Protecting Your Business from Phishing: LabHost Cybercrime Takedown

Written By: Anthony Reyes

Updated: 04/18/2024

On April 18, 2024, a significant step was taken in the battle against cybercrime. The UK’s Metropolitan Police Service, along with international partners and private industry allies, successfully dismantled the Phishing-as-a-Service (PhaaS) provider known as LabHost. This operation not only led to the takedown of the platform but also resulted in several key arrests, shaking the foundations of digital fraud networks worldwide.

The Rise and Fall of LabHost

LabHost emerged in late 2021 as a formidable player in the Phishing as a Service (PhaaS) arena. It, like many other similar platforms, provided criminals with sophisticated tools to execute widespread phishing scams, impacting individuals and organizations across Canada, the US, the UK, and beyond. By the time of its takedown, LabHost had amassed over 2,000 criminal subscribers who had launched upwards of 40,000 malicious sites. This operation demonstrated the alarming scale and professionalism of modern cybercrime.

We often have a, while not wholly untrue, misleading image in our minds when we think of “Hackers” as some guy in a black hoodie sitting at Starbucks Mr. Robot style hacking into a business across the street. Many of us think a cyber criminal is some fat guy covered in Dorito dust with empty 2-liter bottles of Mt. Dew scattered around his desk and floor typing away at a thousand words per minute hacking into The Royal Mint or something out of a movie. Both are true however, modern media does a great job of making hacking look how we think it should look- but here’s what we’re not thinking about: The reality is that hacking, and cybercrime in general is, BIG, business. Organized groups of cybercriminals are putting on suits, getting into their nice cars, and going to giant concrete skyscrapers to work every day. These criminal organizations understand business very well, and part of that business is leveraging platforms like LabHost to turn an 18 year old fresh out of high school who was doing data entry part time into a Mr. Robot style hacker overnight with minimal training. All over the world these companies employ dozens of these warm bodies and teach them the processes needed to profit off of your loss.

A login portal requesting username and password for the notorious cybercrime phishing ass a service LabHost
Figure 1: LabHost log-in page

LabHost’s offerings were disturbingly user-friendly, providing features like:

  • Adversary-in-the-Middle (AitM) capabilities to hijack two-factor authentication codes.
  • A wide array of phishing page templates mimicking major banks and services worldwide.
  • Bespoke phishing page creation catering to specific criminal requests.
  • Automated management of phishing infrastructures and credential theft.
LabHost pricing plans describing their US and Canada Phishing services, feature availability, and ease of use.
Figure 2: The LabHost Membership Tiers

These features lowered the barrier for entry into the world of phishing, making it alarmingly simple for anyone with malicious intent to launch attacks. I spoke of large almost corporate like cybercrime groups organizing these well-oiled machines to pilfer your treasures, but with easy access to tools and services like this for less than you may spend on coffee each month scamming people becomes so easy the babysitter can do it while watching little Timmy after school. An exaggeration, maybe- We’ve seen numerous multimillion-dollar cybercrime groups lead by high school aged kids over the last decade.

The Takedown Operation

The coordinated law enforcement action involved agencies from 19 countries and was spearheaded by the Metropolitan Police. The crackdown not only disrupted LabHost’s operations but also sent a strong message to cybercriminals worldwide about the increasing global commitment to fighting cybercrime.

LabHost’s global impact, evidenced by the seizure of hundreds of thousands of stolen credentials and the dismantling of around 40,000 fraudulent domains, highlights the necessity of robust cybersecurity measures.

A detailed image guiding you through the sequence of a Smishing campaign from the initial text message, to the fake website designed to look exactly like the original, all the way through till you submit your credit card data.
Figure 3: Typical Attack Flow Using LabHost

Figure 3 provides a visual representation of a typical phishing attack facilitated by the LabHost platform, highlighting the deceptive simplicity and effectiveness of these scams. The illustrated example focuses on an SMS-based phishing (smishing) tactic targeting individuals in Ireland, though similar strategies are employed globally.

