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Ransomware Found in VSCode Extensions Raises Concerns Over Microsoft’s Security Review

 

Cybersecurity experts have discovered ransomware hidden within two Visual Studio Code (VSCode) Marketplace extensions, raising concerns about Microsoft’s ability to detect malicious software in its platform. The compromised extensions, named “ahban.shiba” and “ahban.cychelloworld,” were downloaded by users before security researchers flagged them and they were subsequently removed. 

Despite Microsoft’s security measures, the extensions remained publicly accessible for a significant period, highlighting potential gaps in the company’s review process. The “ahban.cychelloworld” extension was first uploaded on October 27, 2024, followed by “ahban.shiba” on February 17, 2025. The VSCode Marketplace, designed to provide developers with additional tools for Microsoft’s popular coding platform, has come under scrutiny for failing to identify these threats. 

Researchers at ReversingLabs determined that both extensions included a PowerShell script that connected to a remote Amazon Web Services (AWS) server to download further malicious code. This secondary payload functioned as ransomware, though evidence suggests it was still in a testing phase. 

Unlike traditional ransomware that encrypts entire systems, this malware specifically targeted files stored in C:\users%username%\Desktop\testShiba.  Once the encryption was complete, victims received a Windows notification stating: “Your files have been encrypted. Pay 1 ShibaCoin to ShibaWallet to recover them.” However, no further instructions or payment details were provided, suggesting the malware was not yet fully developed.  

Although Microsoft eventually removed the extensions, security researcher Italy Kruk from ExtensionTotal disclosed that their automated detection system had identified the malicious code much earlier. Kruk stated that they had alerted Microsoft about the issue but received no response. Further analysis revealed that the initial version of “ahban.cychelloworld” was clean, but the ransomware was introduced in version 0.0.2, which was released on November 24, 2024. ExtensionTotal flagged this version to Microsoft on November 25, yet the extension remained available for months. 

During this time, five more versions were uploaded, all containing the same ransomware. This case has intensified concerns about Microsoft’s ability to monitor third-party extensions effectively. The security lapse within the VSCode Marketplace highlights the risk developers face when downloading extensions, even from official sources. Microsoft has previously faced criticism for both slow responses to security threats and for mistakenly removing non-malicious extensions. 

A notable example involved two popular VSCode themes, ‘Material Theme – Free’ and ‘Material Theme Icons – Free,’ which were taken down due to suspected obfuscated JavaScript. However, after further review, Microsoft determined the extensions were safe, reinstated them, and apologized, promising improvements to its security screening process. The presence of ransomware in widely used developer tools underscores the need for stronger security measures. Developers must stay cautious, regularly update security protocols, and carefully evaluate third-party extensions before installing them, even when they come from official platforms like the VSCode Marketplace.

Betruger Backdoor Linked to RansomHub Ransomware Attacks on Critical Infrastructure

 

A newly discovered backdoor malware, dubbed Betruger, has been identified in multiple recent ransomware attacks. Researchers at Symantec believe at least one affiliate of the RansomHub ransomware-as-a-service (RaaS) operation is using this sophisticated tool to facilitate cyber intrusions. 

Unlike many conventional malware strains, Betruger functions as a multi-purpose backdoor designed to prepare networks for ransomware deployment while minimizing the need for additional malicious software. Betruger comes equipped with several advanced features commonly associated with pre-ransomware attack stages. These include keylogging, network scanning, privilege escalation, credential theft, screenshot capture, and the ability to upload files to a command-and-control (C2) server. 

Its design suggests that attackers are looking to streamline their intrusion process, reducing reliance on multiple external tools and instead using a single, custom-built malware to execute various attack functions. This approach is relatively rare, as ransomware operators typically rely on widely available tools such as Mimikatz and Cobalt Strike to conduct their attacks. To avoid detection, cybercriminals are disguising Betruger under the filenames ‘mailer.exe’ and ‘turbomailer.exe,’ making it appear like a legitimate email-related application. 

