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Researchers Find Massive Increase in Hypervisor Ransomware Incidents


Rise in hypervisor ransomware incidents 

Cybersecurity experts from Huntress have noticed a sharp rise in ransomware incidents on hypervisors and have asked users to be safe and have proper back-up. 

The Huntress case data has disclosed a surprising increase in hypervisor ransomware. It was involved in malicious encryption and rose from a mere three percent in the first half to a staggering 25 percent in 2025. 

Akira gang responsible 

Experts think that the Akira ransomware gang is the primary threat actor behind this, other players are also going after hypervisors to escape endpoint and network security controls. According to Huntress threat hunters, players are going after hypervisors as they are not secure and hacking them can allow hackers to trigger virtual machines and manage networks.

Why hypervisors?

“This shift underscores a growing and uncomfortable trend: Attackers are targeting the infrastructure that controls all hosts, and with access to the hypervisor, adversaries dramatically amplify the impact of their intrusion," experts said. The attack tactic follows classic playbook. Researchers have "seen it with attacks on VPN appliances: Threat actors realize that the host operating system is often proprietary or restricted, meaning defenders cannot install critical security controls like EDR [Endpoint Detection and Response]. This creates a significant blind spot.”

Other instances 

The experts have also found various cases where ransomware actors install ransomware payloads directly via hypervisors, escaping endpoint security. In a few cases, threat actors used built-in-tools like OpenSSL to run encryption of the virtual machine volume without having to upload custom ransomware binaries.

Attack tactic 

Huntress researchers have also found attackers disrupting a network to steal login credentials and then attack hypervisors.

“We’ve seen misuse of Hyper-V management utilities to modify VM settings and undermine security features,” they add. “This includes disabling endpoint defenses, tampering with virtual switches, and preparing VMs for ransomware deployment at scale," they said.

Mitigation strategies 

Due to the high level of attacks on hypervisors, experts have suggested admins to revisit infosec basics such as multi-factor authentication and password patch updates. Admins should also adopt hypervisor-specific safety measures like only allow-listed binaries can run on a host.

For decades, the Infosec community has known hypervisors to be an easy target. In a worst-case scenario of a successful VM evasion where an attack on a guest virtual machine allows hijacking of the host and its hypervisor, things can go further south. If this were to happen, the impact could be massive as the entire hyperscale clouds depend on hypervisors to isolate tenants' virtual systems.

Virtual Machines on Nutanix AHV now in Akira’s Crosshairs; Enterprises must Close Gaps

 



Security agencies have issued a new warning about the Akira ransomware group after investigators confirmed that the operators have added Nutanix AHV virtual machines to their list of targets. This represents a significant expansion of the group’s capabilities, which had already included attacks on VMware ESXi and Microsoft Hyper-V environments. The update signals that Akira is no longer limiting itself to conventional endpoints or common hypervisors and is now actively pursuing a wider range of virtual infrastructure used in large organisations.

Although Akira was first known for intrusions affecting small and medium businesses across North America, Europe and Australia, the pattern of attacks has changed noticeably over the last year. Incident reports now show that the group is striking much larger companies, particularly those involved in manufacturing, IT services, healthcare operations, banking and financial services, and food-related industries. This shift suggests a strategic move toward high-value victims where disruptions can cause substantial operational impact and increase the pressure to pay ransom demands.

Analysts observing the group’s behaviour note that Akira has not simply created a few new variants. Instead, it has invested considerable effort into developing ransomware that functions across multiple operating systems, including Windows and Linux, and across several virtualisation platforms. Building such wide-reaching capability requires long-term planning, and researchers interpret this as evidence that the group aims to remain active for an extended period.


How attackers get into networks 

Investigations into real-world intrusions show that Akira typically begins by taking advantage of weak points in remote access systems and devices connected to the internet. Many victims used VPN systems that lacked multifactor authentication, making them vulnerable to attackers trying common password combinations or using previously leaked credentials. The group has also exploited publicly known vulnerabilities in networking products from major vendors and in backup platforms that had not been updated with security patches.

In addition to these weaknesses, Akira has used targeted phishing emails, misconfigured Remote Desktop Protocol portals, and exposed SSH interfaces on network routers. In some breaches, compromising a router allowed attackers to tunnel deeper into internal networks and reach critical servers, especially outdated backup systems that had not been maintained.

