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.
The announcement states that Sony’s data is for sale: “Sony Group Corporation, formerly Tokyo Telecommunications Engineering Corporation, and Sony Corporation, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan.
"We have successfully compromised [sic] all of Sony systems. We won't ransom them! we will sell the data. due to Sony not wanting to pay. DATA IS FOR SALE.”
Since Sony has not yet commented on the claim, they may still be false or perhaps more likely, exaggerated.
However, if RansomedVC's claims are true, Sony seems to have not yet caved to their demands.
Sony will join a rather long list of game and entertainment companies that have had data stolen or ransomed if it confirms the breach. Due to the high value and high visibility of their intellectual property, gaming companies are frequent targets for theft and extortion.
Capcom and Ubisoft were notable victims in 2020, and CD PROJEKT RED, the company behind Cyberpunk 2077 and Witcher 3, was a victim in 2021— the same year that Electronic Arts had its source code for FIFA 21 stolen. In 2022, Rockstar Games experienced a significant breach by the short-lived Lapsus$ gang, while Bandai Namco came under a ransomware attack.
In case the claims are true, Sony’s customers must take measures in order to safeguard their data. While the information on the matter is still vague, here we are mentioning specific measures in case a customer is suffering a data breach or potential ransomware attack:
RansomedVC initially came to light by Malwarebytes researchers in August 2023. Apparently, the ransomware group had mentioned the details of nine of its victims on its dark website. The threat to report victims for General Data Protection Regulation (GDPR) violations is the only deviation it makes from the typical cut-and-paste criminality of ransomware gangs. While it obviously is not what it claims to be—a "digital tax for peace"—it does call itself that. This has been said multiple times before, and each time it is merely a money grab.
CIOp , the Russia-based cybercrime gang has now started to expose its victim organizations that have refused to negotiate with its demands. Apparently, the victims’ names have been exposed on its leak website, will Shell being the first company to be revealed.
Following the leak, Shell confirmed being affected by the MOVEit attack. In a statement published on Wednesday, the company clarified that the MFT software was “used by a small number of Shell employees and customers.”
“Some personal information relating to employees of the BG Group has been accessed without authorization,” it added.
Shell confirmed the incident only after the Cl0p hacking gang disclosed files allegedly taken from the company. The fact that the group made 23 archive files with the label "part1" public may indicate that they have access to more information.
Following this discloser, the ransomware gang added that they did so since the company refused to negotiate.
However, it is yet not particularly clear of what information has been compromised. Although, the firm confirmed to have informed the affected victims.
Moreover, toll-free phone numbers have been made available to employees in in Malaysia, South Africa, Singapore, Philippines, UK, Canada, Australia, Oman, Indonesia, Kazakhstan, and Netherlands. Thus, indicating that the affected individuals are more likely to be from these countries.
Since no file-encrypting software was used in the attack, Shell noted that "this was not a ransomware event" and that there is no proof that any other IT systems were impacted.
It is worth mentioning that this was not the first time that Shell has been targeted by the CIOs group, since in 2020 the threat actors targeted the company’s Accellion file transfer service. The company noted that during this hack the hackers stole their personal and corporate data.
Some of the other notable companies targeted by the latest MOVEit exploit includes Siemens Energy, Schneider Electric, UCLA, and EY.
It has also been confirmed by some government organizations that they as well were impacted by the hack, while the ransomware group claims to have deleted all the data acquired from such entities.
According to a research conducted by Malwarebytes and NCC Group, as of May, the ransomware group may have been linked with a total of whopping 67 attacks. Among these cyber incidents, around half of the manufacturing, construction, and business services industries together account for around half of the affected firms. The targeted firms are primarily located in the United States and Brazil, indicating a geographic focus by the threat group.
June saw a significant surge in ransomware activities. The fact that the offenders used a dual extortion tactic raised the stakes for their victims is notable.
A list of 35 victims who have been identified has so far been on the 8Base-affiliated dark web extortion site. There have even been occasions where up to six companies have fallen victim to the ransomware operators' nefarious activities at once on specific days.
According to the VMware Carbon Black team, based on its recent activities, and its similarities of ransom notes and content on leak sites along with identical FAQ pages, 8Base could as well be a rebranding of the popular ‘RansomHouse’ ransomware group. RansomHouse, however flexibly promotes its partnership, while 8Base does not.
It is also noteworthy that a Phobos ransomware sample was also discovered by the VMware researchers, that was utilizing the “.8base” file extension, indicating the 8Base could well be the successor of or utilizing the existing ransomware strain.
