Re: 0-day exploit..do i hear $1000?

From: Jonathan M. Smith (jmsat_private)
Date: Thu Oct 18 2001 - 10:24:48 PDT

  • Next message: RT: "0-day exploit..do i hear $1000?"

    An interesting result of this might be that the economics of security are
    clarified, so that security is taken seriously pre-hack, rather than
    post-hack. If there's money involved, management types will take it
    seriously.
    
    -JMS
    
    
    On Thu, 18 Oct 2001, RT wrote:
    
    > Moderators: Pass if you will. I think this seriously impacts the whole
    > industry.
    > 
    > This email was written after I contacted a prominent "exploit collector" and
    > asked for the new SSH exploit. He asked me "how much are you willing to pay, I
    > selling 'sploits now". I said "You wanna WHAAT?". Afterwards I thought about
    > it, and here are some comments/predictions as to what is happening in the
    > industry.
    > 
    > At present a vulnerability is usually disclosed in the following way:
    > 
    > * L33t Hacker finds problem in vendor ABC's product
    > * L33t Hacker writes to ABC
    > * ABC takes some time, builds a patch write an advisory and give credit to L33t
    > Hacker
    > * ABC release advisory to bugtraq, SF, packetstorm etc.
    > * Security firm 123 implement patches for brain dead clients.
    > * L4t3 Hacker writes exploit for problem
    > * Exploit is seen on hack.co.za, packetstorm etc.
    > * Assessment/Pen-test firm 456 test for the problem.
    > 
    > Obviously things does not always goes this way. L33t Hacker might write an
    > exploit from the start. Exploit writers are usually after fame, wanting to see
    > their names in lights on a MS advisory. In the above mentioned process the one
    > people/firms that makes money from the bug are Security Firms 123 and 456. The
    > L33t Hacker gets fame, not fortune. Hacker L4t3 also gets some fame - in some
    > cases even more than L33t.
    > 
    > Then someday, Hacker L33t and L4t3 decides that they are not in it for fame,
    > but for money. So, they open a security firm (many examples e.g. L0pht, Max
    > Vision, RFP, many more). The problem now is keeping the exploits flowing while
    > having to write reports, sit in meetings, wear a tie, doing budgets, and
    > speaking to brain dead clients. So, in many cases, it does not work out.
    > Hackers usually don't have a lot of patience with brain dead clients, hates
    > writing report, and can't even balance their own budgets. They see that they
    > only spend 10% of their time writing 0-day exploits...while that was
    > the reason they signed up. Ask any "ethical hacker" - its tricky making money
    > and keeping the brain occupied.
    > 
    > So, while Security Company 123, 456 and 789 are making money, hackers L33t and
    > L4t3 are unemployed and frustrated by the fact that others are reaping the
    > rewards of their 0-day exploits that took 3 months to code. These two contact
    > Hackers r3L4t3 and r3l3a5h and they form the "cyber underground association",
    > and they sell 0-day exploits. They start off by selling exploit directly to the
    > client and it goes like this:
    > 
    > * CUA find a problem in vendor ABC's product
    > * CUA codes the exploit
    > * CUA let the word spread that they selling it
    > * 10 script kiddies buy the exploit at $100
    > * Script kiddie l0s3r puts it on his website
    > * Security firm 123 and vendor ABC get it, build patch (and the usual)
    > * Script kiddie l0s3r's site gets DDOS-ed by CUA
    > 
    > CUA made $1000 from the exploit. Security firm 123 made $25 000 from it. Some
    > networks are comprised by the kids, security firms/vendors takes the heat; an
    > assessment was done on the network a week ago and it was certified as "safe".
    > The whole IT security industry takes a knock. Everyone lose. CUA gets together,
    > have a meeting, decides on new strategy. It goes like this:
    > 
    > * CUA finds a problem in vendor ABC's product (no guessing who ABC is)
    > * CUA codes the exploit
    > * CUA contact "Exploit dealer @m1c$" - a well connected person in script kiddie
    > country.
    > * @m1c$ sells the exploit only to selected few - at $500 a pop. He sells 10
    > copies.
    > * @m1c$ makes $2500, CUA makes $2500.
    > * One of that selected few was in fact working for Security firm 456.
    > * Knowing that CUA is killing the trade, and wanting the fame, 456 employee
    > rebrands the exploit to say 456-inc. and sends if off to Bugtraq (or puts it on
    > their webpage)
    > * Everyone gets the code on SF
    > * 456-inc. gets DDOS-ed.
    > 
    > The other 9 selected few are typically people that will spend $500 on an
    > exploit, knowing that they can compromise a network that have $5000 worth of
    > credit cards or the likes. They are thus your black hat dudes - the criminal
