Russian state-sponsored hacking group APT28 (Fancy Bear/Forest Blizzard/Sofacy) has employed a novel "nearest neighbor attack" to breach enterprise WiFi networks from thousands of miles away. The attack, first detected on February 4, 2022, targeted a U.S. company in Washington, D.C., involved in Ukraine-related projects. Cybersecurity firm Volexity identified the intrusion, highlighting APT28’s innovative approach to bypass multi-factor authentication (MFA).
APT28 initiated the attack by breaching a nearby organization’s WiFi network, exploiting dual-home devices such as laptops or routers with both wired and wireless connections. These devices allowed the hackers to connect to the target’s WiFi network. By daisy-chaining access to multiple organizations, the hackers were able to connect to the victim's wireless network and move laterally across the system.
The hackers were able to bypass multi-factor authentication on the company’s WiFi network, despite being physically located thousands of miles away. Once within range, they compromised access to three wireless access points near the target’s conference room windows and used remote desktop protocol (RDP) from an unprivileged user to roam across the network.
The attackers dumped Windows registry hives (SAM, Security, and System) using a script called servtask.bat, compressing them into a ZIP file for exfiltration. This process allowed APT28 to gather sensitive data without causing significant disruptions to the target network. The focus of the attack was on individuals and projects related to Ukraine, in line with Russia’s geopolitical interests.
Volexity's investigation revealed that APT28 was particularly interested in data from individuals with expertise in Ukraine-related projects. This highlights the targeted nature of the attack, aimed at collecting intelligence from a specific field of work.
The attack underscores the need for robust WiFi security and network segmentation. APT28’s ability to exploit physical proximity and dual-home devices highlights the growing sophistication of cyberattacks. Organizations should consider the following measures:
APT28’s "nearest neighbor attack" serves as a reminder of the advanced techniques used by state-sponsored hackers. Vigilance, along with layered cybersecurity defenses, is crucial in defending against such sophisticated attacks.
In a Security and Exchange filing, the IT product provider noted that the attack occurred on January 12. They suspect that Russia’s foreign intelligence service ‘Cozy Bear’ was behind the attack.
“Based on our investigation, we now believe that the threat actor accessed and exfiltrated data beginning in May 2023 from a small percentage of HPE mailboxes belonging to individuals in our cybersecurity, go-to-market, business segments, and other functions,” HPE, which is based in Spring, Texas, said in the filing.
HP’s spokesperson, Adam R. Bauer, was contacted through his email, however, he did not make it clear who exactly informed HPE of the breach. “We’re not sharing that information at this time,” Bauer noted the compromised email boxes were running Microsoft software.
In the filing, HPE said the intrusion was “likely related to earlier activity by this threat actor, of which we were notified in June 2023, involving unauthorized access to and exfiltration of a limited number of SharePoint files.” SharePoint is a component of Microsoft's Office 365 suite, which also contains word processing, spreadsheet, and email tools.
SharePoint is part of Microsoft’s 365 suite, formerly known as Office, which includes email, word-processing and spreadsheet apps.
HPE is unable to say whether the network compromise was connected to the intrusion that Microsoft revealed last week, since "we do not have the details of the incident Microsoft disclosed," according to Bauer.
Also, he did not specify where the affected employee, whose accounts the hackers had access to, belonged in the company’s hierarchy.
According to the sources, “The total scope of mailboxes and emails accessed remains under investigation.”
As per the report, HPE has ascertained that the intrusion has not had any significant effect on the company's financial stability or operations. Both announcements coincide with the implementation one month ago of a new rule by the U.S. Securities and Exchange Commission requiring publicly traded corporations to report security breaches that may hurt their operations. Unless they are granted a national security waiver, they have four days to comply with this.
The attack was first detected on January 12th, and Microsoft in its initial investigation attributed the attack to the Russian threat actors, known famously as Nobelium or APT-29.
Microsoft informs that the threat actors launched the attacks in November 2023, in which they carried out a password spray attack in order to access a legacy non-production test tenant account.
A password spray attack is a type of brute force attack where threat actors collect a list of potential login names and then attempt to log in to all of them using a particular password. If that password fails, they repeat this process with other passwords until they run out or successfully breach the account.
Since the hackers were able to access accounts using a brute force attack, it is clear that it lacked two-factor authentication or multi-factor authentication.
Microsoft claims that after taking control of the "test" account, the Nobelium hackers utilized it to access a "small percentage" of the company's email accounts for more than a month.
It is still unclear why a non-production test account would have the ability to access other accounts in Microsoft's corporate email system unless the threat actors utilized this test account to infiltrate networks and move to accounts with higher permissions.
Apparently, these breached accounts include members of Microsoft’s leadership team and employees assigned to the cybersecurity and legal departments, targeted by hackers to steal emails and attachments.
"The investigation indicates they were initially targeting email accounts for information related to Midnight Blizzard itself," the Microsoft Security Response Center shared in a report on the incident.
"We are in the process of notifying employees whose email was accessed."
Microsoft reaffirms that the incident was caused by the brute force password attack, rather than a vulnerability in their product services.
However, it seems that Microsoft’s poorly managed security configuration played a major role in the success of the breach.
While this investigation is underway, Microsoft stated that they will release more information when it is appropriate.