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Yeesh. Much to take in here.
1. Chinese hackers are smart enough to circumvent App store security
2. App developers are dumb enough to use unofficial Xcode downloads to create their apps (when Xcode is free and easily available - just why?)
2a. WeChat, one of the biggest Chinese social networks, is one of them - wtf?! How amateur can you get??
3. Apple are clearly going to make some fast changes to the way they check apps uploaded to the store - wouldn't be surprised if it happens within the week; and you can bet that offending app compilers will be warned and then banned

/adjustmytinfoilhat...

Maybe it's been a known hack for a long time? Any agency could have been exploiting this for fun and profit for a long time.
 
Mercury - if it is the web browser - that is huge. Mercury is on a lot of devices.
I used , and paid, Mercury Browser for over an year in the past...
I'm furious about that....
 
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/adjustmytinfoilhat...

Maybe it's been a known hack for a long time? Any agency could have been exploiting this for fun and profit for a long time.

No. As I read from Chinese site this guy has confessed it and said it's only a "failed experiment" since the government is onto him and such thing can get you many years in jail. But people are still suspecting he did it on purpose given how much effort he spent:

- Massive SEO effort. Link spreading.
- Hacked into the account of the admin of a major site that hosts XCode files and swap the contaminated files in
- Newly registered website (registered 7 months ago) dedicated to received stolen data
- Projected AWS cost of $500k a month setting up infrastructure / hosting traffic for the hack

This is his Sina Weibo account: http://weibo.com/u/5704632164?sudaref=www.google.com&nick=XcodeGhost-Author

He also opened the source of the hack.

Translation: http://www.pixelstech.net/article/index.php?id=1442625768

But I think there is no doubt that he did it on purpose.
 
Changing all passwords you have typed into iOS is a massive task, and it looks like some apps have been infected since 2014 or is that not true?
 
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I'm suprised nobody here put 2 and 2 together yet. This isn't a typical case of malware insertion. This is government sponsored. The up side is that people don't need to worry about their info being compromised, but the downside is that it shows that the Chinese government is actively trying to subvert their users (as if we didn't already know that though).
 
i'm sorry but how can a developer be such an idiot (please don't ban me, there's no other word to describe patient's condition) to download Xcode from a chinese cloud file sharing service????

Didn't read the whole article I guess?
 
And how hard is it to actually read the original article, which addresses this?

Why would some Chinese developers download Xcode from Baidu?
Xcode is a large file that can take a long time to download from Apple's servers in China, leading some developers to download Xcode from unofficial sources.​

Still no excuse. None whatsoever. Agree with poster who said any developer who would make such a boneheaded move no longer deserves my trust, and will never get it.
 
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This isn't too surprising, some of the documents released by Snowden pointed out the CIA (in cahoots with the NSA?) had been attempting to compromise Xcode so that back doors would be inserted into anything compiled with it:

As encryption expert Bruce Schneier points out: "There's a persistent rumor going around that Apple is in the secret FISA Court, fighting a government order to make its platform more surveillance-friendly -- and they're losing."
This is how it begins. My parents lived through the secret courts time period in Germany. We keep you safe, the terrorists will get you, give up your freedom and rights, trust us. Adams, Jefferson, Franklin must be turning in their graves. Had a suspicion it would happen in US, just didn't think in my lifetime. Sadly depressing to see the experiment of government by and for the people repeating the same historical mistakes.
 
How far back does this go? I had WeChat and Mercury web browser installed in the past, but do use them now.
According to the original article by Palo Alto Networks, the first compromised Xcode versions were uploaded 6 months ago. So any version of the affected apps released after that are likely to be affected.
 
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Still no excuse. None whatsoever. Agree with poster who said any developer who would make such a boneheaded move no longer deserves my trust, and will never get it.

I agree. It's just dumb. Especially for multi billion dollar company like Tencent.

But I'm sure they won't do it again though. So if I were you I'd trust them. In a classic Chinese corporation I would expect dozens of people losing their jobs and more get penalized.
 
