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West African scammers targeted in joint international government-industry operation

A joint international law enforcement and industry operation against scammers netted 28 arrests, rescued 117 trafficking victims and led to the takedown of more than 3.7 million accounts, the Justice Department announced Tuesday.

The crackdown, billed as “Joint Disruption Week,” focused on West Africa and also identified more than $11 million in freezable funds and led to the seizure of hundreds of electronic devices. The range of scams involved included law enforcement impersonation scams, digital arrest extortion schemes, pig butchering and other online fraud operations targeting victims around the world.

Participants heralded it as the largest joint scam operation to date, and the first focused on West Africa.

“For so long, the problem of international scams seemed impossible to tackle,” Kelly Milliron, acting chief of staff and counselor to the Assistant Attorney General leading the Criminal Division, told reporters. “But now, because of collaborations like Joint Disruption Week, we have a plan, a consolidated approach, bringing together people that can bring solutions and, most of all, safety for our citizens.”

It’s the latest effort in the Trump administration’s ongoing bid to make countering scam operations a theme of his term, and to make disrupting cyber adversaries and criminals a central focus of its cyber strategy. 

Participating agencies in the London-hosted operation beyond the Justice Department were the Scam Center Strike Force under the U.S. Attorney’s Office for the District of Columbia, the FBI, the Secret Service, the Treasury Department, Homeland Security Investigations, the Homeland Security Task Force, the United Kingdom’s National Crime Agency, the Nigerian Joint Case Team on Cybercrimes, the Nigeria Police Force’s National Cybercrime Center and the Ghanaian Cyber Security Authority, INTERPOL and agencies from Australia, Canada, India and New Zealand also were involved. 

Adobe, Binance, Coinbase, Cyjax, Elliptic, Chainalysis, Flashpoint, Google, Meta, Microsoft, OpenAI, Silent Push, Starlink and TRM Labs were companies that participated in the operation. Meta said it removed more than 3.7 million accounts, groups and pages from Facebook and Instagram based in West Africa, a majority of which targeted people in the United States and United Kingdom.

Some on Capitol Hill have raised concerns about whether U.S. operations to counter scams are coordinated enough.

The operation actually began in September, with a series of raids in Ghana before last week’s designated action. Jeanine Pirro, U.S. Attorney for the District of Columbia, said Disruption Week occurred not long after a new partnership with the United Kingdom.

“The aim is to bring cases in parallel and also to combat fraud together through joint targeting,” she said. “This was the perfect time to continue that partnership.”

It’s not clear how many of the potentially freezable funds will actually be frozen as a result of the operation.

“Identifying the assets is the easy part, and tracing them, going after and developing probable cause within our investigations so that we can legally seize them does require a little bit of work,” said Matthew Floyd, deputy assistant director of the FBI’s Criminal Investigative Division. “So at this point, that’s why it’s much easier in these efforts to identify assets initially, and then they’ll fold into our investigations as we move forward.”

Disruption Week was the culmination of agencies meeting to combine forces, something that will happen on a regular basis, Floyd said, but at an interval to be determined going forward. The operation led to the sharing of more than 30 leads on scam centers, participants said.

The post West African scammers targeted in joint international government-industry operation appeared first on CyberScoop.

Alert: FortiBleed remains active campaign, can lock out users or lead to ransomware attacks

FortiBleed, a credential compromise campaign targeting Fortinet firewalls and VPN gateways, is an ongoing threat that can lock users out of their Fortinet accounts and also lead to ransomware attacks, the FBI and Secret Service said in an alert published Tuesday.

“Affected organizations may find themselves locked out of their systems if threat actors disable accounts or change passwords, requiring remediation steps beyond standard patching and password resets,” the alert states. “In addition, the FortiBleed attack chain has been observed as an initial entry point for ransomware affiliates.”

When it was first uncovered earlier this year, SOCRadar verified more than 86,644 compromised devices across 194 countries. Ensar Seker, chief information security officer of the company, told CyberScoop that “in our later investigation, we identified more than 400,000 or 450,000 firewalls targeted by the wider operation.”

There are different aspects of the operation that make comparisons imprecise over time, but overall the numbers “show the campaign is broader and more serious than we understood at the beginning,” Seker said.

The attackers can disable accounts or change passwords to lock users out with the access they gain, making standard password resets and patching insufficient, the government alert reads.

The alert also warns that initial access brokers are making use of the FortiBleed attack to provide access to ransomware affiliates, including INC/Lynx and Payload.

