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Ransomware Gangs are Evolving: Cryptocurrency Flaws Could be Their Next Target


Dallas City Government, in May 2023, faced a ransomware attack which resulted in the temporary halt in their operations which included hearings, trial and jury duty and the closure of the Dallas Municipal Court Building. 

The attack further impacted police activities, as overstretched resources made it more difficult to implement initiatives like summer youth programs. Threats to publish private information, court cases, prisoner identities, and official papers were made by the criminals.

One may think that cyberattack on city government would be a headline news, however, this year has seen a number of such instances that any mere attack is just another common topic of discussion. A notable exception was the vulnerability exploitation of a Moveit file transfer app in May and June 2023 that led to data theft from hundreds of organizations across the world, including British Airways, the BBC and the chemist chain Boots. 

Apparently, over the past years the ransom payments have doubled to US$1.5 million, with the big-profit organizations paying the highest price. A British cybersecurity company called Sophos discovered that the average ransomware payment increased from US$812,000 the year before. At US$2.1 million, the average payment made by UK organizations in 2023 was considerably greater than the global average.

While ten years ago this was no more than a theoretical possibility and niche threat, but ransomware has now gained a wide acknowledgment as a major threat and challenge to modern society. Its rapid evolution, which has fueled crime and done enormous harm has raised serious concerns. 

The "business model" for ransomware has evolved as, for example, malware attack vectors, negotiation tactics, and criminal enterprise structure have all advanced.

Criminals are now expected to adapt to their strategies and cause digital catastrophe for years to come. In order to combat the long-term threat, it is crucial to examine the ransomware threat and anticipate these strategies.

What is Ransomware?

In various settings, the term "ransomware" can refer to a variety of concepts. At Columbia University, Adam Young and Mordechai "Moti" Yung revealed the fundamental structure of a ransomware assault in 1996, which is as follows: 

Criminals get past the victim's cybersecurity defenses (either by using strategies like phishing emails or an insider/rogue employee). Once the victim's defenses have been breached, the thieves release the ransomware. Which has as its primary purpose locking the victim out of their data by encrypting their files with a private key, which is conceptualized as a lengthy string of characters. The perpetrator now starts the third stage of an attack by requesting a ransom for the private key.

Here, we are discussing some of the most popular developments of ransomware attacks one may want stay cautious about: 

Off-the-shelf and Double Extortion 

Ransomware-as-a-service's advent was a significant development. This phrase refers to markets on the dark web where criminals can buy and utilize "off-the-shelf" ransomware without the need for sophisticated computer knowledge, and the ransomware providers get a part of the profits.

According to research, the dark web serves as the "unregulated Wild West of the internet" and provides criminals with a secure environment in which to exchange unlawful goods and services. It is freely accessible, and there is a thriving worldwide underground economy there thanks to anonymization technologies and digital currencies. The European Union Agency for Law Enforcement estimates that just in the first nine months of 2019, there was spending of US$1 billion.

With ransomware as a service (RaaS), the entry hurdle for would-be cybercriminals was decreased in terms of both cost and expertise. In the RaaS model, vendors that create the malware provide competence, although the attackers themselves may be only moderately experienced.

Crypto Extortion Threats 

In the newer developments in ransomware attacks, attackers are now progressively finding new tactics for extortion. One of the highly discussed techniques include the cryptocurrency-specific variations, and the “consensus mechanisms” used within them.

Consensus mechanism refers to a technique used to achieve consensus, trust, and security across a decentralized computer network.

In particular, cryptocurrencies are progressively validating transactions through a so-called "proof-of-stake" consensus method, in which investors stake substantial amounts of money. These stakes are open to ransomware extortion by criminals.

Until now, crypto has relied on a so-called “proof-of-work” consensus mechanism where the authorization of transactions include solving a complicated math problem (the work) to authorize transactions. This strategy is not long-term viable since it leads to unnecessary large-scale energy use and duplication of effort.

