's no hidden charges or nasty surprises.

Carole Theriault

No one likes nasty surprises.

Graham Cluley

Oh, you know I hate drum and bass. Cash loans you control. Wonga.com.

Carole Theriault

There's a company here in the UK as well that sports the name Wonga, and they have just suffered a massive data breach. 245,000 customers have been affected by this data breach. Now, Wonga basically offer, they're a payday loan company. So they have high-cost credit, short-term loans. And during this breach, which we actually don't know a lot about yet, I'll get to that in a second, but what seems to be stolen was name, email address, home address, phone number, the last 4 digits of your credit card, your bank account number and sort code. Oof, right?

Lisa Vaas

Ouch.

Graham Cluley

Yeah, nasty.

Carole Theriault

Yeah, it's a lot of stuff. So of course, how did this happen? So they're saying they take customer data and security very seriously and that, you know, cyber attacks unfortunately are on the rise. So, yeah.

Graham Cluley

So that's all right then.

Carole Theriault

Yeah, so it's okay.

Lisa Vaas

We're just—

Graham Cluley

Yeah, exactly. You know, attacks are on the rise, so it's very unfortunate, but you know, these things happen is basically what they're saying.

Carole Theriault

And I think this is really surprising for a kind of, you know, a financial institution, which normally do take security really seriously. Now we don't know exactly what's happened. I mean, Wonga did tell TechCrunch that they're investigating illegal and unauthorized access to personal data. But that doesn't necessarily tell us whether it was an attack via their website or a zero-day or vulnerability or whatever. Interestingly, they have a section on their website about how secure their website is. And it starts with, our website is extremely secure. So I hope for their sake.

Graham Cluley

Boy, can you imagine if this is a SQL injection attack, so many are, which is obviously a very old tried and trusted method. It's the sort of thing you learn on Security 101, first day as a web security expert, how to protect against that. If it's something that, that's gonna be embarrassing. Of course, it might not be that sort of technology. It could be maybe, because they haven't really told us, have they? It could be an insider inside the organization, something that, but—

Carole Theriault

And you know what's really upsetting? Wonga is normally used by people that have cash flow problems, right? You use it because, you know, maybe you can't meet your rent and you need to get it out quickly or this kind of thing. So it's not people that have a lot of extra dosh lying around. And now a lot of their details can be used. I mean, their home addresses are there, right? Their phone numbers, everything. So advice for anyone who's been affected by this, first, our apologies. It sucks. But I looked up at Wonga. They do have an FAQ page at Wonga. They actually do have something on their homepage saying if you've been affected, go here. At least their FAQ, they think your account is secure and that you do not need to take any action. I would suggest that you change your password. And, you know, this is a very good time for those of you that may have used this password elsewhere to make sure that those are, you know, change those to unique passwords.

Graham Cluley

Absolutely. Yeah.

Carole Theriault

Right.

Graham Cluley

Just in case.

Carole Theriault

Just in case.

Graham Cluley

Never use the same password, folks.

Carole Theriault

Yeah. Seriously. This is the exact reason because they could try, if they had access to that password, they could use it using your username and your email address, which how many people use their email address as their username? Now, Wonga also say they're going to be alerting financial institutions on the issue, et cetera. But I think that everyone would be wise to contact them themselves, contact your bank, tell them to look out for suspicious activity, tell them your name's on the list and that you've been impacted by this. I'd also suggest keeping a record actually of any conversations you have with people, with bankers if you call. Actually, Wonga say if you have any questions, you can call them. And an article in The Sun today was saying that in fact, it's a pay-for line. So it's not a free toll line. And people calling from mobiles can pay up to 55p, that's 70 cents a minute. And one guy spent 40 minutes on the phone. So if he'd called from one of those pay plans, it'd be 20 quid or 25 bucks for the privilege.

Graham Cluley

That's almost as expensive as taking out a Wonga loan, actually, isn't it? With 1,000% interest rate.

