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Defending Against IoT Ransomware Attacks in a Zero-Trust World

IoT Ransomware

Defending Against IoT Ransomware Attacks in a Zero-Trust World

In our interconnected digital landscape, the proliferation of Internet of Things (IoT) devices has revolutionized how we live and work. From smart homes to industrial automation, IoT devices play a pivotal role in enhancing efficiency and convenience. 

However, this rapid adoption also brings forth significant security challenges, with ransomware attacks targeting vulnerable IoT endpoints. In this blog, we explore the critical need for defending against IoT ransomware attacks within a zero-trust framework.

The Growing Threat Landscape

1. Nation-State Actors and Unprotected IoT Sensors:

Sophisticated adversaries, including nation-state actors, exploit unprotected IoT sensors.

These sensors are critical for infrastructure, manufacturing, and essential services.

Recent attacks have targeted U.S. and European entities, emphasizing the urgency of securing IoT ecosystems.

2. Ransomware’s Escalation:

Ransomware attacks have surged, impacting critical sectors such as manufacturing and industrial control systems (ICS).

During Q2 2023, 70% of all ransomware attacks targeted the manufacturing sector.

The consequences extend beyond financial losses; they disrupt operations, compromise safety, and erode trust.

The Challenge of Ransomware Defense

1. Beyond Reactive Measures:

Ransomware defense requires a proactive approach rather than reactive firefighting.

Security professionals must continuously assess and enhance their defenses.

Assistive AI tools can augment human capabilities by automating routine tasks, allowing experts to focus on strategic decisions.

2. The Adversary’s Arsenal:

Well-funded attackers recruit AI and machine learning experts to create advanced attack tools.

They possess extensive knowledge about target networks, often surpassing that of administrators.

To counter this, defenders must leverage AI for threat detection and response.

The Role of Zero Trust

1. Zero Trust Architecture:

Zero Trust principles advocate for a fundamental shift in security mindset.

Assume that no device or user is inherently trustworthy, regardless of their location within the network.

Implementing zero trust involves continuous verification, least privilege access, and microsegmentation.

2. Microsegmentation and Assured Identity:

Microsegmentation isolates IoT devices and operational technology (OT) networks from IT and OT networks.

By creating granular security zones, organizations reduce the attack surface.

Assured identity ensures that only authorized entities communicate with IoT devices.

Practical Steps for Defending Against IoT Ransomware

1. Visibility and Inventory:

Organizations must gain visibility into their IoT devices and endpoints.

Regularly update and maintain an accurate inventory of connected devices.

Identify vulnerabilities and prioritize patching.

2. Network Segmentation:

Employ network segmentation to isolate critical systems from potentially compromised devices.

Implement firewalls and access controls to prevent lateral movement.

3. Behavioral Analytics:

Leverage behavioral analytics to detect anomalous activities.

Monitor device behavior patterns and identify deviations.

Promptly respond to suspicious events.

4. Education and Training:

Educate employees and users about IoT security best practices.

Encourage strong password hygiene and awareness of phishing threats.

Foster a security-conscious culture.

Multiple Security Bugs Identified in EZVIZ Smart Cams

 

The vulnerabilities allow a hacker to remotely access the camera, download images, decrypt them, and circumvent authentication to inject code remotely. 

Security analysts at Bitdefender have published a detailed analysis on vulnerabilities in several lines of EZVIZ Internet of Things (IoT) cameras, a smart home security brand used across the globe. The vulnerabilities unearthed in at least five EZVIZ camera models could allow a hacker to remotely access the camera, download images, decrypt them, and circumvent authentication to inject code remotely.

"When daisy-chained, the discovered vulnerabilities allow an attacker to remotely control the camera, download images, and decrypt them," the researchers explained. "Use of these vulnerabilities can bypass authentication and potentially execute code remotely, further compromising the integrity of the affected cameras." 

The vulnerabilities spotted in the affected device models are listed below: - 

• CS-CV248 [20XXXXX72] - V5.2.1 build 180403 
• CS-C6N-A0-1C2WFR [E1XXXXX79] - V5.3.0 build 201719 
• CS-DB1C-A0-1E2W2FR [F1XXXXX52] - V5.3.0 build 211208 
• CS-C6N-B0-1G2WF [G0XXXXX66] - v5.3.0 build 210731 
• CS-C3W-A0-3H4WFRL [F4XXXXX93] - V5.3.5 build 22012 

Threat analysts discovered the first vulnerability (tracked as CVE-2022-2471) in the ‘configMotionDetectArea’ API endpoint. Subsequently, they identified an insecure direct object reference vulnerability at multiple API endpoints that pave a path for hackers to gain access to the camera, and a third remote vulnerability allows hackers to exfiltrate the encryption key for the video. 