A "proof-of-stake" consensus method is the alternative, which is increasingly becoming a reality. In this case, validators who have staked money and receive compensation for validating transactions approve transactions. A financial stake takes the place of the role played by ineffective work. While this solves the energy issue, it also means that substantial sums of staked money are required to validate crypto-transactions.

Rapid Ransomware Dwell Time and Persistent RDP Vulnerabilities

The dwell period of ransomware hackers has decreased to just 5 days, a noteworthy trend in the constantly changing world of cyber dangers that demands prompt response. The urgent necessity for stronger cybersecurity measures is highlighted by the quick infiltration and encryption timeframe as well as the ongoing use of Remote Desktop Protocol (RDP).

The dwell time, which measures how long an unauthorized actor stays within a hacked system before launching a cyberattack, has substantially lowered to just 5 days, according to a report by BleepingComputer. This is a considerable decrease from the prior average of 18 days, indicating that threat actors are getting better at quickly entering target networks and deploying their destructive payloads.

The report also highlights the persistent use of Remote Desktop Protocol (RDP) as a primary entry point for ransomware attacks. Despite numerous warnings and documented vulnerabilities, RDP remains widely used due to its convenience in enabling remote access. Security experts have long cautioned against RDP's risks, emphasizing its susceptibility to brute force attacks and the potential for unauthorized entry.

A study by Sophos echoes these concerns, revealing that RDP-related attacks remain a prevalent threat vector. Cybercriminals exploit misconfigured RDP services and weak passwords to gain unauthorized access to systems, making them ripe targets for ransomware deployment. The consequences of such attacks can be devastating, leading to data breaches, operational disruptions, and substantial financial losses.

The widespread reliance on RDP is concerning, given the increasing sophistication of ransomware attacks. Attackers are employing various tactics, such as double extortion, where they not only encrypt sensitive data but also threaten to leak it unless a ransom is paid. This creates a multifaceted dilemma for organizations, forcing them to not only recover their systems but also mitigate potential reputational damage.

The security community has also discovered new RDP-related vulnerabilities, according to The Hacker News. These flaws include things like unreliable encryption, a lack of two-factor authentication, and vulnerability to 'pass-the-hash' attacks. The critical need for businesses to review their remote access policies and make investments in safer substitutes is further highlighted by these fundamental shortcomings.

Organizations must take a multifaceted approach to improve their cybersecurity defenses in order to counter these expanding threats. This entails putting in place tight access controls, enforcing strict password guidelines, and routinely patching and updating systems. Ransomware attacks can be considerably reduced with the use of more secure remote access technologies in place of RDP and thorough employee training.

Lorenz Ransomware: Network Breach via VoIP

A ransomware group has been spotted adopting a unique initial-access technique to infiltrate commercial phone systems using voice-over-IP (VoIP) devices before switching to corporate networks to carry out double-extortion operations.

The anonymous organization was affected by the Lorenz ransomware strain, according to a team at Arctic Wolf. 

Lorenz Ransomware 

The Lorenz encryptor is similar to the ones employed by a prior ransomware operation known as ThunderCrypt, according to Michael Gillespie of ID Ransomware.

This gang is also known for providing access to its targets' private systems to other hackers along with the material that has been stolen prior to encryption in order to lure its victims into paying a ransom.

After leaking the stolen material as password-protected RAR archives if ransoms are not paid, Lorenz also divulges the password to open the leaked archives, giving the general public access to the files.

VoIP Threats

According to Arctic Wolf researchers, Lorenz used the bug to gain a reverse shell, and the group then used Chisel, a Golang-based rapid TCP/UDP tunnel that is transmitted through HTTP, as a tunneling tool to infiltrate the corporate environment. According to the GitHub page, "the tool is mostly useful for going through firewalls."

The attacks demonstrate a shift by threat actors toward using 'lesser recognized or monitored assets' to gain access to networks and engage in additional criminal behavior, the researchers further told. 

