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U.S. Army Soldier Arrested in AT&T, Verizon Extortions - Related to army, at&t,, mastercard, ai-powered, social

MasterCard DNS Error Went Unnoticed for Years

MasterCard DNS Error Went Unnoticed for Years

The payment card giant MasterCard just fixed a glaring error in its domain name server settings that could have allowed anyone to intercept or divert Internet traffic for the enterprise by registering an unused domain name. The misconfiguration persisted for nearly five years until a security researcher spent $300 to register the domain and prevent it from being grabbed by cybercriminals.

From June 30, 2020 until January 14, 2025, one of the core Internet servers that MasterCard uses to direct traffic for portions of the [website] network was misnamed. [website] relies on five shared Domain Name System (DNS) servers at the Internet infrastructure provider Akamai [DNS acts as a kind of Internet phone book, by translating website names to numeric Internet addresses that are easier for computers to manage].

All of the Akamai DNS server names that MasterCard uses are supposed to end in “[website]” but one of them was misconfigured to rely on the domain “[website]”.

This tiny but potentially critical typo was discovered in the recent past by Philippe Caturegli, founder of the security consultancy Seralys. Caturegli mentioned he guessed that nobody had yet registered the domain [website], which is under the purview of the top-level domain authority for the West Africa nation of Niger.

Caturegli noted it took $300 and nearly three months of waiting to secure the domain with the registry in Niger. After enabling a DNS server on [website], he noticed hundreds of thousands of DNS requests hitting his server each day from locations around the globe. Apparently, MasterCard wasn’t the only organization that had fat-fingered a DNS entry to include “[website],” but they were by far the largest.

Had he enabled an email server on his new domain [website], Caturegli likely would have received wayward emails directed toward [website] or other affected domains. If he’d abused his access, he probably could have obtained website encryption certificates (SSL/TLS certs) that were authorized to accept and relay web traffic for affected websites. He may even have been able to passively receive Microsoft Windows authentication credentials from employee computers at affected companies.

But the researcher noted he didn’t attempt to do any of that. Instead, he alerted MasterCard that the domain was theirs if they wanted it, copying this author on his notifications. A few hours later, MasterCard acknowledged the mistake, but noted there was never any real threat to the security of its operations.

“We have looked into the matter and there was not a risk to our systems,” a MasterCard spokesperson wrote. “This typo has now been corrected.”.

Meanwhile, Caturegli received a request submitted through Bugcrowd, a program that offers financial rewards and recognition to security researchers who find flaws and work privately with the affected vendor to fix them. The message suggested his public disclosure of the MasterCard DNS error via a post on LinkedIn (after he’d secured the [website] domain) was not aligned with ethical security practices, and passed on a request from MasterCard to have the post removed.

Caturegli stated while he does have an account on Bugcrowd, he has never submitted anything through the Bugcrowd program, and that he reported this issue directly to MasterCard.

“I did not disclose this issue through Bugcrowd,” Caturegli wrote in reply. “Before making any public disclosure, I ensured that the affected domain was registered to prevent exploitation, mitigating any risk to MasterCard or its end-consumers. This action, which we took at our own expense, demonstrates our commitment to ethical security practices and responsible disclosure.”.

Most organizations have at least two authoritative domain name servers, but some handle so many DNS requests that they need to spread the load over additional DNS server domains. In MasterCard’s case, that number is five, so it stands to reason that if an attacker managed to seize control over just one of those domains they would only be able to see about one-fifth of the overall DNS requests coming in.

But Caturegli mentioned the reality is that many Internet people are relying at least to some degree on public traffic forwarders or DNS resolvers like Cloudflare and Google.

“So all we need is for one of these resolvers to query our name server and cache the result,” Caturegli stated. By setting their DNS server records with a long TTL or “Time To Live” — a setting that can adjust the lifespan of data packets on a network — an attacker’s poisoned instructions for the target domain can be propagated by large cloud providers.

