I have a boat for sale. The sea is still one of my big passions, but I simply have too little time to use it. So I decided to let it go. I will buy a bigger one later, when and if I have more time. It’s still winter in Finland and all the small boats are on dry land covered by snow. But spring is approaching and the boating fever is spreading. It’s the right time to publish an ad on the net.
Soon I get a mail from a nice young lady. Let’s call her Mrs. Witney De Villiers, as that is what he or she called herself. (Probably a randomly picked false identity, any similarity to real existing persons is purely coincidental.) She was very keen on buying my boat and we had a nice conversation over a couple of days. I did unfortunately not sell the boat, but I got a nice story to tell instead. I will not bother you with all the details, so here’s a shortened version with all the important parts included.
– Hi, I’m in Mexico and I want to buy your boat. How long have you had it? What’s the final price? (Well, I’m in Finland and this is the point where I became more or less convinced that it is a scam.)
– I have had it for five years.
– OK, the price is fine. I want to buy it. Please take down the ad. What’s your PayPal account info so that I can make a payment? I’ll cover the PayPal charges. (Needless to say, the ad remained up.)
– Good news. I can accept wire-transfer which would be a lot cheaper for you than PayPal. (She can’t accept if this is a traditional PayPal scam.)
– Sorry, but I can’t do wire-transfers now. I only have access to PayPal because bla bla blaa …. (Yes, another scam-indicator.)
– OK, I created a PayPal account. Here’s the account info. But there’s some paperwork we need to handle before we proceed. Please fill in the buyer’s part of this attached contract and mail a scanned copy to me. I also need a picture of your photo ID. (The provided PayPal account info was false.)
– Great! I have made the payment. “Check your mail as there should be a confirmation mail from PayPal. I made an extra payment of 3650 € and I’am sure you noticed that, you’ll have to send the extra amount to the Shipping Company through Western Union right away, so that they can come ahead for the pick up and also you should send your address where they have to come for the pick up and also the necessary Western Union Payment Information.” (All the key elements in this very traditional scam becomes visible at this point. This is where you should realize what’s the name of the game, if you haven’t figured it out already. A faked mail from “PayPal” appears in my spam folder.)
– Hold your horses. We need to do the paperwork first. See my previous mail.
– “I want you to know that I have made an arrangement for you to receive the copy of my ID and my other necessary data for the boat. I want you to know that the courier representative coming over for the pick up has all he said documents in an enclosed confidential envelope with him which he will deliver to you in person.”
– Well, we really need to close the deal and have a legally binding agreement before we can arrange for transportation.
– “I understand your concern and certify that all sales is final. Your show of concern has given me a very good fact that you are indeed an honest seller hence, the reason why I am using this medium to confirm to you that all sales is final and I am satisfied with the present condition of the Boat.. so you can now proceed with the western union and get back to the paypal with the western union scan receipt so they can release all the fund into your account immediately..More so, send me a copy of the western union receipt… i look forward to read from you…” (Contract and passport files attached. Oh gosh what a poorly faked British passport!!!)
– Thanks, but you forgot to sign the contract.
– “Oh sorry, I write my name as the signature.. i hope to receive a copy of western union receipt from you today…” (That “signature” was typed, not handwritten.)
– Just want to let you know that I need the SIGNED contract before 3 PM. Otherwise I will not have time to go to the bank. And I’m traveling tomorrow so I will be unable to handle transactions. (To create urgency is a common scammer tactic. ;) )
– “Have signed on the contract.. i wait to read from you with the western union receipt..” (Printed, handwritten and scanned this time. It’s 4 AM in Mexico when this part of the conversation takes place.)
– WTF!!! The bank refused the transaction. The recipient is on some kind of international blacklist, apparently suspected for criminal activities. (Well, I wasn’t completely honest here.)
– “How about you go there and split up the money in to 2 and send on two transaction.”
– I’m certainly NOT going to send any money to a blacklisted company!
