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FBI And CISA Issues Warning of Ongoing ‘Ghost’ Ransomware Attack

 

Ghost, a ransomware outfit, has been exploiting software and firmware flaws since January, according to an FBI and Cybersecurity and Infrastructure Security Agency (CISA) advisory issued last week.

The outfit, also known as Cring and based in China, focusses on internet-facing services with unpatched vulnerabilities that users might have fixed years ago, according to the agencies. Cybersecurity researchers initially raised concerns about the group in 2021. 

"This indiscriminate targeting of networks containing vulnerabilities has resulted in the compromise of organisations in more than 70 countries, including China," according to the notice issued by the Multi-State Information Sharing and Analysis Centre (MS-ISAC).

The notice lists the following vulnerabilities: Microsoft Exchange servers that are still vulnerable to the ProxyShell attack chain; servers running Adobe's ColdFusion for web applications; and issues in unpatched Fortinet security appliances. 
 
Critical infrastructure, schools and universities, healthcare, government networks, religious institutions, technology and manufacturing companies, and numerous small- and medium-sized businesses are among the listed victims since 2021, according to the notice. The goal is financial gain, with ransom demands occasionally amounting to hundreds of thousands of dollars.

“Persistence is not a major focus for Ghost actors, as they typically only spend a few days on victim networks,” the agencies further added. “In multiple instances, they have been observed proceeding from initial compromise to the deployment of ransomware within the same day.” 

The notice claims that the ransomware outfit employs common hacking tools like Cobalt Strike and Mimikatz, and that the malware they deploy frequently has file names like Cring.exe, Ghost.exe, ElysiumO.exe, and Locker.exe. 

“The impact of Ghost ransomware activity varies widely on a victim-to-victim basis,” the agencies concluded. “Ghost actors tend to move to other targets when confronted with hardened systems, such as those where proper network segmentation prevents lateral moment to other devices.” 

Prevention tips 

To combat against Ghost ransomware attacks, network defenders should take the following steps:

  • Create regular, off-site system backups that cannot be encrypted by ransomware. 
  • Patch the operating system, software, and firmware vulnerabilities as quickly as feasible.
  • Focus on the security holes targeted by Ghost ransomware (i.e., CVE-2018-13379, CVE-2010-2861, CVE-2009-3960, CVE-2021-34473, CVE-2021-34523, CVE-2021-31207). 
  • Segment networks to restrict lateral movement from compromised devices. 
  • Implement phishing-resistant multi-factor authentication (MFA) for all privileged accounts and email service accounts.

Ransomware Outfits Are Exploiting Microsoft Azure Tool For Data Theft

 

Ransomware gangs like BianLian and Rhysida are increasingly using Microsoft's Azure Storage Explorer and AzCopy to steal data from compromised networks and store it in Azure Blob Storage. Storage Explorer is a graphical management tool for Microsoft Azure, whereas AzCopy is a command-line utility for large-scale data transfers to and from Azure storage. 

The stolen data in these attacks is thereafter kept in an Azure Blob container in the cloud, where threat actors can subsequently move it to their own storage, according to cybersecurity firm modePUSH's observations. 

However, the researchers observed that the perpetrators had to do additional work to make Azure Storage Explorer operate, such as installing prerequisites and upgrading.NET to version 8. This reflects the growing emphasis on data theft in ransomware operations, which is the primary leverage for threat actors in the subsequent extortion phase. 

Why Azure?

Though each ransomware gang has a unique set of exfiltration tools, they often use Rclone for syncing data with various cloud providers and MEGAsync for syncing with the MEGA cloud. 

Furthermore, Azure's scalability and efficiency, which allow it to manage massive volumes of unstructured data, are extremely useful when attackers want to exfiltrate large numbers of files in the least amount of time. 

ModePUSH claims to have noticed ransomware attackers employing numerous instances of Azure Storage Explorer to upload data to a blob container, hence speeding up the process. 