CrowdStrike published a blog post about the Mitel vulnerability and a possible ransomware attack attempt using the same CVE back in June. Since then, Mitel has patched this crucial zero-day flaw and recommended all users do the same. After providing a remediation script for vulnerable MiVoice Connect versions in April, Mitel resolved the problem by delivering security updates in the first half of June 2022.

The hackers then shifted into the network using the free source TCP tunneling application Chisel. Following initial access, the group waited for over a month before moving laterally, using FileZilla to exfiltrate data, and encrypting ESXi systems with BitLocker and Lorenz ransomware.

Considering that Mitel Voice-over-IP (VoIP) brands are used by businesses in crucial industries around the world including government agencies and that over 19,000 devices are currently vulnerable to attacks over the Internet, according to security expert Kevin Beaumont, this is a significant addition to the gang's toolkit.

Threat actors have used record-breaking DDoS amplification assaults to exploit further security holes affecting Mitel devices. Since at least December 2020, the Lorenz ransomware group has been focusing on enterprises all across the world, extorting hundreds of thousands of dollars from each victim.








Damart Suffered a Hive Ransomware Attack

A cyberattack by the Hive ransomware gang has led to an extortion attempt worth $2 million against Damart, the French clothing firm with over 130 locations throughout the world. 

The company's operations have been interrupted and some of its systems have been encrypted since August 15. In order to keep discussions confidential, the hackers have chosen not to list the victim on their extortion website.

Damart has not yet started discussions with the cybercriminals but has reported the event to the national police, thus, it remains doubtful if Hive will be compensated.

The first indication of difficulty arose on August 15 when Damart posted a notice about unexpected maintenance on the home page of their online store.

Damart, a mail-order clothing company based in Bingley, West Yorkshire, has confirmed that there was an attempt to hack into their IT systems during that time. The firm stated that "They were quickly able to intercept the attempt with strong security protocols."

In addition, the website is presently unavailable because they have temporarily restricted several services that are offered to clients as a precaution. The business places a high focus on data and system security, and reassuringly, there is no proof that any client data has been adversely affected as of yet.

On August 24, it was revealed that 92 of Damart's stores had been affected by the disruption to its sales network, which was not functioning regularly. As a result, fewer purchases were accepted, and customer service was shut down.

The company made it clear that the hackers had successfully entered the Active Directory and had begun a sudden attack that led to the encryption of some of the systems.

According to Damart, the corporation took preventive measures by shutting down systems to prevent them from being encrypted, which impaired the services.

It is yet uncertain whether Hive was successful in stealing any data during the cyberattack. The gang, however, uses the double-extortion strategy and steals data before it is encrypted. This gives the hackers the ability to threaten the victim with a data breach in order to exert pressure on the victim to pay a ransom.

The situation is similar to how Ragnar Locker's cyberattack against LDLC last December played out. By their own accord, the assailants had been stopped before they could deliver their fatal blow and activate the encryption.

According to Valery Marchive's claim, the hackers are not eager for negotiations and anticipate that parent company Damartex would pay the whole ransom. Marchive was able to recover a leaked ransom note and published data on LeMagIT.

ESXi , Linux, and Windows Systems at Risk From New Luna Ransomware

Luna is a brand-new ransomware family that was written in Rust, making it the third strain to do so after BlackCat and Hive, according to Kaspersky security researchers

The experts who examined the ransomware's command-line options believe that Luna is a reasonably straightforward ransomware program. 

Luna ransomware

This interesting encryption method combines x25519 with AES. The researchers discovered that the Linux and ESXi samples, which are compiled using the identical source code, differ only slightly from the Windows version.

Darknet forum advertisements for Luna imply that the ransomware is only meant to be used by affiliates who speak Russian. Due to spelling errors in the ransom note that are hard-coded into the malware, its main creators are also thought to be of Russian descent.