Once inside, the attackers survey the entire environment. They run commands designed to identify domain controllers and trust relationships between systems, giving them a map of how the network is structured. To avoid being detected, they often use remote-access tools that are normally employed by IT administrators, making their activity harder to differentiate from legitimate work. They also disable security software, create administrator-level user accounts for long-term access, and deploy tools capable of running commands on multiple machines at once.


Data theft and encryption techniques 

Akira uses a double-extortion method. The attackers first locate and collect sensitive corporate information, which they compress and transfer out of the network using well-known tools such as FileZilla, WinRAR, WinSCP or RClone. Some investigations show that this data extraction process can be completed in just a few hours. Once the information has been removed, they launch the ransomware encryptor, which uses modern encryption algorithms that are designed to work quickly and efficiently. Over time, the group has changed the file extensions that appear after encryption and has modified the names and placement of ransom notes. The ransomware also removes Windows shadow copies to block easy recovery options.


Why the threat continues to succeed 

Cybersecurity experts point out that Akira benefits from long-standing issues that many organisations fail to address. Network appliances, remote access devices, and backup servers often remain unpatched for months, giving attackers opportunities to exploit vulnerabilities that should have been resolved. These overlooked systems create gaps that remain unnoticed until an intrusion is already underway.


How organisations can strengthen defences 

While applying patches, enabling multifactor authentication, and keeping offline backups remain essential, the recent wave of incidents shows that more comprehensive measures are necessary. Specialists recommend dividing networks into smaller segments to limit lateral movement, monitoring administrator-level activity closely, and extending security controls to backup systems and virtualisation consoles. Organisations should also conduct complete ransomware readiness exercises that include not only technical recovery procedures but also legal considerations, communication strategies, and preparations for potential data leaks.

Security researchers emphasise that companies must approach defence with the same mindset attackers use to find vulnerabilities. Identifying weaknesses before adversaries exploit them can make the difference between a minor disruption and a large-scale crisis.



Akira Ramps up Ransomware Activity With New Variant And More Aggressive Intrusion Methods

 


Akira, one of the most active ransomware operations this year, has expanded its capabilities and increased the scale of its attacks, according to new threat intelligence shared by global security agencies. The group’s operators have upgraded their ransomware toolkit, continued to target a broad range of sectors, and sharply increased the financial impact of their attacks.

Data collected from public extortion portals shows that by the end of September 2025 the group had claimed roughly 244.17 million dollars in ransom proceeds. Analysts note that this figure represents a steep rise compared to estimates released in early 2024. Current tracking data places Akira second in overall activity among hundreds of monitored ransomware groups, with more than 620 victim organisations listed this year.

The growing number of incidents has prompted an updated joint advisory from international cyber authorities. The latest report outlines newly observed techniques, warns of the group’s expanded targeting, and urges all organisations to review their defensive posture.

Researchers confirm that Akira has introduced a new ransomware strain, commonly referenced as Akira v2. This version is designed to encrypt files at higher speeds and make data recovery significantly harder. Systems affected by the new variant often show one of several extensions, which include akira, powerranges, akiranew, and aki. Victims typically find ransom instructions stored as text files in both the main system directory and user folders.

Investigations show that Akira actors gain entry through several familiar but effective routes. These include exploiting security gaps in edge devices and backup servers, taking advantage of authentication bypass and scripting flaws, and using buffer overflow vulnerabilities to run malicious code. Stolen or brute forced credentials remain a common factor, especially when multi factor authentication is disabled.

Once inside a network, the attackers quickly establish long-term access. They generate new domain accounts, including administrative profiles, and have repeatedly created an account named itadm during intrusions. The group also uses legitimate system tools to explore networks and identify sensitive assets. This includes commands used for domain discovery and open-source frameworks designed for remote execution. In many cases, the attackers uninstall endpoint detection products, change firewall rules, and disable antivirus tools to remain unnoticed.

The group has also expanded its focus to virtual and cloud based environments. Security teams recently observed the encryption of virtual machine disk files on Nutanix AHV, in addition to previous activity on VMware ESXi and Hyper-V platforms. In one incident, operators temporarily powered down a domain controller to copy protected virtual disk files and load them onto a new virtual machine, allowing them to access privileged credentials.

Command and control activity is often routed through encrypted tunnels, and recent intrusions show the use of tunnelling services to mask traffic. Authorities warn that data theft can occur within hours of initial access.

