Foiling RaaS attacks via active threat hunting

In this Help Net Security podcast, Jon DiMaggio, Chief Security Strategist at Analyst1, talks about the characteristic of attacks launched by Ransomware-as-a-Service (RaaS) gangs and how organizations can prevent them from succeeding.

RaaS attacks

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To make things interesting, Jon’s nine-year-old son is hosting the interview. Below is a transcript for your convenience.

Damien: Hi, I’m Damien DiMaggio, and today I am interviewing Jon DiMaggio, Chief Security Strategist at Analyst1.

Jon: Hi Damien. Thanks for talking with me today.

Today we are talking to Jon about Ransomware-as-a-Service and some of the bad guys behind it. Jon, can you tell us what Ransomware-as-a-Service is?

Jon: Sure, Damien, that’s a great question. So, one of the biggest issues organizations have today is ransomware attacks. Traditionally enterprise ransomware attackers will find a way to initially breach an environment. They’ll “live” in that environment anywhere from days to weeks. We’ve seen as short as three days and as long as two weeks, where the attacker will spend time in the environment using legitimate tools that are already present (“living off the land”), using dual use tools and enumerating and gaining privileges during that time.

Then they use those privileges to turn off and disable security services. This allows the adversary to stage the environment so that when they do execute the ransom payload, it’ll have the most success in encrypting and removing access to customer data. Ransomware-as-a-Service takes this one step further.

Basically, what they do is they sell access to their attacks. So they advertise on dark net forums and marketplaces. And what they do is, you can buy into the service and you can take part in the profit sharing when you help to expose a victim’s environment and they actually pay money.

So, the biggest differentiator here is you have a higher volume of attacks, you have more people involved, you have greater volumes of attacks and shorter timeframes, therefore you bring in a greater amount of profit and by sharing this profit, it’s very appealing and lucrative to cyber criminals.

Interesting. How do these groups differ from traditional ransomware bad guys?

Jon: Well, you know, it’s in the tactics that they use, Damien. One of the tactics that really stands out, and they’re not the only attackers to do it, but they are one of the first to do it, is actually making a copy and stealing the victim’s data prior to the ransomware payload execution.

The benefit that the attacker gets from this is they can now leverage this for additional income. What they do is they threaten the victim to post sensitive information or customer data publicly. And this is just another element of a way to further extort the victim and to increase the amount of money that they can ask for. And now you have these victims that have to worry about not only having all their data taken from them, but actual public exposure.

It’s becoming a really big problem, but those sorts of tactics – as well as using social media to taunt the victim and hosting their own infrastructure to store and post data – all of those things are elements that prior to seeing it used with Ransomware-as-a Service, were not widely seen in traditional enterprise ransomware attacks.

What do they do with the data once they have it?

Jon: The first thing that they do is they go through, and they find some element of it that’s sensitive. Now that could be sensitive email communications, or it could be some sort of secret “sauce” to something that the victim organization provides or does, or it could be sensitive customer information that you wouldn’t want exposed. And they’ll take a small piece of that to dangle in front of the victim to let them know that they’re serious, and they will post it publicly.

They’ll use Twitter to “socialize” the fact that they have this data, they’ll post to text hosting sites, such as Pastebin, or they’ll take screenshots of emails or documents and post to image hosting sites like 4Chan. It’s almost like a propaganda-driven campaign where they’ll really try to put out the message and spread the word that they have access to this organization’s critical information and customer data in order to entice the victim to pay. They want to make sure customers know, they specifically will reach out to customers of some of these organizations in order to increase the pressure and have the victim pay.

So, everything’s about gaining as much money and profit with Ransomware-as-a-Service groups, and they’ve just found different ways to implement and exploit victims outside and beyond traditional ransomware encryption techniques.

Should the victims pay the ransom? And if they do, does the bad guy hold up their end of the deal?