The Luna ransomware is also able to avoid automated static code analysis attempts by utilizing a cross-platform language.

"The source code used to compile the Windows version and the Linux and ESXi samples are identical. The remaining code is almost unchanged from the Windows version" the researchers added. Luna "confirms the trend for cross-platform ransomware," the researchers wrote, pointing out how hackers are able to target and strike at scale while avoiding static analysis, thanks to the platform flexibility of languages like Golang and Rust.

Nevertheless, considering that Luna is a recently identified criminal organization and its activities are still being constantly monitored, there is very little knowledge available regarding the victimology trends.

Black Basta

Researchers have also revealed information about the Black Basta ransomware group, which modified its software to target ESXi systems. By adding compatibility for VMware ESXi, various ransomware families, including LockBit, HelloKitty, BlackMatter, and REvil, hope to increase their potential targets.

The double-extortion attack model is used by Black Basta, a ransomware operation that has been operational since April 2022.

Researchers from Kaspersky said that operators had introduced a new feature that relies on launching the computer in safe mode before encrypting data and imitating Windows Services in order to maintain persistence.

Black Basta can avoid detection from a variety of endpoint security solutions by starting Windows in safe mode.




Businesses Hit By The Ransomware 0mega

 

Launched in May 2022, this new ransomware operation known as 0mega uses a double-extortion method to target corporations all over the world and seeks millions of dollars in ransom. 

Since a ransomware sample for the 0mega operation is not yet detected, not much is known about the encryption method used. However, what's known is that the malware adds the .0mega extension to the encrypted file names and produces ransom letters with the filename extension DECRYPT-FILES.txt, according to BleepingComputer. 

Such ransom notes are made specifically for each victim, and they typically include the name of the business and a list of the various kinds of data that were stolen. Additionally, some notes contain threats that, in the scenario that a ransom is not paid, the 0mega gang will reveal the information to commercial partners and trade associations. 

The victims can contact the ransomware group using the "help" chat feature of the Tor payment negotiation site included in ransom notes. It includes a special code to get in touch with the operators via the negotiating site. 

Like practically all ransomware operations that target businesses, 0mega has a specific site for data leaks where malicious actors disseminate stolen information if a ransom is not paid. 152 GB of data that was stolen from an electronics repair business in a May incident is now hosted on 0mega's leak site. 

Last week, though, there was a second victim who has since been eliminated, suggesting that the business has perhaps paid a ransom. In a published blog post The digest 'Crypto ransomware', researchers Lawrence Abrams and Andrew Ivanov discusss the malware in detail.

Netwalker: Ex Canadian Government Employee Pleads Guilty to Cybercrimes 

 

An ex-government of Canada official pleaded guilty in a US court to crimes related to data theft stemming from his involvement with the NetWalker ransomware group. 

Sebastien Vachon-Desjardins admitted on Tuesday that he had planned to commit bank fraud and phishing scams, intentionally damaged a protected computer, and also sent another demand regarding that illegally damaged computer. 

 Plea agreement filled 

Vachon-Desjardins, 34, who had previously been sentenced to six years and eight months in prison after entering a guilty plea to five criminal offenses in Canada, was deported to the United States in March. 
Vachon-Desjardins is "one of the most prolific NetWalker Ransomware affiliates," as per his plea agreement, and was in charge of extorting millions of dollars from several businesses all over the world. Along with 21 laptops, smartphones, game consoles, and other technological devices, he will also forfeit $21.5 million. 

He has pleaded guilty to conspiracy to commit computer fraud, conspiracy to commit wire fraud, intentionally harming a protected computer, and conveying a demand related to intentionally damaging a protected computer, according to a court filing submitted this weekThe accusations carry a maximum punishment of 40 years in jail combined. The attorneys did not identify the targeted business, but they did indicate that it is based in Tampa and was assaulted on May 1, 2020. 

