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ShadowPad attacks supply chain companies

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Kaspersky Labs has identified ShadowPad, a backdoor virus planted in server management software that allows attackers to download further malicious modules or steal data.

Kaspersky Lab experts have discovered a backdoor planted in a server management software product used by hundreds of large businesses around the world. When activated, the backdoor allows attackers to download further malicious modules or steal data. Kaspersky Lab has alerted NetSarang, the vendor of the affected software, and it has promptly removed the malicious code and released an update for customers.

ShadowPad is one of the largest known supply-chain attacks. Had it not been detected and patched so quickly, it could potentially have targeted hundreds of organisations worldwide.

In July, 2017 Kaspersky Lab’s Global Research and Analysis (GReAT) team was approached by one of its partners – a financial institution. The organisation’s security specialists were worried about suspicious DNS (domain name server) requests originating on a system involved in the processing of financial transactions. Further investigation showed that the source of these requests was server management software produced by a legitimate company and used by hundreds of customers in industries like financial services, education, telecoms, manufacturing, energy, and transportation. The most worrying finding was the fact that the vendor did not mean for the software to make these requests.

Further Kaspersky Lab analysis showed that the suspicious requests were actually the result of the activity of a malicious module hidden inside a recent version of the legitimate software. Following the installation of an infected software update, the malicious module would start sending DNS-queries to specific domains (its command and control server) at a frequency of once every eight hours. The request would contain basic information about the victim system (user name, domain name, host name). If the attackers considered the system to be “interesting”, the command server would reply and activate a fully-fledged backdoor platform that would silently deploy itself inside the attacked computer. After that, on command from the attackers, the backdoor platform would be able to download and execute further malicious code.

Following the discovery, Kaspersky Lab researchers immediately contacted NetSarang. The company reacted fast and released an updated version of the software without the malicious code.

So far, according to Kaspersky Lab research, the malicious module has been activated in Hong Kong, but it could be lying dormant on many other systems worldwide, especially if the users have not installed the updated version of the affected software.

While analysing the tools techniques and procedures used by the attackers, Kaspersky Lab researchers came to the conclusion that some similarities exist that point to PlugX malware variants used by the Winnti APT, a known Chinese-speaking cyberespionage group. This information, however, is not enough to establish a precise connection to these actors.

“ShadowPad is an example of how dangerous and wide-scale a successful supply-chain attack can be. Given the opportunities for reach and data collection it gives to the attackers, most likely it will be reproduced again and again with some other widely used software component. Luckily NetSarang was fast to react to our notification and released a clean software update, most likely preventing hundreds of data stealing attacks against its clients. However, this case shows that large companies should rely on advanced solutions capable of monitoring network activity and detecting anomalies. This is where you can spot malicious activity even if the attackers were sophisticated enough to hide their malware inside legitimate software,” said Igor Soumenkov, security expert, Global Research and Analysis Team, Kaspersky Lab.

NetSarang Statement

“To combat the ever-changing landscape of cyberattacks NetSarang has incorporated various methods and measures to prevent our line of products from being compromised, infected, or utilised by cyberespionage groups. Regretfully, the Build release of our full line of products on July 18th, 2017 was unknowingly shipped with a backdoor which had the potential to be exploited by its creator.

The security of our customers and user base is our highest priority and ultimately, our responsibility. The fact that malicious groups and entities are utilising commercial and legitimate software for illicit gain is an ever-growing concern and one that NetSarang, as well as others in the computer software industry, is taking very seriously.

NetSarang is committed to its users’ privacy and has incorporated a more robust system to ensure that never again will a compromised product be delivered to its users. NetSarang will continue to evaluate and improve our security not only to combat the efforts of cyber espionage groups around the world but also in order to regain the trust of its loyal user base.”

All Kaspersky Lab products detect and protect against the ShadowPad malware as “Backdoor.Win32.ShadowPad.a”.

Kaspersky Lab advises users to update immediately to the latest version of the NetSarang software, from which the malicious module has been removed, and to check their systems for signs of DNS queries to unusual domains. A list of the command server domains used by the malicious module can be found in the Securelist blogpost, which also includes further technical information on the backdoor.