Uncovering ransomware exfiltration

The researchers discovered that the threat actors set the default 'Info' level logging while using Storage Explorer and AzCopy, which generates a log file at%USERPROFILE%\.azcopy. 

This log file is especially useful for incident responders since it contains information on file actions, allowing investigators to rapidly determine which data was stolen (UPLOADSUCCESSFUL) and which payloads were potentially injected (DOWNLOADSUCCESSFUL). 

Defence strategies include establishing alarms for odd patterns in file copying or access on crucial systems, monitoring for AzCopy execution, and tracking outbound network traffic to Azure Blob Storage endpoints at ".blob.core.windows.net" or Azure IP ranges. 

If an organisation already uses Azure, it is advised to use the 'Logout on Exit' feature, which will log users out automatically when they close the program, to stop hackers from stealing files with an ongoing session.

Cybercriminal Group UNC5537 Strikes with Major Data Breaches

 

In recent weeks, the cybercriminal group UNC5537 has made significant waves. This ransomware gang, potentially linked to ShinyHunters or Scattered Spider, stole over 560 million customer records from Ticketmaster. On May 28, they listed this data for sale on their revamped leak site, BreachForums, with a price tag of $500,000. Just two days later, the group claimed to have obtained 30 million account records from Santander Bank in Spain, demanding $2 million for the data. Both companies confirmed the breaches after these announcements.

A June 10 analysis by Mandiant, an incident-response firm now part of Google, revealed that these data leaks, along with at least 163 other breaches, were not due to system vulnerabilities but rather the exploitation of stolen credentials and inadequate multifactor authentication (MFA) controls. According to Mandiant, no evidence indicates that the breaches stemmed from Snowflake's enterprise environment. Instead, all incidents are traced back to compromised customer credentials.

While implementing MFA could have prevented the data theft from Snowflake's systems, the companies involved have broader issues beyond this single control. Businesses must ensure visibility into their attack surfaces, promptly disable accounts of former employees and contractors, and minimize entry points for attackers. Chris Morgan, senior cyber threat intelligence analyst at ReliaQuest, emphasizes that attackers often exploit basic security lapses. "Targeting the low-hanging fruit — in this case, insecure credentials — can be achieved with little effort from the threat actor but provides ample opportunities," he notes.

Key Lessons from Recent Cloud Breaches

1. Start With MFA and Then Go Beyond

There is significant room for improvement in MFA adoption. Despite reports showing that 64% of workers and 90% of administrators use MFA, over 60% of organizations still have at least one root user or administrator without MFA enabled. According to Ofer Maor, co-founder and CTO at Mitiga, achieving consistent and verifiable MFA implementation is crucial. He suggests that companies enforce and require MFA, disable non-SSO logins, and enhance security measures with device- or hardware-based authentication for sensitive infrastructure.

2. Use Access Control Lists to Limit Authorized IP Addresses

Organizations should implement access control lists (ACLs) to restrict user access to cloud services or at least review access logs daily for anomalies. Jake Williams, a faculty analyst at IANS Research, recommends restricting IP addresses for cloud infrastructure access and emphasizes the importance of access reviews to identify unexpected access points.

3. Maximize Visibility Into Cloud Services

Continuous monitoring of applications, log data, access activity, and data aggregation services is essential for detecting and preventing attacks. Organizations need to alert on specific behaviors or threats, which could have identified the cybercriminals' attempts to access cloud data, says Brian Soby, CTO and co-founder at AppOmni.

4. Don't Rely on Your Cloud Providers' Defaults

Cloud providers often prioritize usability over security, so relying solely on their default settings can be risky. For example, Snowflake's default settings do not require MFA, making it easier for attackers with compromised credentials to gain full access. Companies must go beyond these defaults and enforce higher security standards.

5. Check Your Third Parties

Even if a company does not directly use Snowflake or another cloud service, third-party providers might, exposing their data to risk. Ensuring that all service providers handling company data follow proper security measures is essential, as highlighted by IANS Research's Williams. Reaching out to service providers to confirm their security practices is crucial in protecting data in today's complex supply chain environment.