While other ransomware groups have developed proprietary tools for data exfiltration, such as BlackMatter’s Exmatter and BlackByte’s Exbyte, Betruger appears to have a broader range of capabilities beyond just stealing data. The emergence of Betruger coincides with ongoing attacks by RansomHub, a ransomware operation that has been active since February 2024. Previously known as Cyclops and Knight, RansomHub has gained a reputation for focusing on extortion through data theft rather than encrypting victim files. 

Over the past year, the group has targeted several major organizations, including Halliburton, Christie’s, Frontier Communications, Rite Aid, and Kawasaki’s EU division. It was also responsible for leaking Change Healthcare’s stolen data after the BlackCat/ALPHV group’s $22 million exit scam. More recently, RansomHub claimed responsibility for breaching BayMark Health Services, a leading addiction treatment provider in North America. 

The company operates over 400 treatment centers across the U.S. and Canada, serving approximately 75,000 patients daily. The FBI has linked RansomHub affiliates to more than 200 ransomware attacks affecting various critical infrastructure sectors in the U.S., including government agencies, healthcare institutions, and other essential services. With the deployment of Betruger, the group’s operations appear to be evolving, indicating a continued threat to businesses and organizations worldwide.

Hackers Exploit Fortinet Firewall Bugs to Deploy Ransomware

 

Cybersecurity researchers have uncovered a new attack campaign in which hackers are exploiting vulnerabilities in Fortinet firewalls to breach corporate networks and deploy ransomware. The hacking group, tracked as “Mora_001,” is leveraging two specific flaws in Fortinet’s firewall software to infiltrate systems and launch a custom ransomware strain called “SuperBlack.” 

These vulnerabilities, tracked as CVE-2024-55591 and CVE-2025-24472, have been actively exploited since December 2024, despite Fortinet releasing patches in January 2025. Many organizations have yet to apply these critical updates, leaving their networks vulnerable. Once inside a network, the attackers conduct reconnaissance to identify valuable data before deploying ransomware. Instead of immediately encrypting files, they first exfiltrate sensitive information, a tactic that has become increasingly common among ransomware groups seeking to pressure victims into paying a ransom to prevent data leaks. 

Security researchers at Forescout observed that the Mora_001 group selectively encrypted file servers only after stealing critical data, making their attacks more damaging and difficult to recover from. There is strong evidence linking Mora_001 to the notorious LockBit ransomware gang. The SuperBlack ransomware strain appears to be based on a leaked builder from LockBit 3.0 attacks, and the ransom notes left by Mora_001 include the same contact details previously used by LockBit affiliates. This suggests that Mora_001 may be a current LockBit affiliate with distinct operational methods or a separate group that shares infrastructure and communication channels. 

Cybersecurity experts believe that Mora_001 is primarily targeting organizations that have not yet applied Fortinet’s security patches. Companies that failed to update their firewalls or properly harden their network configurations when the vulnerabilities were first disclosed are at the highest risk. The ransom notes used in these attacks also bear similarities to those used by other cybercriminal groups, such as the now-defunct ALPHV/BlackCat ransomware gang, further indicating connections within the ransomware ecosystem. 

Despite Fortinet releasing fixes for the affected vulnerabilities, unpatched systems remain an easy target for attackers. Security professionals are urging organizations to update their firewalls immediately and implement additional security measures to prevent unauthorized access. Best practices include applying all available patches, segmenting networks to restrict access to critical systems, monitoring for suspicious activity using endpoint detection and response tools, and maintaining secure offline backups. Organizations that fail to take these precautions risk falling victim to sophisticated ransomware attacks that can result in severe financial and operational damage.

Ransomware Group Uses Unpatched Webcams to Deploy Attacks

 

A recent cybersecurity report by S-RM has revealed a new tactic used by the Akira ransomware group, demonstrating their persistence in bypassing security defenses. When their initial attempt to deploy ransomware was blocked by an endpoint detection and response (EDR) tool, the attackers shifted their focus to an unexpected network device—a webcam. 