– “here is another shipping company info [another private person in US] I wait your story again” (We enter the threatening phase. A while later a mail appears in my spam folder. “PayPal” will take “LEGALACTION” and hand me over to FBI if I don’t pay in 24 h.)
– What are those clowns at PayPal up to now? They talk about some legal action against me even if I haven’t entered into any legally binding agreement to transfer money. Do you have any clue, or maybe I should contact PayPal directly and ask what they think they are doing? (Let’s see how/if they react. Contacting PayPal would reveal the scam instantly.)
Next I got a long mail pointing out how honest this lady is and how keen she is to do business with nice and honest sellers like me. But she can’t unfortunately do anything about the PayPal actions as the purpose of all that is to protect both the seller and buyer. She points out that even a smaller sum would be enough to release the payment into my PayPal account (ok, we are in the bargaining phase). At this point I decided that this blog post is becoming far too long and chose to not respond at all. She didn’t get back to me either. They probably realized that they are not going to get 3650 € from me and gave up.
As you have noticed, I became wary at a pretty early stage. There were several details in this conversation that made me suspicious. 37 to be more precise:
Sounds hilarious, doesn’t it! The scam is so obvious when presented in this way. And forcing the scammer out of the ready-made script makes the act crack up even more. But the sad fact is that people are lured by these guys daily. A lot of this seems to be done in volume so they must be dealing with a significant number of victims every day. Their way to do business very quickly and easily may seem feasible for smaller bulk items, and may not ring the alarm bells in the same way as when dealing with bigger items. Big or small item, it’s always a good idea to take a critical look at the whole case and look for discrepancies like this. Many of the points listed above are on their own enough to spot the scam. Also make sure that they can’t orchestrate the show on their own. Think about what you need to be able to trust the other part, and be persistent about getting what you want. Reluctance to comply is a pretty strong sign that something is fishy.
The core point for anyone who runs into cases like this is however to understand how the scam works. That’s the key to recognizing it in practice. You are promised money but something must be paid before the transaction can be completed. Sounds familiar? Yes, this is basically the same scenario as in the Nigerian scams. The core of the scam is that the money you are to receive is just a promise, but the money you transfer to someone else is real. The PayPal-based scams may be somewhat more effective as many people trust PayPal. It’s not an official bank, but many people think of it as a bank. You may believe that this trusted party is holding the money and securing the transaction. In reality, all you have got is a faked mail. There is no PayPal transaction and the promised money is just numbers written in the mail.
If you fall for the scam and pay, the scammers will vanish like smoke in thin air. PayPal can’t help you as this has nothing with them to do. The scammers have just misused PayPal’s name. And the payment method used to collect your money is always irreversible and provides no security for the sender.
So to summarize. If you ever consider engaging in a transaction with strangers and where money is relayed through you, you should:
What really strikes me is how poorly this false buyer’s role is created. Some simple Google searches is all it takes to reveal the scam. And many discrepancies would have been so easy to fix. Are these guys really “America’s dumbest criminals”?
Maybe, maybe not. The point is probably that you need to be suspicious before you turn to Google. And once there you will find descriptions of this type of scam no matter how well the scammers have tried to eliminate discrepancies in their story. So once you get suspicious, it’s game over for the scammers anyway. The most profitable tactic for them is maybe to run the scam en masse without caring about the details, and just harvest those who won’t get suspicious until it’s too late. Or maybe they’re just stupid and can’t do any better? (Believing that anyone would fall for that fake passport would indicate the latter.)
Well, the boat is still for sale. Anyone interested?