Security agencies stress that the most effective defence remains prompt patching of known exploited vulnerabilities, enforcing multi factor authentication on all remote services, monitoring for unusual account creation, and ensuring that backup systems are fully secured and tested.



Akira Ransomware Bypasses MFA in Ongoing Attacks on SonicWall SSL VPN Devices

 

The Akira ransomware group continues to evolve its attacks on SonicWall SSL VPN devices, with researchers warning that the threat actors are managing to log into accounts even when one-time password (OTP) multi-factor authentication (MFA) is enabled. Cybersecurity firm Arctic Wolf reported that attackers appear to be exploiting previously stolen OTP seeds or a similar method to bypass MFA, though the exact technique remains unclear. 

Earlier this year, Akira was observed exploiting SonicWall SSL VPN devices to breach corporate networks. Initially, researchers suspected a zero-day vulnerability was involved. However, SonicWall later attributed the incidents to an improper access control flaw identified as CVE-2024-40766, disclosed in September 2024. The flaw had been patched in August 2024, but attackers continued to exploit stolen credentials from compromised devices even after updates were applied. SonicWall advised administrators to reset all VPN credentials and update to the latest SonicOS firmware.  

The latest Arctic Wolf findings reveal a persistent campaign in which multiple OTP challenges were triggered before successful logins, implying that attackers may be generating valid OTP tokens using previously harvested OTP seeds. The company confirmed that these logins were linked to devices affected by CVE-2024-40766, suggesting that stolen credentials remain a key entry point.

In a related investigation, Google’s Threat Intelligence Group (GTIG) observed a similar campaign in July, where a financially motivated group known as UNC6148 deployed the OVERSTEP rootkit on SonicWall SMA 100 series appliances. GTIG assessed that the attackers were using stolen one-time password seeds from earlier zero-day intrusions, allowing continued access even after organizations patched their systems. 

Once Akira gained access to networks, the attackers moved rapidly, often initiating internal scans within minutes. According to Arctic Wolf, they used Impacket SMB session requests, Remote Desktop Protocol (RDP) logins, and Active Directory enumeration tools like dsquery, SharpShares, and BloodHound to expand their reach. A major focus was on Veeam Backup & Replication servers, where a custom PowerShell script extracted and decrypted stored MSSQL and PostgreSQL credentials. 

To disable endpoint protection, Akira affiliates executed a Bring-Your-Own-Vulnerable-Driver (BYOVD) attack, using Microsoft’s legitimate consent.exe executable to sideload malicious DLLs that deployed vulnerable drivers such as rwdrv.sys and churchill_driver.sys. These drivers were then used to terminate security processes, enabling the ransomware to encrypt systems undetected. 

The report notes that some compromised systems were running SonicOS 7.3.0, the very version recommended by SonicWall to mitigate such attacks. Security experts urge all administrators to reset VPN credentials and review access logs on any devices that previously used vulnerable firmware, as threat actors may still exploit stolen data to infiltrate networks.

German Mobile Insurance Giant Falls After Devastating Ransomware Attack

 



A cyberattack has brought down one of Germany’s largest phone insurance and repair networks, forcing the once-thriving Einhaus Group into insolvency. The company, which at its peak generated around €70 million in annual revenue and partnered with big names such as Deutsche Telekom, Cyberport, and 1&1, has been unable to recover from the financial and operational chaos that followed the attack.


The Day Everything Stopped

In March 2023, founder Wilhelm Einhaus arrived at the company’s offices to an unsettling sight. Every printer had churned out the same note: “We’ve hacked you. All further information can be found on the dark web.” Investigations revealed the work of the hacking group known as “Royal.” They had infiltrated the company’s network, encrypting all of its core systems, the very tools needed to process claims, manage customer data, and run daily operations.

Without these systems, business ground to a halt. The hackers demanded around $230,000 in Bitcoin to unlock the computers. Facing immediate and heavy losses, and with no way to operate manually at the same scale, Einhaus Group reportedly agreed to pay. The financial damage, however, was already severe, estimated in the multi-million-euro range. Police were brought in early, but the payment decision was made to avoid even greater harm.


Desperate Measures to Stay Afloat

Before the attack, the company employed roughly 170 people. Within months, more than 100 positions were cut, leaving only eight employees to handle all ongoing work. With so few staff, much of the processing had to be done by hand, slowing operations dramatically.

