The US Securities and Exchange Commission fined four major technology companies-Unisys Corp, Avaya Holdings, Check Point Software, and Mimecast—for allegedly downplaying the severity of the cybersecurity risks they faced as a result of the notorious SolarWinds hack. The companies have been accused of giving misleading information to investors regarding the severity of breaches connected with the attack on SolarWinds Orion software in 2020.
Companies Made Deceptive Filings
The companies that had engaged in either direct or indirect deception of the extent and effect of the attacks to the investors. Settlement has been reached by these companies and they will have to pay civil penalties that include $4 million to be paid by Unisys, $1 million by Avaya, Check Point Software with a $995,000 penalty and $990,000 is payable by Mimecast.
The SEC said the companies knew their systems were compromised due to unauthorised access after the SolarWinds hack but reportedly downplayed the impact in public statements. For example, Unisys reportedly described cybersecurity risks as "theoretical," even when it confirmed two data breaches tied to the SolarWinds hack which exfiltrated gigabytes of data. Equally, Avaya apparently downplayed the severity of the breach when it revealed limited access to its email messages while investigators found that at least 145 files in its cloud storage were compromised.
Particular Findings on Each Company
1. Unisys Corp: The SEC noted that Unisys failed to disclose fully the nature of its cybersecurity risks even after it had suffered massive data exfiltration. Apparently, the company's public disclosures tagged such risks as "theoretical".
2. Avaya Holdings: Avaya allegedly made false statements as it reported that the minimal amount of e-mail messages has been accessed when actually, there is abundant evidence that access is further extensive to some files held in the cloud.
3. Check Point Software: The SEC charges that Check Point was conscious of the hack and used ambiguous language in order to downplay the severity of the attack, conceivably, therefore leaving investors under informed of the actual degree of the hack.
4. Mimecast: The SEC found that Mimecast had made major omissions in its disclosure, including failure to disclose the specific code and number of encrypted credentials accessed by hackers.
Background on the SolarWinds Breach
Another notably recent cyberattack is attributed to the Russian-linked group APT29, also known as the SVR, behind the SolarWinds hack. In 2019, malicious actors gained unauthorised access to the SolarWinds Orion software platform, releasing malicious updates between March and June 2020, that installed malware, such as the Sunburst backdoor in "fewer than 18,000" customer instances, though fewer were targeted for deeper exploitation.
Subsequently, many U.S. government agencies and also huge companies confirmed that they were hacked into during this breach. These include Microsoft, cybersecurity company FireEye, the Department of State, the Department of Homeland Security, the Department of Energy, the National Institutes of Health, and the National Nuclear Security Administration.
SEC's Stance on Transparency
The charges and fines by the SEC also serve as a warning to public companies to become transparent concerning security incidents that have affected the trust of their investors. The four companies thus settle on not having done anything wrong, but they experience considerable penalties that indicate how hard the SEC will be in holding organisations responsible to provide fair information about cybersecurity risk issues and incident concerns.
It, therefore, calls for tech firms to provide better information on cybersecurity issues as both investors and consumers continue to face increasingly complex and pervasive cyber threats.
During the latest wave of cyberattacks, foreign embassies have been the target of a malicious group known as APT29. They have employed a highly complex attack method that takes advantage of weaknesses in WinRAR, a widely used file compression software. There have been shockwaves throughout the cybersecurity world due to this worrisome disclosure, leading to immediate action to strengthen digital defenses.
According to reports from cybersecurity experts, APT29 has ingeniously employed the NGROK feature in conjunction with a WinRAR exploit to infiltrate embassy networks. The NGROK service, designed for secure tunneling to localhost, has been repurposed by hackers to conceal their malicious activities, making detection and attribution a formidable challenge.
WinRAR, a widely used application for compressing and decompressing files, has been targeted due to a specific vulnerability, identified as CVE-2023-38831. This flaw allows the attackers to execute arbitrary code on the targeted systems, giving them unfettered access to sensitive information stored within embassy networks.
The attacks, initially discovered by cybersecurity researchers, have been corroborated by the Ukrainian National Security and Defense Council (RNBO). Their November report outlines the APT29 campaigns, shedding light on the extent of the damage inflicted by these cyber intruders.
The fact that foreign embassies are specifically being targeted by this onslaught is very disturbing. Because these organizations handle so much private, political, and diplomatic data, they are often the focus of state-sponsored cyber espionage. The attackers' capacity to take advantage of flaws in popular software, such as WinRAR, emphasizes the necessity of constant watchfulness and timely software updates to reduce any threats.
Cybersecurity professionals advise companies, particularly those in delicate industries like diplomacy, to conduct extensive security assessments, quickly fix holes, and strengthen their defenses against ever-evolving cyber attacks in reaction to these disclosures. The APT29 attacks highlight the significance of a multi-pronged cybersecurity strategy that incorporates advanced threat detection methods, personnel awareness training, and strong software security procedures.
International cybersecurity organizations must work together as governments struggle with the ever-changing world of cyber threats. The APT29 attacks are a sobering reminder that the digital sphere has turned into a combat zone and that, in order to preserve diplomatic relations and maintain national interests, defense against such threats necessitates a united front.
The attackers behind the Solar Winds supply chain attack APT29 are back and have included a latest weapon to their attack inventory. Known as MagicWeb, a post compromise capability, it is used to keep continuous access to breached environments and moves laterally.
Experts at Microsoft noticed the Russia-backed Nobelium APT using the backdoor after gaining administrative rights to an Active Directory Federated Services (AD FS) server.
With the help of privileged access, the hackers change a genuine DLL with the malicious MagicWeb DLL, to load the malware with AD FS and make it look legitimate.
Similar to domain controllers, AD FS servers can verify users. MagicWeb enables this on the behalf of hackers by letting the manipulation of the claims that pass through verification tokens generated by an AD FS server, therefore, they can verify as any user on the system.
As per Microsoft, MagicWeb is a better version of the earlier used FoggyWeb tool, which also makes a steady foothold inside the target networks.
Researchers at Microsoft say that MagicWeb goes beyond the collection capabilities of FoggyWeb by facilitating covert access directly. It manipulates the user authentication certificates used for authentication, not the signing certificates used in attacks like Golden SAML.
In the report, Microsoft mentioned that the hackers are targeting corporate networks with the latest verification technique MagicWeb. It is highly sophisticated and allows hackers to take control of the victim's network even after the defender tries to eject them.
We should also note that the hackers are not depending on supply chain attacks, this time, they are exploiting admin credentials to execute MagicWeb.
The backdoor secretly adds advanced access capability so that the threat actors can execute different exploits other than stealing data. For example, the threat actor can log in to the device's Active Director as any user.
A lot of cybersecurity agencies have found sophisticated tools, this includes backdoors used by SolarWinds' hackers, among which MagicWeb is the latest one discovered and identified by Microsoft.
To stay safe from such attacks Microsoft recommends "practicing credential hygiene is critical for protecting and preventing the exposure of highly privileged administrator accounts. This especially applies on more easily compromised systems like workstations with controls like logon restrictions and preventing lateral movement to these systems with controls like the Windows Firewall."