The threat actors behind the breach are the DragonForce ransomware group.
While the investigation in regards to the breach is ongoing, the company confirms to its customers that its gaming systems are fully functional. The gaming system is still operational, although some services have suffered. At Super Retailers, prize cashing above $599 and mobile cashing are temporarily unavailable.
The winning numbers for the KENO, Lucky One, and EZPLAY Progressive Jackpots can be found at any Ohio Lottery Retailer; they are unavailable on the internet or mobile app.
In its press release, the lottery states: "On December 24, 2023, the Ohio Lottery experienced a cybersecurity incident impacting some of its internal applications and immediately began work to mitigate the issue. The state's internal investigation is ongoing. We apologize for the inconvenience and are working as quickly as possible to restore all services."
The company has requested customers to check the Ohio Lottery website and mobile app for winning numbers at this time. WKYC informs that prizes up to $599 can be claimed at any Ohio Lottery Retailer, while prizes over $600 need to be sent by mail to the Ohio Lottery Central Office or using the online claim form.
While Ohio Lottery did not confirm who was behind the cyberattack, a ransomware group called DragonForce claimed responsibility.
According to a report by BleepingComputer, the threat group claims that they have encrypted devices and accessed sensitive data like Social Security Numbers and the date of birth of affected customers.
According to the DragonForce gang, over 3,000,000 lottery customers' names, addresses, emails, winning amounts, Social Security numbers, and dates of birth are among the data that have been hacked. The weight of the released data—more than 600 gigabytes—raises questions regarding the scope of the hack.
Despite being a relatively young ransomware gang, the DragonForce gang's methods and data leak website suggest a rather experienced extortion organization. As law enforcement steps up their efforts to combat ransomware activities, new organizations like DragonForce are coming into action, which raises the issue of rebranding within the threat landscape.
In a similar case, the official Facebook page of the Philippines lottery system was recently hacked by anonymous hackers. The witnesses reported that threat actors were apparently spamming the website page with nude photos. This prompted the Philippine Charity Sweepstakes Office (PSCO) to shut down the page for the time being, during which the Cybercrime Investigation and Coordinating Center (CICC) will conduct its investigation.
According to the Seoul Metropolitan Police Agency, the hacker group utilized servers that they had rented from a domestic server rental company to hack into dozens of South Korean organizations, including defense companies. Also, the ransomware campaign acquired ransoms from a number of private sector victim firms.
Earlier this year, the law enforcement agency and the FBI jointly conducted an investigation to determine the scope of Andariel's hacking operations. This was prompted by reports from certain South Korean corporations regarding security problems that were believed to be the result of "a decline in corporate trust."
In an investigation regarding the origin of Andariel, it was found that it is a subgroup of the Lazarus Group. The group has stolen up to 1.2 terabytes of data from South Korean enterprises and demanded 470 million won ($357,000) in Bitcoin as ransom from three domestic and international organizations.
According to a study conducted by Mandiant, it was revealed that Andariel is operated by the North Korean intelligence organization Reconnaissance General Bureau, which gathers intelligence for the regime's advantage by mainly targeting international enterprises, governmental organizations, defense companies, and financial services infrastructure.
Apparently, the ransomware group is also involved in cybercrime activities to raise funds for conducting its operation, using specially designed tools like the Maui ransomware and DTrack malware to target global businesses. In February, South Korea imposed sanctions on Andariel and other hacking groups operating in North Korea for engaging in illicit cyber operations to fund the dictatorial regime's nuclear and missile development projects.
The threat actor has used a number of domestic and foreign crypto exchanges, like Bithumb and Binance, to launder the acquired ransom. Till now, a sum of 630,000 yuan ($89,000) has been transferred to China's K Bank in Liaoning Province. The hackers proceeded to redirect the laundered money from the K Bank branch to a location close to the North Korea-China border.
Seoul police noted that they have seized the domestic servers and virtual asset exchange used by Andariel to conduct their campaigns. Also, the owner of the account, that was used in transferring the ransom, has been detained.
"The Security Investigation Support Department of the Seoul Metropolitan Police Agency is actively conducting joint investigations with related agencies such as the U.S. FBI regarding the overseas attacks, victims and people involved in this incident, while continuing to investigate additional cases of damage and the possibility of similar hacking attempts," the agency said.
The police have warned businesses of the threat actor and have advised them to boost their cybersecurity and update security software to the latest versions. It has also been advised to organizations to encrypt any critical data, in order to mitigate any future attack.
Moreover, police are planning to investigate server rental companies to verify their subscribers’ identities and to ensure that the servers have not been used in any cybercrime activity.
Giving further details of the original advisory published in March, in the information acquired during the FBI investigation, the agencies noted that the ransomware campaign was connected to ransom demands totalling more than $275 million.
"Since September 2022, Royal has targeted over 350 known victims worldwide and ransomware demands have exceeded 275 million USD," the advisory reads.
"Royal conducts data exfiltration and extortion prior to encryption and then publishes victim data to a leak site if a ransom is not paid. Phishing emails are among the most successful vectors for initial access by Royal threat actors."