This strategy highlights the evolving nature of cyber threats and the need for organizations to secure all connected devices. The attack began with the use of remote desktop protocol (RDP) to access a target’s server. When the group attempted to deploy a ransomware file, the victim’s EDR successfully detected and neutralized the threat. However, rather than abandoning the attack, the adversaries conducted a network search and identified other connected devices, including a fingerprint scanner and a camera. The camera was an ideal entry point because it was unpatched, ran a Linux-based operating system capable of executing commands, and had no installed EDR solution. 

Exploiting these vulnerabilities, the attackers used the camera to deploy ransomware via the Server Message Block (SMB) protocol, which facilitates file and resource sharing between networked devices. According to cybersecurity experts, this kind of attack is difficult to defend against because it targets overlooked devices. Rob T. Lee, chief of research at the SANS Institute, compared detecting such threats to “finding a needle in a haystack.” The attack underscores how cybercriminals are constantly adapting, looking for the weakest points in a network to infiltrate and execute their malicious operations. 

The Akira ransomware group has gained traction following law enforcement takedowns of major ransomware organizations like AlphV and LockBit. S-RM reported that Akira accounted for 15% of the cyber incidents it analyzed, and in January 2024, CISA confirmed that the group had impacted over 250 organizations, extorting approximately $42 million in ransom payments. Ransom demands from Akira typically range from $200,000 to $4 million. The growing threat to internet of things (IoT) devices is further supported by data from Zscaler, which blocked 45% more IoT malware transactions between June 2023 and May 2024. 

Devices such as webcams, e-readers, and routers are particularly vulnerable due to outdated software and poor security practices. To mitigate risks, cybersecurity experts recommend several best practices for securing IoT devices. Organizations should place IoT devices on restricted networks that prevent unauthorized access from workstations or servers. Unused devices should be turned off, networked devices should be regularly audited, and software patches must be applied promptly. Additionally, changing default passwords on IoT devices is essential to prevent unauthorized access. 

Cybercriminals are continuously thinking outside the box to exploit vulnerabilities, and security professionals must do the same to defend against emerging threats. If attackers can compromise a webcam, they could potentially target more complex systems, such as industrial machinery or medical devices. As ransomware groups evolve, staying ahead of their tactics is crucial for safeguarding sensitive data and preventing costly breaches.

Medusa Ransomware Attacks: CISA, FBI, and MS-ISAC Issue #StopRansomware Advisory

 

The Cybersecurity and Infrastructure Security Agency (CISA), in partnership with the FBI and the Multi-State Information Sharing and Analysis Center (MS-ISAC), has issued a #StopRansomware advisory, warning organizations about the increasing threat of Medusa ransomware. 

Medusa, a ransomware-as-a-service (RaaS) variant, was first detected in 2021 and has since targeted over 300 victims across multiple critical infrastructure sectors. Industries such as healthcare, law, education, insurance, technology, and manufacturing have been particularly affected, highlighting the wide reach and severity of the ransomware’s impact. Medusa initially operated as a closed ransomware variant, meaning its developers had full control over its deployment and operations. 

Over time, it transitioned to an affiliate-based model, allowing external cybercriminals to use the ransomware while keeping certain aspects, such as ransom negotiations, under the control of the original developers. This shift has allowed Medusa to expand its reach, increasing its effectiveness as a cyber threat. Medusa demands ransoms ranging from $100,000 to as much as $15 million. 

Like many modern ransomware variants, it employs double extortion tactics—stealing sensitive data before encrypting victim networks. This strategy puts additional pressure on victims, as attackers can threaten to leak or sell stolen data if the ransom is not paid. Cybersecurity researchers from Symantec’s Threat Hunter team recently reported a rise in Medusa-related attacks over the past year. 