US Authorities Charge LockBit Ransomware Ringleader

 

US officials have uncovered and indicted the ringleader of LockBit, a widespread ransomware operation that has extorted victims out of half a billion dollars. He is facing over two dozen criminal charges. 

According to a 26-count indictment released on Tuesday, Dmitry Khoroshev, 31, served as LockBit's "developer and administrator," overseeing code development and recruiting affiliates to execute the ransomware on its victims. The alleged cybercriminal got 20% of each ransom payment for his role in the operation, totaling $100 million in cryptocurrency over four years, the US Justice Department noted.

“Today’s indictment…continues the FBI’s ongoing disruption of the BlockBit criminal ecosystem,” FBI Director Christopher Wray noted in the statement. 

Since its founding in 2019, LockBit has allegedly defrauded at least 2,500 individuals across more than 120 countries of at least $500 million in extortion. The U.S. Justice Department noted in its statement that it is also accountable for several billions of dollars' worth of "broader losses" linked to lost profits, incident responses, and ransom recoveries. 

In the indictment, US investigators demanded that Khoroshev surrender his $100 million share of the ill-gotten gains. Meanwhile, the UK, United States, and Australia have sanctioned the mastermind, freezing his assets and prohibiting him from travelling. The US State Department is offering a $10 million prize for information that leads to Khoroshev's capture. The latest charge comes several months after authorities took steps to shut down the ransomware operation. In February, international law enforcement confiscated LockBit's infrastructure, thereby halting operations. Around the same time, US authorities prosecuted two Russian cybercriminals using Lockbit ransomware to target a number of businesses and organisations. 

LockBit's rebuild issue 

The group's attempt to rebuild over the last few months looks to be failing, with the gang still operating at a low capacity and its new leak site being used to publicise victims targeted prior to the takedown, as well as to claim credit for the crimes of others. 

According to the NCA's most recent data, the frequency of monthly LockBit assaults in the UK has decreased by 73% since late February, and those that do occur are carried out by less sophisticated attackers with far lower impact. 

“Since Operation Cronos took disruptive action, LockBit has been battling to reassert its dominance and, most importantly, its credibility within the cyber criminal community,” stated Don Smith, vice-president of SecureWorks’ Counter Threat Unit.

BlackCat Ransomware Linked to UnitedHealth Subsidiary Optum Hack

 

A cyberattack against Optum, a UnitedHealth Group company, was linked to the BlackCat ransomware gang and resulted in an ongoing outage that impacted the Change Healthcare payment exchange platform. 

Customers were notified by Change Healthcare earlier this week that due to a cybersecurity incident, some of its services are unavailable. The cyberattack was orchestrated by alleged "nation-state" hackers who gained access to Change Healthcare's IT systems, according to a statement made by UnitedHealth Group in an SEC 8-K filing a day later. 

Since then, Optum has been posting daily incident updates on a dedicated status page, alerting users to the fact that most services are temporarily unavailable due to Change Healthcare's systems being offline to contain the breach and prevent future damage. 

"We have a high level of confidence that Optum, UnitedHealthcare and UnitedHealth Group systems have not been affected by this issue," Optum stated. "We are working on multiple approaches to restore the impacted environment and will not take any shortcuts or take any additional risk as we bring our systems back online.” 

Links to BlackCat 

Change Healthcare has been holding Zoom calls with partners in the healthcare sector to share information regarding the cyberattack since it affected its systems

One of the individuals involved in these calls informed a local media source that forensic experts participating in the incident response had linked the attack to the BlackCat (ALPHV) ransomware gang (Reuters first reported the Blackcat link on Monday).

Last week, another source informed BleepingComputer that one indicator of attack is a critical ScreenConnect auth bypass vulnerability (CVE-2024-1709), which is being actively used in ransomware attacks against unpatched servers. 

