Tag Archives: Cyber

Recycle, Reuse, Reharm: How hackers use variants of known malware to victimize companies and what PayPal is doing to eradicate that capability

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“No need to reinvent the wheel.” We’ve heard it. We’ve used it. Is it a mark of laziness or leaving something as is because it’s effective? In the case of malware, it’s most certainly the latter. Several high profile hacks have received extensive news coverage in recent years. Seeing these attacks happen repeatedly leads cybersecurity experts to look for common threads in attack vectors and execution modes. Through years of data analysis, one trend is clear- while attacks vary many elements of the malware source codes are identical and are successfully reused. Below are some examples of attacks you may recognize but were unaware were related to previously known attack vectors that are still actively exploited:

  • 2011: Cyber espionage attacks that were launched on RSA and Lockheed-Martin, resulting in grave financial and operational damage used a variant of Poison Ivy, a well-known malware in use since 2006. To date, the cyber security community is still fighting derivatives.
  • 2013 and 2014: The infamous Target and Home Depot hacks were both carried out using variants of BlackPoS, a malware installed on point of sale systems designed to glean data from cards when swiped at the register.
  • 2014: The Sony hack was executed using Destrover, malware heavily reliant on code taken from Shamoon (used in the 2012 attack on Saudi Aramco) and DarkSeoul (used in the 2013 attack on South Korean banks and TV broadcasters).

How does it work?

There are three aspects of malware reuse that we’ve identified as particularly dangerous:

  • Code Reuse: Incorporate code from one malware into another
  • Semantic Equivalence: Make changes to the code but preserve the functions
  • Different Path, Same Target: Change/add functions to evade heuristics

To demonstrate a process malware developers use, we’ll pull an example from BlackPoS. Using code from a January 2015 blog post by Nick Hoffman, we can figuratively explain how reuse of existing techniques enabled the developers of BlackPoS to create a new variant and continue attacking a few months after the malware was discovered attacking Target. The process consists of at least three steps:

  • Once it is downloaded, it runs the CreateToolhelp32Snapshot API call, followed by Process32First in order to discover all the running processes on the computer. This is the exact process used by the Zeus “SpyEye” variant, PoS malware Alina, and PoS malware Backoff. The original BlackPoS variant used a different API call – EnumProcesses, yet the variant of BlackPoS discovered in August 2014 did change to this one. It is quite possible it copied this from Alina or Backoff.
  • Using the OpenProcess and ReadProcessMemory calls, the malware then reads processes that do not appear on its whitelist searching for credit card track data. This technique appeared in the original BlackPoS variant, as well as in Zeus “SpyEye” and Alina. Again, it is likely that this technique was copied from one of them.
  • The last step searches for certain identifiers of track 1 and track 2 data in the data of the processes read with ReadProcessMemory. The same step is seen in all PoS RAM scraping malware, such as Backoff.

Malware.Nov 2015.fw

It’s that easy. This malware does not include C&C communication, stealth, or persistence capabilities. All it needs in order to create these capabilities is copy code and techniques from similar malware that’s already out there. This process is a the base of all malware families, from PoS to ICS.

Cool story. What is PayPal doing about it?

At PayPal’s Center of Excellence in Bee’rsheva, Israel, we approach malware detection with the mentality that by identifying similar elements embedded in the code of existing malware like those illustrated above; we can predict attributes of future bugs and thwart them before they make it into the wild. Our goal is to render the reuse of existing malware ineffective and minimize scalable attacks. By forcing the total recreation of malware each time an attack is launched, we’re lengthening the time between attacks and dramatically increasing the cost of creating a vector.

Our predictive engine creates variants from existing malicious binary samples via an evolutionary algorithm. The results are tested in simulated environments and evaluated, thus supporting a machine learning training process for malware detectors, enabling them to locate hundreds of thousands of future malware variants in the wild, and head off future attacks.

While integrating the existing PayPal infrastructure  into the CyActive predictive detection model, PayPal’s Shlomi Boutnaru and Liran Tancman have been researching this method since 2012. It became a reality in 2013 when they launched CyActive, the cybersecurity company that PayPal acquired in 2015. The product integration is currently in progress and is expected to be a game changer in the risk management arena.  Shlomi’s January 2015 article on Techcrunch highlighted the dangers of malware reuse coupled with human error as key tactics expected to be used by hackers in 2015. We’re doing everything we can to ensure this prediction is eradicated in the foreseeable future.