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Security Researcher Pleads Guilty To Hacking Into Microsoft and Nintendo (theverge.com)

24-year-old security researcher Zammis Clark pleaded guilty today to hacking into Microsoft and Nintendo servers and stealing confidential information. Clark, known online as Slipstream or Raylee, "was charged on multiple counts of computer misuse offenses in a London Crown Court on Thursday, and pleaded guilty to hacking into Microsoft and Nintendo networks," reports The Verge. From the report: Prosecutors revealed that Clark had gained access to a Microsoft server on January 24th, 2017 using an internal username and password, and then uploaded a web shell to remotely access Microsoft's network freely for at least three weeks. Clark then uploaded multiple shells which allowed him to search through Microsoft's network, upload files, and download data. In total, around 43,000 files were stolen after Clark targeted Microsoft's internal Windows flighting servers. These servers contain confidential copies of pre-release versions of Windows, and are used to distribute early beta code to developers working on Windows. Clark targeted unique build numbers to gain information on pre-release versions of Windows in around 7,500 searches for unreleased products, codenames, and build numbers.

Clark then shared access to Microsoft's servers through an Internet Relay Chat (IRC) server chatroom, allowing other individuals to access and steal confidential information. Prosecutors say other hackers from France, Germany, the United Arab Emirates, and other countries were then able to access Microsoft's servers. Police found the stolen files on Clark's home computer after a joint investigation involving Microsoft's cyber team, the FBI, EUROPOL, and the NCA's National Cyber Crime Unit (NCCU). [...] The Microsoft intrusion ended when Clark uploaded malware onto Microsoft's network, and he was subsequently arrested in June, 2017. Clark was then bailed without any restrictions on his computer use, and went on to hack into Nintendo's internal network in March last year. Clark gained access through Virtual Private Networks (VPNs) and used similar software to hack into Nintendo's highly confidential game development servers. These servers store development code for unreleased games, and Clark was able to steal 2,365 usernames and passwords until Nintendo eventually discovered the breach in May 2018. Nintendo estimates the cost of damages between $913,000 and $1.8 million, and Microsoft previously provided the court with a vague estimate of around $2 million in damages.
26-year-old Thomas Hounsell, known in the Windows community for running the now discontinued BuildFeed website, appeared alongside Clark in court on Thursday for using Clark's Microsoft server breach to conduct more than 1,000 searches for products, codenames, and build numbers over a 17-day period, the report adds.

53 comments

  1. The problem with this story... by Excelcia · · Score: 5, Insightful

    ...is calling him a "security researcher".

    1. Re:The problem with this story... by Anonymous Coward · · Score: 0, Interesting

      I don't know when we switched from "hacker" or "intruder" to "security researcher".

    2. Re: The problem with this story... by Anonymous Coward · · Score: 0

      Lol. I was going to say the same thing

    3. Re: The problem with this story... by Anonymous Coward · · Score: 1

      The media has misused the term "hacker" so much that when they see an actual hacker, they have no idea what to call him.

    4. Re:The problem with this story... by Anonymous Coward · · Score: 0

      Article mentions he worked at Malwarebytes at the time of the Microsoft hack.

    5. Re:The problem with this story... by Anonymous Coward · · Score: 2, Funny

      I'm not robbing you, I'm just researching the security of your wallet!

    6. Re: The problem with this story... by Anonymous Coward · · Score: 0

      A real hacker wouldn't care what you called him

    7. Re:The problem with this story... by Anonymous Coward · · Score: 0

      You're right, he's Zammis. ZAMMIS!

      I'm sure he hangs out with "Tyler", "Taylor", "Logan" and "Aidan". Stupid fucking millennial names...

    8. Re:The problem with this story... by rtb61 · · Score: 1

      When the title fits, "Clark, who was employed at the Malwarebytes security company at the time of the Microsoft hack". The fellow is autistic (which is quite useful for computer security, they love details, deep numbers), and the position likely fed into his genetic malady and exacerbated it, the quest for more detail, that curiosity bug on steroids. Likely be better off in a protected job in government where they could constrain or make use of his excess digital curiosity, dependent upon the target.

      The NSA or FBI should nab the fellow, for employment, and ensure his curiosity is targeted at persons or organisations they want that curiosity targeted at (not as an agent but as a civilian employee, with agents carefully supervising the activity, without have to pour through the grindingly boring search, that certain autistic types love). They were lenient mainly because income was not the motivation, just foolish curiosity and making friends, those he shared the information with.

      --
      Chaos - everything, everywhere, everywhen
    9. Re: The problem with this story... by Anonymous Coward · · Score: 0

      They should probably call them a cracker.

