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US Federal Authorities Disrupt Growing Malware Pyramid Network

 


A new study by Secureworks' Counter Threat Unit (CTU) has revealed that ransomware operations have shifted significantly in response to heightened law enforcement crackdowns, forcing threat actors to evolve their strategies accordingly. There has been a tradition of many ransomware groups relying on affiliate models, including the LockBit gang, which involves recruiting external partners to carry out attacks in exchange for a share of the ransom payment. 

Cybercriminal organizations are beginning to be forced to adjust in order to maintain profitability and operational reach in the face of sustained global enforcement efforts and coordinated takedowns, forcing them to rethink how they operate so they can remain profitable and profitable. In response to the changing landscape in ransomware, groups such as DragonForce and Anubis have been observed to adopt innovative frameworks for attracting affiliates and maximizing profits. 

In addition to evading legal scrutiny, these emerging models also appear to be designed in such a way as to offer collaborators more incentives and flexibility than previously offered by traditional methods. In a hostile environment in which traditional tactics are becoming increasingly risky and unsustainable, these groups are readjusting their internal hierarchies and engagement strategies in order to maintain momentum. 

There is a clear indication that this evolution indicates that the underground ransomware economy is undergoing a significant transformation. This shift is being driven by the growing influence of international cyber defense efforts, as well as criminals' ability to adapt to escalating pressure. It is estimated that more than 700,000 computers were infected worldwide by the malware campaign at the centre of the investigation, including approximately 200,000 systems within the United States. 

Despite the prevalence of this infiltration, 58 million dollars in financial losses have been directly linked to ransomware activities in the last 24 hours, highlighting the scale and sophistication of this criminal network. According to U.S. Attorney Martin Estrada, Operation Duck Hunt has been the largest technological and financial operation ever conducted by the Department of Justice against a botnet. The operation is a comprehensive enforcement initiative that is aimed at capturing the infrastructure behind the botnet, a process that has been ongoing for several years. 

There was a successful operation in which 52 servers critical to the botnet were taken down and more than $8.6 million in cryptocurrency assets were seized, used to facilitate or conceal illicit gains. In spite of these remarkable achievements, cybersecurity experts caution against interpreting the disruption as a definitive victory. As is often the case when it comes to cybercrime enforcement, what appears to be the end may actually only be a temporary setback when it comes to the criminal activity. 

A cybercriminal ecosystem is resilient, adaptable, and able to evolve very quickly, which results in the emergence of new variants, techniques, or successor operations in a short period of time to fill the void left behind when a network has been dismantled. In the dynamic and ever-evolving cyber threat landscape, it is important to recognize that federal agencies are capable of performing complex takedowns, but that they also face a persistent challenge in achieving lasting impact. 

There has been a recent international crackdown targeting a particular type of malicious software called "initial access malware," which is one of the most critical enablers in the overall lifecycle of cyberattacks, according to statements released by Europol and Eurojust. As malware strains are typically deployed as early as possible in the course of a cyber-attack, they allow threat actors to quietly breach targeted systems and establish a foothold from which additional malicious payloads can be deployed, such as ransomware. 

Attempting to disrupt the foundational layer of the so-called "cybercrime-as-a-service" ecosystem by dismantling these tools was an important part of the authorities' effort. Its aim was to provide cybercriminals worldwide with flexible and scalable access to the services they needed. As part of the coordinated operation, a number of well-known malware variants were neutralized, including Bumblebee, Lactrodectus, Qakbot, DanaBot, HijackLoader, Trickbot, and WarmCookie, each of which has played a significant role in numerous ransomware attacks and data extraction. 

Several authorities emphasized that the strike of these elements at their root greatly undermines the ability of downstream criminal operations by preventing them from functioning and limit the ability of malicious actors to carry out large-scale attacks, as well as significantly limiting the capabilities of the malicious actors. Nearly 50 command-and-control servers were successfully neutralized in Germany, where a significant portion of the law enforcement activity was concentrated. 