Medusa’s developers use initial access brokers (IABs) to gain entry into victim networks. These brokers operate within cybercriminal forums and marketplaces, selling access to compromised systems for amounts ranging from $100 to $1 million. Medusa affiliates rely on phishing campaigns and vulnerability exploitation to gain initial access, making it crucial for organizations to bolster their email security and patch known vulnerabilities. Once inside a system, Medusa operators use “living-off-the-land” (LotL) techniques, leveraging legitimate system tools to evade detection while conducting reconnaissance, data theft, and lateral movement.

Given Medusa’s evolving tactics, cybersecurity experts stress the importance of proactive defense measures. Organizations should deploy security patches, implement network segmentation, and restrict access to critical services from untrusted sources. Dan Lattimer, area vice president for Semperis in the UK and Ireland, emphasized the need for an “assumed breach” mindset, urging companies to shift from a prevention-focused approach to rapid detection, response, and recovery. 

As ransomware attacks grow more sophisticated, organizations must remain vigilant, continuously updating their cybersecurity strategies to mitigate risks and strengthen their defenses against threats like Medusa.

Tata Technologies Cyberattack: Hunters International Ransomware Gang Claims Responsibility for 1.4TB Data Theft

 

Hunters International, a ransomware group known for high-profile cyberattacks, has claimed responsibility for a January 2025 cyberattack on Tata Technologies. The group alleges it stole 1.4TB of sensitive data from the company and has issued a threat to release the stolen files if its ransom demands are not met. Tata Technologies, a Pune-based global provider of engineering and digital solutions, reported the cyberattack in January. 

The company, which operates in 27 countries with over 12,500 employees, offers services across the automotive, aerospace, and industrial sectors. At the time of the breach, Tata Technologies confirmed that the attack had caused disruptions to certain IT systems but stated that client delivery services remained unaffected. The company also assured stakeholders that it was actively restoring impacted systems and conducting an internal investigation with cybersecurity experts. 

However, more than a month later, Hunters International listed Tata Technologies on its dark web extortion page, taking responsibility for the attack. The group claims to have exfiltrated 730,000 files, totaling 1.4TB of data. While the ransomware gang has threatened to publish the stolen files within a week if a ransom is not paid, it has not provided any samples or disclosed the nature of the compromised documents. Tata Technologies has yet to release an update regarding the breach or respond to the hackers’ claims. 

BleepingComputer, a cybersecurity news platform, attempted to contact the company for a statement but did not receive an immediate response. Hunters International emerged in late 2023, suspected to be a rebranded version of the Hive ransomware group. Since then, it has carried out multiple high-profile attacks, including breaches of Austal USA, a U.S. Navy contractor, and Japanese optics company Hoya. 

The group has gained notoriety for targeting various organizations without ethical restraint, even engaging in extortion schemes against individuals, such as cancer patients from Fred Hutchinson Cancer Center. Although many of the gang’s claims have been verified, some remain disputed. For example, in August 2024, the U.S. Marshals Service denied that its systems had been compromised, despite Hunters International’s assertions.  

With cybercriminals continuing to exploit vulnerabilities, the Tata Technologies breach serves as another reminder of the persistent and evolving threats posed by ransomware groups.

Cyberattacks on Single Points of Failure Are Driving Major Industry Disruptions


Cybercriminals are increasingly targeting single points of failure within companies, causing widespread disruptions across industries. According to cybersecurity firm Resilience, attackers have shifted their focus toward exploiting key vulnerabilities in highly interconnected organizations, triggering a “cascading effect of disruption and chaos downstream.” This strategy allows cybercriminals to maximize the impact of their attacks, affecting not just the initial target but also its partners, clients, and entire industries. 


The financial consequences of these attacks have been severe. According to IBM research, the global average cost of a data breach in 2024 was nearly $4.9 million. However, some breaches were far more expensive. One of the most significant incidents involved a ransomware attack on Change Healthcare, a subsidiary of UnitedHealth that processes billions of medical claims annually. UnitedHealth reported that the attack cost the company $3.1 billion in response efforts, making it one of the most financially damaging cyber incidents in recent history. 

