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U.S. Pauses Offensive Cyberoperations Against Russia Amid Security Concerns

 

Defense Secretary Pete Hegseth has paused offensive cyberoperations against Russia by U.S. Cyber Command, rolling back some efforts to contend with a key adversary even as national security experts call for the U.S. to expand those capabilities. A U.S. official, speaking on condition of anonymity to discuss sensitive operations, on Monday confirmed the pause. 

Hegseth’s decision does not affect cyberoperations conducted by other agencies, including the CIA and the Cybersecurity and Infrastructure Security Agency. But the Trump administration also has rolled back other efforts at the FBI and other agencies related to countering digital and cyber threats. The Pentagon decision, which was first reported by The Record, comes as many national security and cybersecurity experts have urged greater investments in cyber defense and offense, particularly as China and Russia have sought to interfere with the nation’s economy, elections and security. 

Republican lawmakers and national security experts have all called for a greater offensive posture. During his Senate confirmation hearing this year, CIA Director John Ratcliffe said America’s rivals have shown that they believe cyberespionage — retrieving sensitive information and disrupting American business and infrastructure — to be an essential weapon of the modern arsenal. “I want us to have all of the tools necessary to go on offense against our adversaries in the cyber community,” Ratcliffe said. Cyber Command oversees and coordinates the Pentagon’s cybersecurity work and is known as America’s first line of defense in cyberspace. It also plans offensive cyberoperations for potential use against adversaries. 

Hegseth’s directive arrived before Friday’s dustup between President Donald Trump and Ukrainian President Volodymyr Zelenskyy in the Oval Office. It wasn’t clear if the pause was tied to any negotiating tactic by the Trump administration to push Moscow into a peace deal with Ukraine. Trump has vowed to end the war that began when Russia invaded Ukraine three years ago, and on Monday he slammed Zelenskyy for suggesting the end to the conflict was “far away.” 

The White House did not immediately respond to questions about Hegseth's order. Cyber warfare is cheaper than traditional military force, can be carried out covertly and doesn’t carry the same risk of escalation or retaliation, making it an increasingly popular tool for nations that want to contend with the U.S. but lack the traditional economic or military might, according to Snehal Antani, CEO of Horizon3.ai, a San Francisco-based cybersecurity firm founded by former national security officers. Cyberespionage can allow adversaries to steal competitive secrets from American companies, obtain sensitive intelligence or disrupt supply chains or the systems that manage dams, water plants, traffic systems, private companies, governments and hospitals. The internet has created new battlefields, too, as nations like Russia and China use disinformation and propaganda to undermine their opponents. 

Artificial intelligence now makes it easier and cheaper than ever for anyone — be it a foreign nation like Russia, China or North Korea or criminal networks — to step up their cybergame at scale, Antani said. Fixing code, translating disinformation or identifying network vulnerabilities once required a human — now AI can do much of it faster. “We are entering this era of cyber-enabled economic warfare that is at the nation-state level,” Antani said. “We’re in this really challenging era where offense is significantly better than defense, and it’s going to take a while for defense to catch up.” Meanwhile, Attorney General Pam Bondi also has disbanded an FBI task force focused on foreign influence campaigns, like those Russia used to target U.S. elections in the past. And more than a dozen people who worked on election security at the Cybersecurity and Infrastructure Security Agency were put on leave. 

These actions are leaving the U.S. vulnerable despite years of evidence that Russia is committed to continuing and expanding its cyber efforts, according to Liana Keesing, campaigns manager for technology reform at Issue One, a nonprofit that has studied technology’s impact on democracy. “Instead of confronting this threat, the Trump administration has actively taken steps to make it easier for the Kremlin to interfere in our electoral processes,” Keesing said.

Sitting Ducks DNS Attack Hijack 35,000 Domains

 

Cybersecurity researchers have uncovered a significant threat affecting the internet's Domain Name System (DNS) infrastructure, known as the "Sitting Ducks" attack. This sophisticated method allows cybercriminals to hijack domains without needing access to the owner's account at the DNS provider or registrar. 