    > type. The industry takes a knock - again, and in a bigger way. Security firm
    > 123 and 789, not willing to pay for the code are booted out of several
    > contracts, as their client's networks were compromised.
    > 
    > CUA has another meeting. Somehow they are not seeing the $10000s that they
    > expected. They make a new plan - bigger and better than before. They will
    > bypass the dealer and only sell to people they know. It goes like this:
    > 
    > * CUA finds yet another bug in ABC's software, codes exploit
    > * CUA sells exploit to 25 selected people at $1000 a pop.
    > * Exploit is actually sold to many foreign agencies and a few terrorist
    > * Exploit is also sold to n0h@ck, an undercover FBI agent.
    > * CUA is taken to court and convicted under the 2002 Terrorist Bill thingy
    > * End of CUA
    > * Oh and the FBI gets DDOS-ed
    > 
    > Think about it for a while. At $1000 an exploit, who are you going to attract?
    > People that will pay that amount of money must surely be in a situation that
    > will make it worth their while. Dealing with these people will be dangerous for
    > sure.
    > 
    > Non-disclosure will spark paying for exploits. Paying for exploits would be the
    > same as paying for arms. Paying for exploits would make them illegal in no
    > time. It would very much hurt the industry - the whole security industry - from
    > the software vendor to the security vendor to the "ethical hackers", and all
    > the way, the client/end user or firm will be taking the fall. Even the exploit
    > writers will have a hard time. They are never going to make real money from
    > their "product", will live in fear for their customers, and will take constant
    > heat from their law enforcement agencies. A bigger challenge is to write the
    > code AND make money in an honest way, AND keeping sane in the process, and I
    > believe it can be done. The more underground the industry goes, the more heat
    > it will take from government and law enforcement. The more open the industry
    > is, the more transparent it is, the more acceptable it would become. And now I
    > hear people saying - full disclosure is the reason behind script kiddies, the
    > reason behind worms that cost us millions. Well lets quickly think about just
    > that.
    > 
    > The Nimda worm did damages ranging in the millions of dollars (or so the bright
    > beanies says). Just about every vulnerable server was attacked and compromised
    > by the worm, they say. Just think of all the man hours it took just to fix the
    > problem they say. Think about the loss of productivity etc. OK. Its true. But
    > this is also true - in the months before Nimda, SensePost (Pen-testing firm I
    > work for)  could take just about any corporate when doing an assessment.
    > Easily. Way easy.  Boredom actually set in. About 33% of all servers (those
    > that were not the official websites or prominent sites) encountered were
    > vulnerable. Gaping hole.  Getting into the inner network way easy. No firewall
    > could stop the attack. An open door to any attacker wanting to do damage in the
    > network. And attackers and cyber criminals did just that. Has anyone EVER asked
    > what the cost of the IIS double decode or Unicode bug was in dollars? No.
    > Prolly because it cannot be easily calculated. How many networks were
    > compromised, credit cards stolen, transactions altered etc. because of the bug?
    > How much money / credibility was lost due to the bug? And how much would it
    > cost to fix the bug on every machine - machines that administrators do not even
    > know exist facing the Internet. For a large firm with multiple class B
    > addresses - to find the machines? And to patch all?? And how many $'s to
    > co-ordinate all of that across the planet in one week. After the worm everyone
    > seems patched. Those that are not are getting emails from just about very IDS
    > out there - saying - hey! get with the program - patch your server with IP
    > a.b.c.d. And here at SensePost we are elated - no more boring pen-testing - you
    > prolly won't find a single double decode / Unicode machine out there now. Are
    > worms that bad if they don't do local damage - I don't think so - they simply
    > force people to sit up and react. The Nimda worm did more to secure the
    > planet's networks in one week then any security company could do in a year.
    > People simply don't read advisories, and never apply patches.
    > 
    > Makes you think eh?
    > 
    > Regards,
    > Roelof.
    > 
    > 
    > ------------------------------------------------------
    > Roelof W Temmingh               SensePost IT security
    > roelofat_private            +27 83 448 6996
    > http://www.sensepost.com        http://www.hackrack.com
    > 
    > 
    



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