 NetWalker gang's collapse

In 2019, a ransomware-as-a-service operation called NetWalker first surfaced. It is thought that the malware's creators are based in Russia. Its standard procedure – a profitable strategy also known as double extortion, includes acquiring sensitive personal data, encrypting it, and then holding it hostage in exchange for cryptocurrencies, or risk having the material exposed online.

According to reports, the NetWalker gang intentionally targeted the healthcare industry during the COVID-19 pandemic to take advantage of the global disaster. To work for other RaaS groups like Sodinokibi (REvil), Suncrypt, and Ragnarlocker, Vachon-Desjardins is suspected of being connected to at least 91 attacks since April 2020 in his capacity as one of the 100 affiliates for the NetWalker gang. 

The Feds dismantled the crime gangs' servers and the dark website is used to contact ransomware victims as part of the takedown of the NetWalker gang. Then they took down Vachons-Desjardins, who, according to the FBI, made $27 million for the NetWalker gang. 

His role in cybercrime is said to have included gathering information on victims, managing the servers hosting tools for reconnaissance, privilege escalation, data theft, as well as running accounts that posted the stolen data on the data leak site and collecting payments following a successful attack. 

However, some victims did pay fees, and the plea deal connected Vachons-Desjardins to the successful extortion of roughly 1,864 Bitcoin in ransom payments, or about $21.5 million, from multiple businesses around the world.

Night Sky: New Ransomware Targeting Corporate Networks

 

The new year has brought with it new ransomware named 'Night Sky,' which targets corporate networks and steals data in double-extortion attacks. 

The Night Sky operation began on December 27th, according to MalwareHunterTeam, which was the first to identify the new ransomware. The ransomware has since published the data of two victims. 

One of the victims got an initial ransom demand of $800,000 in exchange for a decryptor and the promise that the stolen material would not be made public. 

How Night Sky encrypts devices

A sample of the Night Sky ransomware seen by BleepingComputer has a personalised ransom note and hardcoded login credentials to access the victim's negotiation page. 

When the ransomware is activated, it encrypts all files except those with the.dll or.exe file extensions. The ransomware will not encrypt the following files or folders: 
AppData
Boot
Windows
Windows.old
Tor Browser
Internet Explorer
Google
Opera
Opera Software
Mozilla
Mozilla Firefox
$Recycle.Bin
ProgramData
All Users
autorun.inf
boot.ini
bootfont.bin
bootsect.bak
bootmgr
bootmgr.efi
bootmgfw.efi
desktop.ini
iconcache.db
ntldr
ntuser.dat
ntuser.dat.log
ntuser.ini
thumbs.db
Program Files
Program Files (x86)
#recycle

Night Sky appends the.nightsky extension to encrypted file names while encrypting them. A ransom letter named NightSkyReadMe.hta is included in each folder, and it provides details about what was stolen, contact emails, and hardcoded passwords to the victim's negotiation page. 

Instead of communicating with victims through a Tor site, Night Sky employs email addresses and a transparent website that runs Rocket.Chat. The credentials are used to access the Rocket.Chat URL specified in the ransom note. 

Double extortion tactic: 

Before encrypting devices on the network, ransomware operations frequently grab unencrypted data from victims. Threat actors then utilize the stolen data in a "double-extortion" scheme, threatening to leak the information unless a ransom is paid. 

Night Sky built a Tor data leak site to leak the data of victims, which now contains two victims, one from Bangladesh and the other from Japan. While there hasn't been much activity with the new Night Sky ransomware operation, one should keep a watch on it as we enter the new year.

BlackCat, a New Rust-Based Ransomware Malware

 

The new ALPHV ransomware operation, dubbed BlackCat, debuted last month and has the potential to be the most sophisticated ransomware of the year, with a highly customizable feature set that allows for attacks on a wide range of corporate setups. The ransomware executable is built in Rust, a language that is not commonly used by malware developers but is gaining popularity due to its great efficiency and memory safety. 

