WEBVTT

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JACK: You ever get fascinated with the cyber-crime supply chain?

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It’s never a solo hacker doing the whole thing; there’s a lot of layers to this onion.

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So, let’s say a hacker breaks into a place and steals a bunch of information from some

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company.

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Well, next he’ll typically want to sell that data to make some money and do it again,

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so now you’ve got to find a buyer.

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But before we even get to the buyer of stolen data, there’s sometimes brokers involved,

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people who have negotiated deals between hackers and buyers.

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So you might go to one of these brokers, offer a percentage for selling the database to someone.

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Now it’s on them to find someone.

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But when the broker finds a buyer, sometimes one side doesn’t trust the other so they

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bring in a trusted third party, an underground escrow agent if you will, who will wait for

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both the cash and the database and then make the trade.

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Okay, but then what does the buyer do with this database dump?

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Well, if it’s full of e-mail addresses, they might use it to send spam to people.

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But of course, the spammer isn’t selling anything themselves.

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They’re typically promoting someone else’s business; a porn website or a pharmacy.

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It’s just fascinating for me to think about that sometimes.

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It’s never about the data breach itself but what happens to that data after its stolen.

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(INTRO): [INTRO MUSIC] These are true stories from the dark side of the internet.

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I’m Jack Rhysider.

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This is Darknet Diaries.

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[INTRO MUSIC ENDS]

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JACK: I’m sure you all know what LinkedIn is, right?

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It’s the social network for professionals.

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You pretty much start your account by posting your resume of where you worked and what you

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did there.

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You can use the site to look for jobs and connect with other professionals in your field.

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It’s pretty popular in the US.

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In 2012, a person wanted to hack into LinkedIn and get as much user data as they could, but

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how are you going to get into the network of LinkedIn?

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This is a major Silicon Valley company made by some really skilled engineers and administrators.

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They would certainly be following all the latest best practices for securing a network

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by doing things like securing the front door to the network by putting a big firewall up

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to block all non-critical traffic from coming in and inspecting it for malicious activity.

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Then they’ll conduct security audits on all the internet-facing systems to make sure

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there’s no security holes.

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Of course, they’ll be running state-of-the-art monitoring tools and antivirus tools to watch

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for any intrusions.

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They did all that; the front doors of LinkedIn’s network was airtight.

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So, the hacker would have to find another way in.

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[MUSIC] He knew that engineers at LinkedIn had access to the corporate network when they

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were remote.

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I mean, today it’s obvious that a lot of companies have remote employees but back in

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2012 there were LinkedIn employees who had remote access into the network.

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That is, they didn’t have to be physically in the office in order to access the database

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or other critical systems.

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So, the hacker set out to figure how exactly do some engineers get remote access into the

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network?

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He concluded they must be getting in through a VPN.

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A VPN is a way to securely connect into a remote network.

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The traffic is encrypted from the edge of the corporate network all the way to the user’s

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computer, wherever they are in the world.

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That’s just it; if there’s a backdoor entrance for employees only, it would also

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mean that the hacker could try to get in through that.

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So, the hacker starts looking on LinkedIn’s website for people who worked there; engineers,

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system administrators, anyone who might have access into that VPN.

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So, he looked around for a victim which by the way, this is the reason why I don’t

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like posting my information on LinkedIn, because you can easily search for all the people who

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work in a specific company and then figure out who the admins are there who are probably

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posting things like oh, I’m good at Cisco firewalls and Oracle databases, and they might

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even be posting what versions of Oracle they’re good at which is a clue to any hacker to know

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what to expect once they get in.

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But what this means is that it’s pretty easy to find a target and narrow your sights

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on them by just looking at who’s on LinkedIn.

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This hacker found a LinkedIn engineer who probably had remote VPN access as well as

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access to the database inside, and the hacker zeroed in on this guy.

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[MUSIC] The hacker saw this engineer’s LinkedIn profile and on his profile there was a URL

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to this engineer’s personal website.

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Basically, it was like this engineer’s name.com.

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The hacker went to the website to check it out.

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It was just a basic About Me-type blog; it said hello, I’m a site reliability engineer

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at LinkedIn and here are my hobbies and things.

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The hacker poked around here for a bit but couldn’t find anything to exploit.

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But he looked at where the site was hosted and it was hosted on a residential IP address.

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Hm, it seemed like this LinkedIn site reliability engineer was [00:05:00] running a web server

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out of his house.

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This means there are open ports from the internet into his computers.

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The hacker thought well, hm, if I can get into this engineer’s home computer, this

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might give me a way into LinkedIn.

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So, he looked to see if there are any other websites also hosted at this IP address, and

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he found one called cockeyed.com.

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He browsed around here and this is a much bigger blog-type website.

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Cockeyed.com was a site ran by this engineer’s friend.

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He just hosted it for him.

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There’s videos of pranks and pictures and it’s basically a blog.

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But this site was built using PHP as the back-end technology.

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The hacker started looking for ways to exploit this site.

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He found a way to upload files to the site and he uploaded a couple malicious PHP files.

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One was specifically called madnez.php.

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Now, if a hacker can upload their own PHP program to your website and get that program

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to execute, then the hacker can take over that computer that’s hosting the website,

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because when you go to view the file through a browser, it’s going to execute whatever

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code is in that PHP program, and you can configure it to give you remote access to that computer.

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That’s just what this file did.

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The hacker got shell access to the website cockeyed.com which was being hosted in the

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same place this LinkedIn engineer’s personal blog was hosted.

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Once he got into the web server, he started scanning for other IPs in the network and

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found one, an iMac computer.

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He found that this iMac had an open SSH port which allows people to connect to that iMac.

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So, he started trying to brute-force login to that iMac.

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For the username, he used a first initial and the last name of the LinkedIn engineer

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and he just started hammering away, trying thousands and thousands of passwords, looking

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for one that worked.

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This was all happening in February of 2012.

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For days, this web server was attacking the iMac, all within this engineer’s house without

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the engineer knowing it.

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After a few days of trying thousands of passwords, one worked.

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[MUSIC] He got a hit for a valid username and password, so the hacker logged into that

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iMac with this and looked around.

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First he realized this is a person’s personal iMac.

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It’s not a LinkedIn computer or even an official work computer.

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Then he discovered that this web server that he got into was running on this iMac.

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Yeah, it was actually running on a virtual machine in the iMac and I find this fascinating

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because in essence, the virtual machine was the only thing exposed to the internet, but

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the hacker got into the virtual machine and then got into the host computer from there.

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It’s fascinating to me because this shouldn’t happen, but the way he did it was through

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the virtual IP interface.

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Because I always wonder how it’s possible to escape out of a virtual machine and onto

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the host computer, and here’s an example of when a hacker did that.

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After looking around the iMac for a while, the hacker stumbled upon the keys to the kingdom.

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Literally; he found a private key to LinkedIn.

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This was the key that the engineer could use to log into LinkedIn with.

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See, when you log into certain systems, you could use a username and a password but another

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option is to use public and private keys, where the public key is put on the server

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you need to access and your private key is on your own computer so when you connect to

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the server, you authenticate using the keys.

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This is all done automatically and saves you from having to type passwords.

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But when the hacker saw the private key, he snagged it right away.

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But where does this private key connect to?

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Well, the hacker had to look around a little bit more to find out, and that’s when he

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found a set of VPN profiles that allowed this person’s iMac to connect to LinkedIn.

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The profile contained everything they needed to connect; the server name, the IP address,

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the username.

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The only thing missing was the private key which the hacker just got.

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[MUSIC] The hacker then took this VPN profile and credentials and connected directly into

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LinkedIn’s VPN server.

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Now, here’s where the hacker made a major mistake; [00:10:00] he made this connection

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into LinkedIn from his home which was in Moscow, Russia.

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LinkedIn is in California.

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Well, there was nothing to stop this connection coming in from Moscow though, so he just got

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right in.

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From here, he was able to find his way around the network, looking for the user database,

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and he found it.

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He was able to log into that and grab the username, password hash, and e-mail addresses

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of as many LinkedIn users as he could.

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After that, he logged out and disappeared.

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LinkedIn had just been breached but they didn’t know it yet and they wouldn’t find out for

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another three months.

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The first moment when LinkedIn learned about this was through a forum called insidepro.com.

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This was an underground criminal forum where you could buy and sell stolen data from hacks.

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Someone was offering LinkedIn user data for sale there.

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The team at LinkedIn saw this and immediately sprang into action.

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[MUSIC] First, they needed to verify that the data being sold online was real LinkedIn

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user data.

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They compared what was in that sample database with their own database and sure enough, the

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hashes matched.

