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FunkSec Ransomware Group: AI-Powered Cyber Threat Targeting Global Organizations

 

A new ransomware group, FunkSec, has emerged as a growing concern within the cybersecurity community after launching a series of attacks in late 2024. Reports indicate that the group has carried out over 80 cyberattacks, signaling a strategic blend of hacktivism and cybercrime. According to recent findings, FunkSec’s activities suggest that its members are relatively new to the cyber threat landscape but have been using artificial intelligence (AI) to amplify their capabilities and expand their reach. 

FunkSec’s ransomware, developed using the Rust programming language, has caught the attention of security analysts due to its complexity and efficiency. Investigations suggest that AI tools may have been used to assist in coding and refining the malware, enabling the attackers to bypass security defenses more effectively. A suspected Algerian-based developer is believed to have inadvertently leaked portions of the ransomware’s code online, providing cybersecurity researchers with valuable insights into its functionality. 

Operating under a ransomware-as-a-service (RaaS) framework, FunkSec offers its malware to affiliates, who then carry out attacks in exchange for a percentage of the ransom collected. Their approach involves double extortion tactics—encrypting critical files while simultaneously threatening to publish stolen information unless the victim meets their financial demands. To facilitate their operations, FunkSec has launched an underground data leak website, where they advertise stolen data and offer additional cybercrime tools, such as distributed denial-of-service (DDoS) attack capabilities, credential theft utilities, and remote access software that allows for covert control of compromised systems. 

The origins of FunkSec date back to October 2024, when an online persona known as “Scorpion” introduced the group in underground forums. Additional figures, including “El_Farado” and “Bjorka,” have been linked to its expansion. Investigators have noted discrepancies in FunkSec’s communications, with some materials appearing professionally written in contrast to their typical informal style. This has led experts to believe that AI-generated content is being used to improve their messaging and phishing tactics, making them appear more credible to potential victims. 

FunkSec’s ransomware is designed to disable security features such as antivirus programs, logging mechanisms, and backup systems before encrypting files with a “.funksec” extension. The group’s ransom demands are relatively modest, often starting at around $10,000, making their attacks more accessible to a wide range of potential victims. Additionally, they have been known to sell stolen data at discounted rates to other threat actors, further extending their influence within the cybercriminal ecosystem. Beyond financial motives, FunkSec has attempted to align itself with hacktivist causes, targeting entities in countries like the United States and India in support of movements such as Free Palestine. 

However, cybersecurity analysts have expressed skepticism over the authenticity of their claims, noting that some of the data they leak appears to have been recycled from previous breaches. While FunkSec may be a relatively new player in the cyber threat landscape, their innovative use of AI and evolving tactics make them a significant threat. Security experts emphasize the importance of proactive measures such as regular system updates, employee training on cybersecurity best practices, and the implementation of robust access controls to mitigate the risks posed by emerging ransomware threats like FunkSec.

Understanding Ransomware: A Persistent Cyber Threat

 


Ransomware is a type of malicious software designed to block access to files until a ransom is paid. Over the past 35 years, it has evolved from simple attacks into a global billion-dollar industry. In 2023 alone, ransomware victims reportedly paid approximately $1 billion, primarily in cryptocurrency, underscoring the massive scale of the problem.

The First Recorded Ransomware Attack

The first known ransomware attack occurred in 1989. Joseph Popp, a biologist, distributed infected floppy disks under the guise of software analyzing susceptibility to AIDS. Once installed, the program encrypted file names and, after 90 uses, hid directories before displaying a ransom demand. Victims were instructed to send a cashier’s check to an address in Panama to unlock their files.

This incident, later dubbed the "AIDS Trojan," marked the dawn of ransomware attacks. At the time, the term "ransomware" was unknown, and cybersecurity communities were unprepared for such threats. Popp was eventually apprehended but deemed unfit for trial due to erratic behaviour.