The Initial Contact

The attack begins with an SMS message crafted to mimic a legitimate notification from An Post, the Irish postal service. This message typically alerts the recipient to a supposed customs charge on a parcel awaiting delivery— a common scenario for residents in Ireland, which often adds an air of legitimacy to the phishing attempt (Fun Fact: when in the form of an SMS we call is Smishing). The SMS includes a link that the recipient is urged to click to resolve the supposed issue.

Phishing Page Interaction

Upon clicking the link, the victim is directed to a phishing website meticulously designed to replicate the official An Post website. At first glance, the page appears legitimate, complete with familiar branding and layout. This stage is crucial as it is designed to lower the victim’s guard by presenting a familiar and trustworthy interface.

Data Collection Process

The phishing page is structured to methodically collect sensitive information from the victim in stages, which helps avoid raising suspicion. Initially, the page requests basic information such as the user’s name and address. Subsequently, it progresses to more sensitive data:

  • Credit Card Information: The victim is prompted to enter their credit card number, expiry date, and CVV code, ostensibly to process the customs charge.
  • Personal Identification Numbers: In some instances, additional layers of data extraction are implemented, such as requesting PINs or security question answers.

Each piece of information entered by the victim is immediately transmitted back to the LabHost servers, where it is logged and stored. The cybercriminal can then access this stolen data through the LabHost control panel, allowing them to either use the credentials themselves or sell them on the dark web.

Aftermath of the Attack

Once the data collection is complete, the victim may be redirected to a confirmation page that thanks them for their compliance, further mimicking a legitimate transaction process. This final step often leaves the victim unaware of the compromise, at least until unauthorized transactions appear or they are alerted by their bank.

Ikigai One: Cybersecurity for the Real World

In the digital age, facing cyber threats is an everyday reality. Ikigai One understands that navigating this landscape can be daunting for any business, large or small. That’s why we focus on providing accessible and effective cybersecurity solutions that preemptively protect against malicious activities. Our advanced AI-driven technology is designed to intercept threats before they reach your inbox, ensuring that your operations stay secure without overwhelming your team.

Our experts, including seasoned cybersecurity professionals and U.S. armed forces veterans, are committed to maintaining vigilant, round-the-clock protection. However, we know that strong technology needs to be paired with knowledgeable teams. Therefore, we emphasize practical, real-world training to empower your employees. Our educational programs teach essential skills for recognizing and mitigating cyber threats, rooted in real tactics that cybercriminals use today like what you’ve seen from LabHost.

Fostering a Security-First Mindset

Creating a proactive security culture is central to our mission at Ikigai One. We strive to integrate comprehensive cybersecurity measures with ongoing support, helping your business maintain a focus on security without stifling innovation or growth. Understanding the dynamics of attacks, like those depicted in phishing schemes, equips businesses and their employees to avoid common traps set by cybercriminals.

Our approach is not just about defending against attacks—it’s about enabling your business to thrive in a secure digital environment. If your current cybersecurity measures feel more restrictive than supportive, it might be time to consider how a partnership with Ikigai One can offer a more balanced approach. We’re here to ensure that your cybersecurity measures enhance your business’s capacity for growth and innovation.

Together, we can create a safer digital space where your business is protected and prepared to handle the challenges of tomorrow.

 

It’s Far From Over

The takedown of LabHost marks a significant victory in the global fight against cybercrime, but it also serves as a reminder of the ongoing threats that exist. For many criminals this only serves as a beacon signaling profit to be made now that another competitor is gone; more services like this will come online every month. As cybercriminals evolve, so must our defenses. Ikigai One is at the forefront of this battle, providing the tools, technology, and training necessary to secure your business against any digital threat.

By partnering with Ikigai One, you ensure that your business is not just surviving in the digital age but thriving securely. Let us help you build an environment of security, stability, and scalability. Protect your business, protect your future.