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The horror and the fear you get when confirming that you’ve just been breached, it’s indescribable.

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Now, LinkedIn’s response for something like this is a four-step process.

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First you confirm, contain, remediate, and do post-mortem.

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They just confirmed that they were breached.

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Next is for them to contain the problem.

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Is the hacker still in the network?

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What did they steal?

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How did they get in?

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Can we block them from getting in again?

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All these questions needed immediate answers.

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LinkedIn engineers and security team took over a conference room and called it a War

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Room.

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Something like forty to sixty people from LinkedIn were all working on this incident.

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They were flying in from foreign countries to help.

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They had the security team involved hunting through events and logs, looking for evidence.

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They had SREs, or site reliability engineers, and they’re combing through their systems

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looking for traces of unauthorized activity.

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There were lawyers present.

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Their Chief Internet Security Officer was present and active, doing all kinds of triage.

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Other executives were in the room too because this was the most important thing going on

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at LinkedIn at the time.

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The atmosphere was heavy and intense.

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The first clue they got was from the VPN logs.

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The LinkedIn security team saw that one of their California-based engineers had logged

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into the VPN from Moscow numerous times.

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So, they called him in for an interview.

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Hey, have you been to Russia lately?

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No.

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Did you use any kind of Russian proxy lately?

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No.

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Did you give anyone in Russia your login details?

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No.

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The security team was on the trail.

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This was a major clue.

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They found out that this engineer had been connecting to the corporate network from his

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home iMac and I’m gonna guess that probably wasn’t allowed.

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But the security team asked him to bring that iMac in for an examination.

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So, let’s back up a month, actually.

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So, a month before LinkedIn even knows this happened, the hacker was looking through the

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database that he stole.

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It contained e-mail addresses, usernames, and password hashes.

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This isn’t the password itself; it’s a representation of the password after it goes

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through an algorithm.

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So, in other words, you couldn’t see anyone’s password in this dump.

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But the hacker wanted to find a way to crack these passwords, so he posted a few of the

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hashes to a forum asking for help on how to crack them.

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When LinkedIn was investigating this, they saw that old post which matched the hashes

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that were in their database.

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The situation was getting worse for LinkedIn.

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They’re now seeing that the hacker is actively trying to crack users’ hashes.

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Unfortunately for LinkedIn, they weren’t yet salting their password hashes.

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Salting password hashes is an extra step that you do to make cracking hashes even harder.

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They were in the process of doing this but when you have hundreds of millions of users,

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it’s not easy to get it done.

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[MUSIC] At LinkedIn, they have different designations for how serious an incident is.

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Code Yellow is something that is some kind of technical risk like a server running over

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capacity or they’re not sure how to scale it properly, or a degradation of service that

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isn’t causing a whole outage but could at any moment.

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Code Yellows happen every few months or so there but as the LinkedIn team investigated

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this, they determined this incident was a Code Red, meaning it was business-impacting

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and because they were already seeing user data leaked to the internet, it meant this

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threat was certain and it could be at any moment that the LinkedIn database dump was

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revealed to the world.

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I believe at the time it was only available to whoever would buy it and it wasn’t freely

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available for anyone to look at.

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This creates a tense and scary moment for any security team; not knowing [00:15:00]

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what or how much got stolen and not knowing what the thieves plan on doing with it.

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There’s a level of anxiety here especially because this was already hitting the news

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media who was announcing this hack to the world.

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Lots of different teams were pulling logs and saving them for incident responders to

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comb through.

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It’s best to have logging turned on so you can sort of go back in time and see what happened

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where.

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One problem though is that there’s now a lot of logs to go through and if you think

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about the millions of users who are on the site every day, trying to find a needle in

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a haystack is tricky.

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I think the day they discovered this or the day after is when LinkedIn called the FBI

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to inform them of this breach.

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The FBI was very responsive.

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They asked for logs and started interviewing people right away.

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[MUSIC] LinkedIn saw that IPs were connecting in from Moscow, and so they took that IP and

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started tracing it through the network.

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Where did it go?

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What did it access?

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They were looking through SSH logs, Wiki logs, server access logs, and they saw connections

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from that IP which told them what user agent the hacker’s computer had.

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The user agent can tell you things like operating system, browser type, and version.

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The hacker’s user agent was unique.

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It actually had the word Sputnik in the end which isn’t normal.

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Sputnik is the name of the first satellite to be put in orbit by the Russians and this

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user agent just wasn’t seen by anyone before that which makes me wonder if the hacker put

00:15:26.560 --> 00:15:29.329
it there as sort of a signature.

00:15:29.329 --> 00:15:33.709
With this extra information, engineers can now search logs for that particular user agent

00:15:33.709 --> 00:15:38.230
to see if that has any hits for it, because maybe the hacker wasn’t using the same IP

00:15:38.230 --> 00:15:39.230
every time.

00:15:39.230 --> 00:15:41.980
Maybe they had come in from different IPs and different channels and different VPNs

00:15:41.980 --> 00:15:45.990
or something, but if there was a matching user agent, then you could know that that’s

00:15:45.990 --> 00:15:47.430
probably the same person.

00:15:47.430 --> 00:15:51.639
Next, they looked at the public website to LinkedIn to see if anyone with a matching

00:15:51.639 --> 00:15:57.110
IP or a matching user agent was logged into any user’s account on linkedin.com.

00:15:57.110 --> 00:15:59.250
Sure enough, there was some activity.

00:15:59.250 --> 00:16:04.730
The same IP and user agent was seen logging into thirty different LinkedIn accounts through

00:16:04.730 --> 00:16:06.660
the public website.

00:16:06.660 --> 00:16:12.560
This meant that the hacker had cracked some passwords that was in the data and was logging

00:16:12.560 --> 00:16:14.490
into LinkedIn with those users.

00:16:14.490 --> 00:16:18.060
This certainly elevated the concern for LinkedIn.

00:16:18.060 --> 00:16:22.250
Back in Moscow, the hacker did in fact have a rather beefy GPU farm.

00:16:22.250 --> 00:16:25.100
See, cracking password hashes is process-intensive.

00:16:25.100 --> 00:16:30.320
You have to cycle through millions of passwords, hash them, and see if those hashes match the

00:16:30.320 --> 00:16:31.770
hash in the database.

00:16:31.770 --> 00:16:33.769
If so, you’ve found a password.

00:16:33.769 --> 00:16:38.699
Graphics cards, GPUs, are particularly good at doing a lot of these little calculations

00:16:38.699 --> 00:16:39.699
like this.

00:16:39.699 --> 00:16:41.610
They can do a lot of simultaneous things at once.

00:16:41.610 --> 00:16:46.170
So, the hacker was running the database dump through this password-cracking station he

00:16:46.170 --> 00:16:50.519
had, and when he’d get a match on someone that he found interesting, he’d try logging

00:16:50.519 --> 00:16:53.920
into LinkedIn to verify it, and it did in fact work.

00:16:53.920 --> 00:17:01.300
He was logging into linkedin.com as different users.

00:17:01.300 --> 00:17:04.539
Back at LinkedIn, engineers started checking the database servers.

00:17:04.539 --> 00:17:08.280
They took the information they discovered and searched the logs to see if anyone had

00:17:08.280 --> 00:17:13.120
logged into the database servers with these IPs, username, or user agent.

00:17:13.120 --> 00:17:17.220
The database LinkedIn used at the time was Oracle which was on a UNIX machine.

00:17:17.220 --> 00:17:22.731
So, they looked to see if anyone connected to it using SSH and sure enough, they did.

00:17:22.731 --> 00:17:27.390
There were logs of the hacker logging into the database server and then accessing the

00:17:27.390 --> 00:17:30.429
database and running queries in that database.

00:17:30.429 --> 00:17:33.940
To get this far into the investigation took LinkedIn six weeks.

00:17:33.940 --> 00:17:39.070
[MUSIC] I’m talking an active War Room, Code Red situation for six weeks solid with

00:17:39.070 --> 00:17:43.270
multiple teams, dozens of people looking through thousands of servers, combing through millions

00:17:43.270 --> 00:17:44.270
of logs.

00:17:44.270 --> 00:17:45.830
It just takes a lot of time.

00:17:45.830 --> 00:17:48.929
During this time, they forced LinkedIn employees to change their passwords.

00:17:48.929 --> 00:17:53.840
They created a whole new account for the engineer who initially got hacked with that iMac computer,

00:17:53.840 --> 00:17:57.490
and they rebuilt servers to make sure there were no traces left on the system.

00:17:57.490 --> 00:18:02.309
Also, it appears that LinkedIn announced this breach as soon as they could to the public

00:18:02.309 --> 00:18:06.050
to inform their users that something bad has happened.