To raise funds, the company sold its headquarters and liquidated various investments. These moves bought time but did not restore the business to its former state.


Seized Ransom, But No Relief

In a twist, German authorities later apprehended three suspects believed to be linked to the “Royal” group. They also seized cryptocurrency valued in the high six-figure euro range, suspected to be connected to the ransom payments.

However, Einhaus Group has not received its money back. Prosecutors have refused to release the seized funds until investigations are complete — a process that could take years. Other ransomware victims in Germany are in the same position, with no guarantee they will ever recover the full amount.


Final Stages of the Collapse

Three separate companies tied to the Einhaus Group have now formally entered insolvency proceedings. While liquidation is a strong possibility, founder Wilhelm Einhaus, now 72, insists he has no plans to retire. If the business is dissolved, he says he will start again from scratch.

The Einhaus case is not unique. Just recently, the UK’s 158-year-old transport company Knights of Old collapsed after a ransomware attack by a group known as “Akira,” leaving 700 people jobless. Cyberattacks are increasingly proving fatal to established businesses not just through stolen data, but by dismantling the very infrastructure needed to survive.


Hitachi Vantara Takes Servers Offline Following Akira Ransomware Attack

 

Hitachi Vantara, a subsidiary of Japan's Hitachi conglomerate, temporarily shut down several servers over the weekend after falling victim to a ransomware incident attributed to the Akira group.

The company, known for offering data infrastructure, cloud operations, and cyber resilience solutions, serves government agencies and major global enterprises like BMW, Telefónica, T-Mobile, and China Telecom.

In a statement to BleepingComputer, Hitachi Vantara confirmed the cyberattack and revealed it had brought in external cybersecurity specialists to assess the situation. The company is now working to restore all affected systems.

“On April 26, 2025, Hitachi Vantara experienced a ransomware incident that has resulted in a disruption to some of our systems," Hitachi Vantara told BleepingComputer.

"Upon detecting suspicious activity, we immediately launched our incident response protocols and engaged third-party subject matter experts to support our investigation and remediation process. Additionally, we proactively took our servers offline in order to contain the incident.

We are working as quickly as possible with our third-party subject matter experts to remediate this incident, continue to support our customers, and bring our systems back online in a secure manner. We thank our customers and partners for their patience and flexibility during this time."

Although the company has not officially attributed the breach to any specific threat actor, BleepingComputer reports that sources have linked the attack to the Akira ransomware operation. Insiders allege that the attackers exfiltrated sensitive data and left ransom notes on infiltrated systems.

While cloud services remained unaffected, sources noted that internal platforms at Hitachi Vantara and its manufacturing arm experienced disruption. Despite these outages, clients operating self-hosted systems are still able to access their data.

A separate source confirmed that several government-led initiatives have also been impacted by the cyberattack.

Akira ransomware first appeared in March 2023 and swiftly became notorious for targeting a wide range of sectors worldwide. Since its emergence, the group has reportedly compromised more than 300 organizations, including high-profile names like Stanford University and Nissan (in Oceania and Australia).

The FBI estimates that Akira collected over $42 million in ransom payments by April 2024 after infiltrating over 250 organizations. According to chat logs reviewed by BleepingComputer, the gang typically demands between $200,000 and several million dollars, depending on the scale and sensitivity of the targeted entity.

Keywords: ransomware, cybersecurity, Hitachi, Akira, cloud, breach, data, FBI, malware, attack, encryption, extortion, hacking, disruption, recovery, infrastructure, digital, protection

Cybercriminals Are Now Focusing More on Stealing Credentials Than Using Ransomware, IBM Warns

 



A new report from IBM’s X-Force 2025 Threat Intelligence Index shows that cybercriminals are changing their tactics. Instead of mainly using ransomware to lock systems, more hackers are now trying to quietly steal login information. IBM studied over 150 billion security events each day from 130+ countries and found that infostealers, a type of malware sent through emails to steal data, rose by 84% in 2024 compared to 2023.

This change means that instead of damaging systems right away, attackers are sneaking into networks to steal passwords and other sensitive information. Mark Hughes, a cybersecurity leader at IBM, said attackers are finding ways into complex cloud systems without making a mess. He also advised businesses to stop relying on basic protection methods. Instead, companies should improve how they manage passwords, fix weaknesses in multi-factor authentication, and actively search for hidden threats before any damage happens.

