Feeds

SpyEye banking trojan: now with SMS hijacking capability

One-time passwords zapped to fraudsters

5 things you didn’t know about cloud backup

The SpyEye banking trojan has acquired the ability to reroute one-time passwords sent to victims' cellphones, a measure that bypasses protections more and more financial institutions are adopting.

According to a blog post published Wednesday by a researcher from security firm Trusteer, SpyEye was recently observed trying to trick victims into reassigning the cellphone number they use to receive one-time passwords from their banks by SMS, or short message service. The social-engineering ploy is contained in fraudulent pages injected into their online banking sessions that falsely claim they have been assigned a unique telephone number dedicated for that purpose and a special SIM card will be received in the mail shortly.

Warning injected by SpyEye into online banking session

SpyEye injects this message (translated from Spanish) into some victims' online banking session.

“Now the fraudsters can receive all future SMS transaction verification codes for the hijacked account via their own telephone network,” Trusteer researcher Amit Klein wrote. “This allows them to use the SMS confirmation system to divert funds from the customer's account without their knowledge, while not triggering any fraud detection alarms.”

As the cost of online banking fraud has skyrocketed, many financial institutions have embraced the use of out-of-band authentication to reduce the effectiveness of SpyEye, ZeuS, and other trojans that steal online banking credentials entered into infected computers. The protections work by requiring customers to enter a one-time password sent by the bank to her phone before a large transaction is completed. The additional step often foils bank fraud even if a crook has the victim's user name and password.

In true cat-and-mouse fashion, malware developers have responded by building new features that bypass these countermeasures.

SpyEye, which recently merged with the ZeuS codebase, has been one of the leaders in figuring out new ways to defeat such countermeasures. Last month, SpyEye operators began bundling the it with malware that intercepts one-time passwords sent by SMS. SpyEye has been observed doing much the same thing to BlackBerry users, as well.

The fraudulent message claiming the cellphone number must be reassigned is injected into victims' online banking sessions by the SpyEye malware infecting their machines. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ice cream headache as black hat hacks sack Dairy Queen
I scream, you scream, we all scream 'DATA BREACH'!
Goog says patch⁵⁰ your Chrome
64-bit browser loads cat vids FIFTEEN PERCENT faster!
JLaw, Kate Upton exposed in celeb nude pics hack
100 women victimised as Apple iCloud accounts reportedly popped
NIST to sysadmins: clean up your SSH mess
Too many keys, too badly managed
Scratched PC-dispatch patch patched, hatched in batch rematch
Windows security update fixed after triggering blue screens (and screams) of death
Researchers camouflage haxxor traps with fake application traffic
Honeypots sweetened to resemble actual workloads, complete with 'secure' logins
Attack flogged through shiny-clicky social media buttons
66,000 users popped by malicious Flash fudging add-on
New Snowden leak: How NSA shared 850-billion-plus metadata records
'Federated search' spaffed info all over Five Eyes chums
Three quarters of South Korea popped in online gaming raids
Records used to plunder game items, sold off to low lifes
Oz fed police in PDF redaction SNAFU
Give us your metadata, we'll publish your data
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.