[HN Gopher] Owners of 1-Time Passcode Theft Service Plead Guilty
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       Owners of 1-Time Passcode Theft Service Plead Guilty
        
       Author : todsacerdoti
       Score  : 81 points
       Date   : 2024-09-02 16:56 UTC (6 hours ago)
        
 (HTM) web link (krebsonsecurity.com)
 (TXT) w3m dump (krebsonsecurity.com)
        
       | 8n4vidtmkvmk wrote:
       | They should go after all of their customers too.
        
       | 101008 wrote:
       | As the other comment said, they should go after all their
       | customers too. I can't believe they are thefts out there paying
       | other thefts for theft-services...
       | 
       | Unrelated, but at the start of the year, a lot of Payoneer
       | customers from Argentina lost their savings in the platform* due
       | to someone having access to the OTP codes. Payoneer said it
       | wasn't on their side the error, and evidence suggested that it
       | was an error in Movistar, because all the victims were customers
       | of that particular telco. As far as I know, Payoneer didn't
       | return the money and Movistar was never charged or anything
       | (rumours say it was a Movistar employee who sold SMS with the
       | OTP).
       | 
       | And if you ask why a lot of Argentina people use Payoneer and
       | keep their savings there, it's a bit long to explain but
       | basically is their way to get paid in USD outside the country
       | without paying taxes (fair and unfair ones) and without getting
       | their payments converted automatically to ARS pesos using a bad
       | rate.
        
         | ensignavenger wrote:
         | If Payoneer was using sms based auth codes, then it was clearly
         | Payoneers error for doing something so incredibly stupid.
        
           | bn-l wrote:
           | I think it's security by popularity: You can't be blamed if
           | it's "industry standard". Meanwhile it's 10x less hassle than
           | trying to get people to use an authenticator. Passkeys aren't
           | perfect privacy wise (and everything google touches is
           | suspect), but they are easy.
        
             | chrisweekly wrote:
             | > "You can't be blamed if it's "industry standard".
             | 
             | Thankfully, that's not true. Class action lawsuits can and
             | do successfully target widespread industry malpractice. My
             | first job out of college was as a paralegal, helping over
             | 90 million American plaintiffs sue nearly every major life
             | insurance company in the country for the previously common
             | "standard behavior" of insurance agents convincing
             | policyholders to periodically "roll over" their accounts,
             | to the sole benefit of the agents and their employers. The
             | settlement payout for each participant was typically meager
             | -- but the malpractice was stopped.
        
             | miki123211 wrote:
             | Not only that, but mandatory authenticators would also
             | create a support (and security) nightmare the moment you
             | stepped out of the upper-middle-class, privileged tech
             | worker world.
             | 
             | They work great if you assume that everybody has a
             | smartphone (as opposed to a feature phone), that they don't
             | have their phones stolen every other month, that they know
             | how to set up an authenticator app, that they'll remember
             | to reconfigure everything properly when migrating to a new
             | phone and won't immediately throw the old one away and so
             | on.
             | 
             | This problem is made even worse by the notoriously bad UX
             | of most authenticator apps, notably the lack of automatic
             | iCloud / Google Drive backup functionality and their
             | inability to automatically show the code on screen whenever
             | it's needed.
             | 
             | The nice thing about SMS is that you can outsource most of
             | the support burden to carriers, which have to handle it
             | anyway. Carriers have the advantage that they usually speak
             | the user's language, have an office relatively nearby, and
             | can verify your government ID in person if need be.
        
           | AStonesThrow wrote:
           | > If Payoneer was using sms based auth codes, then it was
           | clearly Payoneers error for doing something so incredibly
           | stupid.
           | 
           | It's sort of ironic that the Krebs article indicates that
           | these dudes were specifically targeting the "most secure" OTP
           | methods we know: authentication apps, rather than SMS or
           | email codes.
           | 
           | They were simply using social engineering and human trust to
           | bypass the industry's best technical practices.
           | 
           | SMS and email are side-channel communications, so the
           | attacker would need to intercept them, and hopefully suppress
           | the legitimate receipt as well. I'd get kind of worried if my
           | bank sent me an unsolicited code. But a consumer may be more
           | credulous when their "bank" calls in to request one from
           | them...
        
           | deepsun wrote:
           | Bank Of America accepts _only_ SMS codes, nothing else.
        
             | jalk wrote:
             | That is not correct. You can use a "USB security key" -
             | e.g. YubiKey See https://www.bankofamerica.com/security-
             | center/online-mobile-...
        
         | dgoldstein0 wrote:
         | there's a whole underground economy. I recall hearing a story
         | of how one guy was busted who used to build an exploit kit and
         | sell it to people for a cut of their earnings.
         | 
         | And then there's crazier shit like
         | https://krebsonsecurity.com/2024/03/blackcat-ransomware-grou...
        
