LocalBitcoins Attack against infrastructure 3.5.2014

[RUEHL]

https://plus.google.com/+BitcointrukkokHu/posts/UkRc4jrJAbn

Saturday, May 3, 2014

Attack against LocalBitcoins infrastructure 3.5.2014

LocalBitcoins received a very dangerous attack against the site infrastructure on Saturday 3.5.2014.
For now
All user data and Bitcoins are safe;
The site will be down for a while as the system is being rebuilt

Details

LocalBitcoins hosting provided received a request to restart the LocalBitcoins.com website server and give access to the server console (root) on Sat May 3 13:32:27. LocalBitcoins team did not initiate this request. For now, it looks like the request was made using spoofed email addresses and other weakness in the hosting provider support system.

• LocalBitcoins team was alerted about the abnormal activity when the hosting provider restarted the server.
  The attacker gained a root access to the server for ~40 minutes before the attacker was kicked out and the server shutdown.
• All data on the website server is encrypted. Manual actions are needed to make this data readable, so the attacker could not gain access to the data even when having a server console access.

It is very unlikely that the attacker gained access to any data;  LocalBitcoins is still performing full investigation on the matter.

• Bitcoins in hot wallet and cold wallet are safe, as LocalBitcoins runs its bitcoind and wallets on a separate server.
  LocalBitcoins team has started to rebuild the website server on fresh hardware.
• LocalBitcoins team will make further announcements when the investigation proceeds and the site becomes available again.  

We expect to spend at least 24 hours on this. LocalBitcoins team apologizes the issues the downtime may cause to the users.

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[aceat64]

This is pretty standard social engineering, the hosting company screwed up big time. They gave someone root access with apparently no real validation.

[MoneyGod]

Another bad news for bitcoiners because now peoples more worry about bitcoin trade

[franky1]

usually you find out the data centre is a "buy a domain and server in bitcoins".. thus it normally ends up as an inside job but twisted into being from a social engineering attempt, that way the customer is too busy calling the host incompetent and not able to have time to realise their the thief

so here are some lessons
1. temptation - DO NOT use a data centre that knows and uses bitcoins themselves, the temptation to steal is higher if people know the data on their system has value to them.

2. pre-knowledge -  the fact the the data centre knows about bitcoin also makes it easier for them to navigate your source code without taking long.

3. admin rights. if you own the domain YourDomain. then DO NOT register ceo@YourDomain.com or anything@yourdomain.com instead have the data centre only take requests and queries from a email that looks nothing like your domain. and does not appear on any search listings of your domain or the CEO's personal details. in short make a new address and get the data centre to verify you each time.

4. set up a passphrase that must be mentioned in all correspondence.

5. if your choosing a bitcoin payment datacentre that does not have admin security... dont use them.

 so stick to FIAT hosting or keep your servers inhouse if any of the tips above cant be done

[keithers]

If only these hackers could put their talents to good use on something positive...

[MarketNeutral]

usually you find out the data centre is a "buy a domain and server in bitcoins".. thus it normally ends up as an inside job but twisted into being from a social engineering attempt, that way the customer is too busy calling the host incompetent and not able to have time to realise their the thief

so here are some lessons
1. temptation - DO NOT use a data centre that knows and uses bitcoins themselves, the temptation to steal is higher if people know the data on their system has value to them.

2. pre-knowledge -  the fact the the data centre knows about bitcoin also makes it easier for them to navigate your source code without taking long.

3. admin rights. if you own the domain YourDomain. then DO NOT register ceo@YourDomain.com or anything@yourdomain.com instead have the data centre only take requests and queries from a email that looks nothing like your domain. and does not appear on any search listings of your domain or the CEO's personal details. in short make a new address and get the data centre to verify you each time.

4. set up a passphrase that must be mentioned in all correspondence.

5. if your choosing a bitcoin payment datacentre that does not have admin security... dont use them.

 so stick to FIAT hosting or keep your servers inhouse if any of the tips above cant be done

Very good advice. Thank you.

[BurtW]

If only these hackers could put their talents to good use on something positive...

The Bitcoin network and all its peripheral entities need to be tested while we are in beta.

All this testing from worthy opponents only makes us stronger.

So their talents are being put to good use.

[Bit_Happy]

If only these hackers could put their talents to good use on something positive...

Still a good idea:
Many criminals would be much better off if they would try an honest direction.

[kittucrypt]

usually you find out the data centre is a "buy a domain and server in bitcoins".. thus it normally ends up as an inside job but twisted into being from a social engineering attempt, that way the customer is too busy calling the host incompetent and not able to have time to realise their the thief

so here are some lessons
1. temptation - DO NOT use a data centre that knows and uses bitcoins themselves, the temptation to steal is higher if people know the data on their system has value to them.

2. pre-knowledge -  the fact the the data centre knows about bitcoin also makes it easier for them to navigate your source code without taking long.

3. admin rights. if you own the domain YourDomain. then DO NOT register ceo@YourDomain.com or anything@yourdomain.com instead have the data centre only take requests and queries from a email that looks nothing like your domain. and does not appear on any search listings of your domain or the CEO's personal details. in short make a new address and get the data centre to verify you each time.