There has been an investigation conducted by the German Federal Criminal Police Office (BKA) and the Frankfurt Public Prosecutor's Office for Cybercrime on the grounds of organized extortion and suspected affiliations with foreign criminal organizations based on suspected organized extortion. In response to this effort, international arrest warrants were issued for twenty individuals, most of whom were Russian nationals, and several search operations were conducted specifically to investigate these individuals. 

Continuing Operation Endgame, which was regarded as the largest coordinated effort ever undertaken to fight botnets, this sweeping enforcement action represents a continuation of that effort. In addition to acquiring €21.2 million in assets, the operation has also demonstrated the global increasing momentum behind collaborative efforts to dismantle high-impact cybercrime infrastructure since it was launched in 2024. Defendant Gallyamov and his co-conspirators allegedly orchestrated highly targeted spam bomb campaigns targeting members of the employees of victim organizations.

The attacks were designed to overwhelm recipients' inboxes with a barrage of messages, creating confusion and increasing the sense of urgency within them. The attackers then exploited this chaos by impersonating an internal IT employee, contacting overwhelmed victims by impersonating a technical support representative, and offering technical assistance. 

Once they had established trust and granted access, the attackers were quick to get their hands dirty—extorting data, deploying malware, encrypting systems, and ultimately demanding ransoms. In this case, the backdoor was built using the highly sophisticated Qakbot malware, which was used to exploit compromised systems to deploy malicious payloads further encoding the credentials of the target systems, as well as collect login credentials across networks. Such access was a valuable commodity among the cybercriminals. 

In the past, it has been suggested that Gallyamov and his network were monetizing these intrusions by selling access to operators of some of the most dangerous ransomware strains, such as REvil, Black Basta, and Conti, which are all dangerous strains of ransomware. In some cases, these ransomware groups are alleged to have compensated Gallyamov not only with direct payments but also by dividing a portion of the extorted profits with Gallyamov. 

In April 2025, U.S. authorities seized more than 30 bitcoins linked to Gallyamov as well as approximately $700,000 in illicit assets. Although these financial hits may have been significant, the primary suspect remains on the loose in Russia, out of reach of U.S. law enforcement due to the lack of extradition agreements. Despite the fact that Gallyamov faces a high probability of being captured, federal officials said that it would be unlikely that he would be brought to justice unless he voluntarily left the relative safety of his country. 

The incident has served as a stark reminder of just how sophisticated social engineering and malware-based attacks are becoming as time goes by. Investing in enterprise-grade antivirus solutions and implementing advanced endpoint protection platforms are two of the best ways for organizations to protect themselves against such threats. In many ways, these tools can be of great benefit in detecting unusual behavior, isolating compromised systems, and preventing the rapid escalation of attacks into full-scale data breaches or ransomware attacks that cause financial losses or reputational harm to companies.

DragonForce Targets MSPs Using SimpleHelp Exploit, Expands Ransomware Reach

 


The DragonForce ransomware group has breached a managed service provider (MSP) and leveraged its SimpleHelp remote monitoring and management (RMM) tool to exfiltrate data and launch ransomware attacks on downstream clients.

Cybersecurity firm Sophos, which was brought in to assess the situation, believes that attackers exploited a set of older vulnerabilities in SimpleHelp—specifically CVE-2024-57727, CVE-2024-57728, and CVE-2024-57726—to gain unauthorized access.

SimpleHelp is widely adopted by MSPs to deliver remote support and manage software deployment across client networks. According to Sophos, DragonForce initially used the compromised tool to perform system reconnaissance—gathering details such as device configurations, user accounts, and network connections from the MSP's customers.

The attackers then moved to extract sensitive data and execute encryption routines. While Sophos’ endpoint protection successfully blocked the deployment on one customer's network, others were not as fortunate. Multiple systems were encrypted, and data was stolen to support double-extortion tactics.

In response, Sophos has released indicators of compromise (IOCs) to help other organizations defend against similar intrusions.