“With a long TTL, we may reroute a LOT more than just 1/5 of the traffic,” he introduced.

The researcher showcased he’d hoped that the credit card giant might thank him, or at least offer to cover the cost of buying the domain.

“We obviously disagree with this assessment,” Caturegli wrote in a follow-up post on LinkedIn regarding MasterCard’s public statement. “But we’ll let you judge— here are some of the DNS lookups we recorded before reporting the issue.”.

As the screenshot above reveals, the misconfigured DNS server Caturegli found involved the MasterCard subdomain [website] It is not clear exactly how this subdomain is used by MasterCard, however their naming conventions suggest the domains correspond to production servers at Microsoft’s Azure cloud service. Caturegli introduced the domains all resolve to Internet addresses at Microsoft.

“Don’t be like Mastercard,” Caturegli concluded in his LinkedIn post. “Don’t dismiss risk, and don’t let your marketing team handle security disclosures.”.

This is interesting given a comment on Caturegli’s LinkedIn post from an ex-Cloudflare employee who linked to a findings he co-authored on a similar typo domain apparently registered in 2017 for organizations that may have mistyped their AWS DNS server as “[website]” instead of “[website]” this typo domain also was registered to a Yandex user ([website], and was hosted at the same German ISP — Team Internet (AS61969).

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Top 5 AI-Powered Social Engineering Attacks

Top 5 AI-Powered Social Engineering Attacks

Social engineering has long been an effective tactic because of how it focuses on human vulnerabilities. There's no brute-force 'spray and pray' password guessing. No scouring systems for unpatched software. Instead, it simply relies on manipulating emotions such as trust, fear, and respect for authority, usually with the goal of gaining access to sensitive information or protected systems.

Traditionally that meant researching and manually engaging individual targets, which took up time and resources. However, the advent of AI has now made it possible to launch social engineering attacks in different ways, at scale, and often without psychological expertise. This article will cover five ways that AI is powering a new wave of social engineering attacks.

The audio deepfake that may have influenced Slovakia elections.

Ahead of Slovakian parliamentary elections in 2023, a recording emerged that appeared to feature candidate Michal Simecka in conversation with a well-known journalist, Monika Todova. The two-minute piece of audio included discussions of buying votes and increasing beer prices.

After spreading online, the conversation was revealed to be fake, with words spoken by an AI that had been trained on the speakers' voices.

However, the deepfake was released just a few days before the election. This led many to wonder if AI had influenced the outcome, and contributed to Michal Simecka's Progressive Slovakia party coming in second.

In February 2024 reports emerged of an AI-powered social engineering attack on a finance worker at multinational Arup. They'd attended an online meeting with who they thought was their CFO and other colleagues.

During the videocall, the finance worker was asked to make a $25 million transfer. Believing that the request was coming from the actual CFO, the worker followed instructions and completed the transaction.

Initially, they'd reportedly received the meeting invite by email, which made them suspicious of being the target of a phishing attack. However, after seeing what appeared to be the CFO and colleagues in person, trust was restored.

The only problem was that the worker was the only genuine person present. Every other attendee was digitally created using deepfake technology, with the money going to the fraudsters' account.

Mother's $1 million ransom demand for daughter.

Plenty of us have received random SMSs that start with a variation of 'Hi mom/dad, this is my new number. Can you transfer some money to my new account please?' When received in text form, it's easier to take a step back and think, 'Is this message real?' However, what if you get a call and you hear the person and recognize their voice? And what if it sounds like they've been kidnapped?

That's what happened to a mother who testified in the US Senate in 2023 about the risks of AI-generated crime. She'd received a call that sounded like it was from her 15-year-old daughter. After answering she heard the words, 'Mom, these bad men have me', followed by a male voice threatening to act on a series of terrible threats unless a $1 million ransom was paid.

Overwhelmed by panic, shock, and urgency, the mother believed what she was hearing, until it turned out that the call was made using an AI-cloned voice.