In March, the two agencies shared their initial indicators of an apparent compromise, along with a list of tactics, methods, and procedures (TTPs), in order to assist defenders in identifying and thwarting attempts to deploy Royal ransomware payloads onto their networks.
The Department of Health and Human Services (HHS) security team discovered in December 2022 that the ransomware operation was responsible for several attacks against U.S. healthcare organizations. This led to the release of the joint advisory.
The advisory update also states that BlackSuit ransomware shares several coding traits with Royal, suggesting that Royal may be planning a rebranding campaign and/or a spinoff variation.
While it was anticipated that the Royal ransomware operation would rebrand in May, during the course of the BlackSuit ransomware operation, the rebranding never happened.
According to a report published by BleepingCompter in June, the Royal ransomware gang was apparently testing a new BlackSuit encryptor, similar to the operation’s conventional encryptor.
At the time, Partner and Head of Research and Development at RedSense – Yelisey Bohuslavskiy believed that this experiment did not in fact go well.
However, since then, Royal was able to rebrand into BlackSuit and restructure into a more centralized business, following the same blueprint as Team 2 (Conti2) when they were a member of the Conti syndicate.
"In September 2023, Royal accomplished a full rebrand into BlackSuit, most likely entirely dismantling their Royal infrastructure. Moreover, according to the primary source intel, Royal has also accomplished a broader reorganization during the rebrand, making the group structure more corporate and more similar to their Conti2 origins," said Yelisey Bohuslavskiy.
According to a report published by The Register, the average dwell time — the interval between the start of an assault and the deployment of ransomware — was 5.5 days in 2021 and 4.5 days in 2022. The dwell duration was less than 24 hours last year, but less this year. Ransomware was even distributed within five hours after first access in 10% of cases, according to Secureworks' annual State of the Threat Report.
It is interesting to note that the cybersecurity industry has become much better at spotting the activity that occurs before a ransomware outbreak, which is one of the factors contributing to this dramatic decrease in infection time. Because of this, Secureworks explains, "threat actors are focusing on simpler and quicker to implement operations, rather than big, multi-site enterprise-wide encryption events that are significantly more complex."
Also, this year has witnessed a considerable increase in the number of ransomware victims and data leaks due to the significant emergence of "several new and very active threat groups." Attacks are therefore occurring more frequently and in greater numbers.
The ransomware groups are now majorly utilizing three vectors to try and infect targeted systems. The first is known as scan-and-exploit, which looks for exploitable flaws in a system. When detected, stolen credentials are also exploited, and phishing emails are used to try to deceive people into giving attackers access to secure systems quickly.
Currently, Sony is one of the most recent high-profile victims of ransomware gang, but the company did not yet reveal the extent to which its systems are affected or data stolen. Another ransomware attack was recently witnessed in a Danish cloud-hosting company that compromised most of its customer data. Furthermore, a case came to light when the LockBit ransomware gang stole data from 8.9 million dental insurance customers earlier this year.
However, on a positive note, the FBI was able to take down the renowned Qakbot botnet, which was revealed to be in charge of 700,000 compromised machines and was utilized in numerous ransomware assaults.
A threat actor recently posted the entire source code for the first version of the HelloKitty ransomware on Russian-language hacking forum, while claiming to be working on a new, more potent encryptor.
Security expert 3xp0rt initially noticed the leak when he saw threat actor kapuchin0 distributing the "first branch" of the HelloKitty ransomware encryptor.
While the source code was released by someone with the username kapuchino, the threat actor was also seen using the alias ‘Gookee.’
Gookee has previously been linked by security researchers with malware and hacking activity, where the threat actors were attempting to acquire access of Sony Network Japan in 2020. The attack was a Ransomware-as-a-Service (RaaS) operation, dubbed as ‘Gookee Ransomware,’ which was putting malware source code for sale on an underground forum.
According to 3cport, kapuchin0/Gookee is the developer of the HelloKitty ransomware, who claims to be developing, “a new product and much more interesting than Lockbit.”
The leaked hellokitty.zip archive include the HelloKitty encryptor and decryptor, as well as the NTRUEncrypt library that this variant of the ransomware utilizes to encrypt files, are built using a Microsoft Visual Studio solution.
Furthermore, ransomware expert Micheal Gillespie confirms that the leaks codes are in fact the real source code for HelloKitty, used initially when their ransomware operation launched in 2020.
HelloKitty is a human-operated ransomware operation that first came to light in November 2020 after its victims posted about it on the BleepingComputer forums. The FBI later released a PIN (private industry notification) on the group in January 2021.
The ransomware group is known for conducting corporate network hacks, stealing data, and encrypting systems. In double-extortion machines, when threat actors promise to release data if a ransom is not paid, the encrypted files and stolen data are then used as leverage.
HelloKitty is known for a number of attacks and has been utilized by other ransomware operations. One of the most high-profile attack conducted by HelloKitty is the one on CD Product Red executed in February 2021. Threat actors claimed to have stolen the source code for Cyberpunk 2077, Witcher 3, Gwent, and other games during this attack, which they said were sold later.