Researchers from DNS security firm Infoblox and hardware protection company Eclypsium revealed that more than one million domains are vulnerable to this attack daily. This has resulted in over 35,000 confirmed domain hijackings, primarily due to poor domain verification practices by DNS providers. The Sitting Ducks attack exploits misconfigurations at the registrar level and insufficient ownership verification. Attackers leverage these vulnerabilities to take control of domains through "lame" delegations, making the hijacking process more effective and harder to detect. 

Once in control, these hijacked domains are used for malware distribution, phishing, brand impersonation, and data theft. Russian threat actors have been particularly active, with twelve known cyber-gangs using this method since 2018 to seize at least 35,000 domains. These attackers often view weak DNS providers as "domain lending libraries," rotating control of compromised domains every 30-60 days to avoid detection. 

The Sitting Ducks attack has been exploited by several cybercriminal groups. "Spammy Bear" hijacked GoDaddy domains in late 2018 for spam campaigns. "Vacant Viper" began using Sitting Ducks in December 2019, hijacking 2,500 domains yearly for the 404TDS system to distribute the IcedID malware and set up command and control (C2) domains. "VexTrio Viper" started using the attack in early 2020, employing the hijacked domains in a massive traffic distribution system (TDS) that supports the SocGholish and ClearFake operations. 

Additionally, several smaller and unknown actors have used Sitting Ducks to create TDS, spam distribution, and phishing networks. Despite the Sitting Ducks attack being reported in 2016, the vulnerability remains largely unresolved. This highlights the critical yet often neglected aspect of DNS security within broader cybersecurity efforts. 

To effectively combat this pressing cybersecurity threat, a collaborative effort is essential involving domain holders, DNS providers, registrars, regulatory bodies, and the broader cybersecurity community. Infoblox and Eclypsium are playing a crucial role by partnering with law enforcement agencies and national Computer Emergency Response Teams (CERTs) to mitigate and diminish the impact of this critical security issue.

Ukraine Hacks ATMs Across Russia in Massive Cyberattack



On July 23, 2024, a massive cyberattack launched by Ukrainian hackers targeted Russian financial institutions, disrupting ATM services across the country. According to a source within Ukrainian intelligence, the attack is “gaining momentum” as it continues to cripple banking services. By July 27, the fifth day of the cyberattack, customers of several prominent Russian banks found themselves unable to withdraw cash. When attempting to use ATMs, their debit and credit cards were immediately blocked, leaving them stranded without access to their funds. 

The intelligence source, who provided written comments to the Kyiv Post, indicated that the attack had affected numerous banks, including Dom.RF, VTB Bank, Alfa-Bank, Sberbank, Raiffeisen Bank, RSHB Bank, Rosbank, Gazprombank, Tinkoff Bank, and iBank. The widespread disruption has caused significant inconvenience for customers and highlighted vulnerabilities within Russia’s financial infrastructure. The source in Ukrainian intelligence mocked the situation, suggesting that the Kremlin’s long-desired “import substitution” might now include reverting to wooden abacuses, paper savings books, and cave paintings for accounting. 

This remark underscores the scale of the disruption and the potential for outdated methods to replace modern financial technologies temporarily. The cyberattack represents a significant escalation in the ongoing cyber conflict between Ukraine and Russia. While cyberattacks have been frequent on both sides, the targeting of ATM services and the subsequent blocking of debit and credit cards mark a notable shift towards directly impacting ordinary citizens’ daily lives. This attack not only disrupts financial transactions but also instills a sense of insecurity and distrust in the reliability of banking systems. 

The list of affected banks reads like a who’s who of Russia’s financial sector, including both state-owned and private institutions. The inability to withdraw cash from ATMs during the attack has put pressure on these banks to quickly resolve the issues and restore normal services to their customers. However, the continued nature of the cyberattack suggests that solutions may not be forthcoming in the immediate future. The Ukrainian hackers’ ability to sustain such a large-scale cyberattack over several days indicates a high level of coordination and technical expertise. It also raises questions about the preparedness and resilience of Russian banks’ cybersecurity measures. 

As the attack progresses, it is likely that both sides will escalate their cyber capabilities, leading to further disruptions and countermeasures. The broader implications of this cyberattack are significant. It highlights the increasingly blurred lines between cyber warfare and traditional warfare, where digital attacks can cause real-world consequences. The disruption of banking services serves as a stark reminder of how dependent modern societies are on digital infrastructure and the potential vulnerabilities that come with it. 

