Phishers: Targeting Government Contract Shoemakers Who Do Not Have Shoes But Talk about Them

August 22, 2024

green-dino_thumb_thumb_thumb_thumb_thumb_thumb_thumb_thumb_thumb_thumb_thumb_thumbThis essay is the work of a dumb dinobaby. No smart software required.

The proverb "The shoemaker’s children go barefoot" has inspired some bad actors who phish for online credentials. The obvious targets, some might suggest, are executives at major US government agencies. Those individuals are indeed targets, but a number of bad actors have found ways to get a GS-9 to click on a link designed to steal credentials. An even more promising barrel containing lots of fish may be the vendors who sell professional services, including cyber security, to the US government agencies.

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Of course, our systems are secure. Thanks, MSFT Copilot. How is Word doing today? Still crashing?

This Sophisticated New Phishing Campaign Is Going after US Government Contractors” explains:

Researchers from Perception Point revealed the “Uncle Scam” campaign bypasses security checks to deliver sophisticated phishing emails designed by LLMs to be extremely convincing. The attackers use advanced tools, including AI-powered phishing kits and the Microsoft Dynamics 365 platform, to execute convincing multi-step attacks.

The write up then reveals one of the key — maybe the principal key to success:

One of the key elements that makes this phishing campaign particularly effective is the abuse of Microsoft’s Dynamics 365 Marketing platform. The attackers leverage the domain "dyn365mktg.com," associated with Dynamics 365, to send out their malicious emails. Because this domain is pre-authenticated by Microsoft and complies with DKIM and SPF standards, phishing emails are more likely to bypass spam filters and reach the inboxes of unsuspecting recipients.

If I understand this statement, the recipient sees email with a pattern set up to suck credentials. Why would a government contractor click on such an email? The domain is “pre-authenticated by Microsoft.” If it looks like a duck and walks like a duck, the email must be a duck. Yes, it is a digital duck which is designed to take advantage of yet another “security” and “trust” facet of the Microsoft ecosystem.

I found this series of statements interesting. Once again, the same old truisms are trotted out to help a victim avoid a similar problem in the future. I quote:

To safeguard your organization from falling victim to sophisticated phishing attacks like "Uncle Scam," Perception Point recommends taking the following precautions:

  • Double-check the Sender’s Email: Always scrutinize the sender’s email address for any signs of impersonation.
  • Hover Before You Click: Before clicking any link, hover over it to reveal the actual URL and ensure it is legitimate. 
  • Look for Errors: Pay attention to minor grammatical mistakes, unusual phrasing, or inconsistencies in the email content.
  • Leverage Advanced Detection Tools: Implement AI-powered multi-layered security solutions to detect and neutralize sophisticated phishing attempts.
  • Educate Your Team: Regularly train employees on how to identify phishing emails and the importance of verifying unsolicited communications.
  • Trust Your Instincts: If an email or offer seems too good to be true, it probably is. Always verify the authenticity of such communications through trusted channels.

How well do these tips work in today’s government contractor workspace? Answer: Not too well.

The issue is the underlying software. The fix is going to be difficult to implement. Microsoft is working to make its systems more secure. The government contractors can make shoes in the form of engineering change orders, scope changes, and responses to RFQs which hit every requirement in the RFP. But many of those firms have assumed that the cyber security systems will do their job.

Ignorance is bliss. Maybe not for the compromised contractor, but the bad actors are enjoying the Uncle Scam play and may for years to come.

Stephen E Arnold, August 22, 2024

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