📅 Original date posted:2023-07-06 🗒️ Summary of this ...

2023-07-10T19:01:45Z

In reply to nevent1q…8rga
_________________________

📅 Original date posted:2023-07-06
🗒️ Summary of this message: LNbits discovered an exploit in their system that allowed attackers to create fake balances by manipulating invoices. They have patched the issue and urge users to update their software.
📝 Original message:
Hi Rusty,

I actually think I answered most of these questions in my previous post.

- We do remember everything about the invoice in the db.
- We check where it is going (internal or external).
- We can't meaningfully check the signature (we don't know "our" pubkey, LNbits supports many different LN backends, some without that info).
- The problem is we index invoices by preimage_hash and assume it commits to payment details.

This is not a super-weird setup, I've contacted multiple service providers before posting and most do the same thing. Those that were safe were using the mitigation steps I outlined in my OP.

Happy to expand on this in more detail if needed.

Best
Calle

------- Original Message -------
On Thursday, July 6th, 2023 at 09:10, Rusty Russell <rusty at rustcorp.com.au> wrote:

> Um, this is a super-weird setup AFAICT.
>
> You generate an invoice, but you don't remember anything about it? Um,
> OK, stateless invoices are a thing, but there's a metadata field for
> that?
>
> Someone pays an invoice, you don't check the place it's going (which,
> y'know, signed it), you check some other field?
>
> I've never used lnbits and I'm clearly missing something...
>
> Thanks!
> Rusty.
>
> callebtc via Lightning-dev lightning-dev at lists.linuxfoundation.org
>
> writes:
>
> > Dear list,
> >
> > earlier last month, our team at LNbits discovered a rather interesting exploit which wich would enable an attacker to create balances out of thin air by abusing a quirk in how invoices are handled internally. We've patched this in LNbits version 0.10.5 and urge anyone to update ASAP if you haven't done so already. I want to describe the attack here, since my gut feeling is that carrying out the same exploit is possible in other Lightning applications. If you're working on custodial wallets, payment processors, account management software, etc. you probably want to read this.
> >
> > In short, the attacker was able to insert a bolt-11 payment hash of payment A into a different payment, creating a malicious invoice B that can trick the backend into believing that B == A.
> >
> > Here is how it goes:
> >
> > - Attacker creates invoice A of amount 1000 sat in LNbits
> > - Attacker creates invoice B' of amount 1 sat on her own node
> > - Attacker deserializes B', inserts payment_hash(A) into payment_hash(B), re-signs the invoice, and serializes it again, producing malicious invoice B
> > - Attacker creates a new account in LNbits and pays B
> >
> > - LNbits backend uses payment_hash(B) to check whether this is an internal payment or a payment via LN
> > - Backend finds A in its database since we implicitly assume that payment_hash(A) commits to A
> >
> > ** This is the critical part! Payment hashes do NOT commit to any payment details (like amount) but only to the preimage! **
> >
> > - Backend settles payment internally by crediting A debiting B
> > - Attacker has "created" 999 sats
> >
> > Mitigation:
> >
> > The mitigation is quite simple. Backends should either use self-generated unique "checking id's" for looking up internal payments or use additional checks to make sure that the invoice details have not been messed around with (e.g., asserting amount(A) == amount(B)).
> >
> > Lessons:
> >
> > I think there are two lessons here. First, it's good to realize the level of sophistication of LN-savvy attackers. This attack clearly involves a fundamental understanding of bolt-11 and requires custom tooling to produce the malicious invoice.
> >
> > The second lesson is more valuable: The "payment hash" of an invoice is not a "payment" hash but merely a "preimage" hash – and nothing else. Naming this field as such increases the chance of developers implicitly assuming that the hash commits to payment details like amount, pubkey, etc. I will from now on call this simply the "preimage hash" and invite you to do so too.
> >
> > Best
> >
> > Calle
> > _______________________________________________
> > Lightning-dev mailing list
> > Lightning-dev at lists.linuxfoundation.org
> > https://lists.linuxfoundation.org/mailman/listinfo/lightning-dev

📅 Original date posted:2023-06-19 🗒️ Summary of this ...

2023-06-19T17:42:41Z

In reply to nevent1q…qnh6
_________________________

📅 Original date posted:2023-06-19
🗒️ Summary of this message: LNbits discovered an exploit that allows attackers to create balances out of thin air by abusing a quirk in how invoices are handled internally. The attacker can insert a bolt-11 payment hash of payment A into a different payment, creating a malicious invoice B that can trick the backend into believing that B == A. The mitigation is simple, and developers should use additional checks to ensure that the invoice details have not been messed around with. The attack requires a fundamental understanding of bolt-11 and custom tooling to produce the malicious invoice.
📝 Original message:
Dear list,

earlier last month, our team at LNbits discovered a rather interesting exploit which wich would enable an attacker to create balances out of thin air by abusing a quirk in how invoices are handled internally. We've patched this in LNbits version 0.10.5 and urge anyone to update ASAP if you haven't done so already. I want to describe the attack here, since my gut feeling is that carrying out the same exploit is possible in other Lightning applications. If you're working on custodial wallets, payment processors, account management software, etc. you probably want to read this.

In short, the attacker was able to insert a bolt-11 payment hash of payment A into a different payment, creating a malicious invoice B that can trick the backend into believing that B == A.

Here is how it goes:

- Attacker creates invoice A of amount 1000 sat in LNbits
- Attacker creates invoice B' of amount 1 sat on her own node
- Attacker deserializes B', inserts payment_hash(A) into payment_hash(B), re-signs the invoice, and serializes it again, producing malicious invoice B
- Attacker creates a new account in LNbits and pays B

- LNbits backend uses payment_hash(B) to check whether this is an internal payment or a payment via LN
- Backend finds A in its database since we implicitly assume that payment_hash(A) commits to A

** This is the critical part! Payment hashes do *NOT* commit to any payment details (like amount) but only to the preimage! **

- Backend settles payment internally by crediting A debiting B
- Attacker has "created" 999 sats

Mitigation:

The mitigation is quite simple. Backends should either use self-generated unique "checking id's" for looking up internal payments or use additional checks to make sure that the invoice details have not been messed around with (e.g., asserting amount(A) == amount(B)).

Lessons:

I think there are two lessons here. First, it's good to realize the level of sophistication of LN-savvy attackers. This attack clearly involves a fundamental understanding of bolt-11 and requires custom tooling to produce the malicious invoice.

The second lesson is more valuable: The "payment hash" of an invoice is not a "payment" hash but merely a "preimage" hash – and nothing else. Naming this field as such increases the chance of developers implicitly assuming that the hash commits to payment details like amount, pubkey, etc. I will from now on call this simply the "preimage hash" and invite you to do so too.

Best

Calle

Nostr notes by callebtc [ARCHIVE]

📅 Original date posted:2023-07-06 🗒️ Summary of this ...

📅 Original date posted:2023-06-19 🗒️ Summary of this ...