    10. Re: The problem with this story... by Anonymous Coward · · Score: 1

      thats racist

    11. Re:The problem with this story... by Anonymous Coward · · Score: 0

      Nothing was stolen. The data was not confidential, just in confidence at best. Apparently the usernames were not protected - it would be good if you were reminded your last access was .... It looks transborder - London is not the USA. Does not look like fraud. So give him a few months community service like the other housing estate bogans.

    12. Re: The problem with this story... by Anonymous Coward · · Score: 0

      The problem is that Microsoft didn't read the "researcher's" 10000 page reverse EULA which clearly grants him full rights to all of Microsoft's data and resources without any consequences.

    13. Re: The problem with this story... by Anonymous Coward · · Score: 0

      Yes, as a LAST NAME. It's not a real first name.

    14. Re:The problem with this story... by UsuallyReasonable · · Score: 1

      Prerelease versions of Windows aren't confidential? In what universe, exactly?

    15. Re:The problem with this story... by Excelcia · · Score: 1

      !protected != !confidential

      Prerelease code is a trade secret. Any code is a trade secret.
      Uploading web shells to enhance and extend his access...
      Giving the access details to all his friends on IRC.

      This isn't some estate brat who egged a house. Basically he picked the lock, robbed the house, put duct tape over the latch so that it couldn't properly lock and more, then told all his friends the house address so that they could pick over the stuff he didn't necessarily want.

      Narrowly avoiding prison is wide of the mark.

  2. No such thing as a white hat by Anonymous Coward · · Score: 0

    They are all just hackers up to no good.

    1. Re:No such thing as a white hat by Anonymous Coward · · Score: 1

      What about Gandalf.

    2. Re:No such thing as a white hat by Anonymous Coward · · Score: 0

      All tech savvy are a hat.
      All hats are non whitehat hackers up to no good.
      All tech savvy are hackers up to no good.
      QED

    3. Re:No such thing as a white hat by Anonymous Coward · · Score: 0

      some are just arse hats.

  3. "Microsoft security?" by mabu · · Score: 2

    The guy hacked into Microsoft's network, and enjoyed access for more than five months, including sharing logon credentials with the hacker community, and Microsoft only seemed to find out after he uploaded malware to their network?

    1. Re:"Microsoft security?" by Anonymous Coward · · Score: 0

      He was caught because upon sharing the community at large utilized the credentials he provided. I'm sure once that happened it was realtively easy to find the breach. One person breaching is harder to find as they lurk. But when you have thousands of people accessing a set of systems it will become very apparent very quickly.

      I'm more concerned with the guy who was in court with him, who according to the ./ portion didn't seem to do anything but use a set of credentials to search. It didn't state that he did anything malicious. Just that he logged in. If that is the case then this could potentially set a precdent for anyone using any credentials found online for something as mundane as porn, news websites, et. al. Its one thing to pilfer bank data from some random person's bank credentials shared online than say using freely shared credentials for the New York Times, Wall Street Journal, etc. Hell some hotels, motels, etc share such credentials for their patrons. I remember in college I didn't have access to some news stories (yeah even at university - namely due to interlibrary issues being remote) I was able to find creds for a small mom & pop inn that had creds for a major news outlet. I'm not sure whether they realized the entire world had access or not. But it helped to get my hw done.

      I don't agree with what the guy did to MS or Nintendo, but the other guy if all he did was login and logout without doing any damage other than seeing with his eyes I'm not sure he really needs anything other than to apologize and state he won't do it again and maybe some free services to the community at large; or something. Seems harsh to punish someone who finds creds and uses them; unless the story states otherwise.

    2. Re: "Microsoft security?" by Anonymous Coward · · Score: 0

      Yeah, so you see your honor, yeah I kinda broke in and stole some stuff that normally I would have to pay for but I am poor and a cheap aaa so thats not like a real crime, right? Because I didnt mean to do anything really bad! Just ya know kinda bad. And sure the total of my theft rose well into felony ranges but otherwise I couldnt have afforded all that stuff I stole! I am so glad you understand and will let me go with a mild warning and a chuckle about kids these days! You are such a cool judge.

      That and a million other things that would never happen are going into my book of stupidity.

      You were a thief. Sounds like you still are. You stole. I am glad that other guy is there in court and going to get punished. You think that was the only thing he has ever done? Why exactly was he logging in to what he KNEW what a stolen internal corporate credential? Just doing some uh security research, right?

      Fucking idiots. Go directly to jail. Do not pass Go. Do not. Ole team $200.

      Just curious, did you also happen to login to the MS or Nintendo networks?

    3. Re:"Microsoft security?" by phantomfive · · Score: 1

      Note that this is a company that regularly performs security audits, with red-teaming and blue-teaming.

