Do you use mTANS (mobile transaction authentication numbers) for online banking? Have you checked your bank account balance lately? Well, what happened to Deutsche Telekom customers recently has happened to others before and is likely to happen again elsewhere if online banking customers and providers don't follow even the most basic rules of IT security.
IT protection measures are smart, unfortunately the attackers are often smarter these days: several customers of Deutsche Telekom's mobile offering have become victims of a cunning fraud series while banking online. The German (online-) newspaper "Süddeutsche Zeitung" reported about this in detail. What led to success for the criminals was their clever acting. The whole scam reminded me somehow of the old television series Mission Impossible, only that this time the protagonists were criminals: first, the robbers hacked the bank clients' computers and installed malware - supposedly via e-mail - that sent them the numbers of the online banking accounts and passwords through the net without any knowledge of the PC owners. But that wasn’t all: the hackers also went through their victim's e-mails looking for their online phone bills. Thus they were, according to an article in "Die Welt", also provided with customer IDs. Simultaneously, the thieves found - or spied - out the mobile phone numbers of their victims, clients of various banks who all happened to have at the same time mobile phone contracts with Deutsche Telekom.
With this information in hand the felons contacted Deutsche Telekom and pretended to be authorized dealers ("Telekom Shop") who needed to activate a substitute SIM card with the mobile number of "their" customer since the original one had been lost or stolen. They had more or less no problems with getting the new cards. Now they were able to receive every text message meant for the original customer. Bingo! The fraudsters could now enter their target's full bank account with all rights and privileges. Transfer in operation.
This sly method could lead to an amazed laugh if it weren't so seriously bad. In dozens of cases the crooks withdrew five-digit amounts, in one known case 30,000 Euro, the whole “take” is estimated to be more than a million Euro. There might still be other victims, but this hasn't been detected so far. The Telekom at least seems to be convinced that the method of the burglars won't work anymore in the future and that they have found safer ways to identify their retailers. But are they prepared for all other hard-to-imagine-now methods in the future? I doubt it. After earlier mTAN hacks providers had already made it generally more difficult to get a second SIM card. Customers have either to show their passports or give a password over the phone. But if it's not Deutsche Telekom, there are other telco providers who might be tricked in the future.
Fitting security concept necessary
Where security relevant elements like SIM cards play a vital part a fitting security concept is absolutely necessary. The whole process and supply chain from ordering to delivery has to be adapted accordingly. However, there are so far no easy solutions available for both secure and comfortable online banking with mTANs. Risk based authentication/authorization might help banks a bit to recognize unusual user behaviour and thus request further credentials, but this is also quite limited - where there are plenty of smaller transactions unusual behaviour quickly remains unrecognized.
The challenges start with the digital certificates and the question of getting them securely from the Certificate Authority to the rightful addressee. Personal handover of e. g. a smart card would be perfect. As well as - on another level - Post Identity Procedure, where one has to appear in person at the post office with an ID card before being able to use online banking. However, such processes require a bigger effort on the user side and they also take longer. This collides with the business models of the providers and the wishes and demands of their customers, like e. g. quickly and comfortably getting a substitute SIM. However, it all depends finally on balancing security needs with demands of both customers and providers. Multi-layer security - identifying the SIM card plus the device, on which the transaction is going to take place - makes mobile banking initially more inconvenient, but there is still the possibility of installing further controls to reduce the risks.
Since it has become a lucrative global industry for criminals, they exert a lot of effort in breaking into the - up to the present day - seemingly most secure infrastructures. Potential victims - vendors of "things and services" as well as end-consumers - should do the same in trying to prevent this. At least everyone should care for state-of-the-art malware protection as well as regular (automatic) software updates and patches. Keep yourself informed: Several non-profit websites provide useful information about cyber threats like phishing, e.g. this one. It cannot be said often enough that there is no one hundred percent security - but for your own sake you better try to come close. It's worth it.
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