Eliana Willis

Fortinet handily beat Wall Street estimates on Thursday, reporting a strong third quarter growth thanks to an expansion in business from the Asia-Pacific region.Fortinet delivered third quarter revenue of $867.2 million, up 33% from a year ago. For the third quarter, Fortinet’s non-GAAP earnings of $0.99 a share were above expectations. Wall Street was expecting Fortinet to report third quarter earnings of $0.94 a share on revenue of $809.9 million.Fortinet CEO Ken Xie said the company was pleased with its Q3 because they exceeded $1 billion in quarterly billings for the first time in their history. “Additionally, Gartner again recognized our Secure SD-WAN solution as a Leader in the 2021 Magic Quadrant for WAN Edge Infrastructure while placing highest in its ability to execute,” Xie said. “The total addressable market for network security is rapidly expanding from the data center outward to the local and wide-area networks, to the work-from-anywhere environment and to the cloud. We are focused on leveraging our ASIC-supported security fabric platform across this expanding total addressable market to drive better than industry average long-term growth for Fortinet.”Product revenue was up more than 50% compared to Q3 2020 at $337.1 million. Service revenue was $530.1 million for the third quarter of 2021, an increase of 24.1% compared to the same quarter of 2020.

The company was able to increase the revenue it brought in from APAC, growing it to $193.9 million, a 43.2% year over year change. For the fourth quarter, Fortinet is projecting revenue between $940 million and $970 million with non-GAAP earnings between $1.10 and $1.15 a share.  For 2021, Fortinet is projecting revenue of $3.32 billion to $3.35 billion with non-GAAP earnings of $3.85 to $3.95 a share.In Q4 2020, the company updated its FortiOS operating system with more than 300 new features including Zero Trust Network Access capabilities and tools to better secure networks and proliferating end points.Fortinet announced in March that it was investing $75 million in router maker Linksys as part of a “strategic alliance” aimed at securing work from home networks.Ahead of the earnings call, the company announced that it was combining its portfolio of zero trust, endpoint, and network security solutions under the “Fortinet Security Fabric,” banner.”Empowering users to move seamlessly between different work environments has critical implications for maintaining user productivity as well as security,” said John Maddison, EVP of Products and CMO at Fortinet. “Cybercriminals have been quick to exploit the expanded attack surface and security gaps created by this shift in work patterns to get a foothold into the corporate network. Today’s enterprise organizations require work-from-anywhere security that is as flexible and dynamic as today’s business demands. Fortinet is the only vendor capable of delivering unified security built for the Work-from-Anywhere Era that seamlessly adapts based on a user’s environment and risk profile.”

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Cybersecurity company Proofpoint released a new report on Thursday highlighting an increase in call center-based cyberattacks, noting a variety of scams perpetrated by threat actors stealing almost $50,000 per attack in some instances. Proofpoint researchers Selena Larson, Sam Scholten and Timothy Kromphardt said their company sees thousands of telephone-based cyberattacks each day, with most falling into two different categories. Some use fake call centers to steal a victim’s money and others use call centers to spread malware that can be used in other attacks. “The attacks rely on victims to call the attackers directly and initiate the interaction. Email fraud supported by call center customer service agents is prolific and profitable. In many cases, victims lose tens of thousands of dollars stolen directly from their bank accounts,” the researcher’s wrote.”One uses free, legitimate remote assistance software to steal money. The second leverages the use of malware disguised as a document to compromise a computer and can lead to follow-on malware. The second attack type is frequently associated with BazaLoader malware and is often referred to as BazaCall. Both attack types are what Proofpoint considers telephone-oriented attack delivery (TOAD).”Proofpoint researchers tied the activity to people working in the Indian cities of Mumbai, Kolkata and New Delhi. Cybercriminals use specific lures as a way to legitimize their scams, including presenting themselves as “Justin Bieber ticket sellers, computer security services, COVID-19 relief funds, or online retailers, promising refunds for mistaken purchases, software updates, or financial support.”The attacks start when victims are sent an email with a phone number that will connect them to a “customer service” official who is actually a cybercriminal. 