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Welcome to world of 2099

The world of 2099 will be unrecognisable from the world of today, but it can be predicted, says one visionary. ARTHUR GOLDSTUCK met him in Singapore.

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Futuristic structures tower over the landscape. Giant, alien-looking trees light up with dazzling colours amid the hundreds of plant species that grow up their trunks. Cosmetic stores sell their wares via public touch-screens, with products delivered instantly in drawers below the screens.

This is not a vision of the future. It is a sample of Singapore today. But it is also an inkling of the world we may all experience in the future.

Singapore was the venue, last week, of the World Cities Summit, where engineers, politicians, investors and visionaries rubbed shoulders as they talked about the strategies and policies that would enhance urban living in the future.

As part of the Summit, global payment technologies leader Mastercard hosted a small media briefing by one of Singapore’s leading thinkers about the future, Dr Damian Tan, managing director of Vickers Venture Partners. The company’s slogan “We invest in the extraordinary,” offers a small clue to Tan’s perspective.

“We look as far forward as 2099 because, as a venture capital firm, we invest in the long term,” he tells a group of journalists from Africa and the Middle East. “Companies explode in growth because there is value in the future. If there is no growth, they won’t explode.”

The big question that the Smart Cities Summit and Mastercard are trying to help answer is, what will cities look like in the year 2099? Tan can’t give an exact answer, but he offers a framework that helps one approach the question.

“If you want to look at 81 years into the future, and understand the change that will come, you need to double that amount and look into the past. That takes us to 1856. The difference between then and now is the difference you can expect between now and 2099.”

Click here or on the page link below to read on: Page 2: Soldiers and Health in 2099.

  •    Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter on @art2gee and on YouTube

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Street art goes electric

Kaspersky Lab and British street artist D*Face have unveiled the first-ever “art helmet” design at the Formula E finale for electric cars in New York.

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The ‘Save The World’ helmets will be raced by DS Virgin Racing’s drivers, Sam Bird and Alex Lynn, as they traverse the New York street circuit during the final races of the Formula E season.

The announcement signals the first art helmet by a Formula E team, continuing the heritage of art in motorsport and the cybersecurity brand’s commitment to contemporary art, creativity and innovation. D*Face took inspiration from Kaspersky Lab’s tagline, “A Company To Save The World”, and hopes that his colourful work will inspire people to take positive action.

D*Face will announce his first-ever art car design with a custom-made livery for the DS Virgin Racing Team. Its design will be released at the “Art Goes Green” event after Saturday’s race. The helmets and art car are the latest installations in the “Save the World” collection, following a major permanent public mural that was installed in Brooklyn, New York, in May.

D*Face, whose real name is Dean Stockton, said: “It is exciting to work with Kaspersky Lab on this project and create art with a real message of hope for a better future. After all, this is our world and we need to look after it. It will take every one of us to make a real lasting, impactful change. I love the mentality of the DS Virgin Racing Team and that of Formula E by showcasing sport in a way that doesn’t harm the environment, but is still just as exhilarating and fun.

“It is time for us all to stand together and make a change… be that stopping data steals, climate change, plastic waste or using damaging fuels. I want everyone to make a pledge to do one thing that will help make a change.”

As a sponsor of DS Virgin Racing Team, Kaspersky Lab is responsible for protecting the team’s devices against cyber threats. The company sees the technical environment in the global sport of Formula E as the next frontier in furthering its research and development of new technologies to keep vehicles secure in the digital world.

Sylvain Filippi, Managing Director at DS Virgin Racing, said: “The whole team fully supports this great initiative and our thanks got to Kaspersky and D*Face for their collaboration. It’s an honour to have such an innovative artist bring his talents to bear in our team ahead of the season-finale; the car, drivers’ crash helmets and mural all look amazing.”

Aldo Fucelli Pessot del Bo, Head of Global Partnerships and Sponsorships at Kaspersky Lab added: “There is a need for innovation on a global scale, both in contemporary art and in the fast-growing sport of Formula E. Now, for the first time ever, Kaspersky Lab is proudly bringing together the two sectors in an effort to Save the World and unleash creativity, encourage freedom of expression and further innovation.”

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