00:18:06.050 --> 00:18:12.160
HOST1: LinkedIn users beware; the business social network says some of its users’ passwords

00:18:12.160 --> 00:18:15.490
have been stolen and leaked onto the internet.

00:18:15.490 --> 00:18:21.210
HOST2: A hacking group rocked online network LinkedIn this week by publishing almost six

00:18:21.210 --> 00:18:25.659
and a half million user passwords to the site.

00:18:25.659 --> 00:18:32.090
JACK: 6.5 million LinkedIn user accounts were claimed to be on some hacker forums.

00:18:32.090 --> 00:18:38.309
However, not all 6.5 million passwords were visible and the dump seemed to only be in

00:18:38.309 --> 00:18:43.340
the hands of a few people at the time, with just a sample of it posted publicly.

00:18:43.340 --> 00:18:49.560
Now, the posting and the investigation all happened in June 2012, but my research shows

00:18:49.560 --> 00:18:55.840
the hacker got into the network back in March of that year, a whole three months earlier

00:18:55.840 --> 00:19:02.400
which means LinkedIn had no idea of this breach until it showed up on this public forum.

00:19:02.400 --> 00:19:09.250
[00:20:00] So, the hacker did this hack back in March 2012 but in May of 2012, before LinkedIn

00:19:09.250 --> 00:19:13.640
even knew they were breached, he hacked into another website too and I’m not exactly

00:19:13.640 --> 00:19:17.990
sure what steps he did here, but I’ve got high confidence of how it went.

00:19:17.990 --> 00:19:22.610
So, by May of 2012, the hacker had already cracked quite a few hashes in the database

00:19:22.610 --> 00:19:27.221
that he stole from LinkedIn and was testing some of these logins by logging into LinkedIn

00:19:27.221 --> 00:19:29.530
with those usernames, and it was working.

00:19:29.530 --> 00:19:33.960
My theory is that he went through the cracked passwords looking for anyone that worked for

00:19:33.960 --> 00:19:39.230
a big IT company as an engineer or admin, because this hacker was in the business of

00:19:39.230 --> 00:19:42.000
selling massive databases to make money.

00:19:42.000 --> 00:19:44.429
So, this was his thing.

00:19:44.429 --> 00:19:49.100
Looking through his cracked passwords, he found a quality assurance engineer who worked

00:19:49.100 --> 00:19:50.860
at Dropbox.

00:19:50.860 --> 00:19:57.220
He tested that the password worked by logging into this Dropbox engineer’s LinkedIn account.

00:19:57.220 --> 00:19:59.220
Yep, he got in no problem.

00:19:59.220 --> 00:20:05.400
Now, this Dropbox engineer has stated on the record that yes, in fact, he was reusing passwords

00:20:05.400 --> 00:20:06.400
at the time.

00:20:06.400 --> 00:20:10.720
His Twitter, Facebook, LinkedIn, and Google accounts all had the same password, so this

00:20:10.720 --> 00:20:15.200
hacker actually gained access to a ton of this engineer’s accounts.

00:20:15.200 --> 00:20:21.030
[MUSIC] But did this engineer use the same password where he worked too, at Dropbox?

00:20:21.030 --> 00:20:27.909
I don’t know for sure but the hacker was able to login as the engineer at Dropbox.

00:20:27.909 --> 00:20:32.710
I mean, he was able to get into the corporate network with this login either through a VPN

00:20:32.710 --> 00:20:35.750
or an admin web portal; I’m not sure.

00:20:35.750 --> 00:20:41.070
Obviously I shouldn’t need to tell you this, but it’s not a good idea to reuse passwords

00:20:41.070 --> 00:20:43.080
for this exact reason.

00:20:43.080 --> 00:20:48.740
Now, this quality assurance engineer didn’t have access to files that users stored on

00:20:48.740 --> 00:20:54.820
their Dropbox accounts but he did have access to users’ metadata, information about their

00:20:54.820 --> 00:20:59.960
accounts and stuff, because he would sometimes need to look into issues that users were facing.

00:20:59.960 --> 00:21:05.510
The thing is, if a hacker has this guy’s login information, then the hacker can access

00:21:05.510 --> 00:21:07.770
anything this engineer can.

00:21:07.770 --> 00:21:13.270
So, the hacker got in and grabbed all the user data he could that this engineer had

00:21:13.270 --> 00:21:20.480
access to which consisted of usernames, e-mail addresses, hashed and salted passwords.

00:21:20.480 --> 00:21:25.779
Then the hacker transferred this to himself and got out.

00:21:25.779 --> 00:21:30.340
A month later, the FBI was investigating this LinkedIn breach.

00:21:30.340 --> 00:21:35.370
One of the things they looked for was to see if that IP address or user agent was logging

00:21:35.370 --> 00:21:39.290
into any LinkedIn accounts as users of the site.

00:21:39.290 --> 00:21:44.340
Sure enough, there were logs indicating that the same person had logged into about thirty

00:21:44.340 --> 00:21:51.320
different LinkedIn user accounts, meaning the hacker had cracked the usernames and passwords

00:21:51.320 --> 00:21:55.679
for these LinkedIn users and was testing it to verify it worked.

00:21:55.679 --> 00:21:59.809
One of those accounts belonged to a Dropbox employee and I don’t know if it was the

00:21:59.809 --> 00:22:05.610
same quality assurance engineer but the FBI saw that connection and thought maybe Dropbox

00:22:05.610 --> 00:22:07.750
might be the next target.

00:22:07.750 --> 00:22:13.220
So, the FBI called Dropbox to tell them this information and even gave them IPs and user

00:22:13.220 --> 00:22:15.020
agents to look for.

00:22:15.020 --> 00:22:21.200
Dropbox looked through their logs and confirmed that yeah, those IPs did connect in as a quality

00:22:21.200 --> 00:22:24.440
assurance engineer and got into the corporate network.

00:22:24.440 --> 00:22:28.679
[MUSIC] Once Dropbox did confirm there was unauthorized access into the network, they

00:22:28.679 --> 00:22:30.990
immediately set up a War Room to handle the incident.

00:22:30.990 --> 00:22:34.950
This is basically like Command Central, a place where all data can be combined and up-to-date

00:22:34.950 --> 00:22:36.640
information is relayed to.

00:22:36.640 --> 00:22:41.770
Now, at the time in 2012, Dropbox had just under 150 employees working there and just

00:22:41.770 --> 00:22:46.640
like at LinkedIn, this was the biggest thing going on at Dropbox at the time, so it was

00:22:46.640 --> 00:22:50.130
practically an all-hands-on-deck response.

00:22:50.130 --> 00:22:53.960
Dropbox had over twenty people working on this incident but they knew they needed even

00:22:53.960 --> 00:22:58.789
more help, so they started hiring more security incident responders to just come on in and

00:22:58.789 --> 00:22:59.789
help.

00:22:59.789 --> 00:23:04.320
They first discovered that someone had unauthorized access into the corporate network of Dropbox.

00:23:04.320 --> 00:23:08.640
This seemed contained though, as the connections didn’t seem to make it into their production

00:23:08.640 --> 00:23:11.070
portion where dropbox.com was ran out of.

00:23:11.070 --> 00:23:12.960
This was in the corporate side.

00:23:12.960 --> 00:23:16.809
While this is still a big deal to have someone lurking around in your corporate network,

00:23:16.809 --> 00:23:21.860
they weren’t able to see the crown jewels of what data users were storing in their Dropbox

00:23:21.860 --> 00:23:22.860
accounts.

00:23:22.860 --> 00:23:27.280
Now, specifically they were seeing that a Dropbox engineer was connecting into the Dropbox

00:23:27.280 --> 00:23:33.140
network from Russia, then once they connected, they went to the internal Dropbox Wiki which

00:23:33.140 --> 00:23:39.070
has information on how to troubleshoot certain things and other technical details about Dropbox’s

00:23:39.070 --> 00:23:40.070
network.

00:23:40.070 --> 00:23:41.700
The Dropbox team kept examining the logs.

00:23:41.700 --> 00:23:46.460
They saw which Dropbox engineer had his username and password stolen and went through the logs

00:23:46.460 --> 00:23:49.799
to see if there was any other suspicious activity around that.

00:23:49.799 --> 00:23:54.450
This engineer had an account at dropbox.com, so they looked at his recent activity and

00:23:54.450 --> 00:23:59.760
it shows that he invited another Dropbox user to join his Dropbox team.

