"You might be interested in this properties Click Here to view listing"
The email went out to a lot of people, possibly everyone in the address book. So how did this happen?
The day before this happened my friend received the same email, with the same link, from a friend of his. The email looked legit, it had his friends full signature, with phone number and street address. And hell, he's in the housing industry, so looking at properties for sale isn't weird. So my friend clinked the link. He was presented with a page that looks like this:
It looks pretty normal. Lots of sites ask users to log-in with credentials. My friend dutifully provided his Gmail credentials, and was promptly redirected to remax.com. It all seemed pretty normal.
And there we have a failing of OAuth. My friend knew he should never provide his password to a third-party site. But the prevalence of sites asking users to "Log-in with Facebook" or "Log-in with Google" has conditioned users to think it's normal to provide give third-party sites your password. Of course OAuth doesn't send third-party sites with your password. With real OAuth the third-party site should redirect you to your authentication provider, for example it should say google.com in your address bar, once you authenticate google.com they will redirect you back to the third-party site, and provide that site with a special token.
The problem is users don't know that the URL bar should say google.com. Worse yet, on mobile devices the log-in pages will often be in a WebView without a URL bar, and even if you could see the URL there is no way to trust it. Even if users know the URL bar should say google.com, they have been so conditioned to OAuth that they are likely to just go through the process without thinking to look at the URL.
So that's a problem. OAuth is better than providing your password to a third-party, and having a few main authentication providers is better than the password proliferation of having a password for every site. But it's still a problem.
What's the solution? The obvious one is to look at the address bar. But that isn't good enough. Sometimes the address bar won't be there. More than that, it's way too easy to get lulled into a sense of normality and fall for a phishing scam.
Two-Factor AuthAs much as passwords suck, we aren't getting rid of them anytime soon. Right now the best solution to reduce the impact of phishing attacks is Two-Factor Authentication. As the name suggests 2-factor auth requires two forms of authentication. It's like being asked for two forms of picture ID. Usually you want the two froms of ID to be different in a way it would be hard for someone else to get both, for example something you know and something you have. The most common form of 2-factor auth asks for a username and password (something you know) and a time-limited code that comes from a physical device (something you have).
The best example of two-factor authentication is Google (Gmail, Google Apps, etc.), explained in pretty pictures here, and here. When you log into Google it will ask for your username and password, then it asks for a special code. The code can be sent to your phone via SMS, come from a voice call (Google calls you), or from a mobile app called Google Authenticator, which is an open source app that any site can use. Google Authenticator is a great implementation of two-factor auth tokens, I wish more sites used it or similar software instead of text messages, right now it can be used with Google, AWS, Facebook, Dropbox, Microsoft, and any others that support TOTP.
There are some difficulties that come with 2-factor auth. Having to enter the code can be annoying, but Google allows you to remember the computer you are on, so you only have to enter the code every 30 days. Not having your phone is another issues, Google allows you to print special "backup codes" for those cases. Then there is the issue that not everything that requires your password knows how to use 2-factor auth. For example if you are using Mail.app on your Mac to check Gmail, you'll run into a problem because Mail.app doesn't know how to ask you for the special code. There is a solution, Google allows you to generate application-specific passwords, these are special passwords designed to be entered into things like email and chat clients. They are long and complex passwords that you are not supposed to remembered, instead you have the application remember them.
One interesting thing about the spam emails is that they were not sent with SMTP, which would be the easy way to send through Gmail and the like. Instead they were actually sent through the web interface. Presumably there wasn't a human clicking around, and instead it was automated, probably on a botnet. Though oddly enough one of the spam messages I saw was sent from a computer hidden behind Hide My Ass. The reason sending though the web interface is significant is twofold. Firstly in means the hacked account's email signature will be used. Emails look much more legitimate when it comes for a friend or business associate and their normal signature is used. The other significate thing is it raises the sending limit. With Google Apps there is a 99 recipient limit per message when sending through SMTP, but it's 500 through the web interface.
Report PhishingIf you come across a phishing site, please report it. You can report phishing sites to Google's Safe Browsing service. Google's service is used by Chrome, Firefox, and Safari to block malicious sites. It's also used by services like bit.ly to block shortened links to malicious site. I reported the the phishing site to Safe Browsing and it with promptly blocked by Chrome and bit.ly.
Stay safe on the web, know what to phishing sites look like, and consider using Two-Factor Authentication for sensitive or high profile sites.