EDITORIAL | January 24, 2018

Cryptocurrency and the Interconnected Home

There are many tiny elements to cryptocurrency that are not getting the awareness time they deserve. To start, the very thing that attracts people to cryptocurrency is also the very thing that is seemingly overlooked as a challenge. Cryptocurrencies are not backed by governments or institutions. The transactions allow the trader or investor to operate with anonymity. We have seen a massive increase in the last year of cyber bad guys hiding behind these inconspicuous transactions – ransomware demanding payment in bitcoin; bitcoin ATMs being used by various dealers to effectively clean money.

Because there are few regulations governing crypto trading, we cannot see if cryptocurrency is being used to fund criminal or terrorist activity. There is an ancient funds transfer capability, designed to avoid banks and ledgers called Hawala. Hawala is believed to be the method by which terrorists are able to move money, anonymously, across borders with no governmental controls. Sound like what’s happening with cryptocurrency? There’s an old saying in law enforcement – follow the money. Good luck with that one.

Many people don’t realize that cryptocurrencies depend on multiple miners. This allows the processing to be spread out and decentralized. Miners validate the integrity of the transactions and as a result, the miners receive a “block reward” for their efforts. But, these rewards are cut in half every 210,000 blocks. A bitcoin block reward when it first started in 2009 was 50 BTC, today it’s 12.5. There are about 1.5 million bitcoins left to mine before the reward halves again.

This limit on total bitcoins leads to an interesting issue – as the reward decreases, miners will switch their attention from bitcoin to other cryptocurrencies. This will reduce the number of miners, therefore making the network more centralized. This centralization creates greater opportunity for cyber bad guys to “hack” the network and wreak havoc, or for the remaining miners to monopolize the mining.

At some point, and we are already seeing the early stages of this, governments and banks will demand to implement more control. They will start to produce their own cryptocurrency. Would you trust these cryptos? What if your bank offered loans in Bitcoin, Ripple or Monero? Would you accept and use this type of loan?

Because it’s a limited resource, what happens when we reach the 21 million bitcoin limit? Unless we change the protocols, this event is estimated to happen by 2140.  My first response  – I don’t think bitcoins will be at the top of my concerns list in 2140.

The Interconnected Home

So what does crypto-mining malware or mineware have to do with your home? It’s easy enough to notice if your laptop is being overused – the device slows down, the battery runs down quickly. How can you tell if your fridge or toaster are compromised? With your smart home now interconnected, what happens if the cyber bad guys operate there? All a cyber bad guy needs is electricity, internet and CPU time. Soon your fridge will charge your toaster a bitcoin for bread and butter. How do we protect our unmonitored devices from this mineware? Who is responsible for ensuring the right level of security on your home devices to prevent this?

Smart home vulnerabilities present a real and present danger. We have already seen baby monitors, robots, and home security products, to name a few, all compromised. Most by IOActive researchers. There can be many risks that these compromises introduce to the home, not just around cryptocurrency. Think about how the interconnected home operates. Any device that’s SMART now has the three key ingredients to provide the cyber bad guy with everything he needs – internet access, power and processing.

Firstly, I can introduce my mineware via a compromised mobile phone and start to exploit the processing power of your home devices to mine bitcoin. How would you detect this? When could you detect this? At the end of the month when you get an electricity bill. Instead of 50 pounds a month, its now 150 pounds. But how do you diagnose the issue? You complain to the power company. They show you the usage. It’s correct. Your home IS consuming that power.

They say that crypto mining is now using as much power as a small country. That’s got a serious impact on the power infrastructure as well as the environment. Ahhhh you say, I have a smart meter, it can give me a real time read out of my usage. Yes, it’s a computer. And, if I’m a cyber bad guy, I can make that computer tell me the latest football scores if I want. The key for a corporation when a cyber bad guy is attacking is to reduce dwell time. Detect and stop the bad guy from playing in your network. There are enterprise tools that can perform these tasks, but do you have these same tools at home? How would you Detect and React to a cyber bad guy attacking your smart home?