00:23:59.760 --> 00:24:04.059
The thing is, the Dropbox engineer did not invite [00:25:00] that user, so this means

00:24:04.059 --> 00:24:09.360
the hacker got into the engineer’s Dropbox account and then invited himself to see that

00:24:09.360 --> 00:24:10.890
engineer’s files.

00:24:10.890 --> 00:24:14.809
After they had their accounts linked up, the Dropbox engineer’s account transferred some

00:24:14.809 --> 00:24:18.370
large files to the hacker’s Dropbox.

00:24:18.370 --> 00:24:23.710
When Dropbox looked into what these files were, it was a list of twenty million Dropbox

00:24:23.710 --> 00:24:29.250
user details; e-mail, username, and salted password hashes.

00:24:29.250 --> 00:24:33.610
This made Dropbox aware that not only were they breached but the hacker stole at least

00:24:33.610 --> 00:24:36.440
twenty million user details from their customers.

00:24:36.440 --> 00:24:43.820
But they still weren’t sure how the hacker got these or even if it was from Dropbox at

00:24:43.820 --> 00:24:46.549
all.

00:24:46.549 --> 00:24:48.700
The next victim here is a company called Formspring.

00:24:48.700 --> 00:24:52.370
This is a social networking site which is focused on asking questions.

00:24:52.370 --> 00:24:55.820
Think of it like a place that’s dedicated to ask-me-anything-type interviews.

00:24:55.820 --> 00:25:02.010
In 2012 they had 30 million registered users and in June of 2012, the hacker got one of

00:25:02.010 --> 00:25:07.100
the admin usernames and passwords from Formspring’s server and logged in using SSH.

00:25:07.100 --> 00:25:11.480
My guess is that he got this login from the LinkedIn data too, but I’m not sure on that.

00:25:11.480 --> 00:25:16.080
He also logged into one of the web admin panels using the same username.

00:25:16.080 --> 00:25:21.040
He was able to install a malicious program called madnez.php on the server so that he

00:25:21.040 --> 00:25:22.770
could get back in anytime he wanted.

00:25:22.770 --> 00:25:26.370
It’s the same madnez.php that was found on that iMac.

00:25:26.370 --> 00:25:30.000
He found their internal Wiki and did a search there for hashed passwords.

00:25:30.000 --> 00:25:34.980
I guess what he was looking for was information about them or where they’re stored or something.

00:25:34.980 --> 00:25:39.700
Using the web admin panel, he was able to run SQL commands on the database and grabbed

00:25:39.700 --> 00:25:46.480
a large amount of user info, specifically e-mails, usernames, and salted password hashes,

00:25:46.480 --> 00:25:47.539
then he logged out.

00:25:47.539 --> 00:25:49.149
That was in June.

00:25:49.149 --> 00:25:56.100
[MUSIC] On July 9th, someone posted a database dump of Formspring users on some underground

00:25:56.100 --> 00:25:57.100
forum.

00:25:57.100 --> 00:26:00.419
It contained 420,000 accounts.

00:26:00.419 --> 00:26:03.230
Someone saw this and contacted a journalist.

00:26:03.230 --> 00:26:10.290
The e-mail addresses in the dump contained the word Formspring in them a lot, like user+formspring@gmail.com,

00:26:10.290 --> 00:26:11.290
that kind of stuff.

00:26:11.290 --> 00:26:14.500
So, the journalist called up Formspring to get some answers.

00:26:14.500 --> 00:26:19.180
Formspring had no idea they were breached and had no idea how this database got on the

00:26:19.180 --> 00:26:24.270
forum, but this turned into an all-hands-on-deck situation for them, too.

00:26:24.270 --> 00:26:28.409
They only had a few dozen people working there at the time but everyone who was technical

00:26:28.409 --> 00:26:30.990
got involved with this investigation.

00:26:30.990 --> 00:26:34.440
When one journalist posted about it, soon many more journalists were calling, so the

00:26:34.440 --> 00:26:37.630
marketing team had to get involved too, trying to handle PR.

00:26:37.630 --> 00:26:41.049
First, the Formspring security team needed to confirm the data.

00:26:41.049 --> 00:26:46.789
They took the 420,000 users and compared it to their database and it was a match.

00:26:46.789 --> 00:26:48.490
It certainly was their data.

00:26:48.490 --> 00:26:51.020
Next, they started looking for anomalous activity.

00:26:51.020 --> 00:26:56.760
That’s when they found someone had SSH’d into the server from a Russian IP.

00:26:56.760 --> 00:27:02.360
They took the IP and looked at more logs which indicated that this user logged into the web

00:27:02.360 --> 00:27:07.600
admin portal and from there, they were able to see what the user agent was for the person

00:27:07.600 --> 00:27:09.260
who accessed it.

00:27:09.260 --> 00:27:14.240
They also saw this hacker accessed the Wiki and placed madnez.php on the web server and

00:27:14.240 --> 00:27:17.470
ran some SQL queries from the admin control panel.

00:27:17.470 --> 00:27:20.159
They discovered all this in about one day.

00:27:20.159 --> 00:27:24.159
I guess their environment was just a lot smaller than LinkedIn to be able to get through it

00:27:24.159 --> 00:27:25.659
all quicker.

00:27:25.659 --> 00:27:29.410
Once Formspring confirmed that they had an intrusion, they needed to contain it.

00:27:29.410 --> 00:27:33.620
They changed the username that was used to login, deleted madnez.php, put more rules

00:27:33.620 --> 00:27:37.679
in place to change passwords more frequently, and set up monitoring rules to look for logins

00:27:37.679 --> 00:27:42.179
that weren’t from where the admin lives, and then totally destroyed and rebuilt certain

00:27:42.179 --> 00:27:44.171
servers that they knew the hacker had been on.

00:27:44.171 --> 00:27:48.730
On top of that, they notified all their users that a breach had occurred.

00:27:48.730 --> 00:27:54.190
They told users what data had been stolen and had them change their passwords immediately.

00:27:54.190 --> 00:27:59.399
The day after they discovered this breach, the FBI called them and said hey, heard you

00:27:59.399 --> 00:28:00.470
had a break-in.

00:28:00.470 --> 00:28:02.159
Can we see what happened?

00:28:02.159 --> 00:28:06.510
Formspring sent the FBI all the logs they could to assist in the investigation.

00:28:06.510 --> 00:28:10.600
A few weeks later, Formspring had everything back to normal and things were working just

00:28:10.600 --> 00:28:11.919
fine again.

00:28:11.919 --> 00:28:18.299
But this story isn’t over; one guy hacked into three major websites and the FBI is now

00:28:18.299 --> 00:28:19.299
on the trail.

00:28:19.299 --> 00:28:21.350
You’ve got to hear what happens next.

00:28:21.350 --> 00:28:22.840
Stay with us.

00:28:22.840 --> 00:28:27.409
[00:30:00] At this point, the FBI was aware of all three of these cases.

00:28:27.409 --> 00:28:33.000
Someone had breached LinkedIn, Dropbox, and Formspring all from the same IPs and same

00:28:33.000 --> 00:28:36.220
user agents with a trail connecting it all.

00:28:36.220 --> 00:28:39.519
Pretty much the day LinkedIn found out that they’d been breached, they called the FBI

00:28:39.519 --> 00:28:43.320
and the FBI began interviewing people at LinkedIn and collecting logs from them.

00:28:43.320 --> 00:28:46.399
They saw that the hacker had connected from multiple IPs in Russia.

00:28:46.399 --> 00:28:49.310
They also saw the user agent with the word Sputnik in it.

00:28:49.310 --> 00:28:52.720
LinkedIn was sending them hard drives full of logs to examine and feeding them all the

00:28:52.720 --> 00:28:53.910
information they were finding.

00:28:53.910 --> 00:28:59.130
They even supplied an image of the engineer’s iMac that got hacked to the FBI.

00:28:59.130 --> 00:29:02.429
While reviewing all this data, the FBI found something crucial in the logs.

00:29:02.429 --> 00:29:07.350
[MUSIC] They knew what IP and user agent the hacker had, so they looked at all the people

00:29:07.350 --> 00:29:12.039
who logged into linkedin.com, the public website, in the last few years.

00:29:12.039 --> 00:29:16.289
They found a person named Jammiro Quatro.

00:29:16.289 --> 00:29:20.679
This person had registered for a LinkedIn account way before this hack and had the same

00:29:20.679 --> 00:29:23.289
IP and user agent as the hacker.

00:29:23.289 --> 00:29:25.320
This could be gold.

00:29:25.320 --> 00:29:30.529
Like I said, users of LinkedIn often post their full resume there, so if this user had

00:29:30.529 --> 00:29:37.000
information about himself posted on his account, it could wrap up this whole story really quick.

