What is a Man-in-the-Middle (MITM) Attack?

What is a Man-in-the-Middle Attack?

A Man-in-the-Middle attack happens when a cyber attacker intercepts communication between two entities, such as a user and a website or a client and a server. The attacker positions themselves between the communicating parties to spy, intercept and manipulate data. MITM attacks typically target scenarios where valuable information is transmitted, such as:

• Online Transactions: Attacks on financial websites or payment gateways, intercepting credit card details or bank login credentials.
• Sensitive Communications: Corporate email exchanges, encrypted messaging, or voice-over-IP (VoIP) calls that may carry confidential information.
• IoT Devices: Compromising smart devices connected to insecure networks to gain access to the broader system.

Types of Man-in-the-Middle Attacks

MITM attacks manifest in several forms, each exploiting different vulnerabilities in networks or systems. Here are some common types:

• Wi-Fi Eavesdropping: Attackers set up fake Wi-Fi hotspots to capture data transmitted over unsecured networks. For instance, a rogue 'Free Airport Wi-Fi' could be used to intercept login credentials or payment information from connected devices without users realising it.
• IP Spoofing: The attacker manipulates IP addresses to pose as a legitimate network entity. For example, an attacker might spoof the IP address of a company's internal server to intercept employee communications and steal confidential data.
• DNS Spoofing: Also known as DNS cache poisoning, attackers corrupt DNS records to redirect users to fake websites. An attacker may corrupt a DNS server to send users attempting to access a legitimate banking site to a phishing site that appears identical, capturing their login details.
• HTTPS Spoofing: The attacker tricks a browser into thinking a non-secure connection is secure. For example, attackers might create a lookalike site that appears genuine, with a similar URL, to steal user's personal or payment information.
• SSL Stripping: The attacker downgrades an encrypted HTTPS connection to an unencrypted HTTP connection. A classic example is when an attacker uses a tool to force users' browsers to connect via HTTP instead of HTTPS on a banking website, exposing their account credentials.
• Email Hijacking: Cybercriminals gain unauthorised access to email accounts to manipulate communication. For instance, in business email compromise schemes, attackers might intercept ongoing email exchanges about payments and modify the bank account details to redirect funds to their own accounts.
• Session Hijacking: Attackers steal a session token to gain access to an authenticated user's account. A typical scenario is when an attacker captures session cookies from an unprotected network, gaining control over a user's e-commerce account and making unauthorised purchases.
• Man-in-the-Browser (MitB): A form of MITM attack where malware infects the browser and intercepts data. The attacker may modify transactions in real-time, such as changing the amount and recipient during a bank transfer, all while displaying the correct details to the user.

How Do MITM Attacks Work?

MITM attacks involve an attacker positioning themselves between two communicating parties to intercept, modify, or relay data without either party's knowledge. The process typically includes three main stages:

• Interception: The attacker positions themselves between the sender and receiver, using techniques like setting up rogue Wi-Fi networks, ARP spoofing, or DNS spoofing to capture data as it travels.
• Decryption and Modification: Once the communication is intercepted, the attacker may decrypt encrypted data using methods like SSL stripping or fake certificates. They can also alter the information, such as changing transaction details during online banking sessions.
• Relay Attacks: In this phase, the attacker forwards the communication in real-time, either passively eavesdropping, injecting malicious commands, or replaying captured transmissions to duplicate actions like financial transactions.

Examples of MITM Attacks

Here are some examples of Man-in-the-Middle (MITM) attacks:

Financial Services Company Targeted in ARP Spoofing Attack

In 2023, a large financial services firm fell victim to a sophisticated ARP spoofing attack. The attackers gained unauthorised access to the company's internal network by exploiting vulnerabilities in the local area network (LAN). Through ARP spoofing, they redirected data traffic meant for the internal servers to their own devices, enabling them to intercept sensitive financial communications and steal login credentials.

The attackers used the stolen data to transfer funds from several high-value client accounts to offshore accounts. This led to a loss of approximately ₹20 crores before the breach was detected. The company faced regulatory scrutiny, reputational damage, and legal liabilities for failing to secure client information adequately. The incident also resulted in a significant loss of customer trust, requiring substantial efforts to restore their reputation.