Evolution of Ransomware

Ransomware has undergone significant changes since its inception:

  • 2004 – The Rise of GPCode: A new variant, "GPCode," used phishing emails to target individuals. Victims were lured by fraudulent job offers and tricked into downloading infected attachments. The malware encrypted their files, demanding payment via wire transfer.
  • 2013 – Cryptocurrency and Professional Operations: By the early 2010s, ransomware operations became more sophisticated. Cybercriminals began demanding cryptocurrency payments for anonymity and irreversibility. The "CryptoLocker" ransomware, infamous for its efficiency, marked the emergence of "ransomware-as-a-service," enabling less skilled attackers to launch widespread attacks.
  • 2017 – Global Disruptions: Major attacks like WannaCry and Petya caused widespread disruptions, affecting industries worldwide and highlighting the growing menace of ransomware.

The Future of Ransomware

Ransomware is expected to evolve further, with experts predicting its annual cost could reach $265 billion by 2031. Emerging technologies like artificial intelligence (AI) are likely to play a role in creating more sophisticated malware and delivering targeted attacks more effectively.

Despite advancements, simpler attacks remain highly effective. Cybersecurity experts emphasize the importance of vigilance and proactive defense strategies. Understanding ransomware’s history and anticipating future challenges are key to mitigating this persistent cyber threat.

Knowledge and preparedness remain the best defenses against ransomware. By staying informed and implementing robust security measures, individuals and organizations can better protect themselves from this evolving menace.

Look Who’s Back: LockBit Gears Up for a Comeback With Version 4.0

 



The infamous LockBit ransomware group has announced its return with the upcoming release of LockBit 4.0, set for February 2025. This marks a big moment for the group, which has had major setbacks over the last year. A global law enforcement crackdown shut down its operations, with arrests and recovery of nearly 7,000 decryption keys. As other ransomware groups like RansomHub take the lead, it remains uncertain if LockBit can reclaim its former dominance.  


Challenges Facing LockBit’s Return

LockBit's return is definitely not in the cards, though. The group did a lot of damage to itself, mainly because law enforcement was doing their job and newer Ransomware groups were outperforming it. Probably, the development of this 4.0 version involves deep changes in its codebase since the previous variant had been compromised. Experts therefore wonder whether LockBit manages to overcome these obstacles or gets back into the crowded field of ransomware services.

Another emerging favorite is ransomware-as-a-service, where groups start to sell their tools and infrastructure to affiliates in a specific ratio of the profits being extracted by that affiliate. LockBit will find itself competing not just with opponents such as RansomHub but also with variants from the same ransomware assembled using leaked source code.


What to Expect With LockBit 4.0

The group's announcement for LockBit 4.0 has bold claims, enticing potential affiliates with promises of wealth and success. The official launch is scheduled for February 3, 2025, and keys are provided to access their dark web leak site. While specific details about the 4.0 version are unclear, cybersecurity researchers are closely monitoring its development.

The group may also change its tactics to stay off the radar of international law enforcement. In the past, LockBit has been criticized for hitting high-profile victims, including the Toronto Hospital for Sick Children in 2022. After public backlash, the group issued an apology and provided a free decryption key, an unusual move for a ransomware organization.  


The Future

LockBit's ability to stage a successful comeback will depend on its capacity to adapt to the challenges it faces. With competitors gaining ground and its credibility in question, the group's path forward is uncertain. Cybersecurity experts will be watching closely to see how LockBit 4.0 impacts the ransomware infrastructure.

For now, organizations are advised to remain vigilant, as ransomware groups continue to improvise their tactics. Implementing robust security measures and staying informed about emerging threats are critical steps in defending against such attacks.



NEW Qilin Ransomware Variant Emerges with Improved Evasion Techniques

 



A much more potent version of the Qilin ransomware has been found, according to cybersecurity experts, showing a new and revamped kind that is ready to attack core systems using advanced encryption along with improved stealth techniques.


A Rebranding with a Twist: Qilin's Evolution

The Qilin ransomware operation, which first appeared in July 2022, has now morphed into a more formidable opponent with a new version dubbed "Qilin.B." Known previously as "Agenda," the malware was rebranded and rewritten in Rust, a programming language harder to detect and often used for high-performance systems. The Qilin group is notorious for demanding multi-million dollar ransoms, focusing on high-stakes sectors such as healthcare, where operational disruptions can be particularly severe.