BlackCat, like many other variants before it, operates as a ransomware-as-a-service (RaaS), with the core developers recruiting affiliates to breach corporate environments and encrypt files, but not before stealing the said documents in a double extortion scheme to pressure the targets into paying the requested amount or risk exposing the stolen data if the companies refuse to pay up. 

Affiliates will receive varied revenue shares based on the magnitude of the ransom payment. For example, the affiliate receives 80% of ransom payments up to $1.5 million, 85% of payments up to $3 million, and 90% of payments exceeding $3 million. CNA reportedly paid a $40 million ransom to the Russian hacking outfit Evil Corp to demonstrate the amount of money an affiliate can earn from these RaaS programmes. This would translate to $36 million given to the affiliate under ALPHV's revenue sharing. 

 In a separate analysis of BlackCat, South Korean cybersecurity firm S2W stated that the ransomware conducts its malicious actions by referring to an internal configuration like other RaaS programmes, drawing comparisons to BlackMatter, another ransomware that emerged from the ashes of DarkSide in July only to cease operations in early November. 

 The ALPHV BlackCat malware has a number of innovative features that distinguish it from other ransomware operations. The ransomware is completely command-line driven, human-operated, and highly programmable, with the ability to employ various encryption techniques, propagate across systems, terminate virtual machines and ESXi VMs, and automatically wipe ESXi snapshots to prevent recovery. 

Each ALPHV ransomware executable includes a JSON configuration that allows customization of extensions, ransom notes, how data will be encrypted, prohibited folders/files/extensions, and the services and processes that will be terminated automatically. The threat actor claims that the ransomware may be modified to use four different encryption mechanisms. ALPHV BlackCat can also be programmed to exploit domain credentials to distribute the ransomware and encrypt other network devices. The executable will then extract PSExec to the %Temp% folder and utilise it to copy the ransomware to other network devices before executing it to encrypt the remote Windows machine.

Ransomware Ranzy Locker Infected at Least 30 US Organizations

 

The FBI announced on Monday that the Ranzy Locker ransomware has infected at least 30 US firms across a variety of industries this year. “Unknown cyber criminals using Ranzy Locker ransomware had compromised more than 30 US businesses as of July 2021. The victims include the construction subsector of the critical manufacturing sector, the academia subsector of the government facilities sector, the information technology sector, and the transportation sector,” reads the flash alert. 

The flash alert was issued in collaboration with CISA and is intended to provide information to security professionals to aid in the detection and prevention of ransomware attacks. The majority of Ranzy Locker victims who reported intrusions told the FBI that the attackers broke into their networks by brute-forcing RDP credentials. 

Others have recently revealed that the attackers utilized credentials acquired in phishing operations or targeted insecure Microsoft Exchange servers.

Ranzy Locker operators will steal unencrypted documents while within a victim's network before encrypting systems on their victims' corporate networks, a method utilized by most other ransomware gangs. These exfiltrated files, which contain sensitive information such as customer information, personally identifiable information (PII) data, and financial records, are used as leverage to force victims to pay a ransom in order to regain access to their files and prevent the data from being leaked online. 

In several cases, the gang used a double model of extortion, threatening victims with leaking stolen data if they did not pay the ransom. Indicators of compromise (IOCs) connected with Ranzy Locker operations and Yara rules to identify the threat are also included in the flash warning. 

Victims will get a 'Locked by Ranzy Locker' notice and a live chat screen to negotiate with the threat actors when they visit the group's Tor payment site. The ransomware operators also offer their victims to decrypt three files for free as part of this "service" to demonstrate that the decryptor can restore their files. 

Implement regular backups of all data to be stored as air-gapped, password-protected copies offline, implement network segmentation so that no machine on your network is accessible from any other machine, install and regularly update antivirus software on all hosts, and enable real-time detection, and install updates/patches to operating systems, software, and firmware as soon as updates/patches become available, are some of the recommended mitigations that were included in the alert.

