Google Login Bug Allows Credential Theft (onthewire.io)
Trailrunner7 writes from a report via On the Wire: Attackers can add an arbitrary page to the end of a Google login flow that can steal users' credentials, or alternatively, send users an arbitrary file any time a login form is submitted, due to a bug in the login process. A researcher in the UK identified the vulnerability recently and notified Google of it, but Google officials said they don't consider it a security issue. The bug results from the fact that the Google login page will take a specific, weak GET parameter. Using this bug, an attacker could add an extra step to the end of the login flow that could steal a user's credentials. For example, the page could mimic an incorrect password dialog and ask the user to re-enter the password. [Aidan Woods, the researcher who discovered the bug,] said an attacker also could send an arbitrary file to the target's browser any time the login form is submitted. In an email interview, Woods said exploiting the bug is a simple matter. "Attacker would not need to intercept traffic to exploit -- they only need to get the user to click a link that they have crafted to exploit the bug in the continue parameter," Woods said. Google told Woods they don't consider this a security issue.
Isn't this by design?
You visit a page, it checks a cookie value with the authentication server, if it's invalid you get redirected to the authentication server, with a parameter that allows you to be redirected back to where you first tried to go.
When you're redirected back, the process starts again.
This is how a lot of SSO systems work.
The 'continue' parameter needs to accept every possible entry point to every website the SSO authentication server supports.
The article basically says the steps to exploit this are:
1) Get the user to visit your suspicious website/link.
2) Get them to click on a login using Google link that sends them to google.com/continue?= (something like this)
3) They enter their Google credentials
4) It redirects them to your fake login page that says wrong password.
5) They enter their Google credentials again, and you steal them.
So, really, you could omit steps 2 & 3 and just send them straight to the fake login page. In the end, the only real problem is entering your login details on a non-Google domain. Paypal/Facebook/Steam/etc. all do the same thing.