A phone call to an Internet provider in Oregon on Sunday evening was all it took to briefly sideline multiple websites related to 8chan/8kun — a controversial online image board linked to several mass shootings — and QAnon, the far-right conspiracy theory which holds that a cabal of Satanic pedophiles is running a global child sex-trafficking ring and plotting against President Donald Trump. Following a brief disruption, the sites have come back online with the help of an Internet company based in St. Petersburg, Russia.
A large number of 8kun and QAnon-related sites (see map above) are connected to the Web via a single Internet provider in Vancouver, Wash. called VanwaTech (a.k.a. “OrcaTech“). Previous appeals to VanwaTech to disconnect these sites have fallen on deaf ears, as the company’s owner Nick Lim reportedly has been working with 8kun’s administrators to keep the sites online in the name of protecting free speech.
But VanwaTech also had a single point of failure on its end: The swath of Internet addresses serving the various 8kun/QAnon sites were being protected from otherwise crippling and incessant distributed-denial-of-service (DDoS) attacks by Hillsboro, Ore. based CNServers LLC.
On Sunday evening, security researcher Ron Guilmette placed a phone call to CNServers’ owner, who professed to be shocked by revelations that his company was helping QAnon and 8kun keep the lights on.
Within minutes of that call, CNServers told its customer — Spartan Host Ltd., which is registered in Belfast, Northern Ireland — that it would no longer be providing DDoS protection for the set of 254 Internet addresses that Spartan Host was routing on behalf of VanwaTech.
Contacted by KrebsOnSecurity, the person who answered the phone at CNServers asked not to be named in this story for fear of possible reprisals from the 8kun/QAnon crowd. But they confirmed that CNServers had indeed terminated its service with Spartan Host. That person added they weren’t a fan of either 8kun or QAnon, and said they would not self-describe as a Trump supporter.
CNServers said that shortly after it withdrew its DDoS protection services, Spartan Host changed its settings so that VanwaTech’s Internet addresses were protected from attacks by ddos-guard[.]net, a company based in St. Petersburg, Russia.
Spartan Host’s founder, 25-year-old Ryan McCully, confirmed CNServers’ report. McCully declined to say for how long VanwaTech had been a customer, or whether Spartan Host had experienced any attacks as a result of CNServers’ action.
McCully said while he personally doesn’t subscribe to the beliefs espoused by QAnon or 8kun, he intends to keep VanwaTech as a customer going forward.
“We follow the ‘law of the land’ when deciding what we allow to be hosted with us, with some exceptions to things that may cause resource issues etc.,” McCully said in a conversation over instant message. “Just because we host something, it doesn’t say anything about we do and don’t support, our opinions don’t come into hosted content decisions.”
But according to Guilmette, Spartan Host’s relationship with VanwaTech wasn’t widely known previously because Spartan Host had set up what’s known as a “private peering” agreement with VanwaTech. That is to say, the two companies had a confidential business arrangement by which their mutual connections were not explicitly stated or obvious to other Internet providers on the global Internet.
Guilmette said private peering relationships often play a significant role in a good deal of behind-the-scenes-mischief when the parties involved do not want anyone else to know about their relationship.
“These arrangements are business agreements that are confidential between two parties, and no one knows about them, unless you start asking questions,” Guilmette said. “It certainly appears that a private peering arrangement was used in this instance in order to hide the direct involvement of Spartan Host in providing connectivity to VanwaTech and thus to 8kun. Perhaps Mr. McCully was not eager to have his involvement known.”
8chan, which rebranded last year as 8kun, has been linked to white supremacism, neo-Nazism, antisemitism, multiple mass shootings, and is known for hosting child pornography. After three mass shootings in 2019 revealed the perpetrators had spread their manifestos on 8chan and even streamed their killings live there, 8chan was ostracized by one Internet provider after another.
The FBI last year identified QAnon as a potential domestic terror threat, noting that some of its followers have been linked to violent incidents motivated by fringe beliefs.
One of the digital underground’s most popular stores for peddling stolen credit card information began selling a batch of more than three million new card records this week. KrebsOnSecurity has learned the data was stolen in a lengthy data breach at more than 100 Dickey’s Barbeque Restaurant locations around the country.