This is the first in a series of posts about Cyber Defense that happened to real people in real life, costing very real money. A rainy, early spring day was slowly getting underway at a local council office in a small town in Western Poland. It was a morning like any other. Nobody there expected that this unremarkable day would see a series of events that would soon affect the entire community... Joanna Kaczmarek, a Senior Specialist in the council’s Accounting Department, rushed into her office a little late, but in a good mood nonetheless. Before getting down to work, she brewed herself a cup of coffee and played some music on her computer. Several days earlier, she had finally installed a music app on her PC so she could listen to her favourite tunes while she worked. This had taken some effort though, as she had needed administrator’s access to her computer. It took a lot of pleading and cajoling, but after a week the IT guy finally gave in. Joanna had no idea that she was opening a dangerous gap in the council’s IT system. That morning, Joanna launched, as she had countless times before, a government issued budget management application. With a few clicks, she made a transfer order for nearly twenty thousand zloty. The recipient of the money was a company that had won the contract for the renovation of a main road in the town. The whole operation took seconds. Two days later, the owner of the company phoned Joanna, asking about the advance he was supposed have received. “I can’t get the work started without that money”, he complained in an annoyed voice. Joanna was a little surprised and contacted the bank. The bank confirmed the operation, saying that there was nothing suspicious about it. Joanna, together with the Head of the IT Department, carefully ran back over the events of the day of the transfer. They found nothing out of the ordinary, so started checking what was happening on Joanna’s computer around the time before the transfer date. They soon found something: nearly a week prior to the date of the missing transfer, Joanna had received an email from the developer of the budget management software. For Joanna, the message hadn’t raised any red flags; the email contained a reminder about a software update and looked very legitimate. It contained the developer’s contact data, logo and telephone number. Everything was in order… Everything except for a change of one letter in the sender’s address. Joanna hadn’t noticed – a “t” and an “f” look so alike when you read quickly, don’t they? Unaware of the consequences, Joanna followed the link that was to take her to the update website. With just one click of her mouse she started a snowball of events that ultimately affected each and every resident of the town. Instead of the “update”, she downloaded dangerous spyware onto her computer. In this way, the cybercriminals who orchestrated the attack learnt that the woman was a Senior Specialist in the Accounting Department and was responsible for transferring money, including EU funds. The thieves lured Joanna into a digital trap, tricking her into installing software that replaced bank account numbers “on the fly”. As she was processing the transaction, the hackers replaced the recipient’s account details with their own, effectively stealing the money. Joanna would have been unable to install the fake update if she hadn’t obtained the administrator’s rights she’d needed for her music app. All she had wanted was to listen to some music while she worked. If only she had known what the consequences would be... After the attack was discovered, the Police launched an investigation. Joanna was just one of many victims. Investigators discovered that the malware infection was likely to have targeted computers used by local government workers in hundreds of municipalities across Poland. Law enforcement authorities haven’t officially disclosed how much money was stolen, but given the fact that losses may have been underreported, the estimated figures are in the millions of zlotys. On the top of that, Joanna’s town had to wait months for the completion of the roadwork. This was one of the largest mass cyber-attacks against local government in Poland. It certainly won’t be the last one... For small and medium sized enterprises, the average financial loss as the result of a cyber security incident is on average 380 000€. The risk and the lost is real. Don’t be an easy target. We help businesses avoid becoming an easy victim to cyber attacks by offering best in class end-point protection and security management solutions trusted by millions.
