America's Driver's License Breach is a National Security Disaster
Last week, Krebs on Security broke the story of a newly launched dark web service calling itself Nexus that was selling access to identity documents, including 3 million travel documents and 153 million driver's licenses from U.S. and Canadian citizens. This is a huge breach that not only will be used for run-of-the-mill cybercrime but also will feed the intelligence machines of America's adversaries.
Nexus claimed that it had gained unauthorized access to a major identity verification company and had spent more than a year "continuously" exfiltrating new data into a private database. Krebs on Security noted that in a single day the number of licenses in the database increased by nearly 400,000, suggesting regular ingestion of new data.
Krebs on Security was able to verify that the driver's licenses held by the service were genuine. In addition to Krebs’s own, it contained licenses from nine of his friends and family members. Secretary of War Pete Hegseth, an assistant director at the FBI and other high-ranking U.S. government officials also had licenses in the mix.
Based on a variety of circumstantial evidence, Krebs linked the incident to identity verification service IDScan. The service's website says it helps to reduce fraud by confirming that an ID is authentic and being presented by its legitimate owner and by detecting fraudulent documents.
The FBI is looking into the incident, and IDScan has confirmed it is investigating a data breach. The Nexus service also disappeared from the dark web shortly after Krebs published his story, although the people responsible for the hack do not claim to have deleted the data. Presumably they are lying low till the publicity dies down.
Licenses and identity documents can be used to facilitate identity theft and phishing attacks, but because the data can be used to inform intelligence operations, an incident like this also has national security implications.
For the intelligence world, licenses are particularly valuable because they're key identity documents and license numbers are often used in other databases. These databases, whether hacked or purchased, become much more valuable when records can be linked directly to a particular person with home address and photo included.
And it's not a theoretical threat.
In the mid-2010s, Chinese cyber espionage actors stole complementary data from a variety of sources that, together, would be useful for analyzing the U.S. intelligence apparatus. Various Chinese APT groups stole information from the health insurance company Anthem, credit reporting company Equifax, Marriott hotels, United Airlines, and, perhaps most significantly, security clearance information from the Office of Personnel Management.
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