The final security bug, tracked under CVE-2022-2472, lets a hacker recover the administrator password and control the device. 

“Our analysis uncovered several vulnerabilities in the EZVIZ smart devices and their API endpoints that could allow an attacker to carry out a variety of malicious actions, including remote code execution and access to the video feed,” said Dan Berte, director, IoT Security at Bitdefender. One of the main features of these devices is the ability to be accessed from anywhere the user has an internet connection.” 

The researchers advised users to apply the patches, update the software immediately, and regularly visit the manufacturer’s website for any EZVIZ camera security-related news. 

Last year in August, BitDefender security experts unearthed multiple zero-day vulnerabilities in a home baby monitor, made by China-based developer Victure. In a security report, researchers disclosed the stack-based buffer flaw present in the ONVIF server Victure PC420 component camera that allows hackers to plant remote codes on the victim device. When exploited, hackers can discover cameras (not owned by them) and command devices to broadcast camera feeds to a third party and exploit the camera firmware.

BotenaGo Botnet is Targeting Millions of Routers and IoT Devices

 

A new botnet malware called BotenaGo has been discovered in the wild. The malware has the capability to exploit millions of susceptible IoT (Internet of Things) products and routers.

Discovered by AT&T labs, BotenaGo is designed using the Go programming language, which has been gaining popularity of late. Threat actors are using it for making payloads that are harder to detect and reverse engineer. 

According to Bleeping Computer, BotenaGo is flagged by only six out of the 62 antivirus engines on VirusTotal, with some falsely identifying it as the Mirai botnet. 

The botnet incorporates 33 exploits for a variety of routers, modems, and NAS devices, with some notable examples given below: 

  • CVE-2015-2051, CVE-2020-9377, CVE-2016-11021: D-Link routers
  •  CVE-2016-1555, CVE-2017-6077, CVE-2016-6277, CVE-2017-6334: Netgear devices 
  • CVE-2019-19824: Realtek SDK based routers 
  • CVE-2017-18368, CVE-2020-9054: Zyxel routers and NAS devices 
  • CVE-2020-10987: Tenda products 
  • CVE-2014-2321: ZTE modems 
  • CVE-2020-8958: Guangzhou 1GE ONU 

“To deliver its exploit, the malware first queries the target with a simple “GET” request. It then searches the returned data from the “GET” request with each system signature that was mapped to attack functions,” reads the blog post published by AT&T. 

“The string “Server: Boa/0.93.15” is mapped to the function “main_infectFunctionGponFiber,” which attempts to exploit a vulnerable target, allowing the attacker to execute an OS command via a specific web request (CVE-2020-8958).” 

The new botnet targets millions of devices with functions that exploit the above flaws, for example querying Shodan for the string Boa, which is a discontinued open-source web server used in embedded applications, and one that still returns nearly two million internet-facing devices on Shodan. Once installed, the malware will listen on the ports 31412 and 19412, the latter is used to receive the victim IP. Once a connection with information to that port is received, the bot will exploit each vulnerability on that IP address to gain access. 

Furthermore, the security researchers didn't discover an active C2 communication between BotenaGo and an actor-controlled server, these are possible scenarios hypothesized by the experts: 

1. The malware is part of a multi-stage modular malware attack, and it's not the one responsible for handling communications. 

2. BotenaGo is a new tool used by Mirai operators on specific machines that are known to them, with the attacker(s) operating the infected end-point with targets. 

3. The malware is still under development and was released in the wild accidentally.

Canadian IoT Solutions Provider, Sierra Wireless Hit by a Ransomware Attack


Sierra Wireless, a Canadian IoT solutions provider said that it has reopened its manufacturing site's production after the company suffered a ransomware attack that breached its internal infrastructure and official website on March 20. When the company came to know about the attack, it called one of the world's best cybersecurity firms "KPMG," to help Sierra Wireless in the investigation and inquiry of the incident.

