https://www.zdnet.com/article/chinese-hacker-group-caught-bypassing-2fa/


Government hacker group caught bypassing two-factor authentication (2FA)

  Chinese state-sponsored group APT20 has been busy hacking government entities 
and managed service providers.


Security researchers say they found evidence that a Chinese government-linked 
hacking group has been bypassing two-factor authentication (2FA) in a recent 
wave of attacks.

The attacks have been attributed to a group the cyber-security industry is 
tracking as APT20, believed to operate on the behest of the Beijing government, 
Dutch cyber-security firm Fox-IT said in a report published last week.

The group's primary targets were government entities and managed service 
providers (MSPs). The government entities and MSPs were active in fields like 
aviation, healthcare, finance, insurance, energy, and even something as niche 
as gambling and physical locks.

RECENT APT20 ACTIVITY

The Fox-IT report comes to fill in a gap in the group's history. APT20's 
hacking goes back to 2011, but researchers lost track of the group's operations 
in 2016-2017, when they changed their mode of operation.

Fox-IT's report documents what the group has been doing over the past two years 
and how they've been doing it.

According to researchers, the hackers used web servers as the initial point of 
entry into a target's systems, with a particular focus on JBoss, an enterprise 
application platform often found in large corporate and government networks.

APT20 used vulnerabilities to gain access to these servers, install web shells, 
and then spread laterally through a victim's internal systems.

While on the inside, Fox-IT said the group dumped passwords and looked for 
administrator accounts, in order to maximize their access. A primary concern 
was obtaining VPN credentials, so hackers could escalate access to more secure 
areas of a victim's infrastructure, or use the VPN accounts as more stable 
backdoors.

Fox-IT said that despite what appears to be a very prodigious hacking activity 
over the past two years, "overall the actor has been able to stay under the 
radar."

They did so, researchers explain, by using legitimate tools that were already 
installed on hacked devices, rather than downloading their own custom-built 
malware, which could have been detected by local security software.

APT20 SEEN BYPASSING 2FA

But this wasn't the thing that stood out the most in all the attacks the Dutch 
security firm investigated. Fox-IT analysts said they found evidence the 
hackers connected to VPN accounts protected by 2FA.

How they did it remains unclear; although, the Fox-IT team has their theory. 
They said APT20 stole an RSA SecurID software token from a hacked system, which 
the Chinese actor then used on its computers to generate valid one-time codes 
and bypass 2FA at will.

Normally, this wouldn't be possible. To use one of these software tokens, the 
user would need to connect a physical (hardware) device to their computer. The 
device and the software token would then generate a valid 2FA code. If the 
device was missing, the RSA SecureID software would generate an error.


The Fox-IT team explains how hackers might have gone around this issue:

β€œThe software token is generated for a specific system, but of course this 
system specific value could easily be retrieved by the actor when having access 
to the system of the victim.

As it turns out, the actor does not actually need to go through the trouble of 
obtaining the victim's system specific value, because this specific value is 
only checked when importing the SecurID Token Seed, and has no relation to the 
seed used to generate actual 2-factor tokens. This means the actor can actually 
simply patch the check which verifies if the imported soft token was generated 
for this system, and does not need to bother with stealing the system specific 
value at all.

In short, all the actor has to do to make use of the 2 factor authentication 
codes is to steal an RSA SecurID Software Token and to patch 1 instruction, 
which results in the generation of valid tokens.”


Fox-IT said it was able to investigate APT20's attacks because they were called 
in by one of the hacked companies to help investigate and respond to the hacks.

More on these attacks can be found in a report named "Operation Wocao."

The Dutch company said it named the report "Wocao" after a response the Chinese 
hackers had after they've been detected and booted out of a victim's network.

In the screenshot below, you can view APT20 trying to connect to a 
(now-removed) web shell they installed on a victim's network.

The hackers try running several Windows commands. When the commands fail to 
execute, APT20 hackers understand they've been detected and thrown out of the 
network, and they type one last command in frustration -- wocao, which is the 
Chinese slang for "shit" or "damn."

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Merry Christmas 😊

Stephen Loosley

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