A Look at the Triple Extortion Ransomware

 

Ransomware has traditionally concentrated on encryption, but one of the most common recent additions is the exfiltration and threatening disclosure of critical data in a "double extortion" assault. Threat actors, on the other hand, must continually develop new ways to enhance the effect of a successful assault since the financial incentives are so high. One of the most recent methods is known as "triple extortion," which adds another way to extort money from targets. 

The prospect of stolen data being released online has been a typical point of leverage for criminals seeking further ransom payments in what is known as double extortion. More than 70% of ransomware assaults now include exfiltrate data, demonstrating how quickly this type of attack tactic has become the norm.

Threat actors have lately introduced another layer to ransomware assaults based on this approach. In other words, this latest ransomware advancement means that a ransomware assault no longer stops at the first victim. Ransom demands may now be directed towards a victim's clients or suppliers under triple extortion. At the same time, other pressure points such as DDoS attacks or direct media leaks are added to the mix. 

The more leverage the perpetrators have in a ransomware assault, the more likely the victim is to pay. If the gang is successful in not just encrypting vital systems but also downloading sensitive data and threatening to leak it, they will have the upper hand and will be able to demand payment if the victim does not have sufficient backup procedures. 

According to Brian Linder, a cybersecurity evangelist at Check Point Software, triple extortion has become more common in the previous six months, with ransomware gangs making robocalls to customers, shareholders, partners, the press, and financial analysts if the victimised organisation fails to fall victim to the first two extortion efforts. 

“So, imagine if you don’t pay the ransom, we’re going to let all the stock analysts know that you’ve been attacked and likely drive some percentage of your market value out of the market,” Linder says. “We do expect this to be highly exploited. It’s fairly easy to do.” 

Depending on the attacker's initial effectiveness in infiltrating the network, they can get access to information about the victim's clients, including names and phone numbers, and have automated messages ready to go. 

Companies and organizations that retain client or customer data, as well as their own, are the most apparent targets for ransomware operations that go beyond single or double extortion. Healthcare organizations are obvious targets in this regard. As a result, the first known instance of triple extortion occurred late last year when hackers obtained access to Vastaamo, a Finnish physiotherapy provider. Threat actors demanded money directly from the thousands of Vastaamo clients whose records they were able to exfiltrate, rather than contacting the provider for a ransom.

Suspects Linked to the Clop Ransomware Gang Detained in Ukraine

 

Following a joint operation by law enforcement agencies from Ukraine, South Korea, and the United States, multiple persons alleged to be affiliated with the Clop ransomware gang have been arrested in Ukraine. Six arrests were made during searches at 21 locations in Kyiv and the surrounding regions, according to the National Police of Ukraine's Cyber Police Department. 

While it's unclear if the defendants are ransomware affiliates or core developers, they're accused of a "double extortion" technique in which victims who fail to pay the ransom are threatened with the leak of data stolen from their networks before their files are encrypted. “It was established that six defendants carried out attacks of malicious software such as ‘ransomware’ on the servers of American and [South] Korean companies,” alleged Ukraine’s national police force in a statement. 

The police also seized equipment from the alleged Clop ransomware gang, which is accused of causing $500 million in financial losses. This includes computer equipment, a Tesla and a Mercedes, as well as 5 million Ukrainian Hryvnia (about $185,000) in cash. 

Authorities also claim to have successfully shut down the server infrastructure used by gang members to launch prior operations. “Together, law enforcement has managed to shut down the infrastructure from which the virus spreads and block channels for legalizing criminally acquired cryptocurrencies,” the statement added. 

“The Cl0p operation has been used to disrupt and extort organizations globally in a variety of sectors including telecommunications, pharmaceuticals, oil and gas, aerospace, and technology,” said John Hultquist, vice president of analysis at Mandiant’s threat intelligence unit. 