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Read and write data in the user's clipboard, which could be used to read the user's password if that password is copied from a password management tool.

can the app read the clipboard even when its not active?

so much for password management tools on iOS...
Apps can read and monitor the clipboard when they are running in the background. Most apps are allowed to run in the background for a few minutes after you exit them via the home button. Some apps also request background execution privileges (e.g. music players or apps that periodically refresh content from the network).

It's a good idea to disable background app refresh in the settings for all applications that don't really need it. You can also kill lingering background tasks by killing the app in the task switcher before copying sensitive information via the clipboard.
 
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The problem, people should maybe take note, is that nowadays a lot of work on OS X and iOS (well, make that anything that involves coding) is outsourced to whoever get's the contract on freelancer.com, odesk.com or any other contracting-site.
The contractor could be in India, Pakistan, Bangladesh, Russia - or China.
Just because the App doesn't say "Made in China", it may be still be.
If you're in Europe, you may remember the horse-meat scandal we had a while ago. In the aftermath, people started to backtrack the origins of various ingredients in meat-products and the supply-chain turned out to be very long and complex.
I expect a similar thing to happen here: Chinese developers are probably touching a lot more code in the App Store than is obvious from the first look.

As it involves China and malware, I expect a few of the usual-suspect Senators to call Tim Cook directly.
;-)
So, if he hasn't already read it here, it will be on his radar now. For a while at least.
The problem is probably: how long does it take for Apple to implement mitigation techniques?
 
Apps can read and monitor the clipboard when they are running in the background. Most apps are allowed to run in the background for a few minutes after you exit them via the home button. Some apps also request background execution privileges (e.g. music players or apps that periodically refresh content from the network).

You sir are absolutely right, here is the one line of code for any iOS app to read your clipboard when running:

[[UIPasteboard generalPasteboard] string]

So guys don't worry about the password you have copied being stolen since if you have such bad habit of copying and pasting password it could have been compromised in so many ways already... Also where are you copying it from? Email? Text? Website? Those are way more vulnerable.
 
Good analysis, but there is something Apple could have done, and I have been saying as much for over a year. Here's the more strongly worded one:

They should ban their in-house teams from throwing up a password request box. Absolute ban. It has got out of hand recently with stock apps asking for the password without any justification or explanation and pretty much at random. I've said it over and over, Apple have been training their users for exactly this scenario - enter password whenever anyone asks. If an app needs the iCloud password it should instruct the user to enter it in the appropriate settings page. Train users: only the settings app should be trusted with passwords.

I agree 100%. THAT sort if thing is the real takeaway from this breach, not the fact of a trojan XCode.
Likewise there should be something like a Share Sheet that allows Password-holder apps (like 1Password) to transfer information into an app without having to go through the pasteboard.
 
Good analysis, but there is something Apple could have done, and I have been saying as much for over a year. Here's the more strongly worded one:

They should ban their in-house teams from throwing up a password request box. Absolute ban. It has got out of hand recently with stock apps asking for the password without any justification or explanation and pretty much at random. I've said it over and over, Apple have been training their users for exactly this scenario - enter password whenever anyone asks. If an app needs the iCloud password it should instruct the user to enter it in the appropriate settings page. Train users: only the settings app should be trusted with passwords.
Have you send this feedback to Apple? I think it's well worth it.

I'd suggest others on this list send this feedback to:
http://www.apple.com/feedback/

(I don't know what the best selection from there is, I'll use iPhone)

Apple takes each feedback submission as vote for the submission-- so even if you know someone has already notified Apple of a problem, it's worth doing it yourself to emphasize the importance.
 
Should be fine. But should also be banned from the Developer Program.

I agree. But this is not how things work with developers of flagship apps. If a small-time developer introduces malware to the app store he or she will be banned forever. If Facebook does it there will be a lot of contact between senior executives and a lot of hush-hush. This is exactly what WeChat is in China. WeChat is so big there, and popular among people with contacts in China, because alternatives are banned. In order to operate in China you need to surrender user data to the party-state. Now can you imagine Apple pulling the plug on Wechat? It's an app virtually every smartphone user in China has installed. That's why I thing this whole business is all very suspicious. Small developers can be foolish enough to download Xcode from some unofficial source, but Tencent? One of, if not the largest tech companies in China? Those guys are not amateurs and they know what they are doing.
 
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