Jon: That’s a good question also. It’s really difficult… You can’t judge a victim by whether or not they pay or not. We always tell people you shouldn’t pay a ransom. If no one paid ransom, you wouldn’t keep having attackers continue these types of attacks. It takes them time, days to weeks, as I mentioned, that they have to spend doing this work in order to get a payout. So if they spent all that time and no one paid for these guys to make additional money, so…

You can’t trust that paying them is going to keep you protected. Organizations are in a bad spot when this happens, and they’ll have to make those decisions on whether it’s worth paying. But traditionally, it’s always best to not get compromised in the first place, which obviously doesn’t help an organization once that’s already happened. But just understand, just because you pay the ransom doesn’t mean that you’re going to get your data back or that it’s not going to be posted publicly later on down the road.

What can companies do to protect themselves from these types of attacks?

Jon: The best time to stop the attack is before the ransomware payload is executed. So, during that time period, those days to weeks where the adversary is staging the environment, that provides an opportunity to detect them. So, when the adversary is using legitimate administrative tools in order to further gain a foothold, that’s the time for defenders to identify it.

So, looking at administrative tool use, looking at who’s using it, looking at the times that they’re using it, looking at what they’re doing with it, all of those are things where there’s an opportunity to prevent that from happening. And we have seen defenders that actually do this well, and they do identify that there is an attack taking place, and they have successfully stopped these ransomware attackers.

But it’s all about the mindset of having very active threat hunting take place, and just not relying on tools and applications to flash red and tell you that something nefarious is going on in your organization. It’s a very proactive approach, and it’s not just looking at the bad stuff, but also looking at the good stuff that organizations need to do, the legitimate tool use.

Damien: Thanks, Jon, it’s been very informative, great job.

Jon: Thank you, Damien.

Retail CISOs and the areas they must focus on

In this interview, Matt Cooke, cybersecurity strategist, EMEA at Proofpoint, discusses the cybersecurity challenges for retail organizations and the main areas CISOs need to focus on.

retail CISOs

Generally, are retailers paying enough attention to security hygiene?

Our research has shown that the vast majority of retailers in the UK and Europe-wide simply aren’t doing enough to protect their customers from fraudulent and malicious emails – only 11% of UK retailers have implemented the recommended and strictest level of DMARC protection, which protects them from cybercriminals spoofing their identity and decreases the risk of email fraud for customers.

Despite this low and worrying statistic, it’s promising to see that a small majority of UK retailers have at least started their DMARC journey – with 53% publishing a DMARC record in general. When we look at the top European-wide online retailers, 60% of them have published a DMARC record.

If we compare this to the largest organisations in the world (the Global 2000), only 51% of these brands have published a DMARC record. This illustrates the retail industry is slightly ahead of the curve – therefore certainly is paying attention to security hygiene – but there’s still a long way to go.

Unfortunately, starting your DMARC journey isn’t quite enough – without having the ‘reject’ policy in place cyber criminals can still pretend to be you and trick your customers.

What areas should a CISO of a retail organization be particularly worried about?

Business Email Compromise (BEC) and Email Account Compromise Attacks (EAC), are on the rise, targeting organisations in all industries globally. Dubbed cyber-security’s priciest problem, social engineering driven cyber threats such as BEC and EAC are purpose-built to impersonate someone users trust and trick them into sending money or sensitive information.

These email-based threats are a growing problem. Recent Proofpoint research has shown that since March 2020, over 7,000 CEOs or other executives have been impersonated. Overall, more money is lost to this type of attack than any other cybercriminal activity. In fact, according to the FBI, these attacks have cost organisations worldwide more than $26 billion between June 2016 and July 2019.

The retail industry has a very complex supply chain. When targeting an organisation in this sector, cyber criminals don’t only see success from tricking consumers/customers, they can also target suppliers, with attacks such as BEC, impersonating a trusted person from within the business.

We have seen cases within the retail sector where cyber criminals are compromising suppliers’ email accounts in order to hijack seemingly legitimate conversations with someone within the retail business. The aim here is to trick the retailer into paying an outstanding invoice into the wrong account – the cybercriminals’ account, as opposed to the actual supplier.