MSPs have consistently been attractive targets for ransomware groups due to the potential for broad, multi-company impact from a single entry point. Some threat actors have even tailored their tools and exploits around platforms commonly used by MSPs, including SimpleHelp, ConnectWise ScreenConnect, and Kaseya. This trend has previously led to large-scale incidents, such as the REvil ransomware attack on Kaseya that affected over 1,000 businesses.

DragonForce's Expanding Threat Profile

The DragonForce group is gaining prominence following a string of attacks on major UK retailers. Their tactics reportedly resemble those of Scattered Spider, a well-known cybercrime group.

As first reported by BleepingComputer, DragonForce ransomware was used in an attack on Marks & Spencer. Shortly after, the same group targeted another UK retailer, Co-op, where a substantial volume of customer data was compromised.

BleepingComputer had earlier noted that DragonForce is positioning itself as a leader in the ransomware-as-a-service (RaaS) space, offering a white-label version of its encryptor for affiliates.

With a rapidly expanding victim list and a business model that appeals to affiliates, DragonForce is cementing its status as a rising and formidable presence in the global ransomware ecosystem.

Scattered Spider Cyberattack Cripples M&S, Co-op: DragonForce Ransomware Causes Weeks-Long Disruption

 

Weeks after a significant cyberattack disrupted operations at major British retailers, companies like Marks & Spencer (M&S) and Co-op are still struggling to restore full functionality. Despite public reassurances, the scope of the attack is proving more serious than initially acknowledged. M&S CEO Stuart Machin recently confirmed that personal customer data had been accessed, prompting the company to require password resets for online accounts. Online orders on the M&S website remain suspended weeks after the breach, and no clear timeline has been offered for full recovery. 

The attack first became public on April 25 when M&S halted its online operations due to a cyber intrusion. Within days, Co-op revealed it had also been targeted in an attempted hack, which disrupted several services. Harrods, another luxury retailer, was also reportedly affected during this wave of cyberattacks. While M&S is still unable to process online sales, Co-op has only just resumed stocking its shelves, and both companies remain silent about when operations might return to normal. Government officials have weighed in on the seriousness of the incident. 

Cabinet Office Minister Pat McFadden called the attack a “wake-up call” for British businesses, highlighting the urgent need for enhanced cybersecurity protocols. Financial losses have been steep. M&S is reportedly losing £3.5 million per day while its website remains offline, and its stock has dropped by an estimated half a billion pounds in market value. Co-op also disclosed that customer data had been compromised, and they experienced issues with card payments at the height of the disruption. 

Investigations suggest the cybercriminal group known as Scattered Spider is responsible. Known for targeting large enterprises, the group is believed to have used a ransomware strain called DragonForce to paralyze systems. According to cybersecurity experts, the attackers may have exploited unpatched vulnerabilities and misconfigured systems to gain entry. Reports indicate they employed SIM-swapping tactics to hijack phone numbers and impersonate employees, fooling IT help desks into granting system access. Once inside, the hackers are believed to have compromised Microsoft Active Directory—a central hub that connects internal networks—potentially gaining access to crucial files and passwords. 

Though it’s unlikely they decrypted these password files directly, the level of access would have allowed them to severely disrupt internal systems. Experts say this level of infiltration can cripple multiple areas of a business, making recovery extremely challenging without a full rebuild of core IT infrastructure. One reason for the prolonged disruption may be that both M&S and Co-op chose not to pay the ransom, in line with UK government advice. While this decision aligns with best practices to avoid funding cybercrime, it also means recovery will take significantly longer. 

Despite the chaos, M&S has emphasized that no payment information or account passwords were compromised. The company is urging customers to reset their passwords for peace of mind and has provided guidelines on staying safe online. Co-op has resumed deliveries to most of its stores but acknowledged that some shelves may still lack regular stock. Empty shelves and apology signs have appeared across affected stores, as customers share their frustrations online. 