Qilin's latest incarnation has been a powerful tool in mass-attack campaigns. Just last year, a significant cyber attack was launched against Synnovis, a pathology firm providing services to the United Kingdom's NHS, which resulted in the cancellation of thousands of hospital and family doctor appointments. In return for collaborating on campaigns, Qilin partners are promised a large percentage of ransom payments, up to 85% — an arrangement that is structured to encourage high-paying ransomware attacks with the highest payoffs.


Improved Encryption and Obfuscation

This variant, Qilin.B, has the following methods that make their detection a hard nut to crack by the standard systems of security. According to Halcyon, a research firm specialising in cybersecurity, enhanced encryption, such as AES-256-CTR systems that support AESNI, together with RSA-4096 and OAEP padding have been seen in this particular variant. Such standards ensure that decrypting files from this threat is impossible minus the private key, as the case of preventive actions being the only way forward.

Further, the obfuscation technique is available in Qilin.B with which the developers hide the coding language of malware in order to prevent detection via signature-based detection systems. Such evasion mechanisms make the detection and quick response even more difficult by the cyber security teams in case of infections. As reported by the researchers from Halcyon, who had studied malware upgrades, increasing sophistication can be seen in ransomware tactics, specifically Qilin.B was developed to resist reverse engineering as well as delay incident response.


New Tactics to Dodge System Defences

Qilin.B disables important system services such as backup and removes volume shadow copy to prevent rollback of the infected systems. In addition, it disables restarts and self-cleans up by removing the ransomware after a successful attack to minimise digital artefacts. All these features make it more robust for defence against evolving ransomware groups that will continue to change their approach to remain at least a step ahead of security patches.


Growing Need for Cross-Platform Security

As Qilin ransomware is becoming more agile, security experts say the cybersecurity posture of organisations must be more offensive-minded. Qilin.B is rebuilt in Rust and can be executed properly across different environments-from Linux to VMware's ESXi hypervisor. The required security monitoring needs to recognize stealthy methods identified with Qilin.B, including detection of code compiled in Rust because traditional systems would fail to counter it.


Advanced Configurations and Control

Qilin.B. This is another notable configuration option from the attackers so that one can personalise his attack. Thus, this version comes along with new names for some functions, encrypted strings and other complex code, in order to take more time for defence activities and forensic analysis of an incident. According to researchers of the Halcyon company, the best behaviour-based detecting systems should be implemented and it can easily find out what malware does, without the outdated method of searching for signatures by which malware has successfully dodged, in this case.

With the advancements of Qilin.B in terms of encryption and evasion, the security firm Halcyon recommends that organisations supplement their security infrastructure with cross-platform monitoring and backup solutions which are designed to fight against ransomware attacks' newest variations. A more complete system in detecting and responding to threats will still be an asset as ransomware advances through networks well-protected.

Continuous improvement in ransomware-as-a-service (RaaS) points to the intensifying threat that organisations have to grapple with as they secure sensitive data from increasingly sophisticated adversaries. The Qilin operation exemplifies how ransomware groups continue to adapt themselves to avoid defences, so proactive and adaptive security measures are justified in industries.


Embargo Ransomware Shifts Focus to Cloud Platforms

 


In a recent security advisory, Microsoft advised that the ransomware threat actor Storm-0501 has recently switched tactics, targeting hybrid cloud environments now to compromise the entire system of victimization. It is becoming increasingly apparent that cybercriminals are finding out how difficult it is to secure hybrid cloud environments. 

In the latest case, an extremely cruel group called Storm-0501 has stepped forward in an attempt to steal from the most vulnerable organizations in the US, including schools, hospitals, and law enforcement. The group is known for its cash-grab operations. As an affiliate of different strains of ransomware as a service (RaaS), Storm-0501 has been around since 2021, as per Microsoft Threat Intelligence's new report on it.

This ransomware operates as affiliates of a variety of RaaS strains such as BlackCat/ALPHV, LockBit, and Embargo, among others. The Storm-0501 ransomware gang is well-known for its operations in on-premise networks, but now the group is focusing on extending its reach to cloud infrastructures as they look to compromise whole networks with their campaigns. 

Since Storm-0501 was first discovered in 2021, it has been associated with the Sabbath ransomware group as an affiliate. There are several notable ransomware groups, such as Hive, BlackCat, LockBit, and Hunters International, that have been involved in these operations from time to time, but it has been growing rapidly. 

