[BreachExchange] UK Cops Collar 7 Suspected Lapsus$ Gang Members

Terrell Byrd terrell.byrd at riskbasedsecurity.com
Fri Mar 25 10:14:55 EDT 2022


https://threatpost.com/uk-cops-collar-7-suspected-lapsus-gang-members/179098/

London Police can’t say if they nabbed the 17-year-old suspected mastermind
& multimillionaire – but researchers say they’ve been tracking an Oxford
teen since mid-2021.

City of London Police have arrested seven people suspected of being
connected to the Lapsus$ gang.

The bust came within hours of Bloomberg having published a report about a
teenage boy living at his mother’s house near Oxford, England who’s
suspected of being the Lapsus$ mastermind.

The police haven’t verified whether or not they nabbed the Oxford teen, per
se.

At any rate, given that he’s a minor, it would be illegal to identify him:
According to security journalist Brian Krebs, the teen is 17, though the
BBC pegs his age at 16.

But for what it’s worth, all of the suspects are young. In a statement
given to TechCrunch, the City of London Police said the seven are between
16 and 21: “The City of London Police has been conducting an investigation
with its partners into members of a hacking group,” according to Detective
Inspector Michael O’Sullivan. “Seven people between the ages of 16 and 21
have been arrested in connection with this investigation and have all been
released under investigation. Our enquiries remain ongoing.”

Investigators reportedly told Bloomberg that another member of Lapsus$ is
suspected to be a teenager residing in Brazil. There could well be more:
Another investigator told the outlet that security researchers have
identified seven unique accounts associated with Lapsus$, “indicating that
there are likely others involved in the group’s operations.”

Busy Beavers
Over the past few months, Lapsus$ – a data extortion group – has targeted
Brazil’s Ministry of Health and the gaming giant Ubisoft, crippled the
Portuguese media kingpin Impresa, and, in recent weeks, eviscerated tech
giants including Samsung, Nvidia, Microsoft and Okta.

Allison Nixon, chief research officer at Unit 221B, is one of the
researchers who’ve been tracking the Oxford teen, who, researchers say,
goes by the online aliases “White,” “Breachbase” or “Oklaqq,” among other
names

She’s been working with researchers at security firm Palo Alto Networks to
track individual members of LAPSUS$ even prior to the group’s formation.
Nixon told KrebsOnSecurity that she’s convinced that the White/OklAGG
individual is the head honcho, given that, among other things, theidentity
has been tied to the Lapsus$ group’s recruiting message for company
insiders to help them penetrate targeted organizations.


Nixon told the BBC that researchers have had the Oxford teen’s name since
the middle of last year and that they’d identified him even before he was
doxed by a hacking forum – Doxbin, a site where people can post or sift
through the personal data of hundreds of thousands of people for the
purpose of doxing –that he’d allegedly purchased and then run as a lousy,
much-complained-about admin.

He wound up selling the forum back to its previous owner, at a loss, then
leaked the entire Doxbin dataset, leading to the Doxbin community turning
around and doxing him right back. That included what Krebs reported as
“videos supposedly shot at night outside his home in the United Kingdom,”
along with his name, address, and social media pictures.

The Doxbin community also posted a curriculum vitae of his hacking career,
the BBC reported – a career that made him filthy rich in short order. His
Doxbin entry connected him to Lapsus$, as well. The entry reportedly reads:

“[He] slowly began making money to further expand his exploit collection. …
After a few years his net worth accumulated to well over 300BTC (close to
$14 mil). … [He] now is affiliated with a wannabe ransomware group known as
‘Lapsus$’, who has been extorting & ‘hacking’ several organisations.”
—Doxbin entry, per the BBC

Nixon told the BBC that Unit 221B, working with Palo Alto, identified the
threat actor and then watched his exploits throughout 2021, “periodically
sending law enforcement a heads-up about the latest crimes.”

She said that researchers tracked him by “watching the post history of an
account and seeing older posts provide contact information for the guy.”
The “White” individual also helped, she said, by failing to cover his
tracks.

Get Off My Code, You Damn Kids
After its breaches, Lapsus$ has posted stolen source code on the group’s
Telegram channel, including code stolen from Microsoft’s Azure DevOps
server for the company’s Bing and Cortana products. Lapsus$ has also posted
screenshots of Okta’s Slack channels and the interface for Cloudflare,
which is one of thousands of customers that use Okta’s technology to
provide authentication for its employees.

In February, the group also stole two of Nvidia’s code-signing certificates
– certificates that were then used to sign malware, enabling malicious
programs to slide past security safeguards on Windows machines.

After its headline-grabbing attacks on Microsoft and Okta this past
weekend, Lapsus$ announced on Tuesday that it was going to take a bit of a
breather.

“A few of our members has a vacation until 30/3/2022. We might be quiet for
some times,” the hackers wrote in the group’s Telegram channel. “Thanks for
understand us. – we will try to leak stuff ASAP.”

Why’d You Do It?
Ken Westin, director of security strategy at Cybereason, said it’s tough to
guess at the motivation of the purported “mastermind” teen. “Many had
speculated it was an organized cybercrime syndicate or potential nation
state actors,” he told Threatpost in an email on Thursday.

Whatever the teen’s motivation – he’s described as having autism, for
whatever that’s worth – Westin thinks the security community underestimates
the younger generation. “We forget teens today have not only grown up with
computers, but also have access to an unprecedented number of educational
resources on programming and offensive security,” he said.

“I speculated the group was young based on their modus operandi, or lack
thereof, it was as if they were surprised by their success and were not
sure what to do with it. In some of their follow up communications their
language appeared more interested in the notoriety and [was] defensive of
their capabilities and accomplishments than any financial motivation,” he
continued.

Of course, when it comes to guessing what somebody’s motivation might be
for taking on the world’s shiniest tech companies, et al., there’s always
that purported 300BTC income that Doxbin pointed to. Not too shabby a
motivation, that, particularly when planted in the still-developing brain
of a tot that’s been put under glass during the pandemic.

“Today, teens have seen how much money is being made in criminal hacking,
in some ways they are the new rockstars,” Westin said. “You pair this with
the fact kids have been couped up for three years often with nothing but
the internet to entertain themselves and we shouldn’t be surprised we have
skilled hackers. The problem is that their brains are still developing and
the line between fun and crime can get blurred, where it’s common for kids
to hack to gain notoriety amongst their peers, but this easily crosses over
into decisions that can affect the rest of their lives.”

It’s too early to say whether this will be the end of Lapsus$, he said. “it
could still be a false flag, bad attribution, or even framing someone for
the hacks. If it is this 16-year-old in England, it is likely we will see
an end to the group’s activity, unless one of their partners in cybercrime
takes up the mantle.”

Whether Lapsus$ boils down to a criminal gang or a teenager from Oxford,
what matters is that the “organization” clearly has the ability to
infiltrate some of the world’s largest organizations at a speed that makes
these attacks impossible to prevent using traditional perimeter defense
tools, said Darren Williams, founder and CEO of privacy/security/prevention
firm BlackFog.

We can’t stick all teenagers in suspended animation until their brains are
fully formed, but we can take note of how these groups/individuals stick it
to targeted organizations. In an email to Threatpost on Thursday, Williams
noted that more than 84 percent of all attacks involve data exfiltration,
exposing data on the Dark Web and/or public web sites.

“By refocusing security efforts on anti-data exfiltration, organizations
are able to mitigate extortion attempts, regulatory fines, reports and
ultimately the loss of trust in the business,” Williams suggested.
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