In addition, due to the pandemic, global workforces have been thrusted into remote working – and those in the retail sector are not exempt. As physical stores have closed worldwide, customer service and interaction has shifted to digital communication more so than ever. Those employees that were used to talking directly to customers, are now using online platforms and have new cloud accounts – expanding the attack surface for cybercriminals.

The retail industry – along with all other industries – need to ensure employees are adequately trained around identifying the risks that might be delivered by these different communication channels and how to securely handle customer data.

Domain spoofing and phishing continue to rise, what’s the impact for retail organizations?

Threat actors are constantly tailoring their tactics, yet email remains the cybercriminals’ attack vector of choice, both at scale and in targeted attacks, simply because it works.

Cybercriminals use phishing because it’s easy, cheap and effective. Email addresses are easy to obtain, and emails are virtually free to send. With little effort and little cost, attackers can quickly gain access to valuable data. As seen in recent breaches, emails sent from official addresses that use the domains of known international companies, seem trustworthy both to the receiver and spam-filters, increasing the number of potential victims. However, this has a detrimental effect on both the brands’ finances and reputation.

Organisations have a duty to deploy authentication protocols, such as DMARC to protect employees, customers, and partners from cybercriminals looking to impersonate their trusted brand and damage their reputation.

Opportunistic cyber criminals will tailor their emails to adapt to whatever is topical or newsworthy at that moment in time. For example, Black Friday-themed phishing emails often take advantage of recipients’ desire to cash in on increasingly attractive deals, creating tempting clickbait for users.

These messages may use stolen branding and tantalising subject lines to convince users to click through, at which point they are often delivered to pages filled with advertising, potential phishing sites, malicious content, or offers for counterfeit goods. As with most things, if offers appear too good to be true or cannot be verified as legitimate email marketing from known brands, recipients should avoid following links.

Do you expect technologies like AI and ML to help retailers eliminate most security risks in the near future?

Today, AI is a vital line of defence against a wide range of threats, including people-centric attacks such as phishing. Every phishing email leaves behind it a trail of data. This data can be collected and analysed by machine learning algorithms to calculate the risk of potentially harmful emails by checking for known malicious hallmarks.

While AI and ML certainly help organisations to reduce risks, they are not going to eliminate security risks on their own. Organisations need to build the right technologies and plug the right gaps from a security perspective, using AI and ML as just part of this overall solution.

Organisations should not outsource their risk management entirely to an AI engine, because AI doesn’t know your business.

There is no doubt that artificial intelligence is now a hugely important line of cyber defence. But it cannot and should not replace all previous techniques. Instead, we must add it to an increasingly sophisticated toolkit, designed to protect against rapidly evolving threats.

The ransomware plague cost the world over $1 billion

Group-IB has presented a report which examines key shifts in the cybercrime world internationally between H2 2019 and H1 2020 and gives forecasts for the coming year. The most severe financial damage has occurred as a result of ransomware activity.

ransomware cost 2020

The past year — a harrowing period for the world economy — culminated in the spike of cybercrime. It was also marked by the rise of the underground market for selling access to corporate networks and an over two-fold growth of the carding market. The stand-off between various pro-government hacker groups saw new players come onto the scene, while some previously known groups resumed their operations.

The report examines various aspects of cybercrime industry operations and predicts changes to the threat landscape for various sectors, namely the financial industry, telecommunications, retail, manufacturing, and the energy sector. The authors also analyze campaigns targeting critical infrastructure facilities, which are an increasingly frequent target of intelligence services worldwide.

Forecasts and recommendations set out seek to prevent financial damage and manufacturing downtimes. Its purpose is also to help companies adopt preventive measures for counteracting targeted attacks, cyber espionage, and cyberterrorist operations.

The cost of ransomware

Late 2019 and all of 2020 were marked by an unprecedented surge in ransomware attacks. Neither private sector companies nor government agencies turned out to be immune to the ransomware plague.