Fake Facebook chatbot that harvests usernames and passwords.

'Put down your weapons' says deepfake President Zelensky.

As the saying goes: The first casualty of war is the truth. It's just that with AI, the truth can now be digitally remade too. In 2022, a faked video appeared to show President Zelensky urging Ukrainians to surrender and stop fighting in the war against Russia. The recording went out on Ukraine24, a television station that was hacked, and was then shared online.

A still from the President Zelensky deepfake video, with differences in face and neck skin tone.

Many media reports highlighted that the video contained too many errors to be believed widely. These include the President's head being too big for the body, and placed at an unnatural angle.

While we're still in relatively early days for AI in social engineering, these types of videos are often enough to at least make people stop and think, 'What if this was true?' Sometimes adding an element of doubt to an opponent's authenticity is all that's needed to win.

AI takes social engineering to the next level: How to respond.

The big challenge for organizations is that social engineering attacks target emotions and evoke thoughts that make us all human. After all, we're used to trusting our eyes and ears, and we want to believe what we're being told. These are all-natural instincts that can't just be deactivated, downgraded, or placed behind a firewall.

Add in the rise of AI, and it's clear these attacks will continue to emerge, evolve, and expand in volume, variety, and velocity.

That's why we need to look at educating employees to control and manage their reactions after receiving an unusual or unexpected request. Encouraging people to stop and think before completing what they're being asked to do. Showing them what an AI-based social engineering attack looks and most importantly, feels like in practice. So that no matter how fast AI develops, we can turn the workforce into the first line of defense.

Here's a 3-point action plan you can use to get started:

Talk about these cases to your employees and colleagues and train them specifically against deepfake threats – to raise their awareness, and explore how they would (and should) respond. Set up some social engineering simulations for your employees – so they can experience common emotional manipulation techniques, and recognize their natural instincts to respond, just like in a real attack. Review your organizational defenses, account permissions, and role privileges – to understand a potential threat actor's movements if they were to gain initial access.

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U.S. Army Soldier Arrested in AT&T, Verizon Extortions

U.S. Army Soldier Arrested in AT&T, Verizon Extortions

Federal authorities have arrested and indicted a 20-year-old [website] Army soldier on suspicion of being Kiberphant0m, a cybercriminal who has been selling and leaking sensitive customer call records stolen earlier this year from AT&T and Verizon. As first , the accused is a communications specialist who was recently stationed in South Korea.

Cameron John Wagenius was arrested near the Army base in Fort Hood, Texas on Dec. 20, after being indicted on two criminal counts of unlawful transfer of confidential phone records.

The sparse, two-page indictment (PDF) doesn’t reference specific victims or hacking activity, nor does it include any personal details about the accused. But a conversation with Wagenius’ mother — Minnesota native Alicia Roen — filled in the gaps.

Roen presented that prior to her son’s arrest he’d acknowledged being associated with Connor Riley Moucka, [website] “Judische,” a prolific cybercriminal from Canada who was arrested in late October for stealing data from and extorting dozens of companies that stored data at the cloud service Snowflake.

In an interview with KrebsOnSecurity, Judische said he had no interest in selling the data he’d stolen from Snowflake customers and telecom providers, and that he preferred to outsource that to Kiberphant0m and others. Meanwhile, Kiberphant0m claimed in posts on Telegram that he was responsible for hacking into at least 15 telecommunications firms, including AT&T and Verizon.

On November 26, KrebsOnSecurity .S. Army soldier stationed in South Korea.

Ms. Roen expressed Cameron worked on radio signals and network communications at an Army base in South Korea for the past two years, returning to the United States periodically. She expressed Cameron was always good with computers, but that she had no idea he might have been involved in criminal hacking.

“I never was aware he was into hacking,” Roen noted. “It was definitely a shock to me when we found this stuff out.”.

Ms. Roen mentioned Cameron joined the Army as soon as he was of age, following in his older brother’s footsteps.