      I've said it before, but security can't be bolted on afterwards by a "security team." Every programmer needs to have security at the front of their mind.

      --
      "First they came for the slanderers and i said nothing."
    4. Re: "Microsoft security?" by Anonymous Coward · · Score: 0

      You are incorrect, asshat. The proper offense would be FRAUD (obtaining something of value under a false pretense), not theft (the taking of something with the intent to deprive the owner of the thing taken). Nothing was TAKEN, merely COPIED (or value obtained). The owner of the "thing copied" still has possession and control of it.

      I realize that you are just a dumb fuck who does not understand plain simple English, but you really should try to educate yourself beyond a kindergarten level.

    5. Re: "Microsoft security?" by Anonymous Coward · · Score: 0

      Toss 'em into the gulag! Long live the police state!

    6. Re: "Microsoft security?" by Anonymous Coward · · Score: 0

      Matyas Rakosi reporting for duty

    7. Re:"Microsoft security?" by Anonymous Coward · · Score: 0

      he had access for 3 weeks, not 5 months. which as far as detecting malicious intruders goes is pretty impressive compared to most corps. He was arrested after 5 months.

    8. Re:"Microsoft security?" by Anonymous Coward · · Score: 0

      The guy hacked into Microsoft's network, and enjoyed access for more than five months, including sharing logon credentials with the hacker community, and Microsoft only seemed to find out after he uploaded malware to their network?

      Did you even read the summary?

      Clark had gained access to a Microsoft server on January 24th, 2017 using an internal username and password, and then uploaded a web shell to remotely access Microsoft's network...

      The person got in a normal way (by logging in using a valid internal username and password). The question would be how he obtained the valid internal username & password. If he got it by hacking someone else's computer, then it is a hacking. Still, he did NOT hack into MS network but rather planted shell from the inside (after logged in).

    9. Re: "Microsoft security?" by Anonymous Coward · · Score: 0

      Physical items are intrinsically scarce. You have it or I do. We can't both possess an item unless we make/obtain another identical item. In theft, person A deprives person B of said item. With non physical goods you have not deprived person A of the item unless you delete their copy. Without that extra step you haven't stolen. The guy who just logged in and looked around has likely committed trespassing and copyright infringement (illegal copying to his brain of content), but not theft. Society's laws are written with assumptions about physical scarcity (as that was all there was for most of human history). These assumptions no longer work in the digital realm as most scarcity is artificially created, not intrinsic. Society needs to reevaluate its rules in light of this. Things that used to cause real harm, don't always cause that harm any more. Conversely creating artificial scarcity should probably be a crime in some conditions due to the harm it causes.

  4. And not posting the entire contents... by Anonymous Coward · · Score: 0

    to github, signed as coming from Microsoft as part of their new 'open source corporate strategy' :)

    If he'd done that and kept from getting caught, it all could've ended well for him and everyone else.

    1. Re: And not posting the entire contents... by Anonymous Coward · · Score: 0

      Malwarebytes blocks access to github domains. Something about ill gotten gains and sharing. Or maybe malware bytes simply has nothing anyone wants.

  5. BuildFeed by 110010001000 · · Score: 0

    Why would someone start a website with build strings? What would you use it for?

    1. Re: BuildFeed by Anonymous Coward · · Score: 0

      You wouldn't duh. You'd make a website out of paragraphs and images and form elements.

  6. WTF by Anonymous Coward · · Score: 0

    He clearly failed the subject of "Ethical Hacking" and should go to prison in order to complete his remedial learning. With that said, I'm a bit curious to know what certifications he obtained to be recognized as a "security researcher".

    1. Re: WTF by Anonymous Coward · · Score: 0

      Intel in israel has a new cert and he snuck away back to the golan heights with the only known stamp. Really rare cert btw

  7. those damages though.. by gl4ss · · Score: 1

    ..

    whats up with that? microsoft paid someone 2 million to look into the hack? or nintendo got someone on their payroll and paid 2 million in actual bills to someone to look at the logs?

    UNFUCKING LIKELY.

    it's just made up.

    --
    world was created 5 seconds before this post as it is.
    1. Re:those damages though.. by Anonymous Coward · · Score: 0

      Two million is roughly what payroll would be for 20 employees for a year, or 40 for six months, at $100k/yr

      I dunno, I've only worked at smaller companies with 1-2 people at most on the internal security team. I'm sure Microsoft has a much larger team, or even a fully staffed department, but that would make a lot of sense for a "vague estimate"

      In a US court, companies are generally allowed to include employee salaries in their itemized list of damages, so was likely included in the number the PR person gave to the reporters.

      Assuming the court documents ever get released, their legal team will no doubt adjust that number as needed to be more in like with what a UK court and judge would accept.

