What You Can Expect After the Verizon Breach

By: Tim Prugar

Yesterday, ZDNet broke the story that a data breach at Verizon resulted in the exposure of the names, phone numbers, and PINs for over 14 million Verizon customers. The data was accessed in June after it was discovered to be improperly stored on a server maintained by Nice Systems, an Israel-based company. 

The scope of the damage has yet to be established, but here are some safe bets on what you will see in the wake of this breach:

Explosion of Call Center Fraud at Verizon

Obtaining customer names, phone numbers, and PINs is pretty much the Holy Grail for fraudsters. Having this information allows fraudsters to order new handsets, obtain additional personal information for a secondary attack, set up call forwarding, or engage in number porting. Attacks using this information will almost always center around spoofing, and will most likely look something like this:

1) Fraudster researches the individual who owns the account they wish to breach online or through social media to figure out the answers to Knowledge-Based Authentication Questions.

2) Fraudster spoofs the number of the account they're attacking in order to present a matching ANI to the IVR system or the live agent.

3) Fraudster gives the name they've obtained from the breach to the agent when they reach a live person.

4) Fraudster gives the PIN they obtained through the breach. If there are any Knowledge-Based Authentication questions, Fraudster answers them easily based on their prior research. They're in. The Account Takeover is complete. 

 

Exploitation of Two-Factor Authentication (2FA)

Fraudsters will attack the Verizon Call Center directly - but for most fraudsters this will be the first step in a two-step plan. 

Many banks leverage 2FA to ensure the security of the accounts. 2FA largely relies on mobile devices, leveraging callbacks or SMS messaging to ensure the security of the customer. 

As Fraudsters set up call forwarding or port numbers during their primary attack on the Verizon Call Center, they will have the ability to intercept this 2FA from financial institutions. By successfully navigating this authentication process, fraudsters can attempt to execute wire transfers, open lines of credit, order replacement credit cards, or any amount of nefarious behavior. Expect fraudsters to leverage spoofing once again to present as the compromised customer to the financial institution to execute this plan. 

 

Increased Attacks on ISPs

We predicted in this post that ISPs would encounter "Hacktivism" and retaliatory breaches in the wake of the Net Neutrality debate. There isn't evidence yet that this breach is a direct result of internet unrest, but ISPs would be wise to batten down the hatches on their cyber and telephony channels. 

 

Tim Prugar is the Director of Customer Success at Next Caller. He can be reached at tim@nextcaller.com.