Hacking and the Zero-day Market

Introduction

• Misconception of Hacking: Contrary to movies, bashing keyboards won't break strong cybersecurity.
• Need for Special Knowledge: To breach good cybersecurity, one needs access to secret vulnerabilities.

What is a Zero Day?

• Zero Day Vulnerabilities: A flaw in software unknown to the software creator, exploited before a fix is issued.
• Holy Grail of Hacking: Zero days are highly sought-after for their effectiveness in breaching systems.
• Discovery and Exploitation: Extremely challenging to discover, often taking years.

Early Days of Zero Days

• Bug Track Mailing List: Shared early zero days for free, a source of pride.
• Response from Companies: Often, companies threatened legal action rather than thanking hackers.

Evolution of the Market

• Bug Track to Zero Day Market: Transitioned from free sharing to a market-driven by financial incentives.
• Zero Day Brokers: Emergence of intermediaries who validate and sell zero days.

Anatomy of an Exploit

• Exploits: Step-by-step process exploiting multiple zero days for complex attacks.
• Operation Triangulation: Example of an exploit chain used against iPhones, involved multiple zero days.
• High Cost and Potency: Exploits can cost millions and are very effective.

Buyers and Sellers

• Governments: Primary buyers due to their financial resources and need for intelligence.
• Criminal Organizations: Increasingly using zero days for ransomware and other attacks.
• Market Prices: Examples include up to $2.5M for phone access without user interaction.

The Levels of Zero Day Markets

• White Market: Legal, public bug bounty programs, and independent researchers.
• Gray Market: Activity by governments and their hired contractors, not openly acknowledged but not illegal.
• Black Market: Involves criminal organizations and illicit transactions, highly profitable but illegal.

Case Studies

• MoveIt Attack: Largest ransomware attack utilizing a zero day.
• LockBit: Law enforcement using zero days to take down criminal organizations.

Ethical and Legal Issues

• Blurred Lines: Difficult to distinguish white, gray, and black markets.
• Regulation Challenges: Regulation is complex due to anonymity and varying government policies.

Impact and Conclusion

• Persistent Threat: As long as software has flaws, zero days will remain valuable.
• Complex Topic: Involves various ethical, legal, and operational dimensions.
• Continuous Evolution: Market and techniques evolve with counteractions by governments and criminals.