Cloudflare Breach: Okta’s Ripple Effect

Abstract

In a recent revelation, Cloudflare disclosed a security breach on Thanksgiving Day, November 23, 2023. This blog delves into the timeline of events and emphasises the critical role of passwordless authentication in mitigating such breaches.

Breach Overview: Understanding the Thanksgiving Intrusion

In an orchestrated attack, threat actors exploited stolen credentials from the Okta security breach in October. Cloudflare’s internal systems, particularly the Atlassian server, became the focal point for unauthorised access and data compromise.

Compromised Credentials: The Fallout on Cloudflare’s Security

Despite the awareness of the Okta breach, Cloudflare’s failure to rotate service tokens that have very long validity and account credentials allowed threat actors to establish persistent access. This breach impacted Cloudflare’s Atlassian environment, leading to unauthorised access to sensitive documentation and a limited set of source code repositories.

Nation-State Attribution and the Real Culprit: Passwords

Cloudflare attributes the breach to a likely nation-state actor, mirroring the recent trend in cyber threats. However, one can suggest that the fundamental issue lies in the continued reliance on a vulnerable authentication method, which enables such breaches to unfold.

Highlighting the Key Issue: The Perils of Passwords

The breach underscores the inherent vulnerability of conventional password systems. Stolen Okta credentials served as the gateway for threat actors, exposing the limitations of password-centric security measures. This incident highlights the urgent need for organisations to transition towards passwordless authentication solutions & short session validity to fortify their security posture.

It’s the painful experience of passwords based login which forces admins and users to choose long term session tokens to minimise the number of logins.

PureID Solution: A Glimpse into a Secure Future

PureID offers a robust passwordless authentication solution that would have mitigated this breach. By eliminating the relevance of stolen credentials, PureID represents a paradigm shift in cybersecurity, providing a secure alternative to traditional password systems.

PureAUTH offers a simple & smooth login experience. This makes working with short term sessions and frequent login delightful.

Risk Mitigation: The Imperative of Passwordless Security

Cloudflare’s breach serves as a wake-up call for organizations to reevaluate their cybersecurity strategies. Embracing passwordless solutions, such as PureID, emerges as a proactive step to mitigate the risks associated with stolen credentials and enhance overall security.

Immediate Response: Cloudflare’s Security Reinforcement

In response to the breach, Cloudflare has initiated a comprehensive security reinforcement effort. Measures include mass credential rotation, system segmentation, forensic triage, and a meticulous review of all systems to ensure the threat actor’s access is fully revoked.

Ongoing Investigation: Collaboration for a Secure Future

Cloudflare’s ongoing collaboration with peers, law enforcement, and regulators emphasises dedication to assessing the breach’s full impact. This collaborative approach aims to implement additional preventive measures and adapt to the evolving landscape of cyber threats.

Conclusion: Advocating for Passwordless Security

The Cloudflare breach underscores the critical need to shift from traditional passwords and false passwordless systems to true passwordless authentication that can not be breached by stolen credentials. Passwordless solutions, like PureID, offer a robust defence against unauthorised access, heralding a more secure digital future for organisations.

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Okta Breach Part 2: Unveiling the Full Scope and Impact

Introduction

In late October, Okta, reported a cybersecurity breach that initially appeared to affect less than 1% of its customers. However, recent revelations indicate a far-reaching impact, affecting 99.6% of users in the customer support system. This blog post delves into the broader implications of this

The True Scope Revealed

Contrary to initial estimates downplaying, it has now been disclosed that hackers successfully ran a report on September 28, 2023. It contained sensitive information about all Okta customer support system users. The compromised data had names, email addresses, company names, contact phone numbers, and other details, Impacting 100% of Okta Workforce Identity Cloud (WIC) and Customer Identity Solution (CIS) customers. The only exception being those in highly sensitive environments such as the government.