On Monday, the carding bazaar Joker’s Stash debuted “BlazingSun,” a new batch of more than three million stolen card records, advertising “valid rates” of between 90-100 percent. This is typically an indicator that the breached merchant is either unaware of the compromise or has only just begun responding to it.
Multiple companies that track the sale in stolen payment card data say they have confirmed with card-issuing financial institutions that the accounts for sale in the BlazingSun batch have one common theme: All were used at various Dickey’s BBQ locations over the past 13-15 months.
KrebsOnSecurity first contacted Dallas-based Dickey’s on Oct. 13. Today, the company shared a statement saying it was aware of a possible payment card security incident at some of its eateries:
“We received a report indicating that a payment card security incident may have occurred. We are taking this incident very seriously and immediately initiated our response protocol and an investigation is underway. We are currently focused on determining the locations affected and time frames involved. We are utilizing the experience of third parties who have helped other restaurants address similar issues and also working with the FBI and payment card networks. We understand that payment card network rules generally provide that individuals who timely report unauthorized charges to the bank that issued their card are not responsible for those charges.”
Q6Cyber CEO Eli Dominitz said the breach appears to extend from May 2019 through September 2020.
“The financial institutions we’ve been working with have already seen a significant amount of fraud related to these cards,” Dominitz said.
Gemini says its data indicated some 156 Dickey’s locations across 30 states likely had payment systems compromised by card-stealing malware, with the highest exposure in California and Arizona. Gemini puts the exposure window between July 2019 and August 2020.
With the threat from ransomware attacks grabbing all the headlines, it may be tempting to assume plain old credit card thieves have moved on to more lucrative endeavors. Alas, cybercrime bazaars like Joker’s Stash have continued plying their trade, undeterred by a push from the credit card associations to encourage more merchants to install credit card readers that require more secure chip-based payment cards.
That’s because there are countless restaurants — usually franchise locations of an established eatery chain — that are left to decide for themselves whether and how quickly they should make the upgrades necessary to dip the chip versus swipe the stripe.
“Dickey’s operates on a franchise model, which often allows each location to dictate the type of point-of-sale (POS) device and processors that they utilize,” Gemini wrote in a blog post about the incident. “However, given the widespread nature of the breach, the exposure may be linked to a breach of the single central processor, which was leveraged by over a quarter of all Dickey’s locations.”
While there have been sporadic reports about criminals compromising chip-based payment systems used by merchants in the U.S., the vast majority of the payment card data for sale in the cybercrime underground is stolen from merchants who are still swiping chip-based cards.
This isn’t conjecture; relatively recent data from the stolen card shops themselves bear this out. In July, KrebsOnSecurity wrote about an analysis by researchers at New York University, which looked at patterns surrounding more than 19 million stolen payment cards that were exposed after the hacking of BriansClub, a top competitor to the Joker’s Stash carding shop.
The NYU researchers found BriansClub earned close to $104 million in gross revenue from 2015 to early 2019, and listed over 19 million unique card numbers for sale. Around 97% of the inventory was stolen magnetic stripe data, commonly used to produce counterfeit cards for in-person payments.
Visa and MasterCard instituted new rules in October 2015 that put retailers on the hook for all of the losses associated with counterfeit card fraud tied to breaches if they haven’t implemented chip-based card readers and enforced the dipping of the chip when a customer presents a chip-based card.
Dominitz said he never imagined back in 2015 when he founded Q6Cyber that we would still be seeing so many merchants dealing with magstripe-based data breaches.
“Five years ago I did not expect we would be in this position today with card fraud,” he said. “You’d think the industry in general would have made a bigger dent in this underground economy a while ago.”
Tired of having your credit card re-issued and updating your payment records at countless e-commerce sites every time some restaurant you frequent has a breach? Here’s a radical idea: Next time you visit an eatery (okay, if that ever happens again post-COVID, etc), ask them if they use chip-based card readers. If not, consider taking your business elsewhere.Source: KREBS ON SECURITY