00:29:37.000 --> 00:29:40.470
But Jammiro had a blank LinkedIn account.

00:29:40.470 --> 00:29:45.019
He wasn’t associated to any company and he didn’t have a single connection or friend

00:29:45.019 --> 00:29:46.039
on LinkedIn.

00:29:46.039 --> 00:29:50.809
But to create a LinkedIn account you need an e-mail address, so the FBI looked to see

00:29:50.809 --> 00:29:58.169
what e-mail address registered this account and it was chinabig01@gmail.com.

00:29:58.169 --> 00:30:02.120
The FBI thought this might be the e-mail address of the hacker.

00:30:02.120 --> 00:30:06.539
Now, the FBI had quite a few IP addresses that they were considering suspicious with

00:30:06.539 --> 00:30:11.340
this, but they narrowed down their interest to five that may be owned by the hacker, and

00:30:11.340 --> 00:30:13.260
all of them were in Russia.

00:30:13.260 --> 00:30:17.610
If this had been in the US, the FBI could issue a subpoena to an ISP and get information

00:30:17.610 --> 00:30:21.480
on who pays the bill for that connection and get answers almost immediately.

00:30:21.480 --> 00:30:26.529
But things work differently when the FBI wants information from an ISP in Russia.

00:30:26.529 --> 00:30:31.570
There is a thing called the Mutual Legal Assistance Treaty, or MLAT.

00:30:31.570 --> 00:30:36.799
MLAT was set up to allow foreign nations to cooperate in helping criminal investigations

00:30:36.799 --> 00:30:41.200
by supplying law enforcement with internet service subscriber info.

00:30:41.200 --> 00:30:47.730
So, the FBI requested from Russia subscriber records through MLAT to see whose IPs those

00:30:47.730 --> 00:30:48.730
were.

00:30:48.730 --> 00:30:54.250
But this is not a fast process; it takes eight months to five years to get subscriber info

00:30:54.250 --> 00:30:59.279
through MLAT, so the FBI had to wait for a while on this.

00:30:59.279 --> 00:31:04.870
[MUSIC] In the meantime, they started cross-referencing the LinkedIn data with Dropbox and Formspring

00:31:04.870 --> 00:31:05.870
data.

00:31:05.870 --> 00:31:09.669
In all three attacks they found similar IOCs, or indicators of compromise; the same IPs,

00:31:09.669 --> 00:31:12.899
the same user agents, the same browser and OS.

00:31:12.899 --> 00:31:16.720
Once again, they looked for users on those sites from those IPs who registered for an

00:31:16.720 --> 00:31:19.279
account before this hack took place.

00:31:19.279 --> 00:31:24.480
Dropbox also had a user registered with chinabig01@gmail.com.

00:31:24.480 --> 00:31:31.179
That person was named Jammis Gurus, a bit different from the Jammiro Quatro from LinkedIn.

00:31:31.179 --> 00:31:36.570
Formspring also had a user registered as chinabig01@gmail.com, too.

00:31:36.570 --> 00:31:40.669
Because there were so many similar indicators on all three breaches, the FBI was starting

00:31:40.669 --> 00:31:45.390
to believe that this chinabig01 e-mail address might have been owned by the hacker.

00:31:45.390 --> 00:31:50.500
So, the next step is the FBI contacted Google, the owners of Gmail, and issued a search warrant

00:31:50.500 --> 00:31:52.769
to get any information on that user.

00:31:52.769 --> 00:31:57.260
See, Google is a US company, so it’s fairly easy for the FBI to get information from a

00:31:57.260 --> 00:31:58.710
US-based company.

00:31:58.710 --> 00:32:02.929
Actually, I think they have to comply with law enforcement in this kind of way, and Google

00:32:02.929 --> 00:32:06.620
loves collecting logs on its users, so they had plenty to share.

00:32:06.620 --> 00:32:11.010
[MUSIC] First, the FBI saw that whoever was connecting to the server had the same IPs

00:32:11.010 --> 00:32:13.920
and user agents as the intruder who got into the other companies.

00:32:13.920 --> 00:32:19.019
Next, the FBI agent was able to see what search terms this person Googled while logged into

00:32:19.019 --> 00:32:20.150
their account.

00:32:20.150 --> 00:32:25.850
Here are some of those search terms; WordPress vulnerabilities, TrueCrypt hack, Oracle export

00:32:25.850 --> 00:32:30.200
utility, EMS data export for Oracle.

00:32:30.200 --> 00:32:36.269
The user’s Google activity also showed them visiting a few sites like insiderpro.com which

00:32:36.269 --> 00:32:40.040
was the forum that these database dumps were getting posted to.

00:32:40.040 --> 00:32:44.309
The user also visited articles which talked about the LinkedIn hack.

00:32:44.309 --> 00:32:48.399
Then the FBI took a look in their inbox and looked at what e-mails they had and saw a

00:32:48.399 --> 00:32:51.640
welcome e-mail to Vimeo, a video file-sharing website.

00:32:51.640 --> 00:32:56.779
So, he requested information from Vimeo which also came back with matching user agents and

00:32:56.779 --> 00:32:58.370
IP addresses.

00:32:58.370 --> 00:33:01.860
The FBI also saw evidence that this person was logging into some LinkedIn accounts which

00:33:01.860 --> 00:33:04.519
were employees of automattic.com.

00:33:04.519 --> 00:33:10.639
Now, Automattic is the parent company to WordPress. [00:35:00] The FBI contacted Automattic and

00:33:10.639 --> 00:33:15.299
requested to see any login activity from these Russian IPs and sure enough, there were some

00:33:15.299 --> 00:33:16.820
login activities.

00:33:16.820 --> 00:33:21.000
Someone from Russia was logging in with different Automattic employee usernames and passwords.

00:33:21.000 --> 00:33:26.650
It’s unclear what exactly the hacker stole out of Automattic’s site, if anything, but

00:33:26.650 --> 00:33:32.250
it is clear he got in multiple times with different Automattic engineers’ usernames.

00:33:32.250 --> 00:33:36.299
The FBI agent then saw a welcome e-mail to afraid.org.

00:33:36.299 --> 00:33:39.340
This is a website which offers dynamic DNS services.

00:33:39.340 --> 00:33:44.250
It’s a US-based company, so the FBI agent issued a search warrant to get data on who

00:33:44.250 --> 00:33:47.440
owned the account related to chinabig01.

00:33:47.440 --> 00:33:54.610
The name on this account came back as “Zopaqwe1”, and afraid.org also showed that whoever was

00:33:54.610 --> 00:33:59.010
accessing the site had the user agent with Sputnik in it, too.

00:33:59.010 --> 00:34:05.519
The FBI did a Google search on this “Zopaqwe1” which is a strange and unique word, and found

00:34:05.519 --> 00:34:09.770
a user registered on an online gaming site called kongregate.com.

00:34:09.770 --> 00:34:15.750
The FBI requested user details here and confirmed the user agent and IPs matched, but also discovered

00:34:15.750 --> 00:34:21.560
the user had registered a credit card on that site and had purchased some game credits.

00:34:21.560 --> 00:34:26.639
The FBI tried to trace the bank details of that card but it led them to a bank in Russia

00:34:26.639 --> 00:34:29.409
which they could not get extra information on.

00:34:29.409 --> 00:34:33.560
However, they did look to see what e-mail address was registered with this “Zopaqwe1”

00:34:33.560 --> 00:34:40.540
Kongregate account, and the e-mail for this user was r00talka@mail.ru.

00:34:40.540 --> 00:34:48.869
Now, since mail.ru is hosted in Russia, the FBI couldn’t issue a subpoena for that,

00:34:48.869 --> 00:34:49.869
either.

00:34:49.869 --> 00:34:54.510
But the FBI Googled the beginning of that e-mail address, r00talka, and found a Gmail

00:34:54.510 --> 00:34:57.610
user with the same name, r00talka@gmail.com.

00:34:57.610 --> 00:35:03.690
[MUSIC] So, the FBI issued a search warrant with Google to get information on that Google

00:35:03.690 --> 00:35:07.010
user, and Google responded with more information.

00:35:07.010 --> 00:35:10.920
The first thing they saw was what Google searches that user had searched for, and they were

00:35:10.920 --> 00:35:18.230
searching for things like LinkedIn hack, MySQL count fields, change Mac address WiFi Windows

00:35:18.230 --> 00:35:19.230
7.

00:35:19.230 --> 00:35:22.080
There were also some Google Map searches that this user did.

00:35:22.080 --> 00:35:28.100
They saw the user searched for a dentist in Moscow and some other map searches in Russia.