According to Sierra Wireless, "security is a top priority, and Sierra Wireless is committed to taking all appropriate measures to ensure the highest integrity of all of our systems. As the investigation continues, Sierra Wireless commits to communicating directly to any impacted customers or partners, whom we thank for their patience as we work through this situation." 

Currently, the staff at Sierra Wireless is working on re-installing the company's internal infrastructure, after the corporate website was brought back online. Besides this, the Canadian MNC said that ransomware attacks couldn't breach services and customer-oriented products as the internal systems that were attacked were separated. The company believes that the scope of the attack was limited to Sierra Wireless' corporate website and internal systems, it is confident that the connectivity services and products weren't affected, and the breach couldn't penetrate the systems during the incident. 

As of now, the company isn't expected to issue any firmware or software security updates or product security patches, which are generally required after the ransomware attack. The company hasn't disclosed the ransomware operator behind the attack, it has also not specified what data was stolen from the incident before the encryption could happen. 

The attack happened in March, after that the company took back its Q1 guidance. A company spokesperson said that Sierra wireless won't reveal any further information regarding the attack as per the company protocol, because the data involved is highly confidential and sensitive. Bleeping Computer reports, "Siera Wireless' products (including wireless modems, routers, and gateways) sold directly to OEMs are being used in IoT devices and other electronic devices such as smartphones, and an extensive array of industries." Stay updated for more news.

Active Cypher: Great Deal of Orchestration of Our Intelligence in AI into Existing Systems

 
Active Cypher: The company is built upon a socially responsible fabric, that provides information security for individuals and corporations in an increasingly complex digital age. The guest speaker for the interview was Mr. Michael Quinn, CEO, and Mr. Caspian Tavallali, COO Active Cypher. Active Cypher’s Ransom Data Guard utilizes a combination of Active Cypher’s proprietary encryption orchestration, smart AI, and advanced endpoint protection. 
 
Please tell us about your company Active Cypher? 
 

I am Michael Quinn, CEO of Active Cypher. We are a data protection company; we have an ethos within a company that the data needs to be able to protect itself wherever it is created. We have built a product line that offers those capabilities of protection against ransomware attacks through protecting data at the file level in the server environment and in the cloud. What our product allows us to do is be crypto agile. We can work with numerous encryption schemes. Once we are installed we basically back out of the situation and allow the client to run and trust their own data. 

 
Your company talked about game-changing software “Ransom Data Guard” that will protect organizations against ransomware threats. Please describe more about it. 
 
What we developed is a capability where understanding what ransomware has to do in order to take control of the device in a user environment. We built a product just before the Covid-19 and work from home culture started and we realized that people are using shared environments on the same device at home. So we basically allow the organization to encrypt the data down to the device level and protect it. The ransomware protection that we provide basically allows us to manage the files in such a way that they are not accessible to external sources like ransomware. We put this product along with our cloud fortress product to make sure that we were meeting compliance regulations. What we found after working with the law firms is we allow the companies to meet compliance through this capability if the product was ransomed or even if it was exfiltrated because we encrypt the data so the actual data itself is useless. On the ransomware side, the beauty of it is we allow a lot of flexibility in how the data can be stored and used. 
 
Besides ransomware protection, what are the other solutions Active Cypher provides? 
 
We do a great deal of orchestration of our intelligence in AI into existing systems, we integrate into Microsoft tools as well as we have APIs that can write to any of the tools that are out there. We don’t bring in to replace anything or add to anybody’s burden, we integrate into it with our information.  
 
Let’s say somebody opens a doc. file or they load up a doc. file which has an exploit. How do you handle that? 

If somebody uploads an exploit or malware and when it’s opened, because of the process we use to interrogate the document for its integrity, we will stop any process that is trying to intervene with the environment and we’ll put a warning out. What will happen is you’ll get an alert from us, let’s say you open up a “wannacry” as an example, you will get a screenshot saying “your device has been ransomed.” The reality is you can still open all your files. What we do is, with our cloud fortress product, we do a real-time backup. 
 
At a time when hospitals and medical institutions are struggling with Covid-19, how has Active Cypher protected them from ransomware threats? 