IOActive has proven these attack vectors over and over. We know this is possible and we know this is almost impossible to detect. Remember, a cyber bad guy makes several assessments when deciding on an attack – the risk of detection, the reward for the effort, and the penalty for capture. The risk of detection is low, like very low. The reward, well you could be mining blocks for months without stopping, that’s tens of thousands of dollars. And the penalty… what’s the penalty for someone hacking your toaster… The impact is measurable to the homeowner. This is real, and who’s to say not happening already. Ask your fridge!!

What’s the Answer –  Avoid Using Smart Home Devices Altogether?

No, we don’t believe the best defense is to avoid adopting this new technology. The smart and interconnected home can offer its users fantastic opportunities. We believe that the responsibility rests with the manufacturer to ensure that devices are designed and built in a safe and secure way. And, yes, everything is designed; few things are designed well.IOActive researchers spend 99% of their time trying to identify vulnerabilities in these devices for the safety of everyone, not just corporations. The power is in the hands of the consumer. As soon as the consumer starts to purchase products based not only on their power efficiency, but their security rating as well, then we will see a shift into a more secure home.

In the meantime, consider the entry point for most cyber bad guys. Generally, this is your desktop, laptop or mobile device. Therefore, ensure you have suitable security products running on these devices, make sure they are patched to the correct levels, be conscious of the websites you are visiting. If you control the available entry points, you will go a long way to protecting your home.
RESEARCH | January 11, 2018

SCADA and Mobile Security in the IoT Era

Two years ago, we assessed 20 mobile applications that worked with ICS software and hardware. At that time, mobile technologies were widespread, but Internet of Things (IoT) mania was only starting. Our research concluded the combination of SCADA systems and mobile applications had the potential to be a very dangerous and vulnerable cocktail. In the introduction of our paper, we stated “convenience often wins over security. Nowadays, you can monitor (or even control!) your ICS from a brand-new Android [device].”


Today, no one is surprised at the appearance of an IIoT. The idea of putting your logging, monitoring, and even supervisory/control functions in the cloud does not sound as crazy as it did several years ago. If you look at mobile application offerings today, many more ICS- related applications are available than two years ago. Previously, we predicted that the “rapidly growing mobile development environment” would redeem the past sins of SCADA systems.
The purpose of our research is to understand how the landscape has evolved and assess the security posture of SCADA systems and mobile applications in this new IIoT era.

SCADA and Mobile Applications
ICS infrastructures are heterogeneous by nature. They include several layers, each of which is dedicated to specific tasks. Figure 1 illustrates a typical ICS structure.

Figure 1: Modern ICS infrastructure including mobile apps

Mobile applications reside in several ICS segments and can be grouped into two general families: Local (control room) and Remote.


Local Applications

Local applications are installed on devices that connect directly to ICS devices in the field or process layers (over Wi-Fi, Bluetooth, or serial).

Remote Applications
Remote applications allow engineers to connect to ICS servers using remote channels, like the Internet, VPN-over-Internet, and private cell networks. Typically, they only allow monitoring of the industrial process; however, several applications allow the user to control/supervise the process. Applications of this type include remote SCADA clients, MES clients, and remote alert applications. 

In comparison to local applications belonging to the control room group, which usually operate in an isolated environment, remote applications are often installed on smartphones that use Internet connections or even on personal devices in organizations that have a BYOD policy. In other words, remote applications are more exposed and face different threats.

Typical Threats And     Attacks

In this section, we discuss the typical threats to this heterogeneous landscape of applications and how attacks could be conducted. We also map the threats to the application types.
 
Threat Types
There are three main possible ICS threat types:
  • Unauthorized physical access to the device or “virtual” access to device data
  • Communication channel compromise (MiTM)
  • Application compromise

Table 1 summarizes the threat types.