Over the reporting period, more than 500 successful ransomware attacks in more than 45 countries were reported. Since attackers are motivated by financial gain alone, any company regardless of size and industry could fall victim to ransomware attacks.

Meanwhile, if the necessary technical toolsets and data restoring capabilities are not in place, ransomware attacks could not only cause downtime in manufacturing but also bring operations to a standstill.

According to conservative estimates, the total financial damage from ransomware operations amounted to over $1 billion ($1,005,186,000), but the actual damage is likely to be much higher. Victims often remain silent about incidents and pay ransoms quietly, while attackers do not always publish data from compromised networks.

A major ransomware outbreak was detected in the United States, with the country accounting for about 60% of all known incidents. The US is followed by European countries (mainly the UK, France, and Germany), which together make up roughly 20% of all ransomware attacks.

Countries of North and South America (excluding the US) are at 10% and Asian states are at 7%. The top five most frequently attacked industries include manufacturing (94 victims), retail (51 victims), state agencies (39 victims), healthcare (38 victims), and construction (30 victims).

Maze and REvil are considered to have the largest appetite: the operators of these two strains are believed to be behind more than half of all successful attacks. Ryuk, NetWalker, and DoppelPaymer come second.

The ransomware pandemic was triggered by an active development of private and public affiliate programs that bring together ransomware operators and cybercriminals involved in compromising corporate networks.

Another reason for an increase in ransomware attacks is that traditional security solutions, still widely used by a lot of companies on the market, very often fail to detect and block ransomware activity at early stages.

Ransomware operators buy access and then encrypt devices on the network. After receiving the ransom from the victim, they pay a fixed rate to their partners under the affiliate program.

The main ways to gain access to corporate networks include brute-force attacks on remote access interfaces (RDP, SSH, VPN), malware (e.g., downloaders), and new types of botnets (brute-force botnets). The latter are used for distributed brute-force attacks from a large number of infected devices, including servers.

In late 2019, ransomware operators adopted a new technique. They began downloading all the information from victim organizations and then blackmailed them to increase the chances of the ransom being paid.

Maze (who allegedly called it quits not long ago) pioneered the tactic of publishing sensitive data as leverage to extort money. If a victim refuses to pay the ransom, they risk not only losing all their data but also having it leaked. In June 2020, REvil started auctioning stolen data.

Seven new APT groups joined the global intelligence service stand-off

Military operations conducted by various intelligence services are becoming increasingly common. A continuing trend was identified, where physical destruction of infrastructure is replacing espionage. Attacker toolkits are being updated with instruments intended for attacks on air-gapped networks.

The nuclear industry is turning into the number one target for state-sponsored threat actors. Unlike the previous reporting period, during which no attacks were observed, the current one was marked by attacks on nuclear energy facilities in Iran and India.

A blatant attack was attempted in Israel, where threat actors gained access to some of Israel’s water treatment systems and tried altering water chlorine levels. Had it been successful, the attack would have led to water shortages or even civilian casualties.

State-sponsored APT groups are not losing interest in the telecommunications sector. Over the review period, it was targeted by at least 11 groups affiliated with intelligence services. Threat actors’ main goals remain spying on telecommunications operators or attempts to disable infrastructure.

Threat actors have also set a new record in DDoS attack power: 2.3 Tb per second and 809 million packets per second. BGP hijacking and route leaks remain a serious problem as well. Over the past year, nine significant cases have been made public.

Most state-sponsored threat actors originate from China (23), followed by Iran (8 APT groups), North Korea and Russia (4 APT groups each), India (3), and Pakistan and Gaza (2 each). South Korea, Turkey, and Vietnam are reported to have only one APT group each.

According to data analyzed, Asia-Pacific became the most actively attacked region by state-sponsored threat actors. A total of 34 campaigns were carried out in this region, and APT groups from China, North Korea, Iran, and Pakistan were the most active.