In most of the hospitals and medical environments, their IT staff lacked the sophistication to understand what was happening. Earlier, the attackers were not really trying to damage the data, they were trying to ransom it and return it. Now what the attackers are doing is, that they are actually getting into the environment and not going after the data because most of the hospitals have upgraded their capabilities along with using our products. Now, the hackers are attacking the IoT (internet of things) at the device level, which is more life-threatening. What we have done to help healthcare institutions is basically putting a “Data Guard” which is the stand-alone ransomware product on devices. 
 
How do you handle the GDPR (General Data Protection Regulation) and Privacy requirements when it’s the home environment? 

With “Data Guard,” the way the product is designed, it can be installed on a consumer device. In that environment it allows people to protect what they have like personal data or business data that they have on their device is protected. And that’s the simplicity of Data Guard, is the fact that it protects your device and the files on it and ensures that ransomware can’t launch successfully.  
 
With cyberattacks rising, is there any advice you can give to our readers on cybersecurity? 

Everybody has to be aware, you don’t have to be afraid. With the stress of work, particularly with this remote work environment, the user has to be more diligent. So, ease of use and awareness are probably the keys to maintaining good data hygiene.

Internet of Things (IoT): Greater Threat for Businesses Reopening Amid COVID-19 Pandemic

 

Businesses have increasingly adopted IoT devices, especially amid the COVID-19 pandemic to keep their operations safe. Over the past year, the number of IoT devices employed by various organizations in their network has risen by a remarkable margin, as per research conducted by Palo Alto Networks' threat intelligence arm, Unit 42. 
 
While looking into the current IoT supply ecosystem, Unit 42 explained the multi exploits and vulnerabilities affecting IoT supply chains. The research also examined potential kinds of motivation for exploiting the IoT supply chain, illustrating how no layer is completely immune to the threat.  

The analysis of the same has been reported during this year's National Cybersecurity Awareness Month (NCSAM), which is encouraging the individual's role in protecting their part of cyberspace and stressing personal accountability and the significance of taking proactive measures to strengthen cybersecurity. 
 
The analysis also noted that supply chain attacks in IoT are of two types – through a piece of hardware modified to bring alterations in a device's performance or from software downloaded in a particular device that has been affected to hide malware. 
 
While highlighting a common breach of ethics, the research mentioned the incorporation of third-party and hardware components without making a list of the components added to the device. The practice makes it hard to find how many products from the same manufacturer are infected when a vulnerability is found on any of the components. Additionally, it also becomes difficult to determine how many devices across various vendors have been affected in general, by the vulnerability.

"The main goals for cyberespionage campaigns are maintaining long-term access to confidential information and to affected systems without being detected. The wide range of IoT devices, the access they have, the size of the user base, and the presence of trusted certificates make supply chain vendors attractive targets to advanced persistent threat (APT) groups..." the report stated. 
 
"In 2018, Operation ShadowHammer revealed that legitimate ASUS security certificates (such as “ASUSTeK Computer Inc.”) were abused by attackers and signed trojanized softwares, which misled targeted victims to install backdoors in their system and download additional malicious payloads onto their machines." 
 
While putting things in a cybercrime perspective, the report noted - "The potential access and impact of compromising a large number of IoT devices also make IoT vendors and unprotected devices popular choices for financially motivated cybercriminals. A NICTER report in 2019 shows close to 48% of dark web threats detected are IoT related. Also in 2019, Trend Micro researchers looked into cybercriminals in Russian-, Portuguese-, English-, Arabic-, and Spanish-speaking marketplaces and discovered various illicit services and products that are actively exploiting IoT devices." 
 
The report stressed the need to "enlist" all the devices connected to a certain network as it will help in identifying devices and their manufacturers, enabling administrators to patch, monitor, or even disconnect the devices when needed. There are instances when all the vulnerable devices are unknown in the absence of a complete list, therefore it is imperative to have complete visibility of the list of all the connected devices in order to defend your infrastructure. 

Bot List Containing Telnet Credentials for More than 500,000 Servers, Routers and IoT Devices Leaked Online


This week, a hacker published a list on a popular hacking forum containing Telnet credentials for over 515,000 servers, home routers and IoT (Internet of Things) "smart" devices. The massive list which reportedly was concluded by browsing the whole internet in search of devices that left their Telnet port exposed, included IP addresses of all the devices, username and password for the Telnet service and a remote access protocol that can be employed to control devices over the internet.

After scanning the Internet in search of devices exposing their Telnet port, the hacker attempts to use either factory-set default usernames and passwords or custom but guessable combinations, as per the statements by the leaker himself.