The attack caused major disruptions across the healthcare sector, impacting hospitals, insurance providers, and pharmacies. John Riggi, national cybersecurity advisor for the American Hospital Association, described the incident as “the most significant and consequential cyberattack in the history of U.S. health care.” Another major ransomware attack targeted CDK Global, a software provider for car dealerships across the U.S. The breach resulted in over $1 billion in collective losses for affected dealerships, according to estimates from Anderson Economic Group. 

This attack further demonstrated how cybercriminals can cripple entire industries by targeting critical service providers that businesses rely on for daily operations. Resilience’s analysis indicates that third-party risk has become a dominant driver of cyber insurance claims. In 2024, third-party breaches accounted for 31% of all claims filed by its clients. While the number was slightly higher in 2023 at 37%, none of those incidents resulted in material financial losses. The report also found that ransomware targeting vendors has become a significant concern, contributing to 18% of all incurred claims.  

Ransomware remained the top cause of financial loss in cyber incidents last year, responsible for 62% of claims involving monetary damages. However, Resilience’s research suggests that while ransomware remains a major threat, its frequency may be declining in broader markets. This trend is attributed to cybercriminals shifting their focus from random, large-scale attacks to more strategic operations against high-value targets that offer larger payouts. 

The evolving threat landscape underscores the need for organizations to strengthen cybersecurity measures, particularly in highly interconnected industries. With cyberattacks becoming more sophisticated and financially motivated, businesses must prioritize risk management, enhance third-party security assessments, and invest in cyber resilience to prevent large-scale disruptions.

Lee Enterprises Faces Prolonged Ransomware Attack Disrupting Newspaper Operations

 

Lee Enterprises, one of the largest newspaper publishers in the United States, is facing an ongoing ransomware attack that has severely disrupted its operations for over three weeks. The company confirmed the attack in a filing with the U.S. Securities and Exchange Commission (SEC), revealing that hackers illegally accessed its network, encrypted critical applications, and exfiltrated certain files. 

The publishing giant is now conducting a forensic investigation to determine whether sensitive or personal data was stolen. The attack has had widespread consequences across Lee’s business, affecting essential operations such as billing, collections, vendor payments, and the distribution of print newspapers. Many of its 72 publications have experienced significant delays, with some print editions not being published at all. 

The Winston-Salem Journal in North Carolina reported that it was unable to print several editions, while the Albany Democrat-Herald and Corvallis Gazette-Times in Oregon faced similar disruptions, preventing the release of at least two editions. Digital services have also been affected. On February 3, Lee Enterprises notified affected media outlets that one of its data centers, which supports applications and services for both the company and its customers, had gone offline. 

This outage has prevented subscribers from logging into their accounts and accessing key business applications. Several Lee-owned newspaper websites now display maintenance messages, warning readers that subscription services and digital editions may be temporarily unavailable. The full impact of the attack is still being assessed, but Lee has acknowledged that the incident is “reasonably likely” to have a material financial impact. With print and digital disruptions continuing, the company faces potential revenue losses from advertising, subscription cancellations, and operational delays. 

Law enforcement has been notified, though the company has not disclosed details about the perpetrators or whether it is considering paying a ransom. Ransomware attacks typically involve cybercriminals encrypting a company’s data and demanding payment in exchange for its release. If Lee refuses to negotiate, it may take weeks or months to fully restore its systems. 

Cyberattacks targeting media organizations have become increasingly common, as newspapers and digital publications rely on complex networks that can be vulnerable to security breaches. The Freedom of the Press Foundation is currently tracking the scope of the attack and compiling a list of affected newspapers. For now, Lee Enterprises continues its recovery efforts while its newspapers work to restore regular operations. 

Until the attack is fully resolved, readers, advertisers, and employees may continue to face disruptions across print and digital platforms. The incident highlights the growing threat of ransomware attacks on critical infrastructure and the challenges companies face in securing their networks against cyber threats.