Financial Impact on Okta

Despite the significant dip in Okta’s stock prices when the breach was first reported in October, resulting in a temporary loss of approximately $2 billion in market capitalisation, the financial fallout seems to be hovering in the single digits. Okta’s latest quarterly financial report indicates a more than 20% increase in revenues for the quarter ending October 31, demonstrating a robust financial performance despite the security incident.

Customer Trust at Stake

The discrepancy between the initially reported 1% impact and the actual 99.6% of affected users reveals a concerning lapse in transparency. Okta customers are now grappling with the realization that threat actors may have access to their names and email addresses, exposing them to the risk of phishing and social engineering attacks. While Okta assures that there is no direct evidence of exploitation, they urge customers to remain vigilant. This stolen information could be weaponized for targeted cyber scams.

Phishing and Social Engineering Threat

With 99.6% of users having their names and email addresses exposed. These stolen data poses a heightened risk of phishing and social engineering attacks.

Okta Phishing

Cyber security experts emphasise the need for Okta customers, especially administrators, to enforce multi-factor authentication (MFA) and consider the use of phishing-resistant authentication. The potential for threat actors to exploit this information for targeted attacks underscores the importance of proactive security measures on the customer’s end.

Conclusion

In the aftermath of the Okta breach, customer trust in identity management systems faces a critical test. As emphasised by the mantra “The ‘S’ in IAM stands for Security”, the true scale of the incident challenges the reliance on auto-saved passwords, demonstrating the vulnerability of conventional systems. We urgently advocate for the adoption of passwordless authentication. For those catching up, our previous post details the Okta breach, highlighting the imperative to #gopasswordless . This approach not only addresses current vulnerabilities but also aligns with the evolving demands of a secure digital landscape.

Unpacking Okta’s Recent Security Breach

Introduction

In today’s interconnected world, data breaches have become unfortunately common. One recent incident that has drawn the cybersecurity community’s attention involves Okta, a prominent identity and access management (IAM) provider. This blog post delves into the specifics of the Okta breach, its impact, and the lessons we can learn.

The Initial Okta Breach

The story starts with a breach of Okta’s case management system, reported in late October. Threat actors gained unauthorised access to sensitive files of 134 Okta customers, less than 1% of the customer base. Some stolen files were HTTP Archive (HAR) files with session tokens, usable in session hijacking attacks.

Targets: BeyondTrust, Cloudflare, and 1Password

BeyondTrust, Cloudflare, and 1Password confirmed their systems were targeted due to this breach. They emphasised no loss of customer data during these incidents, highlighting their robust security measures.

Okta’s Response and Investigation

David Bradbury, Okta’s Chief Security Officer, revealed the breach’s origin. An employee logged into their personal Google account on an Okta-managed laptop, inadvertently saving service account credentials. The hackers exploited this service account, gaining permissions to view and update support cases. The breach occurred from September 28 to October 17, 2023.

Investigation Challenges

Okta’s security team initially focused on unauthorized access to support cases. Identifying suspicious downloads took 14 days. Unique log event types and IDs complicated the detection process.

On October 13, BeyondTrust provided a suspicious IP address, leading to the identification of the compromised account’s activities.

Implications and Ongoing Concerns

The breach raises numerous cybersecurity concerns. Callie Guenther, Senior Manager of Cyber Threat Research at Critical Start, highlighted the potential for secondary attacks arising from exposed data. Such incidents erode trust in service providers, especially for security-focused companies like Okta.

John Bambenek, Principal Threat Hunter at Netenrich, pointed out that recurring security events raise questions about Okta’s reliability in sensitive roles like identity and authentication.

Conclusion: The Vital Role of Passwordless Authentication

The Okta breach underscores the importance of robust cybersecurity practices. Organisations must remain vigilant, conducting continuous security assessments and proactively implementing measures against evolving threats.