Tyler Mason, vice president of UnitedHealth Group, stated that 90% of the impacted pharmacies had put new electronic claim procedures in place to deal with Change Healthcare issues, but he did not confirm if BlackCat was the root of the attack. 

"We estimate more than 90% of the nation’s 70,000+ pharmacies have modified electronic claim processing to mitigate impacts from the Change Healthcare cyber security issue; the remainder have offline processing workarounds," Mason stated. "Both Optum Rx and UnitedHealthcare are seeing minimal reports, including less than 100 out of more than 65 million PBM members not being able to get their prescriptions. Those patients have been immediately escalated and we have no reports of continuity of care issues.” 

8,000 hospitals and other care facilities, as well as more than 1.6 million doctors and other healthcare professionals, are under contract with United Health Group (UHG), a health insurance provider with operations in all 50 states of the United States. With 440,000 employees globally, UHG is the largest healthcare corporation in the world by sales ($324.2 billion in 2022).

UK Led Global Operations Disrupt LockBit's Criminal Network

 

One of the most notorious cybercrime organisations in the world has been hit by an unprecedented police operation involving the arrest and indictment of members of the Lockbit ransomware group by the FBI and Britain's National Crime Agency. 

The United States has charged two Russian citizens with deploying Lockbit ransomware against organisations and companies across the globe. Police in Poland and Ukraine made two arrests. 

The disruption of a criminal network, which has targeted over 2,000 victims globally, accepted over $120 million in ransom payments, and demanded hundreds of millions of dollars, was announced by the NCA, FBI, Europol, and U.S. Department of Justice at a meeting in London. 

Britain's National Crime Agency Cyber Division, in collaboration with the U.S. Department of Justice, the Federal Bureau of Investigation, and other law enforcement agencies seized control of websites used by Lockbit the gang and U.S. and British authorities said. The law enforcement agencies also went over and beyond by releasing internal data about the group through Lockbit's own website. 

“We have hacked the hackers," Graeme Biggar, director general of the National Crime Agency, told journalists. "We have taken control of their infrastructure, seized their source code and obtained keys that will help victims decrypt their systems.” 

The takedown, dubbed “Operation Cronos” was an international coalition of 10 countries, he added. “Together, we have arrested, indicted or sanctioned some of the perpetrators and we have gained unprecedented and comprehensive access to Lockbit’s systems”. 

Billions in damages 

Ransomware is malicious software that encrypts data; Lockbit and its affiliates profit by coercing victims into paying a ransom to decrypt or unlock that data using a digital key. In recent months, some of the world's largest organisations have been targeted by the gang's digital extortion tools.

Its affiliates are like-minded criminal groups that Lockbit recruits to carry out attacks with those tools. Those affiliates carry out the attacks and pay Lockbit a portion of the ransom, which is typically sought in cryptocurrency, making it difficult to track. 

Operation Cronos confiscated 34 of Lockbit's computers, detained two gang members, frozen 200 cryptocurrency accounts, and shuttered 14,000 "rouge accounts" used online to launch Lockbit's operations, the officials said. 

Lockbit has caused monetary losses totaling billions, the NCA's Biggar stated, to businesses who not only had to pay ransom payments, but also had to shoulder the cost of getting their systems back online. 

Before it was disrupted, Lockbit's website displayed an ever-growing gallery of victim organisations that was updated nearly daily. Next to their names were digital clocks that showed the number of days left to the deadline given to each organisation to provide ransom payment.

Kasseika Ransomware Employs AntiVirus Driver to Disarm Other Antiviruses

 

Kasseika, a ransomware gang, has become the latest to leverage the Bring Your Own Vulnerable Driver (BYOVD) assault to disable security-related processes on compromised Windows hosts, following groups such as Akira, AvosLocker, BlackByte, and RobbinHood. 

Trend Micro claimed in a research that the technique enables "threat actors to terminate antivirus processes and services in order to deploy ransomware." 

Kasseika, identified by the cybersecurity firm in mid-December 2023, shares similarities with the now-defunct BlackMatter, which formed following DarkSide's disintegration. 