Other scams begin with fake emails for costly Amazon or PayPal invoices that urge the victim to contact the cyberattackers as a way to dispute the charge. Once the scam call center is called, victims are walked through the process of downloading malicious files or tools like AnyDesk, Teamvier and Zoho that give cyberattackers remote access to a device. Some scammers even ask victims to simply enter their bank account information in order to get refunds, according to Proofpoint. “In malware focused attacks like BazaCall, the invoice lures are often more elaborate, including themes such as Justin Bieber concerts, lingerie, and fake movie sites. The victim is directed to a malicious website where they are told to download a document to facilitate a refund, but instead are infected with malware,” the researchers explained.”Once the attackers have obtained access to the device, they can access banking, email, and other private accounts or download follow-on malware including ransomware. By leveraging attack chains that require a lot of human interaction, threat actors can bypass some automated threat detection services that only flag on malicious links or attachments in email.”
Proofpoint
As a way to learn adversary tactics, researchers with the cybersecurity company went along with one scammer as they walked them through the attack. Some of the attackers posed as ticket sellers for the upcoming 2022 Justin Bieber world tour and upcoming The Weeknd concerts. The scammers even play Bieber’s music while victims wait to speak to a representative, according to Proofpoint. The cyberattacker asked a Proofpoint analyst to visit a malicious website as a way to dispute a charge related to the concerts. Once the malicious file is downloaded, the cyberattacker hung up the phone. Unwanted scam calls have become a major issue for many Americans, some of whom get dozens of scam calls each week. The Proofpoint report cites a Truecaller report that found 60 million Americans lost $29.8 billion between 2020 and 2021 due to these calls. Sherrod DeGrippo, vice president of threat research and detection at Proofpoint, told ZDNet that threat actors are getting creative with their lures, noting that fake receipts for Justin Bieber tickets or a firearm purchase are attention-grabbing enough to trick even the most vigilant email recipient. “Should you respond in an attempt to dispute the charges, what follows is an elaborate infection chain that requires significant human interaction and takes victims down the rabbit hole of the worst possible fake customer service experience imaginable — one that ultimately steals your money or leaves behind a malware infection,” DeGrippo said. “Most successful cyberattacks require some form of human interaction to succeed, like clicking on a malicious link or opening an attachment. But what’s really interesting about these emails is how high they raise the bar, requiring victims to be far more proactive by actually initiating a phone call with the threat actors. It’s a bold, yet ultimately profitable attack.”Netenrich principal threat hunter John Bambenek said call center fraud is not new and has been used successfully in the past to try to lend credence to cybercriminal scams. But he explained that this specific technique doesn’t scale and said it’s “not uncommon for defenders to call these numbers to tie up the time of the attackers.” More

Apple software head Craig Federighi, unsurprisingly, has come out against Europe’s proposal to tear down Apple’s iOS walled-garden and allow sideloading of apps, which is possible on Android but discouraged by Google. Why? Malware, according to Federighi, who used his speech at the Web Summit conference in Lisbon, Portugal, about online privacy to contrast Android’s malware problem with that of Apple’s iOS. He highlighted that third-party data on malware attacks on different platforms including iOS, Android and Windows showed that attacks on iOS “barely registered”. By contrast, there were five million attacks on Android per month. “But there’s never been this widespread consumer malware attack on iOS. Never.” the Apple exec said. “Why is this? The single biggest difference is that other platforms allow side loading. Sideloading would mean downloading software directly from the open internet or from third-party stores, bypassing the protections from the App Store.”With sideloading those extra protections are undone. There’s no human app review and no single point of distribution for sideloaded apps. The floodgates are open for malware.”Apple is facing a mounting challenge in Europe, the US, Asia and Australia over its control over app distribution — it is by design a gatekeeper in terms of the apps installed on the iPhone, iPad and Apple Watch. 

Federighi’s claims aren’t a new angle from Apple; last month it published a paper arguing that if Europe forced Apple to allow sideloading it would turn iPhones “into ‘pocket PCs,’ returning to the days of virus-riddled PCs.”Apple was railing against Europe’s proposed Digital Services Act (DSA) and the Digital Markets Act (DMA), which would mandate tighter controls on online content and impose new rules for “gatekeepers” — like Apple, Google and Amazon — to help foster competition and improve interoperability between mobile platforms. Apple claimed that even if the EU’s proposal was limited to allowing apps to be installed from third-party app stores — as Android allows but Google actively discourages — this would increase malware due to insufficient reviews. To make his point, Federighi quoted from Europol’s advice to “only install apps from official app stores”. “Companies should only permit the install of apps from official sources on those mobile devices that connect to the enterprise network.”But Apple’s paper and Federighi’s comments come after the European Commission (EC) in April informed Apple of its preliminary view that Apple had distorted competition in the music streaming market as it abused its dominant position for the distribution of music streaming apps through its app store.”The investigations concern, in particular, the mandatory use of Apple’s own proprietary in-app purchase system and restrictions on the ability of developers to inform iPhone and iPad users of alternative cheaper purchasing possibilities outside of apps,” the EC said.    More