A single compromised password can jeopardize an entire institution. Therefore, we strongly advocate for passwordless authentication. By eliminating passwords, organizations can fortify their defenses, enhancing security and reducing the risk of future incidents. Passwordless authentication is a safer and more effective approach to protecting digital identities in today’s evolving landscape. #gopasswordless

Atlassian Pawned by hacker group : Blame Game is on

SiegedSec, the same hacking group that made headlines last year after leaking eight gigabytes of data from the state governments of Kentucky and Arkansas, has hacked the software company Atlassian. The group has shared two floor maps for the Sydney and San Francisco offices and a JSON file containing information about approximately 13,200 Atlassian employees, including their names, email addresses, work departments and phone numbers.

Atlassian Pawned by hacker group Siegedsec. The post by Siegedsec.

SiegedSec post

“THAT’S RIGHT FOLKS, SiegedSec is here to announce we have hacked the software company Atlassian,” the hacking group said in a message that was posted along with the data. “This company worth $44 billion has been pwned by the furry hackers uwu.”

Reason and responsibility:- 

“On February 15, 2023, we became aware that an unauthorised party had compromised and published data from Envoy, a third-party app that Atlassian uses to coordinate in-office resources,” said Atlassian spokesperson Megan Sutton.

Atlassian Pawned by SiegedSec

Envoy, however, was just as quick to rebuff Atlassian’s claims. Envoy spokesperson April Marks said that the startup is “not aware of any compromise to our systems,” adding that initial research had shown that “A hacker gained access to an Atlassian employee’s valid credentials to manipulate and access the Atlassian employee directory and office floor plans held within Envoy’s app.”

Soon after the startup’s denial, Atlassian changed its stance to align more closely with Envoy. They later said an employee posted their credentials on a public repository by mistake.

Damage Control:- 

Atlassian said they disabled the account of the said employee so there is no more threat to Atlassian’s Envoy data. Therefore Atlassian product and customer data is not accessible via the Envoy app and therefore not at risk.”

“The safety of Atlassians is our priority, and we worked quickly to enhance physical security across our offices globally. We are actively investigating this incident and will continue to provide updates to employees as we learn more.”

Mitigation:- 

It has become increasingly common for hacker groups to target individual employees or devices to gain access to enterprise systems. If an attacker is able to obtain an employee’s credentials, they can use that information to infiltrate the organization. To mitigate this risk, some experts recommend using a passwordless solution like PureAUTH. By eliminating passwords, organizations can significantly reduce the likelihood of future breaches and minimize their exposure to unforeseen vulnerabilities.

Password Managers are the Hot Targets 

Lastpass reported a security breach a month ago, which is the 8th security incident in the last 11 years. This incident was followed by a recent disclosure by a Google researcher. Many popular password managers like Dashlane, Bitwarden, and Safari can be phished.

There are many lessons that we all need to learn from these recurring incidents. This post is to uncover few points that we have seen have not been discussed by the info-sec community and the industry.

The Catch-22 – Phish or no Phish?

LastPass warned its users of an increased likelihood of Phishing attacks, Credential Stuffing, or other brute force attacks against online accounts associated with their LastPass vault.

Password Managers getting phished is an alarming situation

This statement goes against what all the password managers like LastPass claims – “use of password manager protects users from phishing attacks“.

In recent times there have been more incidents where password managers have been proved vulnerable to phishing attacks. You can find more details in this article Popular password managers auto-filled credentials on untrusted websites 

The Impact

In their blog post, Lastpass reported that customer’s personal information like email, phone number, billing address, IP address have been compromised. That is not all, what LastPass has not talked about is the additional information they collect from their users using their mobile app. 

The screenshots below show the permissions that Lastpass app takes on a user’s phone.

Permission take by LastPass app on an Android device

These permissions enable the application provider like LastPass (other password managers take similar types of permission on user’s device) to collect more information about the user than probably needed. 

User Information collected by LastPass app

In case of a breach, like what happened with LastPass, the severity of the incident and privacy impatc will be more if any additional information collected from the user’s phone is also leaked.

