What You Can Expect After the Verizon Breach

By: Tim Prugar

Yesterday, ZDNet broke the story that a data breach at Verizon resulted in the exposure of the names, phone numbers, and PINs for over 14 million Verizon customers. The data was accessed in June after it was discovered to be improperly stored on a server maintained by Nice Systems, an Israel-based company. 

The scope of the damage has yet to be established, but here are some safe bets on what you will see in the wake of this breach:

Explosion of Call Center Fraud at Verizon

Obtaining customer names, phone numbers, and PINs is pretty much the Holy Grail for fraudsters. Having this information allows fraudsters to order new handsets, obtain additional personal information for a secondary attack, set up call forwarding, or engage in number porting. Attacks using this information will almost always center around spoofing, and will most likely look something like this:

1) Fraudster researches the individual who owns the account they wish to breach online or through social media to figure out the answers to Knowledge-Based Authentication Questions.

2) Fraudster spoofs the number of the account they're attacking in order to present a matching ANI to the IVR system or the live agent.

3) Fraudster gives the name they've obtained from the breach to the agent when they reach a live person.

4) Fraudster gives the PIN they obtained through the breach. If there are any Knowledge-Based Authentication questions, Fraudster answers them easily based on their prior research. They're in. The Account Takeover is complete. 

 

Exploitation of Two-Factor Authentication (2FA)

Fraudsters will attack the Verizon Call Center directly - but for most fraudsters this will be the first step in a two-step plan. 

Many banks leverage 2FA to ensure the security of the accounts. 2FA largely relies on mobile devices, leveraging callbacks or SMS messaging to ensure the security of the customer. 

As Fraudsters set up call forwarding or port numbers during their primary attack on the Verizon Call Center, they will have the ability to intercept this 2FA from financial institutions. By successfully navigating this authentication process, fraudsters can attempt to execute wire transfers, open lines of credit, order replacement credit cards, or any amount of nefarious behavior. Expect fraudsters to leverage spoofing once again to present as the compromised customer to the financial institution to execute this plan. 

 

Increased Attacks on ISPs

We predicted in this post that ISPs would encounter "Hacktivism" and retaliatory breaches in the wake of the Net Neutrality debate. There isn't evidence yet that this breach is a direct result of internet unrest, but ISPs would be wise to batten down the hatches on their cyber and telephony channels. 

 

Tim Prugar is the Director of Customer Success at Next Caller. He can be reached at tim@nextcaller.com.

 

 

Social Security: Social Media Phishing Attacks Are on the Rise, Here’s How You Can Protect Yourself

While phishing, or the practice of sending emails or making phone calls purporting to be from legitimate companies in an effort to get victims to reveal personal information is nothing new, fraudsters are increasingly turning to new channels to target victims. One such channel is social media.

Recently, a social media attacked carried out by Russian hackers was able to infiltrate the computer of a Pentagon official. And it didn’t take much for the hackers to find their way in; a simple link attached to a Twitter post advertising a vacation package was enough. Once the linked was clicked, the official’s computer was infected.

In November 2015, the State Department revealed that its 7,000 of its employees took the first step toward being compromised by clicking on a link that appeared in their social media feeds.

According to one report, social media phishing attacks increased 500% from beginning of 2016 to end of 2016. While that’s a scary statistic, the success rate of these types of attacks may be even more frightening.

Research published by the cybersecurity firm ZeroFOX found that 66% of spear phishing messages sent through social media sites were opened by their intended victims.

The reason for the increase in attacks on social media is rather simple. These attacks are targeting channels where users usually have a high-degree of trust. When you share something to your social network, or see a post from someone else, it’s unlikely that you screen the content for fraud potential.

With the number of attacks on the rise, and the vulnerability that social media channels presents making headlines, corporations and government agencies around the world are starting to realize the importance of educating and training staff on the dangers of social media fraud.

However, these attacks aren’t relegated to big organizations. Anyone who uses social media should be aware of the potential threats as well as the steps they can take to make it less likely that they will be hooked in a social media phishing attack.


To help, we’ve put together the following infographic: