Based on analysis by Slovakian cybersecurity firm ESET, CosmicBeetle’s skills as malware developers are relatively immature. This inexperience has led to chaotic encryption schemes, with one victim’s machines being encrypted multiple times. Such issues complicate the decryption process, making it unreliable for victims to restore their data, even if they comply with ransom demands. Unlike well-established ransomware groups that focus on making the decryption process smoother to encourage payment, CosmicBeetle’s flawed approach undermines its effectiveness, leaving victims in a state of uncertainty.
Interestingly, the group has attempted to boost its reputation by implying ties to the infamous LockBit group, a well-known and more sophisticated ransomware operation. However, these claims seem to be a tactic to appear more credible to their victims. CosmicBeetle has also joined the RansomHub affiliate program, which allows them to distribute third-party ransomware, likely as an attempt to strengthen their attack strategies. The group primarily targets outdated and unpatched software, especially in SMBs with limited cybersecurity infrastructure. They exploit known vulnerabilities in Veeam Backup & Replication and Microsoft Active Directory.
While CosmicBeetle doesn’t specifically focus on SMBs, their choice of software vulnerabilities makes smaller organizations, which often lack robust patch management, easy targets. According to ESET, businesses in sectors such as manufacturing, pharmaceuticals, education, healthcare, and legal industries are particularly vulnerable. CosmicBeetle’s attacks are opportunistic, scanning for weak spots in various sectors where companies might not have stringent security measures in place. Turkey, in particular, has seen a high concentration of CosmicBeetle’s attacks, suggesting that the group may be operating from within the region.
However, organizations in Spain, India, and South Africa have also been affected, illustrating the group’s global reach. CosmicBeetle’s focus on exploiting older vulnerabilities demonstrates the need for businesses to prioritize patching and updating their systems regularly. One key issue with CosmicBeetle’s operations is the immaturity of their ransomware development. Unlike more experienced cybercriminals, CosmicBeetle’s encryption tool is in a constant state of flux, making it unreliable for victims. While ESET has been able to verify that the decryption tool technically works, its rapid and frequent updates leave victims uncertain whether they can fully recover their data. To reduce the risk of falling victim to such attacks, SMBs must prioritize several cybersecurity measures.
First and foremost, regular software updates and patch management are essential. Vulnerabilities in widely used platforms like Veeam Backup and Microsoft Active Directory must be addressed promptly. Businesses should also invest in employee cybersecurity training, emphasizing the importance of recognizing phishing attacks and suspicious links. In addition to these basic cybersecurity practices, companies should back up their data regularly and have robust incident response plans. Having a reliable backup strategy can mitigate the damage in the event of a ransomware attack, ensuring that data can be restored without paying the ransom. Companies should also invest in cybersecurity solutions that monitor for unusual network activity, providing early warning signs of potential breaches.