There have been recent reports that the group has been using Embargo ransomware as a means of executing their operations. As a result of the group's broad range of targets within the United States, the group has selected a wide array of sectors for its attacks, including hospitals, government agencies, manufacturing companies, transportation companies, and law enforcement agencies. 

As part of their attack pattern, the group usually exploits weak credentials and privileged accounts, enabling them to steal sensitive information from compromised networks and to deploy ransomware to guarantee their success. Earlier this week, Microsoft team members shared information about a recent attack on Microsoft Entra ID (formerly Azure AD) that was performed by Storm-0501 threat actors. 

The credential-synching component of this on-premises Microsoft application is responsible for synchronizing the passwords and other sensitive data between the objects in Active Directory and Entra ID, assuming the credentials of the user are the same for both on-premises and cloud environments. This report warns that once Storm-0501 was able to migrate into the cloud at a later point in time, it was then capable of manipulating, exfiltrating, and setting up persistent backdoors to commit ransomware attacks. 

As a result of exploiting weak usernames and passwords, the attacker gains access to cloud environments via privileged accounts, which sets out to steal data as well as execute a ransomware payload on the target machine. It is Microsoft's position that the Storm-0501 is obtaining initial access to the network by stealing or buying credentials for access, or by exploiting known vulnerabilities that have already been discovered. 

It is worth noting that CVE-2022-47966 has been used in recent attacks against Zoho ManageEngine, CVE-2023-4966 has been used against Citrix NetScaler, and CVE-2023-29300 or CVE-2023-38203 may have been used against ColdFusion 2016. As the adversary moves laterally, it uses frameworks like Impacket and Cobalt Strike, steals data through Rclone binaries renamed to mimic known Windows tools, and disables security agents using PowerShell command-line functions. 

Storm-0501 is malware that has been designed to exploit stolen Microsoft Entra ID credentials (formerly known as Azure AD credentials) to move from on-premise to cloud environments, compromise synchronization accounts for persistence, and hijack sessions for recurrence. Using a Microsoft Entra Connect Sync account is an essential part of synchronizing data between on-premises AD (Active Directory) and Microsoft Entra ID (Entra ID cloud-based). 

These accounts allow a wide range of sensitive actions to be taken on behalf of the On-Premise AD account. In the case that the attacker has gained access to the credentials for the Directory Synchronization Account, he or she has the capability of changing cloud passwords through specialized tools like AADInternals, thus bypassing any additional security measures. 

An unauthorized user may exploit the Storm-0501 vulnerability if the account of a domain admin or other high-privileged user on-premises also exists in the cloud environment and is not properly protected (e.g. it does not implement multi-factor authentication). As soon as the malicious actor has gained access to the cloud infrastructure, they plant a persistent backdoor by creating a new federated domain inside of the Microsoft Entra tenant, which allows them to log in as any user that has the "Immutableid" property set to their benefit. 

A final step would be for the attackers to either install Embargo ransomware in the victim's on-premises infrastructure and cloud-based environments or keep backdoor access available for later use to the victim. In response to the growing prevalence of hybrid cloud environments, Microsoft's Threat Intel team has warned, "As organizations continue to work with multiple platforms to protect their data, securing resources across them becomes a growing challenge."

Keeper Security, vice president of security and infrastructure, said that a zero-trust framework is a highly effective means of achieving this goal for enterprise cybersecurity teams and that it can be achieved by progressively advancing towards one. Using this model, access is restricted based on the customers' roles, making sure that users only have access to the resources they need for their specific roles. 

This minimizes the possibility of malicious actors getting access to those resources," Tiquet stated in an email. "It is widely believed that weak credentials remain one of the most vulnerable entry points in hybrid cloud environments that are likely to be exploited by groups such as Storm-0501." A centralised approach to endpoint device management (EDM) is also vital to the success of the strategy, according to him. Keeping all environments patched - be it cloud-based or on-premises - is one of the best ways to prevent attackers from exploiting known vulnerabilities by ensuring a consistent level of security patching." 