This incident underscores the growing threat posed by sophisticated cybercriminals and the urgent need for companies to prioritize cybersecurity. From exploiting human error to using advanced ransomware tools, the tactics are evolving, and so must the defenses.

Marks & Spencer Cyberattack Fallout May Last Months Amid Growing Threat from Scattered Spider

 

Marks & Spencer is facing prolonged disruption after falling victim to a large-scale cyberattack. Experts warn that restoring normal operations could take months, highlighting a growing trend of sophisticated breaches targeting major retailers. This incident follows a wave of cyber intrusions, including those at Co-op and Harrods, allegedly orchestrated by the same hacking collective — Scattered Spider.

Described by ITPro as “the name on every security practitioner's mind right now,” Scattered Spider has gained notoriety for its aggressive tactics and global reach.

“Scattered Spider is one of the most dangerous and active hacking groups we are monitoring,” said Graeme Stewart of Check Point to Sky News.

Believed to be composed mainly of young, English-speaking individuals based in the UK and US, the group has reportedly executed over 100 cyberattacks since emerging in 2022. These attacks span sectors like telecommunications, finance, retail, and gaming.

One of their most prominent exploits occurred in 2023, when they severely disrupted two leading casino operators. Caesars Entertainment reportedly paid about $15 million to recover access, while MGM Resorts suffered estimated damages of around $100 million due to compromised customer data.

What makes Scattered Spider particularly elusive is its decentralized structure and independence from state backing. “They operate more like an organised criminal network, decentralised and adaptive,” Stewart added. Even after multiple arrests in the US and Europe, the group continues to rebound swiftly. “This is not a loose group of opportunistic hackers,” he emphasized.

Rather than relying solely on software flaws, Scattered Spider frequently exploits human error. The M&S and Co-op attacks, for example, were the result of “social engineering,” where attackers manipulated employees into revealing credentials.

Their tactics include mimicking corporate emails, sim swapping (cloning a phone number to hijack accounts), and building convincing fake login portals. “This is akin to ‘breaking down the front door’ of networks,” Paul Cashmore, CEO of Solace Cyber, told The Times. Once inside, Scattered Spider typically partners with ransomware gangs to carry out the final blow.

In these recent cases, the group appears to have collaborated with DragonForce, a ransomware cartel. Initially known as a pro-Palestinian hacktivist group based in Malaysia, DragonForce now operates a “ransomware-as-a-service” model. According to Bleeping Computer, they allow affiliates to use their tools and infrastructure in exchange for 20-30% of ransom payments.

The core motivation is financial gain. DragonForce reportedly reached out to the BBC claiming the Co-op breach was more severe than disclosed, hinting at an extortion attempt.

Organizations like the Co-op, which house personal data of millions, are prime targets. Once a system is locked, hackers demand large ransoms in return for decryption tools and promises to delete stolen data. “If a ransom is not paid, the ransomware operation typically publishes the stolen data on their dark web data leak site,” Bleeping Computer explained.

Whether or not to pay remains a complex dilemma. “Paying may provide a quick way to restore operations, protect customer data and limit immediate financial and reputational damage,” noted The Times. However, it also risks emboldening cybercriminals and marking companies as future targets.

DragonForce Ransomware Gang Prompts Ohio Lottery to Shut Down


On 25 December 2023, the Ohio Lottery faced a major cyberattack, as a result, they had to shut down some crucial systems related to the undisclosed internal application. 

The threat actors behind the breach are the DragonForce ransomware group. 

While the investigation in regards to the breach is ongoing, the company confirms to its customers that its gaming systems are fully functional. The gaming system is still operational, although some services have suffered. At Super Retailers, prize cashing above $599 and mobile cashing are temporarily unavailable. 

The winning numbers for the KENO, Lucky One, and EZPLAY Progressive Jackpots can be found at any Ohio Lottery Retailer; they are unavailable on the internet or mobile app.