4. set up a passphrase that must be mentioned in all correspondence.

5. if your choosing a bitcoin payment datacentre that does not have admin security... dont use them.

 so stick to FIAT hosting or keep your servers inhouse if any of the tips above cant be done

Thanks for this useful post. Very useful.

[BitCoinDream]

usually you find out the data centre is a "buy a domain and server in bitcoins".. thus it normally ends up as an inside job but twisted into being from a social engineering attempt, that way the customer is too busy calling the host incompetent and not able to have time to realise their the thief

so here are some lessons
1. temptation - DO NOT use a data centre that knows and uses bitcoins themselves, the temptation to steal is higher if people know the data on their system has value to them.

2. pre-knowledge -  the fact the the data centre knows about bitcoin also makes it easier for them to navigate your source code without taking long.

3. admin rights. if you own the domain YourDomain. then DO NOT register ceo@YourDomain.com or anything@yourdomain.com instead have the data centre only take requests and queries from a email that looks nothing like your domain. and does not appear on any search listings of your domain or the CEO's personal details. in short make a new address and get the data centre to verify you each time.

4. set up a passphrase that must be mentioned in all correspondence.

5. if your choosing a bitcoin payment datacentre that does not have admin security... dont use them.

 so stick to FIAT hosting or keep your servers inhouse if any of the tips above cant be done

Its secure to run on a cloud service like Amazon ...IMO

[btbrae]

What hosting provider was it? Other customers should be warned, it sounds like they are beyond clueless.

[Gyrsur]

*listen*

[ViewSonic]

is LocalBitcoins still safe for trading or it's time to look for another places?

[MoneyGod]

is LocalBitcoins still safe for trading or it's time to look for another places?

But currently we have no too much places for this trade still this is best place for this work

[BurtW]

is LocalBitcoins still safe for trading or it's time to look for another places?

Nothing lost so much safer than Gox - although "safer than Gox" does not really say much now does it.

Nothing lost so this was basically just a test of their security precautions - and they passed.

They have done and I expect will continue to do a great job.

[RockHound]

is LocalBitcoins still safe for trading or it's time to look for another places?

Nothing lost so much safer than Gox - although "safer than Gox" does not really say much now does it.

Nothing lost so this was basically just a test of their security precautions - and they passed.

They have done and I expect will continue to do a great job.

Couldn't agree more - They're a great team!

Have a side topic, figured mainly Localbitcoins users reading this, someone posted this:

https://bitcointalk.org/index.php?topic=595801.0

Got me thinking, whether we should routinely change addresses, or is it pretty secure so no worries?

What do you guys do?

[Bit_Happy]

https://plus.google.com/+BitcointrukkokHu/posts/UkRc4jrJAbn

Saturday, May 3, 2014

Attack against LocalBitcoins infrastructure 3.5.2014

LocalBitcoins received a very dangerous attack against the site infrastructure on Saturday 3.5.2014.
For now
All user data and Bitcoins are safe;
The site will be down for a while as the system is being rebuilt

Details

LocalBitcoins hosting provided received a request to restart the LocalBitcoins.com website server and give access to the server console (root) on Sat May 3 13:32:27. LocalBitcoins team did not initiate this request. For now, it looks like the request was made using spoofed email addresses and other weakness in the hosting provider support system.

• LocalBitcoins team was alerted about the abnormal activity when the hosting provider restarted the server.
  The attacker gained a root access to the server for ~40 minutes before the attacker was kicked out and the server shutdown.
  All data on the website s

erver is encrypted. Manual actions are needed to make this data readable, so the attacker could not gain access to the data even when having a server console access.
It is very unlikely that the attacker gained access to any data;  LocalBitcoins is still performing full investigation on the matter.

• Bitcoins in hot wallet and cold wallet are safe, as LocalBitcoins runs its bitcoind and wallets on a separate server.
  LocalBitcoins team has started to rebuild the website server on fresh hardware.

LocalBitcoins team will make further announcements when the investigation proceeds and the site becomes available again.  We expect to spend at least 24 hours on this. LocalBitcoins team apologizes the issues the downtime may cause to the users.

They were well prepared for an eventual attack.
Their reputation is now even better than before. 

[acegilz]

do anybody know how is this done exactly? If its not to hard to do, I would like to protect my files on the server too.. thanks

All data on the website server is encrypted. Manual actions are needed to make this data readable, so the attacker could not gain access to the data even when having a server console access.

[RockHound]

do anybody know how is this done exactly? If its not to hard to do, I would like to protect my files on the server too.. thanks

All data on the website server is encrypted. Manual actions are needed to make this data readable, so the attacker could not gain access to the data even when having a server console access.

So the Hacker/Attacker having 40min server access had plenty of time to DL data, he just can't read it?

[PangPang]

do anybody know how is this done exactly? If its not to hard to do, I would like to protect my files on the server too.. thanks

All data on the website server is encrypted. Manual actions are needed to make this data readable, so the attacker could not gain access to the data even when having a server console access.

So the Hacker/Attacker having 40min server access had plenty of time to DL data, he just can't read it?

Without decryption, the data should look like just bullshit.