In response to the ongoing cyberattack, Russian banks will need to bolster their cybersecurity defenses and develop contingency plans to mitigate the impact of such attacks in the future. Additionally, international cooperation and dialogue on cybersecurity norms and regulations will be crucial in preventing and responding to similar incidents on a global scale. As the situation develops, the cyber conflict between Ukraine and Russia will likely continue to evolve, with both sides seeking to leverage their technological capabilities to gain an advantage. The ongoing cyberattack on Russian ATMs is a clear demonstration of the disruptive potential of cyber warfare and the need for robust cybersecurity measures to protect critical infrastructure.

Hamilton City's Network is the Latest Casualty of the Global Cyberwar.

 

The attack that took down a large portion of the City of Hamilton's digital network is only the latest weapon in a global fight against cybersecurity, claims one of Canada's leading cybersecurity experts. 

Regarding the unprecedented attack on the municipality's network that affected emergency services operations, the public library website, and the phone lines of council members, not much has been stated by city officials. Although the specifics of the Sunday incident are yet unknown, Charles Finlay, executive director of Rogers Cybersecure Catalyst, believes that the attack is a part of a larger campaign against a shadow firm that is determined to steal money and data. 

“I don't think that the average citizen of Hamilton or any other city, fully understands what's at play here,” Finlay stated. “Our security services certainly are, but I don't think the average citizen is aware of the fact that institutions in Canada, including Hamilton, are at the front lines of what amounts to a global cybersecurity conflict.” 

On Sunday, city hall revealed service delays caused by what it later described as a "cybersecurity incident" that had far-reaching consequences for the city's network and related services. 

The specifics of what took place, however, remain unknown as local officials maintain a cloak of secrecy. So far, the city has refused to divulge the amount of the damage or how affected departments are operating. Emergency services are described as "operational," with some activities now being completed "manually," but officials refuse to disclose specifics.

The city also refuses to reveal whether sensitive data was stolen or is being held ransom.

According to Vanessa Iafolla of Halifax-based Anti-Fraud Intelligence Consulting, a municipality may prefer to delay reporting the extent of the harm in order to preserve an impression of security and control. 

Finlay and Iafolla said they can only speculate about what transpired because city hall hasn't provided any information. However, given the available details and the consequences of other institutions' attacks, a ransomware attack is a realistic possibility. 

A ransomware assault is one in which malicious software is installed on a network, allowing users to scan and grab sensitive data. In the case of the city, Iafolla could refer to personal information on employees and citizens, such as social insurance numbers and other identifying information.

“It's a safe bet that whatever they took is likely of real financial value,” concluded Iafolla. “It's difficult to speculate exactly what may have been taken, but I would be pretty confident in thinking whatever it is, is going to be a hot commodity.”

Pro-Palestinian Hacktivists Reportedly Employ Crucio Ransomware

 

In a recent development, a newly emerged pro-Palestine hacking collective identifying itself as the 'Soldiers of Solomon' has claimed responsibility for infiltrating more than 50 servers, security cameras, and smart city management systems located within the Nevatim Military area.

According to the group's statement, they employed a ransomware strain dubbed 'Crucio,' hinting at a possible utilization of Ransomware-as-a-Service. Additionally, they assert to have gained access to an extensive cache of data amounting to a staggering 25 terabytes.

In an unconventional public relations move, the Soldiers of Solomon disseminated this information via email to multiple threat intelligence firms, including Falconfeeds, alongside other influential entities actively engaged on Twitter.

To substantiate their claims, the group supplied visual evidence obtained from the breached CCTV systems, as well as images showcasing altered desktop wallpapers bearing their statement, as per Falconfeeds.

The year 2023 has witnessed a resurgence of hostilities between Israel and Palestine, culminating in a full-scale armed conflict. The longstanding discord between the two nations, which traces back to the early 20th century, has witnessed significant escalations since 2008. 

Reports indicate that while the 2014 conflict was marked by unprecedented devastation, the 2023 altercation raises concerns about an even higher casualty count.