“He and his brother when they were like 6 and 7 years old would ask for MREs from other countries,” she recalled, referring to military-issued “meals ready to eat” food rations. “They both always wanted to be in the Army. I’m not sure where things went wrong.”.

Immediately after news broke of Moucka’s arrest, Kiberphant0m &T call logs for President-elect Donald J. Trump and for Vice President Kamala Harris.

“In the event you do not reach out to us @ATNT all presidential government call logs will be leaked,” Kiberphant0m threatened, signing their post with multiple “#FREEWAIFU” tags. “You don’t think we don’t have plans in the event of an arrest? Think again.”.

On that same day, Kiberphant0m posted what they claimed was the “data schema” from the [website] National Security Agency.

On Nov. 5, Kiberphant0m offered call logs stolen from Verizon’s push-to-talk (PTT) clients — mainly [website] government agencies and emergency first responders. On Nov. 9, Kiberphant0m posted a sales thread on BreachForums offering a “SIM-swapping” service targeting Verizon PTT clients. In a SIM-swap, fraudsters use credentials that are phished or stolen from mobile phone enterprise employees to divert a target’s phone calls and text messages to a device they control.

The profile photo on Wagenius’ Facebook page was deleted within hours of my Nov. 26 story identifying Kiberphant0m as a likely [website] Army soldier. Still, many of his original profile photos remain, including several that show Wagenius in uniform while holding various Army-issued weapons.

November’s story on Kiberphant0m cited his own Telegram messages saying he maintained a large botnet that was used for distributed denial-of-service (DDoS) attacks to knock websites, clients and networks offline. In 2023, Kiberphant0m sold remote access credentials for a major [website] defense contractor.

Allison Nixon, chief research officer at the New York-based cybersecurity firm Unit 221B, helped track down Kiberphant0m’s real life identity. Nixon was among several security researchers who faced harassment and specific threats of violence from Judische and his associates.

“Anonymously extorting the President and VP as a member of the military is a bad idea, but it’s an even worse idea to harass people who specialize in de-anonymizing cybercriminals,” Nixon told KrebsOnSecurity. She mentioned the investigation into Kiberphant0m presents that law enforcement is getting improved and faster at going after cybercriminals — especially those who are actually living in the United States.

“Between when we, and an anonymous colleague, found his opsec mistake on November 10th to his last Telegram activity on December 6, law enforcement set the speed record for the fastest turnaround time for an American federal cyber case that I have witnessed in my career,” she noted.

Nixon asked to share a message for all the other Kiberphant0ms out there who think they can’t be found and arrested.

“I know that young people involved in cybercrime will read these articles,” Nixon mentioned. “You need to stop doing stupid shit and get a lawyer. Law enforcement wants to put all of you in prison for a long time.”.

The indictment against Wagenius was filed in Texas, but the case has been transferred to the [website] District Court for the Western District of Washington in Seattle.

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Market Impact Analysis

Market Growth Trend

2018201920202021202220232024
8.7%10.5%11.0%12.2%12.9%13.3%13.4%
8.7%10.5%11.0%12.2%12.9%13.3%13.4% 2018201920202021202220232024

Quarterly Growth Rate

Q1 2024 Q2 2024 Q3 2024 Q4 2024
12.5% 12.9% 13.2% 13.4%
12.5% Q1 12.9% Q2 13.2% Q3 13.4% Q4

Market Segments and Growth Drivers

Segment Market Share Growth Rate
Network Security26%10.8%
Cloud Security23%17.6%
Identity Management19%15.3%
Endpoint Security17%13.9%
Other Security Solutions15%12.4%
Network Security26.0%Cloud Security23.0%Identity Management19.0%Endpoint Security17.0%Other Security Solutions15.0%

Technology Maturity Curve

Different technologies within the ecosystem are at varying stages of maturity:

Innovation Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity AI/ML Blockchain VR/AR Cloud Mobile