Lisa Vaas

Maybe it's part of their business plan. Maybe this is a genius idea for marketing. I mean, do people do that in the States, Lisa? Is that heard of? Yeah, I have never heard of this happening anywhere, that you get charged for this. Never.

Carole Theriault

Yeah, exactly. I think it's outrageous too, but I am Canadian, so there you are. Now the other thing you guys want to watch out for here, really, just last piece of advice, is you want to watch out for lateral attacks, right? So these are people now who might want to try and reach out to you via email or call you on the phone or send you a letter that may be requesting information from you that looks official or new social connections. So you just got to be on your guard and watch out for this stuff.

Graham Cluley

Because that's the kind of thing we've seen with past breaches like TalkTalk, for instance. TalkTalk, British telecom company. Exactly. Been hacked horrendously. And what happens is the scammers have got your phone number and they maybe know something about your account details as well. They ring you up, they may pretend to be from the company that has been breached, and that way they can gather additional information because of course they can reassure you that, oh, they're legitimate because they know the last 4 digits of your card number, or they know your bank account number and sort code, they know your home address. And it can be very convincing and people often can be fooled by someone who calls them up on the phone, things that they maybe wouldn't believe if it arrived in an email.

Carole Theriault

Yeah, totally. So be on your guard for that. And I mean, it's not— and the other thing is, I don't think it's all Wonga customers that have ever been infected. So if you are concerned, go to their website and check. I think there's people in, I think Poland, a database in Poland and in the UK that have been impacted, but not all of Wonga's customer base.

Graham Cluley

Yes, although it does include some former customers as well, I believe.

Lisa Vaas

Exactly.

Graham Cluley

Is that right? Yes.

Carole Theriault

Yes. So if you've ever used Wonga, right, you'd be wise to go— I know, that's the thing. This is what's— this is not just people that use it, you know, regularly. This is if you've used it once, your name and, you know, your details could be in the wrong hands now.

Graham Cluley

Turns out that loan you took out of Wonga could have been even more expensive than you ever imagined, eh?

Carole Theriault

Right. And hey, you can call them up and give them a bit more money.

Graham Cluley

Well, one thing that comes to you for free, of course, is our podcast. Hey, we don't charge anybody for our podcast, completely free. And you can subscribe to us on iTunes. You could leave a review if you would as well. You can— we're also available in many other podcast apps too, including now iHeartRadio. If you have iHeartRadio, you can check us out there as well. Please do check us out and subscribe. And that way you'll always get the latest episode in your podcatcher.

Carole Theriault

And big thank you to our sponsors, Recorded Future. You can sign up for their Cyber Daily Newsletter at recordedfuture.com/newsletter.

Graham Cluley

Smashingsecurity.com/intel. Well, that just about wraps it up. Thanks very much for tuning in. Thank you, Lisa, for joining us for our episode today. Really appreciate having you available and sharing your stories with us. Always a pleasure. Cheers. And if you would the show, tell your friends, follow us on Twitter. We're @SmashingSecurity on Twitter. That's Smashing without a G security. And until next time, toodle-oo, bye-bye.

Lisa Vaas

Bye. Bye. It's so awkward. I love the awkwardness.

Carole Theriault

You're just looking for B-roll. I am really. I am.

EPISODE DESCRIPTION:

Spyware companies are filmed plotting to break global sanctions to ship surveillance and spying equipment to dodgy authoritarian regimes, an unsecured database exposed diabetics’ sensitive data, and a massive data breach leaves hundreds of thousands of current and former Wonga customers at risk.

All this and more is discussed by computer security veterans Graham Cluley and Carole Theriault, joined this week by special guest Lisa Vaas.

Show notes:

 

Follow the show on Twitter at @SmashinSecurity, or visit our website for more episodes.

Remember: Subscribe on Apple Podcasts, or your favourite podcast app, to catch all of the episodes as they go live. Thanks for listening!

Warning: This podcast may contain nuts, adult themes, and rude language.

Special Guest: Lisa Vaas.

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