Given that the source code of BlackMatter was never made public after its demise in November 2021, there is evidence to imply that the ransomware strain may have been created by an experienced threat actor who purchased or secured access to the code. 

Modus operandi 

Kasseika attack chains begin with phishing emails to gain access, then drop remote administration tools (RATs) to escalate privileges and propagate across the target network. 

The threat actors have been spotted employing Microsoft's Sysinternals PsExec command-line tool to run a malicious batch script. The script searches for a process called "Martini.exe" and ends it if it is located, thereby guaranteeing the process is only running on one machine. 

The executable's primary task is to disable 991 security tools by downloading and executing the "Martini.sys" driver from a remote server. It is important to note that "viragt64.sys," an authentic signed driver, has been placed on Microsoft's vulnerable driver blocklist and is known as "Martini.sys.” 

The researchers noted that "if Martini.sys does not exist, the malware will terminate itself and not proceed with its intended routine," highlighting the vital role that the driver plays in defence evasion.

After that, "Martini.exe" starts the ransomware payload ("smartscreen_protected.exe"), which uses the RSA and ChaCha20 algorithms to encrypt data. However, not before it terminates all services and processes that are attempting to reach Windows Restart Manager. 

The computer's wallpaper is subsequently modified to display a note requesting a 50 bitcoin payment to a wallet address within 72 hours, or risk paying an additional $500,000 every 24 hours once the deadline elapses. A ransom note is then dumped in every directory that has been encrypted. 

Furthermore, in order to acquire a decryptor, victims are required to send a screenshot of their successful payment to a Telegram channel that is managed by attackers. The Kasseika ransomware also has additional tricks up its sleeve, such as wiping traces of activity from the system's event logs using the wevtutil.exe component.

"The command wevutil.exe efficiently clears the Application, Security, and System event logs on the Windows system," the researchers concluded. "This technique is used to operate discreetly, making it more challenging for security tools to identify and respond to malicious activities.”

LockBit Ransomware Outfit Claims Subway as its Latest Victim

 

Due to an alleged ransomware attack by the notorious LockBit ransomware gang, the multinational fast-food restaurant giant Subway is facing a potential PR nightmare. Reports suggest Subway’s systems were exploited by the LockBit gang, known for its aggressive modus operandi. 

After the LockBit ransomware organisation claimed to have breached Subway's internal SUBS systems and stolen an abundance of data, the firm launched an investigation. The ransomware-as-a-service provider listed the company on its data leak website, claiming that one of its affiliates took gigabytes of critical details. 

LockBit indicated that they are allowing the company some time to preserve the data, "which includes hundreds of gigabytes of data and all financial of the franchise, including employee salaries, franchise royalty payments, master franchise commission payments, restaurant turnovers, etc." If they do not, the notorious outfit plans to sell it to competitors.

The message was posted on January 21, and the criminals gave Subway till February 2 to pay the extortion. However, Subway's spokesperson states that the company is still investigating the hackers' claims. 

For your information, LockBit is one of the most active ransomware groups, having targeted thousands of organisations. The US authorities claimed in June 2023 that the LockBit gang had targeted 1,700 companies in the US since 2020, collecting more than $90 million in ransom. 

Many people were surprised to learn that Subway was unaware of the ransomware attack. However, this is not surprising given that hackers are increasingly focusing on data theft rather than ransomware encryption, since developing, creating, maintaining, and delivering ransomware has become too difficult. Companies have significantly improved their data backup and defence systems; as a result, criminals steal data and demand payment for not releasing it publicly. 

It is worth mentioning that Subway has 20,000 stores worldwide and over 400,000 employees, so the data leak might have long-term consequences for its customers if it unfolds. To protect yourself from online risks, avoid clicking links or opening attachments, use strong passwords, enable two-factor authentication, maintain software and operating systems up to date, and invest in reliable antivirus and anti-malware software. Adequate cyber hygiene is the best approach to fight against cybercrime.