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US prosecutors have indicted a UK national for allegedly conducting a SIM-swapping scheme resulting in cryptocurrency theft.On Wednesday, the US Department of Justice (DoJ) named Joseph O’Connor, also known as “PlugwalkJoe,” as the subject of the indictment. Prosecutors claim that O’Connor and his co-conspirators plotted to steal $784,000 in cryptocurrency from an unnamed crypto exchange based in Manhatten. At the time, the firm “provided wallet infrastructure and related software to cryptocurrency exchanges around the world,” the DoJ says.  According to the indictment (.PDF), O’Connor conducted SIM-swapping attacks to target the company’s executives. SIM-swapping uses social engineering techniques — including the impersonation of an intended victim or, in some cases, hiring internal help — to have a phone number transferred to a handset controlled by an attacker.  In this often short window, the victim can no longer receive calls or texts. Instead, calls and messages are rerouted to another device outside of their control.  Cybercriminals can then grab two-factor authentication (2FA) codes and account details, granting them access to financial services and cryptocurrency wallets linked to the compromised phone number. 

US law enforcement says that between roughly March and May in 2019, O’Connor and others involved in the scheme used SIM-swaps to target at least three company employees.  One particularly successful attempt granted the cyberattackers access to numerous company accounts and systems, including corporate G-Suite services.  “Within hours of this SIM-swap attack, O’Connor and his co-conspirators leveraged control of Executive 1’s phone number to obtain unauthorized access to Company 1’s accounts and computer systems,” the indictment reads.  The group then allegedly plundered wallets owned by two of the firm’s clients, leading to the theft of 770.784869 Bitcoin Cash (BCH), 6,363.490509 Litecoin (LTC), 407.396074 Ethereum (ETH), and 7.456728 Bitcoin (BTC).  The 22-year-old was arrested in Spain, and the US government is currently seeking extradition.  O’Connor is being charged with conspiracy to commit computer intrusions, wire fraud, aggravated identity theft, and conspiracy to commit money laundering. If found guilty of all charges, the UK resident could face decades behind bars.  Previous and related coverage Have a tip? Get in touch securely via WhatsApp | Signal at +447713 025 499, or over at Keybase: charlie0 More

Kyndryl, a managed services giant spun off from IBM, will officially become a publicly traded independent company on Wednesday and the company has a long to-do list that includes boosting innovation, delivering revenue growth and forging a cohesive employee culture. Martin Schroeter, CEO of Kyndryl, said at the company’s inaugural investor day that Kyndryl will “ramp up our focus on innovation, going after new market opportunity and using our experience and our IP to benefit our customers.”In the meantime, Kyndryl will remain known for being the largest integrator with $19.1 billion in revenue as well as 90,000 employees. According to Gartner, Kyndryl will be the largest implementation services leader followed by DXC, Atos, Fujitsu and Accenture. Kyndryl operates in 63 countries, manages 750,000 virtual servers, 270,000 network devices and 25,000 SAP and Oracle systems. Schroeter’s plan revolves around extending its implementation and managed services into other areas with more growth. Here’s a look at the plan, markets and potential growth through 2024. In short, Kyndryl will ride intelligent automation, data services, cloud services and security to deliver more value and enable digital transformation. ×kyndryl-stair-step.pngThe argument for Kyndryl is that companies are starting their digital transformations and the company has time to expand even as it simplifies customer infrastructure. Schroeter also said Kyndryl will offer an ESG platform and strategy to address customers’ environmental, social and governance challenges.Among the key areas Kyndryl aims to address:Data services with a move beyond managing storage systems to focusing on data engineering, orchestration and curation. Kyndryl has established practices around the following.Cloud infrastructure services that will move to the broader ecosystem beyond IBM Cloud. Artificial intelligence services. Digital workplace services. Applications management. Security and resiliency. And network and edge computing.