The Passwords

Furthermore, LastPass has reported that customer’s vault containing clear text data, such as website url, and encrypted data of username and password were also obtained by the threat actors. 

Lastpass emphasised on the use of master key, and how a threat actor can not decrypt the password vault even if they have the encrypted data, as the master key, which is a master password set by the user and is not stored on lastpass network. 

While 1Password, a rival firm of Lastpass, claims through their blog that passwords of LastPass can be cracked in $100. They also talk about their superior method of  using secret key and Password Authenticated Key Agreement systems, which makes 1Password’s systems next to impossible to crack. 

With the device specific keys mentioned by 1Password, we feel syncing of the passwords across multiple devices becomes a risky affair. Since passwords need to be decrypted on another device and it needs the user chosen master password as well as the secret key from the earlier device. This problem cannot be solved without exposing the secret key or the user’s passwords (encrypted just with the user chosen master password), in transit. 

Conclusion

After a series of events involving Password Management products, enterprise must seriously think about how safe their user’s data and passwords really are. 

Not to forget, server doesn’t care if the password is coming from a password vault or from an adversary, the server will authenticate as long as it can match the string. So no matter, how and where you store passwords, as long as there as passwords, Enterprises are always at risk.

For a better security, Enterprise must plan to remove passwords from their applications, servers and #GoPasswordless

Another Password Manager Breached – Norton

In January, 2023 Gen Digital, a firm previously popular as Symantec and NortonLifeLock , found itself targeted by a significant Credential Stuffing attack. The attack resulted in the compromise of thousands of user accounts.

Just weeks prior to this incident, LastPass, a prominent competitor of Gen Digital in the password manager market, fell victim to a breach. This breach followed a prior cyberattack against LastPass in August. According to LastPass, the hackers leveraged technical data pilfered during the August cyberattack to gain unauthorized access to its cloud storage system.

It’s worth noting the irony here – the very software designed to fortify defences against cyber attacks found itself in the crosshairs of one. To draw a parallel, it’s akin to a scenario where the police station itself becomes the target of a burglary.

Credential Stuffing

Credential stuffing refers to the use of credentials such as username, email id and personal information from previous security breaches. These credentials are fed to other login systems to gain access to other websites. Unlike other cyber attacks, Credential Stuffing does not require brute force. Instead it uses a simple web solution to stuff thousands of stolen credentials into login systems. Credential stuffing is one of the oldest tricks in the book. It’s very easy to fall victim if one uses the same or similar credentials on multiple sites.

Lost one password? Alas you lost them all - Norton Credential stuffing attack.

I recently explored the website “Have I been pwned” and was shocked to see one of my personal email ids compromised in a previous attack. Going through their listing on breached websites made me realise how unsafe our credentials and information are, and how easily one can gain access to it.

Impact of the Incident

In an internal investigation in December 2022, NortanLifeLock detected “unusually large volume” of login attempts. They found that a malicious actor was using a list of credentials obtained from illegal marketplaces on “dark web”.

Nortan commented that 925,000 people were targeted in a credential-stuffing attack. It is probable that the data does contain names, phone numbers and addresses of users. The attackers might also have access to Norton Password Manager users’ private vault data. This vault contains stored passwords for other online accounts. The firm is not commenting on how much customer data actually got a negative impact because of the attack.

Nortan relaeased a warning to it’s users after failing to reject the mass login attempt. They indicated that they “strongly believe that an unauthorised third party knows and has utilised your username and password for your account.” They also suggested the users to use 2 step authentication systems and provided free credit monitoring services to affected users.

Amplification Effect

The Password managers are a hot target because they provide adversaries with an amplified power to gain access to multiple accounts by compromising one password manager account.

As they say putting all the eggs in one basket is a bad strategy. Keeping all passwords in one manager will have a huge impact if compromised.

Passwords are not assets; they represent security vulnerabilities. Rather than locking them away in a vault, consider going passwordless. #GoPasswordless