In addition to my previous statement, he added that advanced monitoring tools will allow teams to detect potentially malicious threats across hybrid cloud environments before they can become breaches. SlashNext Security's field CTO Stephen Kowski provided a similar list of recommendations in a statement he sent via e-mail. Embargo, whose contact information can be found here, is a threat group that uses Rust-based malware in its ransomware-as-a-service (RaaS) operation, which accepts affiliates who access companies and deploy the payload, sharing part of the profit with the affiliate. 

As far back as August 2024, an Embargo ransomware affiliate attacked the American Radio Relay League (ARRL) and claimed to have received $1 million for a decryptor that worked once it was provided to them. The theft of sensitive data from Firstmac Limited, an Australian company that deals with mortgages, investment management and investment strategy, was reported to the cybercrime reporting agency earlier this month. When the deadline to negotiate a solution had passed, an Embargo subsidiary was discovered to have breached the company.

Kawasaki Ransomware Attack: 500 GB Alleged Data Leaked, RansomHub Claims

Kawasaki Ransomware Attack: 500 GB Alleged Data Leaked, RansomHub Claims

In a recent ransomware attack that hit Kawasaki Motors Europe (KME), the company has confirmed that it suffered the breach causing major service disruptions as threat actors threatened to leak the data. 

“At the start of September, Kawasaki Motors Europe (KME) was the subject of a cyberattack which, although not successful, resulted in the company’s servers being temporarily isolated until a strategic recovery plan was initiated later on the same day," KME said in a statement.

RansomHub Behind Leak

RansomHub, an infamous Ransomware-as-a-Service (RaaS) has leaked 478GB of data which the group claims belongs to the KME website,  after the attack. Important business documents were exposed- dealership details, internal communications, banking records, and financial info.

Threat actors posted the exposed data on their extortion site on the dark net, suggesting that KME didn’t agree to pay the ransom demanded by RanHub.

RansomHub has become popular after its creation in February 2024, it is now one of the most efficient RaaS groups, it was responsible for 75 ransom attacks in Q2 of 2024. RansomHub’s victims include high-level targets like Planned Parenthood and Change Healthcare.

To warn about the attacks, the US Cybersecurity and Infrastructure Agency (CISA) issued an advisory, highlighting indicators of compromise (IoC) to combat the threat of potential targets.

Rising Ransom Demands 

With a significant increase in the number of RaaS, the ransom demand trend is also rising. A threat actor demands a shocking $1.5 million in return for a victim’s stolen data. In 2023, the ransomware number was a mere $200,000, which shows the dominance of ransomware groups and the harm they cause to an organization. 

How to Combat Ransomware Attacks?

Adopting a proactive cybersecurity plan can help a business address future threats and take measures to mitigate risks, reducing the threat of future attacks. 

A strong incident response plan can reduce the impact of a ransomware breach. It should have a framework for a plan of action for a possible attack, this can include a data recovery process, legal aspects, and communication protocols. 

Human error is one of the leading causes of breach, but employee training and awareness helps to identify threats and respond accordingly. 

Cybercriminals Exploit Windows Quick Assist in Latest Ransomware Campaign

 

A recent wave of cyberattacks has seen financially motivated criminals leveraging Windows Quick Assist, a built-in remote control and screen-sharing tool, to deploy Black Basta ransomware on victim networks. Microsoft has investigated these attacks since mid-April 2024, identifying the threat group behind them as Storm-1811.

The attacks typically begin with email bombing, where the target's inbox is flooded with spam emails. This overload is followed by a phone call from the attackers, who impersonate Microsoft technical support or the victim's IT help desk. They offer to help resolve the spam issue, tricking victims into granting remote access via Quick Assist.

Once access is granted, the attackers execute a scripted command to download malicious files, including Qakbot malware, remote monitoring tools like ScreenConnect and NetSupport Manager, and the Cobalt Strike framework. These tools enable the attackers to perform domain enumeration and move laterally across the network. Eventually, they deploy Black Basta ransomware using PsExec, a telnet-replacement tool.

Rapid7, a cybersecurity company that also detected these attacks, noted that attackers use batch scripts to harvest credentials from the command line using PowerShell. These credentials are often exfiltrated to the attackers' server via Secure Copy (SCP). In some cases, credentials are saved to an archive for later retrieval.