Competitive Landscape Analysis

Company Market Share
Palo Alto Networks14.2%
Cisco Security12.8%
Crowdstrike9.3%
Fortinet7.6%
Microsoft Security7.1%

Future Outlook and Predictions

The Mastercard Error Went landscape is evolving rapidly, driven by technological advancements, changing threat vectors, and shifting business requirements. Based on current trends and expert analyses, we can anticipate several significant developments across different time horizons:

Year-by-Year Technology Evolution

Based on current trajectory and expert analyses, we can project the following development timeline:

2024Early adopters begin implementing specialized solutions with measurable results
2025Industry standards emerging to facilitate broader adoption and integration
2026Mainstream adoption begins as technical barriers are addressed
2027Integration with adjacent technologies creates new capabilities
2028Business models transform as capabilities mature
2029Technology becomes embedded in core infrastructure and processes
2030New paradigms emerge as the technology reaches full maturity

Technology Maturity Curve

Different technologies within the ecosystem are at varying stages of maturity, influencing adoption timelines and investment priorities:

Time / Development Stage Adoption / Maturity Innovation Early Adoption Growth Maturity Decline/Legacy Emerging Tech Current Focus Established Tech Mature Solutions (Interactive diagram available in full report)

Innovation Trigger

  • Generative AI for specialized domains
  • Blockchain for supply chain verification

Peak of Inflated Expectations

  • Digital twins for business processes
  • Quantum-resistant cryptography

Trough of Disillusionment

  • Consumer AR/VR applications
  • General-purpose blockchain

Slope of Enlightenment

  • AI-driven analytics
  • Edge computing

Plateau of Productivity

  • Cloud infrastructure
  • Mobile applications

Technology Evolution Timeline

1-2 Years
  • Technology adoption accelerating across industries
  • digital transformation initiatives becoming mainstream
3-5 Years
  • Significant transformation of business processes through advanced technologies
  • new digital business models emerging
5+ Years
  • Fundamental shifts in how technology integrates with business and society
  • emergence of new technology paradigms

Expert Perspectives

Leading experts in the cyber security sector provide diverse perspectives on how the landscape will evolve over the coming years:

"Technology transformation will continue to accelerate, creating both challenges and opportunities."

— Industry Expert

"Organizations must balance innovation with practical implementation to achieve meaningful results."

— Technology Analyst

"The most successful adopters will focus on business outcomes rather than technology for its own sake."

— Research Director

Areas of Expert Consensus

  • Acceleration of Innovation: The pace of technological evolution will continue to increase
  • Practical Integration: Focus will shift from proof-of-concept to operational deployment
  • Human-Technology Partnership: Most effective implementations will optimize human-machine collaboration
  • Regulatory Influence: Regulatory frameworks will increasingly shape technology development

Short-Term Outlook (1-2 Years)

In the immediate future, organizations will focus on implementing and optimizing currently available technologies to address pressing cyber security challenges:

  • Technology adoption accelerating across industries
  • digital transformation initiatives becoming mainstream

These developments will be characterized by incremental improvements to existing frameworks rather than revolutionary changes, with emphasis on practical deployment and measurable outcomes.

Mid-Term Outlook (3-5 Years)

As technologies mature and organizations adapt, more substantial transformations will emerge in how security is approached and implemented:

  • Significant transformation of business processes through advanced technologies
  • new digital business models emerging

This period will see significant changes in security architecture and operational models, with increasing automation and integration between previously siloed security functions. Organizations will shift from reactive to proactive security postures.

Long-Term Outlook (5+ Years)

Looking further ahead, more fundamental shifts will reshape how cybersecurity is conceptualized and implemented across digital ecosystems:

  • Fundamental shifts in how technology integrates with business and society
  • emergence of new technology paradigms

These long-term developments will likely require significant technical breakthroughs, new regulatory frameworks, and evolution in how organizations approach security as a fundamental business function rather than a technical discipline.