The government warning provides additional confirmation about the most worrisome elements of FortiBleed, Seker said.

“What stands out for me is that FortiBleed is still an active threat, and attackers are using stolen credentials to access the exposed Fortinet devices, create new administration accounts, and in some cases, lock the real owners out,” he said. “The FBI and the Secret Service also confirm that the success can lead to ransomware attacks as well.” 

The FBI and Secret Service recommend that Fortinet customers restrict external management or remove internet administration entirely, reset credentials, set up multifactor authentication, review firewall and VPN users for unauthorized changes, review logs for potential lateral movement, and enable secure credential storage.

The agencies are seeking any information and indicators of compromise that organizations can share, including IP addresses and any usernames the attackers use.

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Phone-hacking company that won U.S. security agency contracts hid Russian ownership, DOJ alleges

Law enforcement has arrested two leaders of a Russian-owned phone hacking company used by Kremlin agencies who allegedly masked its foreign ownership from the U.S. Defense Department, Department of Homeland Security and others to win millions of dollars worth of contracts, the Justice Department announced Wednesday.

Lee Reiber of Boise, Idaho, the CEO of Oxygen Forensics (Oxygen US), was arrested in his home state and Oleg Davydov, one of five Russian nationals whom DOJ said actually controlled the company, was arrested in London, from where the department plans to seek his extradition. They face charges of conspiracy to commit wire fraud.

Publicly, Oxygen went to great lengths to present Reiber as the true leader of a company based in Alexandria, Va., asserting that the company was not controlled by Russian-based executives, according to a criminal complaint., While the company told government agencies it was U.S.-owned, Russian officials with the company repeatedly overruled him, the complaint alleges. 

Oxygen’s business aims were complicated in 2022 after the United States expanded sanctions against Russia following its invasion of Ukraine. That’s when the company installed Reiber as CEO and removed the owners from public corporate filings. An unnamed co-conspirator in the complaint nonetheless said that “fateful decisions will be made by” five shareholders, including Davydov. 

Since March 2022, Oxygen has sold its forensics software to the U.S. Secret Service, Homeland Security Investigations, the DHS inspector general and DOD. After the 2022 sanctions, Oxygen won more than $2 million in contracts and purchases from the Secret Service and its National Computer Forensics Institute. Reiber asserted U.S. ownership as recently as February of this year to the NCFI, according to the complaint.

Reiber knew the company had to conceal its true ownership, the complaint states. Oxygen and its competitors have quarreled in the media and in courts. Oxygen in 2023 faced accusations that Oxygen US and Oxygen Russia were both using software code reverse-engineered from Elcomsoft’s products. Oxygen Russia’s customers included the Russian Federal Security Service (FSB). 

“The accusation mattered to Reiber because answering it truthfully would have required disclosing that Oxygen US and Oxygen Russia sold the same software, developed by the same team, and were owned by the same people,” the complaint reads, citing email correspondence.

Knowing Oxygen’s actual ownership configuration would’ve changed the equation for the government agencies, according to the complaint.

“Procurement officials at the U.S. government customers have represented that they would not have awarded or renewed contracts for the forensic software had they known that OxygenUS was a Russian-owned company,” the complaint reads.

Natalia Krapiva, senior tech-legal counsel at Access Now, celebrated what she nonetheless called an overdue move from DOJ.

“For years, civil society warned that Oxygen Forensics was owned and built from Russia. Now the Justice Department confirmed it,” Krapiva told CyberScoop. “We applaud the U.S. government for taking this crucial step, but the fact that it took so long is both a national security and a human rights scandal.”

“The same technology that extracted data for U.S. investigations has been used inside Russia to jail journalists, activists, and peaceful dissenters. And it doesn’t stop at the U.S. border,” she continued. “We call on the U.S. and over 100 governments using this technology to immediately sever all ties to the company, implement sanctions, and conduct full investigation(s) of how Russian tech designed for the FSB spent all these years inside their sensitive law enforcement operations.”

Court-listed attorneys for Reiber listed in court documents didn’t respond to requests for comment. No attorney for Davydov could be located.

The DOJ in its announcement specified that “The complaint does not allege that the software contained malicious code or that it was used to gain unauthorized access to any customer’s computer systems or data.”

The post Phone-hacking company that won U.S. security agency contracts hid Russian ownership, DOJ alleges appeared first on CyberScoop.

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