http://www.nytimes.com/2011/06/03/technology/03hack.html?_r=1&ref=asia&pagewanted=all

E-Mail Fraud Hides Behind Friendly Face
By MATT RICHTEL and VERNE G. KOPYTOFF
Published: June 2, 2011 
SAN FRANCISCO - Most people know to ignore the e-mail overture from a Nigerian 
prince offering riches in exchange for a bank account number. That is a scam, 
plain to the eye. 

Enlarge This Image
 
Jose Luis Magana/Associated Press
Secretary of State Hillary Rodham Clinton said the F.B.I. would investigate a 
series of fraudulent e-mails. 

Enlarge This Image
 
Andrew Harrer/Bloomberg News
Enrique Salem, Symantec's chief executive, said hackers personalize messages. 

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But what if the e-mail appears to come from a colleague down the hall? And all 
he asks is that you add some personal information to a company database? 

This is spear phishing, a rapidly proliferating form of fraud that comes with a 
familiar face: messages that seem to be from co-workers, friends or family 
members, customized to trick you into letting your guard down online. And it 
has turned into a major problem, according to technology companies and computer 
security experts. 

On Wednesday, Google disclosed that it had discovered and disrupted an effort 
to use such pinpoint tactics to steal hundreds of Gmail passwords and monitor 
the accounts of prominent people, including senior government officials. 
Secretary of State Hillary Rodham Clinton said Thursday that the F.B.I. would 
investigate Google's assertion that the campaign originated in China. 

Such tactics were also used in an attack on a company called RSA Security, 
which security experts say may have given hackers the tools to carry out a 
serious intrusion last month at Lockheed Martin, the world's largest military 
contractor. 

The security specialists say these efforts are a far cry from more standard 
phishing attempts, which involve spraying the Internet with millions of e-mails 
that appear to be from, say, Citibank in the hope of snaring a few unfortunate 
Citibank customers. Spear phishing entails sending highly targeted pitches that 
can look authentic because they appear to come from a trusted source and 
contain plausible messages. 

As such, the specialists say, the overtures are becoming very difficult for 
recipients to detect. 

"It's a really nasty tactic because it's so personalized," said Bruce Schneier, 
the chief security technology officer of the British company BT Group. "It's an 
e-mail from your mother saying she needs your Social Security number for the 
will she's doing." 

Mr. Schneier said the attacks are more like a traditional con game than a 
technically sophisticated intrusion. "This is hacking the person," he said. 
"It's not hacking the computer." 

Symantec, the computer security firm, said it intercepted around 85 targeted 
attacks a day in March, including efforts to steal personal information through 
phishing or with links to nefarious software that could ultimately expose 
corporate files. The only month with more attacks was March 2009, when there 
was a surge that coincided with a G20 summit meeting. 

Symantec said the most common targets were government agencies and senior 
managers and executives; the phishing of such big game is commonly referred to 
as "whaling." Manufacturing firms were the targets of 15.9 percent of the 
attacks, compared with 8 percent for the financial sector and 6.1 percent for 
technology companies, Symantec said. Hackers taking aim at corporations are 
often seeking new product designs and may focus on engineers at a defense 
contractor, for example, to get data they can sell on the black market. 

Enrique Salem, Symantec's chief executive, gave the example of an e-mail sent 
to the head of a company that appears to be from the Internal Revenue Service. 
The message raises questions about the tax implications of an acquisition, and 
the chief executive passes the message to others inside the company. Someone 
opens the attachment, giving the attacker access to the company's internal 
network. 

"It's about getting you to do something to compromise the system," Mr. Salem 
said. 

In the case of the Gmail attacks, Google said they appeared to originate from 
Jinan, China, and were aimed at users like Chinese political activists, 
military personnel, journalists and South Korean officials. 

The Chinese Foreign Ministry said Thursday that the government had no 
involvement in any such attacks, and that it "consistently opposes any criminal 
activities that damage the Internet and computer networks including hacking, 
and cracks down on these activities according to law." 

It is not clear how the attackers obtained the Gmail addresses they used, 
although they could have been found inside other compromised accounts, 
including corporate or government accounts whose addresses are often easier to 
guess. 

The attackers may have hoped to find some work-related e-mail in their victims' 
personal Gmail accounts. 

Mila Parkour, an independent security researcher who helped alert Google to the 
attacks, said she was tipped off to the campaign when one of the victims let 
her examine some suspicious messages. 

That led her to discover a fake but convincing Gmail login screen that 
attackers used to dupe targets into submitting their passwords. She said the 
messages indicated that the phishing attempts had begun at least a year before 
she learned of them - early in 2010. 

"I thought it was interesting because they did it for so long," Ms. Parkour 
said. She said she also saw screens that mimicked the login pages for the Web 
portals of corporate e-mail systems. 

Companies and individuals can take steps to head off these attacks. For 
instance, Google encourages people to use a two-step process that sends a 
special code to their cellphone when they log into Gmail. The Defense 
Department asks its personnel to use a "digital signature" on their e-mails 
that verifies their identity. 

The momentum is on the side of the attackers, given that their forgeries can be 
realistic and thus irresistible, according to Lt. Col. Gregory Conti, a 
computer security expert at West Point. He said one reason the problem was 
getting harder to parry was that the people sending the messages use the 
Internet, specifically social networks like Facebook, to gather so much 
personal information about potential targets. 

"What's 'wrong' with these e-mails is very, very subtle," he said, adding: 
"They'll come in error-free, often using the appropriate jargon or acronyms for 
a given office or organization." 

The way to stop such efforts is not clear, Mr. Conti said: "It's an open 
problem." 

Victims of spear phishing include people who oversee corporate security, said 
Larry Ponemon, chairman of the Ponemon Institute, a research company in 
Traverse City, Mich., that focuses on data security. He gave the example of a 
security technology executive who received an e-mail from what appeared to be 
his employer's human resources department that asked for personal information 
to make a payment. 

Mr. Schneier of BT said he did not believe there was an easy and universal fix 
for the problem, any more than there was for car theft. He said the personal 
nature of the attacks makes them too seductive. 

"Welcome to the world. You cannot stop it," he said. "Live with it." 


John Markoff contributed reporting.


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