    2. Re:those damages though.. by imidan · · Score: 1

      Just off the top of my head, here are a bunch of steps that might be taken in the situation:

      • Security team to discover the hack
      • Shut down systems/services to stop the attack
      • Document the extent of the hack and compromised data
      • Replace affected hardware with new, preserving the old as evidence
      • Eliminate the attacker's shells
      • Eliminate the attacker's malware
      • Rebuild affected systems
      • Audit everything the attacker might have touched
      • Prepare legal documentation
      • Depose everyone
      • Liaise with law enforcement
      • ...

      This requires the time of security analysts, consultants, lawyers, management, IT people; recompense for lost time for anyone at MS unable to work while affected systems were down; money for hardware replacement; ... . MS probably isn't feeling especially generous about these costs, and is definitely going to count every cost they can in their total.

      The guy had access for three weeks until mid-February, and was arrested in June. So there's 3.5 months give or take a few weeks when MS could have been doing all of this work. I hope it wouldn't have taken them the whole time, but it's easy to see how the costs could add up.

  8. The government is morally bankrupt by Anonymous Coward · · Score: 0

    I find it humorous that there are actually people out there that think its OK when the government breaks into other peoples computers, but takes a moral stance its not OK when others do it.

    I have little concern for this particular individual, given his own lack of self preservation, but the government is doing no one a favor by persecuting people like this. Government can't solve 'hacking'. I have sympathy for those who take measures to secure there own systems and those who protect themselves from the abuse that is government via whatever means are at there disposal. A real 'hacker' has no excuse for leaving behind evidence on his own computer. Short of a no knock raid with a live forensic investigation anyway.

  9. Pile of Lies ... by Anonymous Coward · · Score: 0

    Nothing was "stolen". Data was copied. "Stolen" has a very specific meaning and that means to "take something without permission and with the intent to deprive the owner the use of the thing taken." Unless the files were copied and then deleted, they were not stolen -- the original was merely copied.

    1. Re:Pile of Lies ... by Anonymous Coward · · Score: 0

      You are a prime example of the of how our failing education system is creating morons. But take a heart you are not alone in your idiocy.

  10. Actually by Anonymous Coward · · Score: 0

    "Hacker" is even less informative, seeing the things that get called "hacks" and what actions get called "hacking". Neither is warranted, IMO, but what can you expect from idiot editors? Yes, not just the slashdot ones either.

  11. Microsoft sucks by gavron · · Score: 1

    This guy demonstrated issues wirh MS [lack of] security
    and they cried uncle.

    Do you support free security research, or Microsoft?

    Note: if you're not part of the security community please put "idiod" in your response subject so as not to bias valid results.

    E

  12. researcher? by gravewax · · Score: 1

    WTF? how is this guy in anyway a "security researcher", he was nothing of the fucking sort, he was a straight up hacker/thief.

  13. hacker by DrYak · · Score: 1

    WTF? how is this guy in anyway a "security researcher", he was nothing of the fucking sort, he was a straight up hacker/thief.

    Bonus point for having used "Hacker": the previous word that used to mean something else but was eventually cooped into meaning the malicious attacker that apparently called "security researcher" nowadays by the press.

    --
    "Sufficiently advanced satire is indistinguishable from reality." - [Tips: 1DrYakQDKCQ6y52z6QbnkxHXAocMZJE61o ]
  14. Probably would have gotten away with it... by The+Faywood+Assassin · · Score: 1

    If it wasn't for those pesky kids.

    Kids he shared the access with on the internet in a large scale.

    Why do kids these days feel the need to publicly confess to their crimes in celebration?

    --

    "I'm a humble person really,

    I'm actually much greater than I think I am"

    1. Re:Probably would have gotten away with it... by Anonymous Coward · · Score: 0

      Why do kids these days feel the need to publicly confess to their crimes in celebration?

      Tom Anderson hacked into a bank when he was 17. He confessed then became a millionaire CEO of Myspace.

      CIA: "Was getting caught part of your plan?!"
      Me: "Of Courshe!"

  15. Strangely by Anonymous Coward · · Score: 0

    ... around the same point they soured the term 'hacker' with the mass media and public.

  16. It could happen to you! by Anonymous Coward · · Score: 0

    Just imagine if this happened to GNU+=Linux!

  17. Really?... NOOB! by Anonymous Coward · · Score: 0

    Dude deserves what he got if he was stupid enough to leave stolen data on his home computer, unencrypted. Also, how did they know to even search his house? He obviously failed to use tor/socks/tunnels/etc. Sounds like a huge noob to me. He probably just tried random VPN logins and got lucky. Doesn't sound like he coded or exploited anything whatsoever other than VPN logins. Far from a real hacker. This is just poor security on Microsoft and Nintendos part.