In February 2019, the gang launched an attack on four Korean organizations, encrypting 810 internal services and personal PCs. Clop has since been connected to a slew of high-profile ransomware attacks. These include the attack on ExecuPharm, a US pharmaceutical company, in April 2020, and the attack on E-Land, a South Korean e-commerce company, in November, which prompted the retailer to close over half of its outlets.

Clop is also related to the Accellion ransomware attack and data theft, in which hackers exploited flaws in the IT firm's File Transfer Appliance (FTA) software to steal data from dozens of its clients. Singaporean telecom Singtel, law firm Jones Day, supermarket retail chain Kroger, and cybersecurity firm Qualys are among the victims of this breach.

Double Extortion- A Ransomware Tactic That Leaves The Victims With No Choice!


In addition to all the reasons ransomware were already dangerous and compulsive, there’s another one that the recent operators are employing to scare the wits out of their targets.

Cyber-criminals now tend to be threatening their victims with publishing and compromising their stolen data if the ransom doesn’t get paid or any other conditions aren’t followed through with.

The tactic in question is referred to as “Double Extortion” and quite aptly so. Per sources, its usage emerged in the latter half of 2019 apparently in use, by the Sodinokibi, DopplePaymer and Clop ransomware families.

Double extortion is all about doubling the malicious impact a normal ransomware attack could create. So the cyber-criminals try and stack up all sorts of pressure on the victims in the form of leaked information on the dark web, etc.

They just want to make sure that the victims are left with no other option but to pay the ransom and meet all the conditions of the attack, no matter how outrageous they are.

The pattern of Double Extortion was tracked after a well-known security staffing company from America experienced the “Maze ransomware” attack and didn’t pay up the 300 Bitcoin which totaled up to $2.3 Million. Even after they were threatened that their stolen email data and domain name certificates would be used for impersonating the company!

Per sources, all of the threatening wasn’t without proof. The attackers released 700 MB of data which allegedly was only 10% of what they had wrested from the company! And what’s more, they HIKED the ransom demand by 50%!

According to sources, the Maze ransomware group has a website especially fabricated to release data of the disobliging organizations and parties that don’t accept their highly interesting “deals” in exchange for the data.

Reportedly, ranging from extra sensitive to averagely confidential data of dozens of companies and firms from all the industries has found its way to the Maze ransomware website.

Clearly impressed by it many other operators of similar intentions opened up their own versions of the above-mentioned website to carry forward their “business” of threatening companies for digital currency and whatnot! They sure seem to have a good sense of humor because per sources the blog names are the likes of “Happy Blog”.

Per reports, the Sodinokibi ransomware bullied to leak a complete database from the global currency exchange, Travelex. The company had to pay $2.3 Million worth Bitcoin to get the attackers to bring their company back online.


Per reports of the researchers, the attackers would always release some kind of proof that they have the extremely valuable data of the company, before publishing it, to give the company a fair chance at paying up the ransom demanded.

Usually, these attacks are a win-win for the attackers and a “lose-lose” for the victims because if they decide not to pay up they would be putting their company in a very dangerous situation with all the valuable data compromised online for anyone to exploit, they would have to report the breach and they would have to pay a considerably high fine to the data privacy regulator. And if they pay up, they would be losing a giant plop of money! And sadly the latter feels like a better option.

Hospitals happen to be the organizations that are the most vulnerable to these attacks because of all the sensitive health-related data their databases are jam-packed with on any other day and additionally due to the Coronavirus outbreak.

The organizations could always follow the most widely adapted multi-layered security measures for keeping their data safe obviously including updating systems, keeping backups and keeping data protected in any way they possibly can.

The most conscientious gangs of the many ransomware families, per sources, have promised to not attack hospitals amidst this pandemic. But that doesn’t stop the other mal-actors from employing cyber-attacks.

The cyber-crime forecasters have mentioned that the year 2020 would be quite a difficult year for these organizations what with the lock-down and no easier (malicious) way to earn money, apparently? Food for thought!