Real-Time Keyloggers
The NY Times has a story and a blog backgrounder focusing on a weapon now being wielded by bad guys (most likely in Eastern Europe, according to the Times): Trojan horse keyloggers that report back in real-time. The capability came to light in a court filing (PDF) by Project Honey Pot against "John Doe" thieves. The case was filed in order to compel the banks — which are almost as secretive as the cyber-crooks — to reveal information such as IP addresses that could lead back to the miscreants. Or at least allow victims to be notified. Real-time keyloggers were first discovered in the wild last year, but the court filing and the Times article should bring new attention to the threat. The technique menaces the 2-factor authentication that some banks have instituted: "By going real time, hackers now can get around some of the roadblocks that companies have put in their way. Most significantly, they are now undeterred by systems that create temporary passwords, such as RSA's SecurID system, which involves a small gadget that displays a six-digit number that changes every minute based on a complex formula. If [your] computer is infected, the Trojan zaps your temporary password back to the waiting hacker who immediately uses it to log onto your account. Sometimes, the hacker logs on from his own computer, probably using tricks to hide its location. Other times, the Trojan allows the hacker to control your computer, opening a browser session that you can't see."
Bank of America used to have a good system for authenticating their site. At login, you input your ID, and the B of A site gave you back a photo of your own choosing to tell you that you were on the real Bank of America site. Only then did you input your password.
Last Friday, B of A broke this feature. I'm now getting a password prompt without seeing the photo I'd chosen. My first thought was that there's was a security problem. I checked the SSL cert info, which looked OK. I reinstalled Firefox. No change. I called Bank of America. They wanted me to remove Flash, which I did. No change. They advised me not to log in. Then they passed me off to tech support, which hasn't called back yet.
Then I took out a Linux-based Eee PC 2G Surf that had been unused for months, powered it up, plugged in an Ethernet cable, and saw the site doing exactly the same thing. So it's probably not a client side problem.
What I think happened is that someone at B of A did a partial site redesign and broke something. They introduced some Flash (something called "/sas/sas-docs/html/pmfso.swf") on the password page (a terrible idea, given Flash's history of security vulnerabilities) and along with that, broke some part of the login process.
If, in fact, they've had a break in on the server side, the main login of Bank of America has been compromised for at least three days now. I'm not seeing any indication of that, though; just general ineptitude.
(The page HTML is awful. It's clearly been modified over and over for years without a cleanup. It has Flash, Javascript, CSS, single-pixel GIFs for formatting, and comments like "July maintenance OLB timeout inactivity update starts". The "enter password" page has 966 lines of HTML and JavaScript, not including external files. That's too much flaky machinery for such a security-critical function.)