Table 1: SCADA mobile client threat list
 
Attack Types
Based on the threats listed above, attacks targeting mobile SCADA applications can be sorted into two groups.
 
Directly/indirectly influencing an industrial process or industrial network infrastructure
This type of attack could be carried out by sending data that would be carried over to the field segment devices. Various methods could be used to achieve this, including bypassing ACL/ permissions checks, accessing credentials with the required privileges, or bypassing data validation.
 
Compromising a SCADA operator to unwillingly perform a harmful action on the system
The core idea is for the attacker to create environmental circumstances where a SCADA system operator could make incorrect decisions and trigger alarms or otherwise bring the system into a halt state.
 
Testing Approach
Similar to the research we conducted two years ago, our analysis and testing approach was based on the OWASP Mobile Top 10 2016. Each application was tested using the following steps:
  • Perform analysis and fill out the test checklist
  • Perform client and backend fuzzing
  • If needed, perform deep analysis with reverse engineering
We did not alter the fuzzing approach since the last iteration of this research. It was discussed in depth in our previous whitepaper, so its description is omitted for brevity.
We improved our test checklist for this assessment. It includes:
  • Application purpose, type, category, and basic information 
  • Permissions
  • Password protection
  • Application intents, exported providers, broadcast services, etc.
  • Native code
  • Code obfuscation
  • Presence of web-based components
  • Methods of authentication used to communicate with the backend
  • Correctness of operations with sessions, cookies, and tokens 
  • SSL/TLS connection configuration
  • XML parser configuration
  • Backend APIs
  • Sensitive data handling
  • HMI project data handling
  • Secure storage
  • Other issues
Reviewed Vendors
We analyzed 34 vendors in our research, randomly selecting  SCADA application samples from the Google Play Store. We did, however, favor applications for which we were granted access to the backend hardware or software, so that a wider attack surface could be tested.
 
Additionally, we excluded applications whose most recent update was before June 2015, since they were likely the subject of our previous work. We only retested them if there had been an update during the subsequent two years.
 
Findings
We identified 147 security issues in the applications and their backends. We classified each issue according to the OWASP Top Ten Mobile risks and added one additional category for backend software bugs.
 
Table 4 presents the distribution of findings across categories. The “Number of Issues” column reports the number of issues belonging to each category, while the “% of Apps” column reports how many applications have at least one vulnerability belonging to each category.
Table 4. Vulnerabilities statistics

In our white paperwe provide an in-depth analysis of each category, along with examples of the most significant vulnerabilities we identified. Please download the white paper for a deeper analysis of each of the OWASP category findings.

Remediation And Best Practices
In addition to the well-known recommendations covering the OWASP Top 10 and OWASP Mobile Top 10 2016 risks, there are several actions that could be taken by developers of mobile SCADA clients to further protect their applications and systems.

In the following list, we gathered the most important items to consider when developing a mobile SCADA application:

  • Always keep in mind that your application is a gateway to your ICS systems. This should influence all of your design decisions, including how you handle the inputs you will accept from the application and, more generally, anything that you will accept and send to your ICS system.
  • Avoid all situations that could leave the SCADA operators in the dark or provide them with misleading information, from silent application crashes to full subverting of HMI projects.
  • Follow best practices. Consider covering the OWASP Top 10, OWASP Mobile Top 10 2016, and the 24 Deadly Sins of Software Security.
  • Do not forget to implement unit and functional tests for your application and the backend servers, to cover at a minimum the basic security features, such as authentication and authorization requirements.
  • Enforce password/PIN validation to protect against threats U1-3. In addition, avoid storing any credentials on the device using unsafe mechanisms (such as in cleartext) and leverage robust and safe storing mechanisms already provided by the Android platform.
  • Do not store any sensitive data on SD cards or similar partitions without ACLs at all costs Such storage mediums cannot protect your sensitive data.
  • Provide secrecy and integrity for all HMI project data. This can be achieved by using authenticated encryption and storing the encryption credentials in the secure Android storage, or by deriving the key securely, via a key derivation function (KDF), from the application password.
  • Encrypt all communication using strong protocols, such as TLS 1.2 with elliptic curves key exchange and signatures and AEAD encryption schemes. Follow best practices, and keep updating your application as best practices evolve. Attacks always get better, and so should your application.
  • Catch and handle exceptions carefully. If an error cannot be recovered, ensure the application notifies the user and quits gracefully. When logging exceptions, ensure no sensitive information is leaked to log files.
  • If you are using Web Components in the application, think about preventing client-side injections (e.g., encrypt all communications, validate user input, etc.).
  • Limit the permissions your application requires to the strict minimum.
  • Implement obfuscation and anti-tampering protections in your application.

