Attacks/Breaches
8/18/2014
07:00 PM
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Pakistan The Latest Cyberspying Nation

A look at Operation Arachnophobia, a suspected cyber espionage campaign against India.

A recently unearthed targeted attack campaign suggests that Pakistan is evolving from hacktivism to cyber espionage.

Operation Arachnophobia, a campaign that appears to have begun in early 2013, has all the earmarks of classic advanced persistent threat/cyber espionage activity but with a few twists of its own -- including the possible involvement of a Pakistani security firm.

Researchers from FireEye and ThreatConnect recently teamed up in their investigation of the attacks, which feature a custom malware family dubbed Bitterbug that serves as the backdoor for siphoning stolen information. Though the researchers say they have not identified the specific victim organizations, they have spotted malware bundled with decoy documents related to Indian issues.

The Bitterbug malware is geared for cyber espionage purposes and was hidden behind pilfered US infrastructure as a way to hide its origins. Specifically, the attacks employ infrastructure from a US virtual private server. The Pakistani hosting provider appears to have leased its command and control infrastructure from a US VPS provider. "It's where the malware is hosted and used for command and control," says Rich Barger, chief intelligence officer at ThreatConnect. The goal was to make the attacks appear to come from the US.

Operation Arachnophobia may well be Pakistan's answer to cyber espionage campaigns against its nation that appear to have come from India. "It was engineered to collect standard Office documents on your desktop," Barger says. "It was very close to Operation Hangover activity… for which India was purportedly responsible."

Cyber espionage appears to be on the upswing in the region. Iran recently moved from a defacement-happy operation in the name of political hacktivism to cyberspying campaigns such as the so-called Operation Saffron Rose targeting US defense contractors and Iranian dissidents.

"We know about Russia and China… India and Pakistan has room to grow and mature," Barger says.

Operation Arachnophobia was named after the Pakistani security firm Tranchulas, whose name appeared in some of the malware samples studied by FireEye researchers. "The 'Tranchulas' name was in a string" of the malware, says Mike Oppenheim, principal threat intelligence analyst at FireEye. Tranchulas was supposedly a security company that does penetration testing. The researchers say it supports "national level cyber security programs" and the development of "offensive and defensive cyber capabilities."

The researchers found major discrepancies in emails between them and Tranchulas and the Pakistani hosting provider, which led them to dig further. That's where they discovered the hosting provider had been subleasing insfrastructure from US providers, and both Tranchulas and the Pakistani hosting provider have employed or have connections with people with "cyber offensive expertise."

According to the researchers, since they published a whitepaper on their findings this month, the operation appears to have come to standstill for now.

The full report is available here (registration required).

Kelly Jackson Higgins is Executive Editor at DarkReading.com. She is an award-winning veteran technology and business journalist with more than two decades of experience in reporting and editing for various publications, including Network Computing, Secure Enterprise ... View Full Bio

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securityaffairs
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securityaffairs,
User Rank: Ninja
9/1/2014 | 3:58:08 AM
Re: Hyper-rivalries breed cyber snooping
I totally agree. 

you wrote " It's important that international laws are to be made same for all"

that's correct but it's an ambitious goal difficult to reach

Regards

Pierluigi
nomii
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nomii,
User Rank: Apprentice
8/30/2014 | 1:53:28 AM
Re: Hyper-rivalries breed cyber snooping
@Securityaffairs I agree with you. As i belong to the region, its a a basic fact that the expertise level at both sides are very high. They are very regularly being used against each other as it is known that both these countries remain in a war like situation on  all fronts even their military is having very cordial relations with each other.

I think the cyberspying is very relevant term and I feels that its right of weaks to do if Giants are doing it openly under security cover. Its important that international laws are to be made same for all but I feel that its implementation is not as it should be especially for the favoured ones. I need not to mention them openly.
securityaffairs
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securityaffairs,
User Rank: Ninja
8/20/2014 | 5:48:03 PM
Re: Hyper-rivalries breed cyber snooping
I'm not surprised too. Pakistan has also great cyber capabilities and I believe that its Government is involved in the attacks mentioned that are in response to the Indian cyber espionage campaigns uncovered in the past.

Regards

Pierluigi
Kelly Jackson Higgins
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Kelly Jackson Higgins,
User Rank: Strategist
8/19/2014 | 8:35:23 AM
Re: Hyper-rivalries breed cyber snooping
I suppose it's turnabout, with India doing the same to Pakistan. Traditional spying alone isn't enough anymore.
Charlie Babcock
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Charlie Babcock,
User Rank: Moderator
8/18/2014 | 11:40:15 PM
Hyper-rivalries breed cyber snooping
Pakistan has a nuclear arsenal and was willing to export the expertise. I'm not too surprised that it's willing to engage in cyber snooping. Countries that are in a high state of rivalry with a neighbor, such as Pakistan and India, will behave more defensive-aggressively.
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