To mitigate these attacks, Microsoft advises organisations to disable or uninstall Quick Assist and similar remote tools if they are not used. Employees should be trained to recognise tech support scams and instructed to only allow remote access if they initiated the contact with IT support. Suspicious Quick Assist sessions should be immediately disconnected.

The Black Basta ransomware operation emerged after the Conti cybercrime group disbanded two years ago following multiple data breaches. Black Basta began operating as a Ransomware-as-a-Service (RaaS) in April 2022 and has since attacked numerous high-profile targets, including defence contractor Rheinmetall, technology company Capita, Hyundai's European division, and the American Dental Association.

Recent attacks linked to Black Basta include a ransomware incident at U.S. healthcare giant Ascension, which disrupted ambulance services. According to a joint advisory by CISA and the FBI, Black Basta affiliates have breached over 500 organisations across 12 out of 16 critical infrastructure sectors since April 2022, causing data breaches and encryption.

Health-ISAC, an information sharing and analysis centre, has warned of increased attacks against the healthcare sector by Black Basta. Research by Elliptic and Corvus Insurance indicates that the group has extorted at least $100 million in ransom payments from over 90 victims by November 2023.

Microsoft is enhancing Quick Assist to improve transparency and trust between users, including adding warning messages to alert users about potential scams. Rapid7 observed similar scams targeting their customers, with attackers using other remote monitoring tools like AnyDesk.

To prevent such attacks, organisations should block unapproved remote management tools and train staff to recognise and report suspicious calls and messages. Quick Assist should only be used if the interaction was initiated by contacting official support channels.

The recent misuse of Windows Quick Assist in deploying Black Basta ransomware pushes forward the vision for increased vigilance and robust cybersecurity practices to save all our digital assets from such social engineering attacks.


New Ransomware Threat Hits Hundreds of Organisations Worldwide

 


In a recent joint report by the Cybersecurity and Infrastructure Security Agency (CISA) and the Federal Bureau of Investigation (FBI), a new ransomware gang named Black Basta has been identified as breaching over 500 organisations globally between April 2022 and May 2024. This group has targeted various sectors, including healthcare, spanning across North America, Europe, and Australia.

Black Basta, coming through as a Ransomware-as-a-Service (RaaS) operation in April 2022, has quickly gained notoriety by attacking numerous high-profile victims such as Rheinmetall, Hyundai, Capita, and the American Dental Association, among others. Believed to have connections to the former Conti cybercrime syndicate, Black Basta operates with sophistication and a steady stream of initial access to its targets.

One of the key tactics employed by Black Basta involves stealing corporate data before encrypting a company's devices. This stolen data is then used in double-extortion attacks, where victims have demanded a ransom to prevent the publishing of their sensitive information. The gang's data leak site, 'Black Basta Blog' or 'Basta News,' lists victims and progressively releases data to pressure them into paying the ransom.

Technical analysis reveals that Black Basta utilises the ChaCha20 encryption algorithm to encrypt files, rendering them inaccessible without the decryption key. Victims are left with a custom extension appended to their encrypted files (.basta), along with a ransom note providing instructions on how to negotiate with the threat actors.

Responding to this spreading threat, federal agencies advise organisations to maintain up-to-date operating systems, employ phishing-resistant Multi-Factor Authentication (MFA), and train users to identify and report phishing attempts. Moreover, securing remote access software and implementing recommended mitigations are essential steps in blocking the risks posed by Black Basta and similar ransomware attacks.

Healthcare organisations are particularly vulnerable, given their size, technological reliance, and access to sensitive patient information. CISA and the FBI have suggested adhering to the StopRansomware Guide in order to dodge potential attacks in the healthcare sector.

Recent incidents, including an attack on healthcare giant Ascension, accentuate the urgency of addressing the threat posed by Black Basta. With the gang's ability to readily expand its victim pool and employ coercive tactics, organisations must remain particularly careful and implement robust cybersecurity measures to mitigate the risk of falling victim to ransomware attacks.

Considering the course of events, cybersecurity experts emphasise the importance of ardent measures, including regular backups, system updates, and employee training, to strengthen defences against ransomware threats like Black Basta. This calls for collective efforts to combat the growing menace of ransomware and protect critical infrastructure from malicious actors.