00:35:28.100 --> 00:35:33.970
Next, the FBI agent was able to look at e-mails for this r00talka Gmail account.

00:35:33.970 --> 00:35:39.480
He saw this person had registered an account at VKontakte which is like the Russian version

00:35:39.480 --> 00:35:40.480
of Facebook.

00:35:40.480 --> 00:35:45.010
The site would e-mail you anytime someone messaged you there and there were people messaging

00:35:45.010 --> 00:35:49.990
him asking about hacking e-mail accounts and different relationship-type stuff that was

00:35:49.990 --> 00:35:50.990
going on.

00:35:50.990 --> 00:35:57.430
But here, everyone is referring to him as Zhenya and everyone only spoke Russian to

00:35:57.430 --> 00:35:58.700
him.

00:35:58.700 --> 00:36:02.831
By this point, the subscriber records for that IP address came back from the MLAT request

00:36:02.831 --> 00:36:08.599
to Russia and it showed IPs were owned by two people, and it gave their physical address.

00:36:08.599 --> 00:36:12.790
Yevgeniy Nikulin had one IP and someone else had the other.

00:36:12.790 --> 00:36:18.690
Yevgeniy lived on the same street that this person was doing Google Map searches on, so

00:36:18.690 --> 00:36:23.030
the FBI started looking up information about Yevgeniy and found photos of what he looks

00:36:23.030 --> 00:36:24.030
like.

00:36:24.030 --> 00:36:28.050
They compared those photos with the person on VKontakte’s account and they looked like

00:36:28.050 --> 00:36:29.710
the same person.

00:36:29.710 --> 00:36:34.569
The VK account was for a person who went by the name Zhenya which is actually a common

00:36:34.569 --> 00:36:37.280
nickname for people named Yevgeniy.

00:36:37.280 --> 00:36:43.720
I’m not sure how but the FBI investigation led them to a Russian guy named Kislitsin.

00:36:43.720 --> 00:36:49.500
[MUSIC] Kislitsin has been known in the past to broker deals between hackers and people

00:36:49.500 --> 00:36:51.369
buying database dumps.

00:36:51.369 --> 00:36:56.670
The FBI found Kislitsin’s e-mail address which was a Hotmail address owned by Microsoft,

00:36:56.670 --> 00:37:00.230
so they issued a search warrant with Microsoft to see what was in his inbox.

00:37:00.230 --> 00:37:05.730
There, the FBI saw e-mails going back and forth with the buyer of the Formspring data.

00:37:05.730 --> 00:37:11.190
The buyer ultimately decided to buy the dump for an equivalent of 7,100 US dollars.

00:37:11.190 --> 00:37:16.960
I’m not sure how much data was in there though; somewhere between 400,000 and 30 million

00:37:16.960 --> 00:37:17.960
user records.

00:37:17.960 --> 00:37:23.250
Supposedly, the person who bought this was half-Belgian and half-Turkish, and what’s

00:37:23.250 --> 00:37:28.030
really strange is they used a middle man for this cash deal and he was also involved with

00:37:28.030 --> 00:37:33.190
the E-Trade and Scottrade hacks which I talked about in Episode 76, Knaves Out.

00:37:33.190 --> 00:37:38.650
The FBI indicted Kislitsin as a co-conspirator to this but ultimately was unable to capture

00:37:38.650 --> 00:37:39.650
him.

00:37:39.650 --> 00:37:45.600
However, the FBI was able to arrange a meeting with him in the Russian embassy in Moscow.

00:37:45.600 --> 00:37:51.750
So, they visited with this Kislitsin guy and he gave them a lot of information, not only

00:37:51.750 --> 00:37:57.150
information about this case but information on a few other cases the FBI was investigating,

00:37:57.150 --> 00:37:58.150
too.

00:37:58.150 --> 00:38:03.970
While meeting with Kislitsin, he told them that Yevgeniy Nikulin was the person who broke

00:38:03.970 --> 00:38:09.100
into Dropbox and still had access to it and had the Formspring [00:40:00] data, all with

00:38:09.100 --> 00:38:12.870
the goal to sell the database dumps on the black market for money.

00:38:12.870 --> 00:38:17.560
This was enough information for the FBI to issue an indictment for Yevgeniy.

00:38:17.560 --> 00:38:21.650
Multiple trails led right to him, but would they be able to catch him?

00:38:21.650 --> 00:38:25.550
Stay with us through the break to find out.

00:38:25.550 --> 00:38:29.849
So, who is Yevgeniy Nikulin?

00:38:29.849 --> 00:38:35.859
Well, he’s Russian, from Moscow, born in 1987, so that made him twenty-five years old

00:38:35.859 --> 00:38:37.290
in 2012.

00:38:37.290 --> 00:38:42.500
Yevgeniy loves cars so much that he started a business in Moscow buying luxury cars and

00:38:42.500 --> 00:38:46.790
renting them out to people, and it was from that where he was often seen driving Maseratis,

00:38:46.790 --> 00:38:49.589
Lamborghinis, and Bentleys around town in Russia.

00:38:49.589 --> 00:38:52.640
I don’t know where all this hacking started for him.

00:38:52.640 --> 00:38:53.970
Details of his past are foggy.

00:38:53.970 --> 00:38:57.720
I imagine he got into IT and computers like anyone else; probably started with playing

00:38:57.720 --> 00:39:01.940
video games and then wanting to hack the video games or cheat, or maybe wanting to change

00:39:01.940 --> 00:39:05.630
his grades in school or wanting to just mess around with his friends by hacking into them

00:39:05.630 --> 00:39:06.819
like it was a game.

00:39:06.819 --> 00:39:08.619
Who knows why he got started in hacking?

00:39:08.619 --> 00:39:14.290
But by 2012 he was pretty familiar with how computers worked and how to exploit them.

00:39:14.290 --> 00:39:18.720
From reading about him, I also feel like his online life overlapped with some of these

00:39:18.720 --> 00:39:22.220
pretty notorious Russian cyber-criminals.

00:39:22.220 --> 00:39:24.640
He knew some of the other big hackers.

00:39:24.640 --> 00:39:26.170
Maybe they taught him.

00:39:26.170 --> 00:39:30.630
Maybe they were hanging out in the same forums or something and maybe Yevgeniy wanted to

00:39:30.630 --> 00:39:36.220
be part of that hacking world that they were part of, because after all, he liked expensive

00:39:36.220 --> 00:39:42.970
things and was seeing some of the Russian hackers making gravy from their digital exploits.

00:39:42.970 --> 00:39:47.960
The FBI issued an indictment for Yevgeniy Nikulin but the problem was, he was in Russia

00:39:47.960 --> 00:39:51.380
and Russia was not going to arrest Yevgeniy for the FBI.

00:39:51.380 --> 00:39:55.390
Even if Russia did arrest him, he’s not gonna get extradited to the US for trial.

00:39:55.390 --> 00:39:57.740
So, the FBI had to wait.

00:39:57.740 --> 00:40:02.570
They knew the exact address of where Yevgeniy lived but had no way to go into Russia to

00:40:02.570 --> 00:40:03.570
get him.

00:40:03.570 --> 00:40:10.050
Now, up until this point, the world had thought the LinkedIn data breach was for 6.5 million

00:40:10.050 --> 00:40:14.099
users because after all, that’s what was posted on insiderpro.com and what’s more

00:40:14.099 --> 00:40:17.890
is that LinkedIn never clarified how many accounts got stolen.

00:40:17.890 --> 00:40:24.750
But in May 2016, someone posted that they had even more LinkedIn credentials for sale.

00:40:24.750 --> 00:40:32.760
They claimed to have 117 million user details from LinkedIn and was selling it for just

00:40:32.760 --> 00:40:35.960
over $2,000 in Bitcoin.

00:40:35.960 --> 00:40:38.280
This triggered a whole new news cycle.

00:40:38.280 --> 00:40:39.810
HOST3: Morning topic; America’s money.

00:40:39.810 --> 00:40:43.690
A security breach at LinkedIn turns out to be much bigger than first thought.

00:40:43.690 --> 00:40:44.690
HOST4: That’s right.

00:40:44.690 --> 00:40:49.370
The social network for business now says a hacker stole 117 million user passwords in

00:40:49.370 --> 00:40:53.840
the 2012 breach, far more than the original estimate of about 6.5 million.

00:40:53.840 --> 00:40:56.599
JACK: I think about all the users of LinkedIn.

00:40:56.599 --> 00:41:01.680
Yes, of course; professionals looking to network, but also many top executives have accounts

00:41:01.680 --> 00:41:02.680
there.