E-Commerce Platform Hit by DNS Spoofing Attack

In early 2024, an e-commerce company experienced a DNS spoofing attack that redirected its customers to a fraudulent website. The attackers compromised the DNS server, corrupting the domain records to point users to a fake version of the company's website. The fraudulent site replicated the design and functionality of the original platform, luring customers into entering their login credentials and payment details.

Over a period of two weeks, thousands of customers unknowingly provided sensitive information on the phishing site. The stolen data was later used for unauthorised purchases and identity theft. The incident was uncovered when several customers reported suspicious activity on their accounts. The company's reputation took a hit, resulting in a significant dip in sales and increased support costs for managing affected customers.

Consequences of an MITM Attack

The consequences of MITM attacks are serious and far-reaching. The most common repercussions are:

• Data Theft: Attackers can steal sensitive information, such as login credentials, financial details, and proprietary business information, which can then be sold on the dark web or used to orchestrate more targeted attacks.
• Identity Theft: Personal data obtained through MITM attacks can be used to impersonate victims, leading to fraudulent transactions, unauthorised credit applications, or even social engineering schemes that target other individuals.
• Financial Losses: Compromised data often leads to direct monetary damage. For businesses, this could mean losing valuable corporate secrets or being liable for breach-related costs. For individuals, it could involve drained bank accounts or fraudulent purchases made in their name.

How to Detect a Man-in-the-Middle Attack?

Detecting MITM attacks requires vigilance and a keen awareness of unusual network behaviours such as:

• Unusual Network Activity: A sudden increase in data traffic or abnormal connection patterns could signal that an attacker is intercepting the communication.
• Mismatched HTTPS Certificates: If a website's HTTPS certificate appears untrusted or mismatched, it could indicate that an attacker is attempting to spoof a secure connection.
• Suspicious Public Wi-Fi Activity: Unsecured networks or unexpected prompts for excessive permissions when connecting to public Wi-Fi may suggest a potential MITM attack.

Preventing Man-in-the-Middle Attacks

Proactive measures are essential to guard against MITM attacks. Some of these measures are:

• Use Secure Networks: Avoid using public Wi-Fi for conducting sensitive transactions. When using such networks is unavoidable, employ a Virtual Private Network (VPN) to encrypt the data.
• Implement End-to-End Encryption: Ensure that all communications are encrypted at every stage to make it difficult for attackers to access or alter the data.
• Regularly Update Security Protocols: Keep software, applications, and systems up to date to fix vulnerabilities that could be exploited by attackers to launch MITM attacks.

How Can a Cyber Insurance Policy Help?

A cyber insurance policy plays a crucial role in managing the financial and operational impact of Man-in-the-Middle (MITM) attacks by providing coverage for various associated costs. When a business experiences an MITM attack that leads to a data breach, the financial burden can include legal fees, regulatory fines, and settlement costs. Cyber insurance helps cover these expenses, enabling organisations to recover without significantly disrupting their operations.

It also offers coverage for response measures, such as forensic investigations, customer notification expenses, and credit monitoring services for affected individuals, which are critical in managing the aftermath of an MITM attack. Additionally, many policies provide access to incident response experts who assist in containing the breach, restoring systems, and implementing measures to prevent future incidents. By having cyber insurance, businesses can more effectively manage the risks associated with MITM attacks and minimise the long-term impact on their reputation and finances.

Conclusion

Understanding the nature and consequences of Man-in-the-Middle attacks is vital in today's digital landscape, where cyber threats are constantly evolving. MITM attacks can lead to significant data theft, financial losses, and reputational damage for both individuals and organisations. Therefore, recognising how these attacks work and implementing preventive measures is crucial for safeguarding sensitive information.

Proactive cybersecurity practices—such as using secure networks, implementing strong encryption, and keeping systems updated—can significantly reduce the risk of MITM attacks. Additionally, considering the protection offered by a cyber insurance policy can provide an extra layer of security, helping businesses manage the financial impact of cyber incidents. To learn more about fortifying your business and exploring tailored cyber insurance solutions, connect with an expert at Policybazaar for Business today.