The conflict zone in Gaza has become a focal point for retaliatory strikes from both hacktivist groups and Threat Actors (TAs), a trend anticipated given similar patterns observed since 2012. 

Cyberattacks have increasingly become complementary strategies within the context of contemporary warfare, a phenomenon noted even prior to the onset of the Russia-Ukraine conflict in early 2022.

Additionally, Cyble Research & Intelligence Labs (CRIL) has been meticulously curating intelligence amidst the fog of cyber-attacks, monitoring the activities of hacktivists and various threat actors to discern noteworthy developments in the cyber theatre. They have observed a diverse array of malicious techniques being employed by hacktivists and threat actors to exploit vulnerabilities in critical infrastructures and disrupt their operations.

Deepfakes: A Rising Threat to Cybersecurity and Society

 

The late NBA player Kobe Bryant appeared in the music video for Kendrick Lamar's song "The Heart Part 5", which stunned the audience. Deepfake technology was employed in the video to pay tribute to the late legend. 

Deepfakes are images and videos that have been altered with advanced deep learning technologies such as autoencoders or generative adversarial networks.

With the support of deepfake technology, realistic yet manipulated media assets can be easily generated. However, deepfake technology is deceptive. The technology is utilised in virtual reality, video games, and filmmaking, but it might also be used as a weapon in cyberwarfare, the fifth dimension of warfare. Additionally, it can be used to share false information to influence public opinion along with political agendas.

Cybercrime is on the rise as the internet's global penetration grows. According to the National Crime Records Bureau, there were around 50,000 incidents of cybercrime in 2020. The national capital witnessed a 111% increase in cybercrime in 2021 compared to 2020 as reported by NCRB.

The majority of these incidents involved online fraud, online sexual harassment, and the release of private content, among other things. Deepfake technology may lead to an increase in such incidents that are weaponized for financial gain. 

Notably, the technology is not only a threat to the right to privacy protected by Article 21 of the Constitution, but it also plays a key role in cases of humiliation, misinformation, and defamation. Whaling attacks, deepfake voice phishing, and other frauds that target individuals and companies are thus likely to rise. 

Mitigation Tips

The difficulties caused by deepfakes can be addressed using ChatGPT, the generative AI that has recently gained attention. To offer viable options, ChatGPT can be integrated into search engines. In order to combat the dissemination of misinformation, the AI-enabled ChatGPT, based on Natural Language Processing, is trained to reject inappropriate requests. It can also process complicated algorithms to carry out complex reasoning operations. 

In order to swiftly purge such information from the internet after deployment, the dataset needs to be fine-tuned using supervised learning. It can be further tweaked due to its accessibility to offer a quicker, more practical solution that is also affordable. However, to stop AI from scooping up new deepfakes from the test set, the train set must be constantly monitored. 

Additionally, a greater influx of cyber security specialists is required to achieve this. India's GDP currently only accounts for 0.7% of research and development, compared to 3.3% in affluent nations like the United States of America. The National Cyber Security Policy of 2013 must be improved in order to adapt to new technologies and stop the spread of cybercrimes as these manipulations become more complex over time.

Microsoft Warns of Rise in Global Cyberespionage Operations

 

Government-sponsored cyberespionage campaigns and data operations are on the rise, and not just as a result of hacker spies deployed by typical suspects Russia and China.

So warns Microsoft in its annual Digital Defence Report, which evaluates nation-state and criminal behaviour recorded from July 2022 to June 2023. 

Ransomware attacks naturally draw attention due to their visible and immediate impact, but governments are doubling down on stealthy cyberespionage operations behind the scenes. 

"Nation states are becoming increasingly sophisticated and aggressive in their cyberespionage efforts, led by highly capable Chinese actors focused on the Asia-Pacific region in particular," Tom Burt, Microsoft's corporate vice president for customer security and trust, stated in an introduction to the report. 

Based on Microsoft's report, the US was the subject of the most cyberattacks last year, followed by Israel and Ukraine. It witnessed an increase in activity last spring that targeted Western organisations, of which 46% were based in NATO states, particularly the U.S., the United Kingdom, and Poland. 