00:41:02.680 --> 00:41:05.680
I mean, after all, if your business is listed there, shouldn’t the leader of that business

00:41:05.680 --> 00:41:07.200
be on there too?

00:41:07.200 --> 00:41:09.440
But on top of that, you have government officials on there.

00:41:09.440 --> 00:41:14.860
Lawmakers are there, members of congress, FBI agents, NSA agents, senators, and yes,

00:41:14.860 --> 00:41:16.600
even the president of the United States.

00:41:16.600 --> 00:41:22.090
Barack Obama made his account in 2007 when he was running for president and was president

00:41:22.090 --> 00:41:24.750
in 2012 when this happened.

00:41:24.750 --> 00:41:31.119
[MUSIC] This news swept through lots of circles and impacted a lot of people.

00:41:31.119 --> 00:41:36.160
What’s more is this new dump contained a lot of cracked passwords that anyone can see

00:41:36.160 --> 00:41:37.810
in plain text.

00:41:37.810 --> 00:41:41.110
It wasn’t that LinkedIn stored passwords in plain text but the hackers were able to

00:41:41.110 --> 00:41:43.940
find ways to crack a lot of the passwords that were in there.

00:41:43.940 --> 00:41:48.450
Oh, and in fact, we got to see what the most common passwords that got cracked were.

00:41:48.450 --> 00:41:52.829
I’ll read you the top six [00:45:00] most common passwords that LinkedIn users were

00:41:52.829 --> 00:41:54.150
using in 2012.

00:41:54.150 --> 00:41:58.940
The most common was simply ‘123456’.

00:41:58.940 --> 00:42:05.750
Over 700,000 users had used this password because yes, LinkedIn’s minimum password

00:42:05.750 --> 00:42:09.050
length was six characters at the time.

00:42:09.050 --> 00:42:17.320
The next most popular password was ‘LinkedIn’, then the password ‘password’, then ‘123456789’,

00:42:17.320 --> 00:42:22.930
then ‘12345678’, then ‘111111’.

00:42:22.930 --> 00:42:27.030
People use bad passwords and you’re telling me some of those users are using the same

00:42:27.030 --> 00:42:28.590
passwords on multiple sites?

00:42:28.590 --> 00:42:31.510
On top of that, they’re using the same password at work?

00:42:31.510 --> 00:42:33.750
Ugh, it’s outrageous.

00:42:33.750 --> 00:42:39.520
A few months after that, in October 2016, the FBI got the break they were waiting for.

00:42:39.520 --> 00:42:44.310
Yevgeniy Nikulin was spotted in Prague, in the Czech Republic.

00:42:44.310 --> 00:42:48.160
With the indictment all processed and things ready to go, the Czech police tracked him

00:42:48.160 --> 00:42:51.270
to a restaurant where he was eating with his girlfriend.

00:42:51.270 --> 00:42:55.000
There’s bodycam footage of the police arresting him.

00:42:55.000 --> 00:42:59.880
Here, have a listen.

00:42:59.880 --> 00:43:02.319
POLICE: [CZECH]

00:43:02.319 --> 00:43:07.300
JACK: There’s actually not much to listen to, so I’ll describe what’s going on.

00:43:07.300 --> 00:43:09.570
Yevgeniy and his girlfriend are sitting at a restaurant.

00:43:09.570 --> 00:43:13.750
From the video, I see about three police officers coming in and they tell him to stay calm and

00:43:13.750 --> 00:43:14.930
put his hands where they can see them.

00:43:14.930 --> 00:43:19.030
Yevgeniy puts his hands on the table and they ask him to stand up and walk backwards towards

00:43:19.030 --> 00:43:20.040
the officer.

00:43:20.040 --> 00:43:22.010
Yevgeniy does exactly that.

00:43:22.010 --> 00:43:26.010
Then they pat him down, take some things out of his pockets and handcuff him, all while

00:43:26.010 --> 00:43:28.740
the other officer is making sure the girlfriend isn’t getting up.

00:43:28.740 --> 00:43:36.369
It’s all done very quietly and without any fuss, and Yevgeniy was taken to a Prague jail.

00:43:36.369 --> 00:43:41.200
For the next two years, Yevgeniy’s lawyers fought to keep him from getting extradited

00:43:41.200 --> 00:43:42.200
to the US.

00:43:42.200 --> 00:43:47.400
I wasn’t able to get a second confirmation on this but his lawyer said the FBI was trying

00:43:47.400 --> 00:43:51.921
to pin Yevgeniy for hacking Hillary Clinton’s e-mails at the time and was trying to get

00:43:51.921 --> 00:43:53.650
him to confess to that.

00:43:53.650 --> 00:43:59.860
Eventually, two years after his arrest, in 2018 the Czech Republic did extradite him

00:43:59.860 --> 00:44:01.559
to the US for a trial.

00:44:01.559 --> 00:44:05.500
Yeah, I went through the court records and I never saw one reference to Hillary Clinton

00:44:05.500 --> 00:44:06.500
in there.

00:44:06.500 --> 00:44:11.499
The US had nine charges on him; computer intrusion, aggravated identity theft, conspiracy, and

00:44:11.499 --> 00:44:15.920
an international transmission of information causing damage to a protected computer.

00:44:15.920 --> 00:44:20.400
The victims of this case were listed as LinkedIn, Dropbox, and Formspring.

00:44:20.400 --> 00:44:28.440
But here’s why I love this story so much; Yevgeniy pleaded innocent on all these charges.

00:44:28.440 --> 00:44:32.620
[MUSIC] He claimed he didn’t do any of this and why is that my favorite part?

00:44:32.620 --> 00:44:39.660
Because it means this case had to go to trial which means witnesses, evidence, FBI testimony,

00:44:39.660 --> 00:44:42.750
and so much more becomes public record.

00:44:42.750 --> 00:44:49.059
To research this story, I got the pleasure of reading hundreds of pages of court transcripts.

00:44:49.059 --> 00:44:53.790
It was glorious to hear all the details from victims and law enforcement.

00:44:53.790 --> 00:44:55.210
We rarely hear these things.

00:44:55.210 --> 00:44:59.650
Like, there were three people from LinkedIn who all testified, explaining how the hacker

00:44:59.650 --> 00:45:02.109
got in and what their incident response plan was.

00:45:02.109 --> 00:45:06.670
There were three people from Dropbox giving testimony, and the CEO from Formspring explained

00:45:06.670 --> 00:45:08.250
everything he saw.

00:45:08.250 --> 00:45:12.970
On top of that, there were three FBI agents and a Secret Service agent who all gave testimony

00:45:12.970 --> 00:45:16.840
on how they were able to link all these pieces together and track him down.

00:45:16.840 --> 00:45:22.010
It’s only from all this that we know anything about this story other than what you’ve

00:45:22.010 --> 00:45:23.010
seen in the headlines.

00:45:23.010 --> 00:45:28.109
I mean, I reached out to LinkedIn multiple times and the FBI multiple times to get someone

00:45:28.109 --> 00:45:32.740
to tell me about this story but nobody wanted to talk because I get it; what company wants

00:45:32.740 --> 00:45:36.600
to come on this show and tell me about the worst thing that’s ever happened to their

00:45:36.600 --> 00:45:38.600
company? No one.

00:45:38.600 --> 00:45:42.540
So, it’s just really rare for us to see all the details of what happened written out

00:45:42.540 --> 00:45:44.400
so wonderfully.

00:45:44.400 --> 00:45:49.070
This trial started in early 2020 but then the pandemic hit and the trial was delayed

00:45:49.070 --> 00:45:50.240
like, three months.

00:45:50.240 --> 00:45:55.369
During that time, the Secret Service arrested a hacker suspected for breaking into the SEC,

00:45:55.369 --> 00:45:57.329
Oleksandr Yaremenko.

00:45:57.329 --> 00:46:02.190
When they arrested him, they got access to his laptop and on it was all kinds of evidence

00:46:02.190 --> 00:46:08.660
on Yevgeniy; pictures of him, videos of him, chat messages with him, e-mails to him, tons

00:46:08.660 --> 00:46:09.660
more evidence.

00:46:09.660 --> 00:46:15.450
But it’s weird though because by 2020, Yevgeniy had been in jail for four years which if you

00:46:15.450 --> 00:46:21.420
think about it, that’s 13% of his life that he’s been in prison without anyone deciding

00:46:21.420 --> 00:46:23.960
on whether he’s guilty or not.

00:46:23.960 --> 00:46:27.040
This took a mental toll on him for sure.

00:46:27.040 --> 00:46:29.150
He barely spoke any English.

