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IDScan Sued Over Alleged Data Breach Affecting 153 Million Drivers

 

Identity verification company IDScan is being sued in multiple cases after hackers allegedly gained unauthorized access to the service and started selling more than 153 million driver’s licenses via dark web. Markovits, Stock & DeMarco and Hall Attorneys law firms are investigating the class-action claims against the company, which is based in Louisiana. 

Plaintiffs allege that IDScan failed to protect the information of its clients, including car rental company Hertz. Everything started on September 1 when Krebs revealed that a dark-web illegal identity-theft service called Nexus was selling more than 153 million scans of American and Canadian’s driver’s licenses, 10 million ID cards, 3 million travel documents, and 579,000 medical cards. 

He confirmed his sources by searching for his own data and the data of other people who gave their consent to do so. His research showed that all the resources were stolen from IDScan. IDScan sells scanners and specialized software for extracting personal data from official documents. Its technology is used in numerous car rental companies, retail stores, gun shops, banks, pot shops, and hotels across the United States. 

The company has not responded to media inquiries about the data breach, leaving the situation unclear. For now, it is unknown how exactly the breach occurred and how many people were affected. According to Krebs, the Federal Bureau of Investigation (FBI) in New Orleans is investigating the issue, confirming the story, Reuters noted. The FBI spokesperson told Bleepingcomputer that the bureau is looking into the reports but declined further comments due to the sensitivity of the case. The illegal website Nexus that was distributing people’s personal data is closed now. 

However, criminals who stole the information from IDScan still have access to the database. According to Krebs, the compromised data includes the documents of the Secretary of Defense Pete Hegseth and an assistant director of the FBI, which could not be confirmed. Markovits, Stock & DeMarco law firm revealed that IDScan started informing some of its business customers around September 1. The company’s representatives stated that if someone’s ID was scanned in their system, they would contact them to discuss the situation and represent their interests in court. 

In addition, the firm is looking for other organizations to file a class-action lawsuit against the company. Because of the potential number of affected people, other class-action lawsuits may arise, which will have to be consolidated in multidistrict litigation. In addition, other states’ attorneys general and federal regulators may also launch separate investigations into this data security breach. Similar situations with 23andMe, Marriott, and Equifax data compromises happened before and ended in multi-state inquiries or even criminal charges.

Cybercriminals Exploit Identity Verification Systems

 


Cybercriminals on the dark web have developed new ways to exploit identity verification systems. Rather than hacking or stealing personal information, they are purchasing it directly from individuals, as revealed by security researchers at iProov. This approach allows them to bypass Know Your Customer (KYC) processes used by businesses to verify customer identities. Researchers found that a criminal group in Latin America is gathering identity documents, such as passports and driver's licenses, along with corresponding facial images. 

In some cases, these criminals pay individuals for their personal data. While the exact amount paid remains unclear, this practice raises serious concerns. This group’s activities extend beyond Latin America, with similar tactics reported in Eastern Europe. Law enforcement agencies in these regions have been alerted to the threat. 
 
Why Is This Dangerous? 
 
Selling personal data equips fraudsters with real identity "kits," which combine authentic documents with matching biometrics. This makes it challenging to identify the kits as counterfeit. According to iProov Chief Scientific Officer Andrew Newell, these kits enable criminals to execute sophisticated impersonation scams, putting victims’ financial security and personal identities at risk. 
  
What Can Be Done? 
 
Classic verification methods have proven inadequate against such advanced attacks. iProov recommends implementing multi-layered security measures to combat these threats. Key steps include:
  • Real-Time Authentication: Verifying that the user is a human being in real-time.
  • Identity Verification: Ensuring the user matches the rightful owner of the presented identity.
These layered methods significantly hinder cybercriminals, even when they possess convincing identity data. iProov notes that even sophisticated attackers struggle to bypass such systems while maintaining realistic interactions.
  • Never sell or share your personal information, regardless of incentives.
  • Be cautious of schemes offering money for personal data, as they can fuel large-scale fraud.
  • Stay vigilant and report any suspicious activity to relevant authorities.
As cybercriminals continue to innovate, businesses must invest in robust security systems, and individuals must take proactive steps to safeguard their sensitive information.

New Hacking Method: Akami DNS Data Exfiltration



 


When it comes to cybercrime, getting into a system is only half the battle; the real challenge is extracting the stolen data without being detected. Companies often focus on preventing unauthorised access, but they must also ensure that data doesn’t slip out undetected. Hackers, driven by profit, constantly innovate methods to exfiltrate data from corporate networks, making it essential for businesses to understand and defend against these techniques.

The Challenge of Data Exfiltration

Once hackers breach a network, they need to smuggle data out without triggering alarms. Intrusion Detection Systems (IDS) are crucial in this fight. They monitor network traffic and system activities for suspicious patterns that may indicate unauthorised data extraction attempts. IDS can trigger alerts or even automatically block suspicious traffic to prevent data loss. To avoid detection, hackers use obfuscation techniques to disguise their actions. This can involve encrypting data or embedding it within harmless-looking traffic, making it difficult for IDS to identify and block the exfiltration attempts.

Reality vs. Hollywood

In Hollywood movies like "Mission Impossible," data theft is often depicted as a physical heist involving stealth and daring. In reality, hackers prefer remote methods to avoid detection and the risk of getting caught. By exploiting vulnerabilities in web servers, hackers can gain access to a network and search for valuable data. Once they find it, the challenge becomes how to exfiltrate it without triggering security systems.

One common way hackers hide their tracks is through obfuscation. A well-known method of obfuscation is image steganography, where data is embedded within images. This technique allows small amounts of data, such as passwords, to be hidden within images without raising suspicion. However, it is impractical for large datasets due to its low bandwidth and the potential for triggering alarms when numerous images are sent out.

Innovative DNS Data Exfiltration

The Domain Name System (DNS) is essential for internet functionality, translating domain names into IP addresses. Hackers can exploit this by sending data disguised as DNS queries. Typically, corporate firewalls scrutinise unfamiliar DNS requests and block those from untrusted sources. However, a novel method known as "Data Bouncing" has emerged, bypassing these restrictions and making data exfiltration easier for hackers.

How Data Bouncing Works

Data Bouncing leverages trusted web hosts to facilitate DNS resolution. Here’s how it works: hackers send an HTTP request to a reputable domain, like "bbc.co.uk," with a forged "Host" header containing the attacker’s domain. Akami Ghost HTTP servers, configured to resolve such domains, process the request, unknowingly aiding the exfiltration.

Every HTTP request a browser makes to a web server includes some metadata in the request’s headers. One of these header fields is the "Host" field, which specifies the requested domain. Normally, if you request a domain that the IP address doesn’t host, you get an error. However, Akami Ghost HTTP servers are set up to send a DNS request to resolve the domain you’ve asked for, even if it’s outside their network. This means you can send a request to a trusted domain, like "bbc.co.uk," with a "Host" header for "encryptedfilechunk.attackerdomain.com," and the trusted domain carries out the DNS resolution for you.

To prevent data exfiltration, companies need a comprehensive security strategy that includes multiple layers of defence. This makes it harder for hackers to succeed and gives security teams more time to detect and stop them. While preventing intrusions is crucial, detecting and mitigating ongoing exfiltration attempts is equally important to protect valuable data.

As cyber threats take new shapes, so must our defences. Understanding sophisticated exfiltration techniques like Data Bouncing is essential in the fight against cybercrime. By staying informed and vigilant, companies can better protect their data from falling into the wrong hands.