Indeed, Kyndryl has the customer base to expand. It has more than 4,000 customers and only 15% of revenue comes from the top 10. Kyndryl counts 75% of the Fortune 100 as customers and the average customer relationship is more than 10 years. But the challenge will be pivoting Kyndryl story from implementation to innovation. ×kyndryl-digital-transformation.pngThe detailsKyndryl’s investor day revolved around convincing Wall Street that the company was a solid investment. IBM shareholders will receive one Kyndryl share for every 5 IBM shares held. Kyndryl shares are distributed after market close on Nov. 3 with trading under the KD ticker on Nov. 4. As for the balance sheet, Kyndryl will start with $2 billion in cash and $3.2 billion of debt with an incremental $3 billion credit facility. The revenue streams for Kyndryl are also predictable. The company said that about 85% of its expected revenue is under contract at the start of every year. In addition, ABN Amro recently announced a $400 million tech services deal with Kyndryl. Wall Street analysts were generally cautious following Kyndryl’s investor day. For instance, Wedbush analyst Moshe Katri said in a research note that Kyndryl will need to manage cannibalization to its services business and cut costs with restructuring. “We see a long and challenging road for a recovery at Kyndryl,” said Katri. Perhaps the biggest issue facing Kyndryl is that it must operate in an environment that’s moving toward cloud models with little capital investment up front and a heavy dose of automation. Simply put, Kyndryl has its own transformation to deliver. Kyndryl doesn’t expect revenue growth until 2025 and there is potential sales contraction leading up to that date. Stifel Nicolaus analyst David Grossman said there are multiple opportunities to expand as Kyndryl expands its ecosystem and partnerships. CultureKyndryl’s management team is roughly split between IBM executives, external hires and IBM alums and external hires. The diversified set of opinions and experiences is something that can set Kyndryl apart, said Schroeter. Indeed, Kyndryl’s executive team includes former CIOs of State Street, GE and NBC Universal. The company’s name is derived from the words kinship and tendril to evoke growth and working together well. At the Kyndryl investor day, executives emphasized that culture and people were the core assets for success. Kyndryl noted that its employees are continually learning, earning certifications and badges and reskilling on the fly. ×kyndryl-opps.pngMore importantly, Kyndryl has been expanding its skillsets in Amazon Web Services, Microsoft Azure and Google Cloud. Those skills will be critical to making Kyndryl a broader player.To celebrate the spin-off, Kyndryl will plant a tree for each employee. The company will also aim to build a purpose-driven firm from the ground up.  More

A code execution vulnerability has been patched in the TIPC module of the Linux Kernel.

The Transparent Inter Process Communication (TIPC) module has been designed to facilitate intra-cluster communication across Ethernet or UDP connections and is capable of service addressing, tracking, managing communication between nodes, and more. This protocol is implemented in a kernel module package with major Linux distros.  On Thursday, SentinelOne researchers said that CodeQL has been used recently in bug hunting investigations on open source projects. CodeQL is a semantic code analysis engine that allows users to query code “as if it were data,” and it was this tool that allowed the team to find a severe bug in the TIPC module project.  According to the researchers, a heap overflow vulnerability was uncovered that could be exploited either locally or remotely to gain kernel-level privileges, “allowing an attacker to not just compromise a single service but the entire system itself.” SentinelOne found a feature introduced in September 2020 as part of the TIPC module roadmap, a new user message type called MSG_CRYPTO, was the source of the issue.  While the module correctly validates Message and Header sizes against packet lengths received, there is a lack of validation for the keylen member of the MSG_CRYPTO message and the size of key algorithm names.

“This means that an attacker can create a packet with a small body size to allocate heap memory, and then use an arbitrary size in the keylen attribute to write outside the bounds,” the researchers explained. “This vulnerability can be exploited both locally and remotely.” “While local exploitation is easier due to greater control over the objects allocated in the kernel heap, remote exploitation can be achieved thanks to the structures that TIPC supports.” The security flaw impacts kernel version 5.10. There is currently no evidence of in-the-wild abuse and it should also be noted that while the module is included with major distributions, it has to be loaded for the protocol to be enabled — and so only builds with this feature active may be vulnerable to exploit.  SentinelOne reported the flaw to the Kernel.org team on October 19. A patch was finalized by the module’s maintainers by October 21 and released on lore.kernel.org four days later. The fix has now also been added to the mainline repository, released on October 29 under version 5.15.  Previous and related coverage Have a tip? Get in touch securely via WhatsApp | Signal at +447713 025 499, or over at Keybase: charlie0 More