00:46:29.150 --> 00:46:33.359
He would sometimes shove guards or medical examiners or just try to walk out of the place

00:46:33.359 --> 00:46:34.359
sometimes.

00:46:34.359 --> 00:46:37.500
He made a mess in his cell by getting toilet paper wet and throwing it up on the ceiling.

00:46:37.500 --> 00:46:43.170
He kept asking the judge for permission to have a Game Boy or a PSP to play.

00:46:43.170 --> 00:46:45.510
Yevgeniy didn’t testify himself.

00:46:45.510 --> 00:46:48.640
He had an interpreter in the court room saying everything to him.

00:46:48.640 --> 00:46:52.579
The whole time, he kept [00:50:00] saying he had nothing to do with this but the trial

00:46:52.579 --> 00:46:56.830
started up and there was quite a lot of evidence connecting him to the incidents.

00:46:56.830 --> 00:47:01.350
Just to recap the trail here, IPs that accessed the victims’ networks were registered to

00:47:01.350 --> 00:47:03.040
his name specifically.

00:47:03.040 --> 00:47:07.280
The IP used to steal data from LinkedIn led to a certain browser user agent, and that

00:47:07.280 --> 00:47:11.309
was associated to a LinkedIn account with a Gmail address, and that e-mail was registered

00:47:11.309 --> 00:47:15.660
at afraid.org which had a username that was on kongregate.com, and that person bought

00:47:15.660 --> 00:47:19.900
things with a bank card, and that bank card matched to other things that Yevgeniy bought.

00:47:19.900 --> 00:47:24.579
On top of that, there was Kislitsin who said that Yevgeniy did this, and Yaremenko’s

00:47:24.579 --> 00:47:26.520
computer which had more evidence.

00:47:26.520 --> 00:47:29.130
On July 10th, 2020, the trial concluded.

00:47:29.130 --> 00:47:33.090
The jury found him guilty on all nine counts.

00:47:33.090 --> 00:47:38.359
The judge then sentenced him to 88 months in prison which is just over seven years,

00:47:38.359 --> 00:47:44.140
and they also ordered him to pay 1.7 million dollars in restitution for the damage he caused

00:47:44.140 --> 00:47:45.579
to the companies he hacked.

00:47:45.579 --> 00:47:50.520
Oh, and after that, he has to do three years of supervised release which I’m not quite

00:47:50.520 --> 00:47:54.089
sure how that works if you’re not a citizen of the US.

00:47:54.089 --> 00:47:59.060
[MUSIC] So, what do we learn from this story?

00:47:59.060 --> 00:48:04.300
Well, it sounds like in 2012, these victim companies weren’t doing user behavior anomaly

00:48:04.300 --> 00:48:05.300
detection.

00:48:05.300 --> 00:48:09.800
Like, if a user VPNs in from California and then an hour later that same user VPNs in

00:48:09.800 --> 00:48:12.760
from Russia, that should trigger an alert, right?

00:48:12.760 --> 00:48:14.390
Yeah, well, it didn’t.

00:48:14.390 --> 00:48:16.950
The technology at the time didn’t really do that kind of correlation.

00:48:16.950 --> 00:48:21.230
Now there’s better tools for monitoring user behavior analytics and I think tools

00:48:21.230 --> 00:48:22.650
like that have a lot of potential.

00:48:22.650 --> 00:48:28.690
Next, it’s crazy to me that some people use the same password for their LinkedIn account

00:48:28.690 --> 00:48:30.640
as their work accounts.

00:48:30.640 --> 00:48:32.970
Don’t reuse passwords like that.

00:48:32.970 --> 00:48:36.010
Use a complex, unique password for every account you have.

00:48:36.010 --> 00:48:38.119
The best way to do that is to use a password manager.

00:48:38.119 --> 00:48:40.220
They aren’t hard to use, so go get one.

00:48:40.220 --> 00:48:44.350
I have a affiliate link to one in the show notes if you just want a good recommendation.

00:48:44.350 --> 00:48:48.300
It’s also worth noting that these companies seemed to have exceptional logging turned

00:48:48.300 --> 00:48:51.640
on and when they learned about this breach, they were able to archive those logs and do

00:48:51.640 --> 00:48:55.550
system snapshots right away to preserve any data that can be used forensically.

00:48:55.550 --> 00:49:00.460
I’ve seen a lot of companies just not log properly and it just always really bothers

00:49:00.460 --> 00:49:01.460
me.

00:49:01.460 --> 00:49:05.619
Oh, and that LinkedIn engineer who was hosting those two websites on his home computer, he’s

00:49:05.619 --> 00:49:10.589
moved those websites to host them on Linode now which is one of our sponsors.

00:49:10.589 --> 00:49:14.930
I think one of the lessons he learned from this was that opening ports from the internet

00:49:14.930 --> 00:49:18.190
into your home network can be dangerous.

00:49:18.190 --> 00:49:24.370
It exposes your computer to a world full of chaos which can ultimately result in someone

00:49:24.370 --> 00:49:26.609
getting access to your home network.

00:49:26.609 --> 00:49:30.650
I do think about that a lot in this story; if he wasn’t hosting those little websites

00:49:30.650 --> 00:49:34.850
at home, he probably wouldn’t have been the way in for this hacker.

00:49:34.850 --> 00:49:42.079
It’s also interesting to see that bad guys target employees at their house, because that

00:49:42.079 --> 00:49:44.710
network is often not as strong as the corporate network.

00:49:44.710 --> 00:49:51.339
But here’s the crazy part of all this; remember that LinkedIn dump of 117 million user details

00:49:51.339 --> 00:49:53.240
that showed up in 2016?

00:49:53.240 --> 00:49:59.420
Later on that year, it just hit the public for anyone to see, so anyone can go look in

00:49:59.420 --> 00:50:05.640
the LinkedIn database to see what is in there, and there are still many people who did not

00:50:05.640 --> 00:50:09.780
change their passwords or changed it to something and then just changed it right back to what

00:50:09.780 --> 00:50:10.829
it was before that.

00:50:10.829 --> 00:50:14.390
What about all those people who reused passwords on all the other sites?

00:50:14.390 --> 00:50:17.860
Like, yeah, I changed my LinkedIn password ‘cause I was told to, but I didn’t change

00:50:17.860 --> 00:50:21.190
all the other six things that use that same password.

00:50:21.190 --> 00:50:24.690
That’s where we pick up in the next episode.

00:50:24.690 --> 00:50:31.700
Someone finds a password in the LinkedIn database and has quite a story to tell about that.

00:50:31.700 --> 00:50:41.170
(OUTRO): [OUTRO MUSIC] Hey, do you know about the Darknet Diaries shop?

00:50:41.170 --> 00:50:43.799
Listen, I love coming up with new shirt designs.

00:50:43.799 --> 00:50:46.099
Every month I throw a few more up in the shop.

00:50:46.099 --> 00:50:49.839
These shirts look great; one is of Medusa but she’s got Ethernet cables coming out

00:50:49.839 --> 00:50:53.680
of her head instead of snakes, and there’s one that looks like a bouquet of flowers but

00:50:53.680 --> 00:50:56.140
the flowers are actually made of computer cables.

00:50:56.140 --> 00:51:00.069
Another one is of an archer who’s shooting an arrow but the arrow looks like a USB symbol.

00:51:00.069 --> 00:51:04.210
You’ve got to see these shirts for yourself to understand what I’m saying, so visit

00:51:04.210 --> 00:51:06.330
shop.darknetdiaries.com and find some shirts.

00:51:06.330 --> 00:51:10.799
I’m an independent creator who loves bringing this show to you free of charge every two

00:51:10.799 --> 00:51:15.850
weeks but what really helps me keep on that schedule are my Patreon supporters.

00:51:15.850 --> 00:51:20.119
These are people who donate money to the show every month to help keep it going.

00:51:20.119 --> 00:51:25.109
If you want to show your support for this show, please visit patreon.com/darknetdiaries

00:51:25.109 --> 00:51:26.250
and consider donating.

00:51:26.250 --> 00:51:27.400
Thank you.

00:51:27.400 --> 00:51:30.670
This show is made by me, the chief biscuit-dunker, Jack Rhysider.

00:51:30.670 --> 00:51:33.320
Sound design by the dream alchemist, Andrew Meriwether.

00:51:33.320 --> 00:51:37.480
Editing help this episode by the wizard of light bulb moments, Damienne, and our theme

00:51:37.480 --> 00:51:41.010
music is by the phonic magician, Breakmaster Cylinder.

00:51:41.010 --> 00:51:47.000
Even though when you ASCII stupid question, you get a stupid ANSI.

00:51:47.000 --> 00:51:48.390
This is Darknet Diaries.