These lists, generally kept private – are known as 'bot lists' that are built after hackers scan the Internet and then employed them to connect to the devices and install malware. Sources say that although there have been some leaks in the past, this one is recorded as the biggest leak of Telnet passwords till date.

As per the reports of ZDNet, the list was made available online by one of a DDoS-for-hire (DDoS booter) service's maintainer. There's a probability that some of these devices might now run on a different IP address or use other login credentials as all the leaked lists are dated around October-November 2019. Given that using any of the listed username and password to access any of the devices would be illegal, ZDNet did not use it. Therefore, they were not able to comment on the validity of these credentials.

A security expert in the field of IoT, requesting for anonymity, tells that even if some of the listed credentials are invalid by the time for devices now have a new IP address or password. However, the listings still hold a lot of value for a skillful and talented attacker who can possibly use the present information in the list to identify the service provider and hence update the list with the current IP addresses.

Certain authentic and verified security researchers are given access to the list of credentials as they volunteered for it.

Attacks on IoT devices and WebApps on an extreme rise for the Q3

Ransomware threats and Malware numbers have fallen but are presently more active and dangerous. More than 7.2 Billion virus attacks originated from January to September in the year 2019. Also, 151.9 million ransomware crimes were found.

Important conclusions cover:

  • IoT malware mounted to 25M, a tremendous 33% rise 
  • Encrypted attacks rose to 58% 
  • Web application threats are on the increase, revealing a 37% rise during the same time for last year Malware threats reached 7.2 Billion 
  • Ransomware threats hit 151.9 million 
  • 14% of the malware threats were received from non-standard gates


"The attacks may be dropping down for the moment but the truth is the figures of threats are still extremely high and more dangerous in history. We have reported a rise in geographical threats in America and involving the UK and Germany. The researchers at our lab are also investigating distinct and increasing threat vectors, like surface channel threats and tricks," says The SonicWall Capture Threat Network. “While observing the ransomware range, we also recognize that ransomware attacks tricks have evolved,” says SonicWall CEO and President Bill Conner.

“Earlier, the hackers aimed at the number of viruses but today we are witnessing that hackers concentrate on less more eminent victims for expanding sideways. This change in tricks also witnessed a similar increase in the payment demands through ransomware attacks, as the criminals try to steal high payment from the few, but profitable victims such as hospitals and regional districts." “The evidence reveals that cyber-criminals are becoming better at attacks, more specific and more careful. Companies should be careful and make more stringent safety laws in their institutions to overcome the menaces that our experts have found,” says Conner.

He further adds “we suggest that organizations should adopt a combined and multilayered safety program that gives solid security beyond all systems to avoid being the cover story for cyber attack news”. Phishing threats are matching series with malware and ransomware attacks. However, the attacks are also going down at a rate of 32% each year, a figure that has been the same for most of the time this year.

Hackers Using Smart Devices to Launch Phishing Attack against Russian Business


Cybersecurity experts recorded a unique mass attack on Russian business. It is unique because hackers disguised themselves as well-known brands and used smart devices. This is the first mass attack of this kind.

Hackers presented themselves as representatives of famous brands, including retail chains, construction and oil companies. They sent e-mails with malicious software, in particular, on behalf of the Auchan hypermarket chain, or on behalf of the transnational energy Corporation Gazprom, qualitatively copying their style.

The e-mails contained the encryption virus Shade/Troldesh, it encoded files on users devices and demanded from them a fee for access to them.

Vladimir Dryukov, Director of the Solar JSOC Cyber Attack Monitoring and Response Center, noted that the intensity of this phishing mailing is several times higher than usual. According to him, the attack affected about 50 largest companies in Russia, whose employees received 10-50 letters a day. Group-IB experts recorded up to 2000 mailings per day.

The main feature of these attacks is the use of smart devices, for example, hacked routers around the world, as they are much more difficult to track. In addition, virus emails can be sent from any device that is capable of it, for example, modems, ecosystems of smart homes, network storage. Experts believe that in the future the number of hacker attacks using them will only grow.

"Usually IOT devices are used for DDoS attacks. Sending phishing emails from routers is still exotic, " said Vladimir Dryukov.

It is worth noting that the attacks on Russian companies began in November, but their peak came in February. Which companies were attacked and how much damage was caused to them is not disclosed.