In its press release, the lottery states: "On December 24, 2023, the Ohio Lottery experienced a cybersecurity incident impacting some of its internal applications and immediately began work to mitigate the issue. The state's internal investigation is ongoing. We apologize for the inconvenience and are working as quickly as possible to restore all services."

What must the Customers do?

The company has requested customers to check the Ohio Lottery website and mobile app for winning numbers at this time.  WKYC informs that prizes up to $599 can be claimed at any Ohio Lottery Retailer, while prizes over $600 need to be sent by mail to the Ohio Lottery Central Office or using the online claim form. 

Ransomware Gang Claims Responsibility

While Ohio Lottery did not confirm who was behind the cyberattack, a ransomware group called DragonForce claimed responsibility. 

According to a report by BleepingComputer, the threat group claims that they have encrypted devices and accessed sensitive data like Social Security Numbers and the date of birth of affected customers. 

According to the DragonForce gang, over 3,000,000 lottery customers' names, addresses, emails, winning amounts, Social Security numbers, and dates of birth are among the data that have been hacked. The weight of the released data—more than 600 gigabytes—raises questions regarding the scope of the hack. 

DragonForce: A New Competitor in the Ransomware Arena

Despite being a relatively young ransomware gang, the DragonForce gang's methods and data leak website suggest a rather experienced extortion organization. As law enforcement steps up their efforts to combat ransomware activities, new organizations like DragonForce are coming into action, which raises the issue of rebranding within the threat landscape. 

In a similar case, the official Facebook page of the Philippines lottery system was recently hacked by anonymous hackers. The witnesses reported that threat actors were apparently spamming the website page with nude photos. This prompted the Philippine Charity Sweepstakes Office (PSCO) to shut down the page for the time being, during which the Cybercrime Investigation and Coordinating Center (CICC) will conduct its investigation.   

DragonForce Group Unleash Hacks Against India

 

According to a recent Radware warning, a hacktivist group called DragonForce Malaysia has begun indiscriminately scanning, defacing, and executing denial-of-service assaults against several websites in India with the support of several other threat groups. 

In addition to DDoS, its focused "OpsPatuk" operation incorporates sophisticated threat actors "leveraging existing vulnerabilities, breaching networks, and releasing data. DragonForce Malaysia, well known for its hacktivism in favour of the Palestinian cause, has shifted its focus to India, in reaction to a controversial statement made by a party spokesperson concerning the Prophet Mohammed. OpsPatuk is still active, according to the alert.  

Nupur Sharma, a spokesperson for the Bharatiya Janata Party (BJP), made controversial statements about the age of the Prophet Mohammed's third wife, Aisha, during a televised discussion last month. There was considerable outrage, following declarations from Muslim leaders, huge protests, and Sharma's expulsion from the BJP.

Then, on June 10, DragonForce Malaysia joined the fray. Their new onslaught against the Indian government was announced in a tweet: "Greetings The Government of India. We Are DragonForce Malaysia. This is a special operation on the insult of our Prophet Muhammad S.A.W. India Government website hacked by DragonForce Malaysia. We will never remain silent. Come Join This Operation! #OpsPatuk Engaged"

The latest alert indicates that the group employed DDoS to carry out "multiple defacements across India," including pasting its logo and content onto targeted websites. Additionally, the group claimed to have stolen and released data from several government organisations, financial institutions, colleges, service providers, and several other Indian databases. Other hacktivists – 'Localhost,' 'M4NGTX,' '1887,' and 'RzkyO' – also joined the party, "defacing multiple websites across India in the name of their religion," according to the researchers. 

About DragonForce Malaysia:

DragonForce Malaysia is a hacktivist group similar to Anonymous. They are linked by political objectives and a penchant for sensationalism. Tens of thousands of people use their social media channels and website forums, which are used for "anything from organising an eSports team to conducting cyberattacks." 

DragonForce has previously waged cyber attacks against companies and government agencies throughout the Middle East and Asia. Their preferred target has been Israel, with various operations – #OpsBedil, #OpsBedilReloaded, and #OpsRWM – conducted against the country and its citizens.