The United States' intelligence agencies have frequently warned that Russia, China, Iran, and North Korea pose the greatest internet risks to national security and allies. According to Microsoft, the scale and sophistication of activities linked to each of those countries continues to improve, and their efforts to steal information and alter narratives target both adversaries and allies. 

"Russian intelligence agencies have refocused their cyberattacks on espionage activity in support of their war against Ukraine, while continuing destructive cyberattacks in Ukraine and broader espionage efforts," Burt wrote in a blog post. 

China is still a significant player, concentrating particularly on gathering intelligence - particularly from U.S. defence and vital sectors, as well as Taiwan and even its own partners - and conducting influence operations, Microsoft reported.

Beijing additionally "deploys a vast network of coordinated accounts across dozens of platforms to spread covert propaganda" that targets Chinese speakers worldwide and occasionally spreads anti-American narratives, the report further reads. The nation's influence operations also emphasise "promoting a positive image of China through hundreds of multilingual lifestyle influencers."

There is ample evidence that Russia is using cyberespionage more frequently. Western intelligence authorities continue to issue warnings that the real scope of such operations is still unknown because they are intended to be stealthy and at times highly targeted. Long-term attacks might not be seen right away. 

The White House blamed the Russian Foreign Intelligence Service, or SVR, for the SolarWinds supply chain attack, which involved the injection of a Trojan into the Orion software updater. It's possible that the effort started in September 2019, but it wasn't discovered until December 2020, giving the SVR months to secure covert access to a number of extremely sensitive systems. 

Microsoft reports that nominal allies attack one another while conducting cyber operations and acquiring intelligence. Despite the meeting between Russian President Vladimir Putin and North Korean hereditary dictator Kim Jong Un last month, Pyongyang continues to carry out Moscow-centered espionage activities, with a particular emphasis on "nuclear energy, defence, and government policy intelligence collection." 

The threat from criminal groups continues to rise in addition to the risk from nation-state organisations. "Ransomware‐as‐ a-service and phishing-as-a-service are key threats to businesses, and cybercriminals have conducted business email compromise and other cybercrimes, largely undeterred by the increasing commitment of global law enforcement resources," Burt added.

This Threat Actor Targeted NATO Summit Attendees

 

A Russia-linked threat actor known as RomCom has been targeting entities supporting Ukraine, including guests at the 2023 NATO Summit. The summit is taking place in Vilnius, Lithuania, and will discuss the war in Ukraine and new memberships in NATO, including Sweden and Ukraine itself.

RomCom has created malicious documents that are likely to be distributed to supporters of Ukraine. The threat actor appears to have dry-tested the delivery of these documents on June 22, a few days before the command-and-control (C&C) domain used in the campaign went live, BlackBerry explained.

The malicious documents are likely distributed via spear-phishing. They contain an embedded RTF file and OLE objects that initialize an infection chain that garners system information and delivers the RomCom remote access trojan (RAT).

At one stage in the infection chain, a flaw in Microsoft's Support Diagnostic Tool (MSDT) – CVE-2022-30190, also known as Follina – is exploited for remote code execution (RCE).

BlackBerry has identified the C&C domains and victim IPs used in this campaign. All of these were accessed from a single server that has been observed connecting to known RomCom infrastructure.

"Based on the nature of the upcoming NATO Summit and the related lure documents sent out by the threat actor, the intended victims are representatives of Ukraine, foreign organizations, and individuals supporting Ukraine,” BlackBerry says.

BlackBerry has alerted relevant government agencies of this campaign. RomCom is also known as Void Rabisu and Tropical Scorpius, and is associated with the Cuba ransomware. The group was previously believed to be financially motivated, but recent campaigns have shown a shift in tactics and motivation, suggesting that they are now working for the Russian government.

Since at least October 2022, the RomCom backdoor has been used in attacks targeting Ukraine. These attacks have targeted users of Ukraine's Delta situational awareness program and organizations in Ukraine's energy and water utility sectors.

Outside Ukraine, RomCom attacks have targeted a provincial local government helping Ukrainian refugees, a parliament member of a European country, attendees of the Munich Security Conference and the Masters of Digital conference, and a European defense company.