Critical industries such as energy, healthcare, and transportation were the main targets in the past year. About 70% of the incidents IBM helped handle involved critical infrastructure. In around 25% of these cases, attackers got in by taking advantage of known flaws in systems that had not been fixed. Many hackers now prefer stealing important data instead of locking it with ransomware. Data theft was the method in 18% of cases, while encryption-based attacks made up only 11%.

The study also found that Asia and North America were attacked the most, together making up nearly 60% of global incidents. Asia alone saw 34% of the attacks, and North America had 24%. Manufacturing businesses remained the top industry targeted for the fourth year in a row because even short outages can seriously hurt their operations.

Emerging threats related to artificial intelligence (AI) were also discussed. No major attacks on AI systems happened in 2024, but experts found some early signs of possible risks. For example, a serious security gap was found in a software framework used to create AI agents. As AI technology spreads, hackers are likely to build new tools to attack these systems, making it very important to secure AI pipelines early.

Another major concern is the slow pace of fixing vulnerabilities in many companies. IBM found that many Red Hat Enterprise Linux users had not updated their systems properly, leaving them open to attacks. Also, ransomware groups like Akira, Lockbit, Clop, and RansomHub have evolved to target both Windows and Linux systems.

Lastly, phishing attacks that deliver infostealers increased by 180% in 2024 compared to the year before. Even though ransomware still accounted for 28% of malware cases, the overall number of ransomware incidents fell. Cybercriminals are clearly moving towards quieter methods that focus on stealing identities rather than locking down systems.


Ransomware Group Uses Unpatched Webcams to Deploy Attacks

 

A recent cybersecurity report by S-RM has revealed a new tactic used by the Akira ransomware group, demonstrating their persistence in bypassing security defenses. When their initial attempt to deploy ransomware was blocked by an endpoint detection and response (EDR) tool, the attackers shifted their focus to an unexpected network device—a webcam. 

This strategy highlights the evolving nature of cyber threats and the need for organizations to secure all connected devices. The attack began with the use of remote desktop protocol (RDP) to access a target’s server. When the group attempted to deploy a ransomware file, the victim’s EDR successfully detected and neutralized the threat. However, rather than abandoning the attack, the adversaries conducted a network search and identified other connected devices, including a fingerprint scanner and a camera. The camera was an ideal entry point because it was unpatched, ran a Linux-based operating system capable of executing commands, and had no installed EDR solution. 

Exploiting these vulnerabilities, the attackers used the camera to deploy ransomware via the Server Message Block (SMB) protocol, which facilitates file and resource sharing between networked devices. According to cybersecurity experts, this kind of attack is difficult to defend against because it targets overlooked devices. Rob T. Lee, chief of research at the SANS Institute, compared detecting such threats to “finding a needle in a haystack.” The attack underscores how cybercriminals are constantly adapting, looking for the weakest points in a network to infiltrate and execute their malicious operations. 

The Akira ransomware group has gained traction following law enforcement takedowns of major ransomware organizations like AlphV and LockBit. S-RM reported that Akira accounted for 15% of the cyber incidents it analyzed, and in January 2024, CISA confirmed that the group had impacted over 250 organizations, extorting approximately $42 million in ransom payments. Ransom demands from Akira typically range from $200,000 to $4 million. The growing threat to internet of things (IoT) devices is further supported by data from Zscaler, which blocked 45% more IoT malware transactions between June 2023 and May 2024. 

Devices such as webcams, e-readers, and routers are particularly vulnerable due to outdated software and poor security practices. To mitigate risks, cybersecurity experts recommend several best practices for securing IoT devices. Organizations should place IoT devices on restricted networks that prevent unauthorized access from workstations or servers. Unused devices should be turned off, networked devices should be regularly audited, and software patches must be applied promptly. Additionally, changing default passwords on IoT devices is essential to prevent unauthorized access. 

Cybercriminals are continuously thinking outside the box to exploit vulnerabilities, and security professionals must do the same to defend against emerging threats. If attackers can compromise a webcam, they could potentially target more complex systems, such as industrial machinery or medical devices. As ransomware groups evolve, staying ahead of their tactics is crucial for safeguarding sensitive data and preventing costly breaches.