Key Risk Factors and Uncertainties

Several critical factors could significantly impact the trajectory of cyber security evolution:

Evolving threat landscape
Skills shortage
Regulatory compliance complexity

Organizations should monitor these factors closely and develop contingency strategies to mitigate potential negative impacts on technology implementation timelines.

Alternative Future Scenarios

The evolution of technology can follow different paths depending on various factors including regulatory developments, investment trends, technological breakthroughs, and market adoption. We analyze three potential scenarios:

Optimistic Scenario

Rapid adoption of advanced technologies with significant business impact

Key Drivers: Supportive regulatory environment, significant research breakthroughs, strong market incentives, and rapid user adoption.

Probability: 25-30%

Base Case Scenario

Measured implementation with incremental improvements

Key Drivers: Balanced regulatory approach, steady technological progress, and selective implementation based on clear ROI.

Probability: 50-60%

Conservative Scenario

Technical and organizational barriers limiting effective adoption

Key Drivers: Restrictive regulations, technical limitations, implementation challenges, and risk-averse organizational cultures.

Probability: 15-20%

Scenario Comparison Matrix

FactorOptimisticBase CaseConservative
Implementation TimelineAcceleratedSteadyDelayed
Market AdoptionWidespreadSelectiveLimited
Technology EvolutionRapidProgressiveIncremental
Regulatory EnvironmentSupportiveBalancedRestrictive
Business ImpactTransformativeSignificantModest

Transformational Impact

Technology becoming increasingly embedded in all aspects of business operations. This evolution will necessitate significant changes in organizational structures, talent development, and strategic planning processes.

The convergence of multiple technological trends—including artificial intelligence, quantum computing, and ubiquitous connectivity—will create both unprecedented security challenges and innovative defensive capabilities.

Implementation Challenges

Technical complexity and organizational readiness remain key challenges. Organizations will need to develop comprehensive change management strategies to successfully navigate these transitions.

Regulatory uncertainty, particularly around emerging technologies like AI in security applications, will require flexible security architectures that can adapt to evolving compliance requirements.

Key Innovations to Watch

Artificial intelligence, distributed systems, and automation technologies leading innovation. Organizations should monitor these developments closely to maintain competitive advantages and effective security postures.

Strategic investments in research partnerships, technology pilots, and talent development will position forward-thinking organizations to leverage these innovations early in their development cycle.

Technical Glossary

Key technical terms and definitions to help understand the technologies discussed in this article.

Understanding the following technical concepts is essential for grasping the full implications of the security threats and defensive measures discussed in this article. These definitions provide context for both technical and non-technical readers.

Filter by difficulty:

DDoS intermediate

algorithm

IAM intermediate

interface

platform intermediate

platform Platforms provide standardized environments that reduce development complexity and enable ecosystem growth through shared functionality and integration capabilities.

firewall intermediate

encryption

zero-day intermediate

API These vulnerabilities are particularly dangerous because defenders have no time to develop and deploy patches before exploitation occurs. They are highly valued in both offensive security markets and criminal underground.
Zero-day vulnerability timelineTimeline showing vulnerability discovery to patch development
Example: The SUNBURST attack exploited a zero-day vulnerability in SolarWinds Orion software, remaining undetected for months while compromising numerous government agencies and private organizations.

SOC intermediate

cloud computing

phishing beginner

middleware Modern phishing attacks are increasingly sophisticated, often leveraging AI to create convincing spear-phishing campaigns that target specific individuals with personalized content that appears legitimate.
Phishing attack flowAnatomy of a typical phishing attack
Example: Business Email Compromise (BEC) attacks are sophisticated phishing campaigns where attackers impersonate executives to trick employees into transferring funds or sensitive information.

encryption intermediate

scalability Modern encryption uses complex mathematical algorithms to convert readable data into encoded formats that can only be accessed with the correct decryption keys, forming the foundation of data security.
Encryption process diagramBasic encryption process showing plaintext conversion to ciphertext via encryption key