Conclusions
Two years have passed since our previous research, and things have continued to evolve. Unfortunately, they have not evolved with robust security in mind, and the landscape is less secure than ever before. In 2015 we found a total of 50 issues in the 20 applications we analyzed and in 2017 we found a staggering 147 issues in the 34 applications we selected. This represents an average increase of 1.6 vulnerabilities per application. 

We therefore conclude that the growth of IoT in the era of “everything is connected” has not led to improved security for mobile SCADA applications. According to our results, more than 20% of the discovered issues allow attackers to directly misinform operators and/or directly/ indirectly influence the industrial process.

In 2015, we wrote:

SCADA and ICS come to the mobile world recently, but bring old approaches and weaknesses. Hopefully, due to the rapidly developing nature of mobile software, all these problems will soon be gone.

We now concede that we were too optimistic and acknowledge that our previous statement was wrong.

Over the past few years, the number of incidents in SCADA systems has increased and the systems become more interesting for attackers every year. Furthermore, widespread implementation of the IoT/IIoT connects more and more mobile devices to ICS networks.

Thus, the industry should start to pay attention to the security posture of its SCADA mobile applications, before it is too late.

For the complete analysis, please download our white paper here.

Acknowledgments

Many thanks to Dmitriy Evdokimov, Gabriel Gonzalez, Pau Oliva, Alfredo Pironti, Ruben Santamarta, and Tao Sauvage for their help during our work on this research.
 
About Us
Alexander Bolshev
Alexander Bolshev is a Security Consultant for IOActive. He holds a Ph.D. in computer security and works as an assistant professor at Saint-Petersburg State Electrotechnical University. His research interests lie in distributed systems, as well as mobile, hardware, and industrial protocol security. He is the author of several white papers on topics of heuristic intrusion detection methods, Server Side Request Forgery attacks, OLAP systems, and ICS security. He is a frequent presenter at security conferences around the world, including Black Hat USA/EU/UK, ZeroNights, t2.fi, CONFIdence, and S4.
 
Ivan Yushkevich
Ivan is the information security auditor at Embedi (http://embedi.com). His main area of interest is source code analysis for applications ranging from simple websites to enterprise software. He has vast experience in banking systems and web application penetration testing.
 
IOActive
IOActive is a comprehensive, high-end information security services firm with a long and established pedigree in delivering elite security services to its customers. Our world-renowned consulting and research teams deliver a portfolio of specialist security services ranging from penetration testing and application code assessment through to semiconductor reverse engineering. Global 500 companies across every industry continue to trust IOActive with their most critical and sensitive security issues. Founded in 1998, IOActive is headquartered in Seattle, USA, with global operations through the Americas, EMEA and Asia Pac regions. Visit for more information. Read the IOActive Labs Research Blog. Follow IOActive on Twitter.
 
Embedi
Embedi expertise is backed up by extensive experience in security of embedded devices, with special emphasis on attack and exploit prevention. Years of research are the genesis of the software solutions created. Embedi developed a wide range of security products for various types of embedded/smart devices used in different fields of life and industry such as: wearables, smart home, retail environments, automotive, smart buildings, ICS, smart cities, and others. Embedi is headquartered in Berkeley, USA. Visit for more information and follow Embedi on Twitter.