F-Secure Labs reported this week on a new WhatsApp scam that’s successfully spammed over 22,000 people. Spam seems to be as old as the Internet itself, and is both a proven nuisance AND a lucrative source of revenue for spammers. Most people don’t see what goes on behind the scenes, but spammers often employ very sophisticated schemes that can expose web surfers to more than just ads for Viagara or other “magic beans”. Spam typically tries to drive Internet traffic by tricking people into clicking certain websites, where scammers can bombard unsuspecting web surfers with various types of advertising. Profit motives are what keep spammers working hard to circumvent spam blocks, white lists, and other protective measures that people use to try and fight back – and it can pay off. Numerous spammers have been indicted and suspected of generating hundreds of thousands of dollars in revenue from their spam campaigns, with one study projecting that spammers could generate in excess of 3.5 million dollars annually. While most spam circulates via e-mail, the popularity of services like WhatsApp is giving spammers new resources to exploit people, and new ways to make money. Here’s a few ways spammers and cyber criminals are using WhatsApp to make money off users: Following Malicious Links: One way that cyber criminals use WhatsApp to scam people is to trick them into following malicious links. For example, a recent scam sent SMS messages to WhatsApp users telling them to follow a link to update the app. But the message was not from WhatsApp, and the link didn’t provide them with any kind of update. It signed them up for an additional service, and added a hefty surcharge to victims' phone bills. Sending Premium Rate Messages: Premium rate SMS sending malware was recently determined by F-Secure Labs to be the fastest growing mobile malware threat, and WhatsApp gives cyber criminals a new way to engage in this malicious behavior. Basically the users receive a message that asks them to send a response – “I’m writing to you from WhatsApp, let me know here if you are getting my messages”, “Get in touch with me about the second job interview”, and various sexual themed messages have all been documented. Responding to these messages automatically redirects your message through a premium rate service. Spanish police claim that one gang they arrested made over 5 million euros using this scheme – leaving everyday mobile phone users to foot the bill. Manipulating Web Traffic: A lot of spam tries to direct web traffic to make money off advertising. As you might imagine, this means they have to get massive numbers of people to look at the ads they’re using for their scams. Scammers use WhatsApp to do this by using the app to spread malware or social engineer large numbers of people to visit a website under false pretenses. F-Secure Labs found that people were being directed to a website for information on where they could get a free tablet. In March there was a global spam campaign claiming people could test the new WhatsApp calling feature. Both cases were textbook scams, and instead of getting new tablets or services, the victims simply wasted their time spreading misleading spam messages and/or exposing themselves to ads. WhatsApp and other services are great for people, but like any new software, requires a bit of understanding to know how to use. Hopefully these points give WhatsApp users a heads up on how they can avoid spam and other digital threats, so they can enjoy using WhatsApp to chat with their friends. [ Image by Julian S. | Flickr ]
Espionage – it’s not just for James Bond type spies anymore. Cyber espionage is becoming an increasingly important part of global affairs, and a threat that companies and organizations handling large amounts of sensitive data are now faced with. Institutions like these are tempting targets because of the data they work with, and so attacks designed to steal data or manipulate them can give attackers significant advantages in various social, political and industrial theaters. F-Secure Labs’ latest malware analysis focuses on CozyDuke – an Advanced Persistent Threat (APT) toolkit that uses combinations of tactics and malware to compromise and steal information from its targets. The analysis links it to other APTs responsible for a number of high-profile acts of espionage, including attacks against NATO and a number of European government agencies. CozyDuke utilizes much of the same infrastructure as the platforms used in these attacks, effectively linking these different campaigns to the same technology. “All of these threats are related to one another and share resources, but they’re built a little bit differently to make them more effective against particular targets”, says F-Secure Security Advisor Sean Sullivan. “The interesting thing about CozyDuke is that it’s being used against a more diverse range of targets. Many of its targets are still Western governments and institutions, but we’re also seeing it being used against targets based in Asia, which is a notable observation to make”. CozyDuke and its associates are believed to originate from Russia. The attackers establish a beachhead in an organization by tricking employees into doing something such as clicking a link in an e-mail that distracts users with a decoy file (like a PDF or a video), allowing CozyDuke to infect systems without being noticed. Attackers can then perform a variety of tasks by using different payloads compatible with CozyDuke, and this can let them gather passwords and other sensitive information, remotely execute commands, or intercept confidential communications. Just because threats like CozyDuke target organizations rather than individual citizens doesn’t mean that they don’t put regular people at risk. Government organizations, for example, handle large amounts of data about regular people. Attackers can use CozyDuke and other types of malware to steal data from these organizations, and then use what they learn about people for future attacks, or even sell it to cyber criminals. The white paper, penned by F-Secure Threat Intelligence Analyst Artturi Lehtiö, is free and available for download from F-Secure’s website. [ Image by Andrew Becraft | Flickr ]