           | janalsncm wrote:
           | The craziest one I've heard of was the app Anom which was
           | supposed to be for criminals to communicate securely and
           | secretly. Except it wasn't, it was actually controlled by the
           | FBI. I'm part way through a book about it now and it's pretty
           | incredible how the FBI took it over and essentially became
           | world police.
        
         | mananaysiempre wrote:
         | > I can't believe they are thefts out there paying other thefts
         | for theft-services...
         | 
         | Why wouldn't there be? It's not like an economy needs anything
         | more than a medium of exchange and a kind-of-functional
         | guarantee of nonviolence to arise. If you have that, you don't
         | need to arrange for a market, it will just happen, more or
         | less. (Healthy or not is another question.)
         | 
         | Anyway, yes, there's phishing for hire, bring-your-own-payload
         | exploitation for hire, ransomware for hire, and of course DDoS
         | for hire. Captcha solving for hire is legitimate enough to
         | occasionally get posted on HN (and I don't think it shouldn't
         | be). People's residential or mobile internet connections for
         | hire, hijacked via free VPN browser extensions and mobile ad
         | SDKs, are legitimate enough to be sold via advertising
         | conglomerates (but I think they shouldn't be).
         | 
         | A market isn't something you build, it's something you have to
         | actively prevent.
        
           | miki123211 wrote:
           | another example of this phenomenon are "free" markets in
           | prisons, where the currency is usually cigarettes.
           | 
           | Other places where freedom is limited have similar
           | characteristics, I remember that we had a sort of food market
           | when I was a child at a boarding school.
        
             | 0x3444ac53 wrote:
             | Fun fact, I had a family member in prison and apparently
             | they used postal stamps as currency
        
         | wileydragonfly wrote:
         | I tried to set up a bank account in Argentina, and I will admit
         | it was to buy cheap digital PC and Xbox game licenses.
         | Incredibly hard to do so as a foreigner.
        
       | cynicalsecurity wrote:
       | Three young peope of age 19, 21 and 22. I was wondering who would
       | do something as stupid as this and think they can get away with
       | it in UK.
        
         | popcalc wrote:
         | They forgot to give the MPs their slice
        
         | michaelt wrote:
         | A person could easily get the _impression_ the UK didn 't
         | police crime online, simply because crimes like DDOS attacks,
         | cryptolockers, cryptocurrency scams, identity theft, fake tech
         | support callers and suchlike are all typically cross-border
         | crimes where the police have basically no powers.
         | 
         | The reality is the police are more than happy to act when the
         | criminals involved can be identified, and are under their
         | jurisdiction, and you can get the attention of the right
         | department - that's just a very rare set of circumstances.
        
         | fn-mote wrote:
         | I was wondering if they were the fall guys for organized crime
         | work.
         | 
         | Their chat log (apparently) makes it clear they were
         | independent operators, at least.
        
         | philip1209 wrote:
         | They probably thought it would be super niche and nobody would
         | notice. Then, they got product-market fit and didn't want to
         | walk away from the money.
        
       | A4ET8a8uTh0 wrote:
       | I am trying to think on how this could be mitigated and I am not
       | sure there is a good way. Just before we even begin, using an
       | unknown third party is a risk and companies have no problem using
       | whatever providers. Just dropping OTP is not exactly ideal either
       | so we are stuck between rock and a hard place.
        
         | vaylian wrote:
         | TOTP is a simple and nice solution, but it is susceptible to
         | real-time phishing attacks.
         | 
         | Webauthn is a more complex alternative and it is phishing-
         | resistant, because each credential is tied to a domain, which
         | means that a look-alike phishing website doesn't work. But you
         | need to use a hardware token or a special service like Windows
         | Hello or Apple's FaceID to manage your credentials.
         | https://en.wikipedia.org/wiki/WebAuthn
        
           | lxgr wrote:
           | Several password managers support it at this point too,
           | without any hardware requirements. Bitwarden's implementation
           | works pretty well, for example.
        
             | bigfatkitten wrote:
             | But then of course you also lose one of the main security
             | properties that made webauthn desirable in the first place.
             | 
             | If you can copy the credentials to your own new device, an
             | adversary can copy them to their device also.
        
               | wongarsu wrote:
               | That's true of SMS 2FA too, though, as well as many TOTP
               | implementations. Being able to copy credentials to a new
               | device is a major usability plus, consequently it is
               | widely implemented.
               | 
               | Physical webauthn tokens are obviously better, but
               | software webauthn is the second best thing. Software TOTP
               | is a good bit worse, and SMS OTP shouldn't even qualify
               | as a secure method
        
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       (page generated 2024-09-02 23:00 UTC)