The researchers concluded that the efficient operations conducted by the 8Base ransomware group may continue to group, which could be an onset of a mature organization. However, it has not yet been made clear whether the group is based on Phobos or RansomHouse.
As for now, there are speculations on 8Base's use of various ransomware strains, whether it be in earlier iterations or as a fundamental component of its typical mode of operation. However, it is commonly known that this organization is very active, with a concentration on smaller firms as a significant target.
The contributions made by the Peel Regional Police are one of the reasons why Canadian flag is among the icons displayed on what was the dark website for the Russian-linked ransomware group Hive, along with the logos of the U.S. Department of Justice, the FBI, and a variety of police forces around the globe.
According to Detective Const. Karim Hussain in an interview with CTV News Toronto, Peel's detectives got engaged early when a local firm contacted them in 2021 claiming that their systems were down and a text message on their desktops revealed a ransom note.
“We had one of the first cases in Canada of Hive ransomware[…]It was the first to market. At the time we started gathering evidence, Hive was a fairly new ransomware group. Everything we brought to the table was interesting because no one had seen it before,” he says.
The attributes of the Hive case were similar to numerous other high-profile incidents, like a hospital in Louisiana where threat actors had accessed data of around 270,000 patients, and a Ohio hospital that was attacked and made them incapable of accepting new patients even during the massive surge of COVID-19.
Those were only a few of the more than 1,500 attacks throughout the globe that had the digital traces of Hive, an organization whose associates, according to authorities, have made $150 million since 2021 as they demand money from companies in exchange for access to their data or system.
The attacks are carried out via a "ransomware as a service" (RaaS) model, in which a small group of individuals create malicious software and then distribute it to numerous users, allowing them to quickly scale up their attacks before the security flaws they exploit are addressed.
“You have an overarching group that provides everything down to the infrastructure, to lesser-capable cyber criminals, and they provide them the tools to conduct the hack,” Hussain said.
The case brought the RCMP, the FBI, the police from France, Germany, Norway, and Lithuania together with Peel Police and other agencies dealing with Hive's impact.
In retaliation, the group took over Hive's website earlier this year and replaced it with a landing page with the logos of numerous investigative agencies. “Simply put, using lawful means, we hacked the hackers,” said U.S. Deputy Attorney General Lisa Monaco in a press conference in January.
Adding to this, she says that the police had found and then openly disseminated decryptor keys that may aid anyone who had been assaulted in independently recovering their data or liberating their systems.
According to Christopher Wray, director of the FBI, these actions have prevented around $130 million in ransom from being paid. “This cut off the gas that is fueling Hive’s fire,” Wray said.
According to Hussain, the inquiry is still ongoing as the prevalence of ransomware grows. Ransomware assaults made up 11% of all cyber security incidents in 2021, according to Statistics Canada.
“There’s no end in sight to cybercrime right now,” Hussain said.
According to DOJ, FBI gained deep access to the Hive ransomware group in the late July 2022. The infiltration prevented them from blackmailing $130 million in emancipate bills from more than 300 organizations.
The files of victims are encrypted by ransomware gangs using malicious software, locking them up and rendering them unavailable unless a ransom is paid to obtain a decryption key.
It is being estimated that Hive and its affiliates have accumulated over $100 from more than 1,500 victims that included hospitals, school districts, financial companies and critical infrastructure, in more than 80 countries across the globe.
The FBI revealed that it has collaborated with the local law enforcement agencies to help victims recover from the attack, including the UK's National Crime Agency, which claims to have given around 50 UK organizations decryptor keys to overcome the breaches.
On Thursday, the US announced that it had put an end to the operation by disabling Hive's websites and communication systems with the aid of police forces in Germany and Netherlands.
Attorney General Merrick Garland stated that "Last night, the Justice Department dismantled an international ransomware network responsible for extorting and attempting to extort hundreds of millions of dollars from victims in the United States and around the world."
While the Equity Division had not yet been used to capture any individual connected to Hive attacks, a senior official suggested that such releases might happen soon.
In regards to the infiltrations, Deputy Attorney General Lisa O Monaco said, "simply put, using lawful means, we hacked the hackers."
Moreover, the DOJ says it would pursue those behind the Hive until they were brought to justice.
"A good covert operation can degrade confidence in operational security and inject suspicion among actors,” Mandiant Threat Intelligence head John Hultquist said. "Until the group is arrested, they will never truly be gone. They will have to reconstitute, which takes time, but I'll bet they reappear in time."