At least 22 campaigns were recorded on the European continent, with attacks carried out by APT groups from China, Pakistan, Russia, and Iran. Middle East and Africa were the scene of 18 campaigns conducted by pro-government attackers from Iran, Pakistan, Turkey, China, and Gaza.

Cybersecurity researchers have also detected seven previously unknown APT groups, namely Tortoiseshell (Iran),Poison Carp (China), Higaisa (South Korea), AVIVORE (China), Nuo Chong Lions (Saudi Arabia), as well as Chimera and WildPressure, whose geographical affiliation remains unknown. In addition, six known groups that remained unnoticed in recent years resumed their operations.

Sales of access to compromised corporate networks grow four-fold

Sales of access to compromised corporate networks have been increasing from year to year and peaked in 2020. It is difficult to assess the size of the market for selling access, however, as offers published on underground forums often do not include the price, while some deals are cut in private.

Nevertheless, technologies for monitoring underground forums (which make it possible to see deleted and hidden posts) helped the experts assess the total market size for access sold in the review period (H2 2019 to H1 2020): $6.2 million. This is a four-fold increase compared to the previous review period (H2 2018 to H1 2019), when it totaled $1.6 million.

Surprisingly, state-sponsored attackers joined this segment of the cybercriminal market seeking additional revenue. As such, in the summer of 2020, on an underground forum a seller offered access to several networks, including some belonging to US government departments, defense contractors (Airbus, Boeing, etc.), IT giants, and media companies. The cost of the access to the companies listed was close to $5 million.

In H1 2020 alone, 277 offers of access to corporate networks were put up for sale on underground forums. The number of sellers has also grown. During that period, 63 sellers were active, and 52 of them began selling access in 2020.

For comparison, during all of 2018, only 37 access sellers were active, while in 2019 there were 50 sellers who offered access to 130 corporate networks. In total, the sales of corporate network access grew by 162% compared to the previous period (138 offers against 362).

After analyzing offers of access to corporate networks, experts found correlations with ransomware attacks: most threat actors offered access to US companies (27%), while manufacturing was the most frequently attacked industry in 2019 (10.5%). In 2020, access to state agency networks (10.5%), educational institutions (10.5%), and IT companies (9%) was high in demand.

It should be noted that sellers of access to corporate networks increasingly rarely mention company names, their geographical location and industry, which makes it almost impossible to identify the victim without contacting the attackers.

Selling access to a company’s network is usually only one stage of the attack: the privileges gained might be used for both launching ransomware and stealing data, with the aim of later selling it on underground forums or spying.

Market of stolen credit card data reached almost $2 billion

Over the review period, the carding market grew by 116%, from $880 million to $1.9 billion. The quick growth applies to both textual data (bank card numbers, expiration dates, holder names, addresses, CVVs) and dumps (magnetic stripe data). The amount of textual data offered for sale increased by 133%, from 12.5 to 28.3 million cards, while dumps surged by 55%, from 41 to 63.7 million. The maximum price for card textual data is $150 and $500 for a dump.

Dumps are mainly obtained by infecting computers with connected POS terminals with special Trojans and thereby collecting data from random-access memory. Over the review period, 14 Trojans used for collecting dumps were found to be active.

Cybercriminals seek to obtain data relating to credit and debit cards issued by US banks: these account for over 92% of all compromised bank cards. Bank card data of bank customers in India and South Korea are the second and third most desirable targets for cybercriminals. Over the review period, the total price of all the bank card dumps offered for sale amounted to $1.5 billion, while textual data – to $361.7 million.

Textual data is collected through phishing websites and PC/Android banking Trojans, by compromising e-commerce websites, and by using JS sniffers. The latter were one of the main instruments for stealing large amounts of payment data over the past year. JS sniffers also became more popular in light of the trend of reselling access to various websites and organizations on underground forums.

Group-IB is currently monitoring the activities of 96 JS sniffer families. This is a 2.5-fold increase compared to the previous reporting period, during which there were 38 families on the company’s radar. According to the findings, over the past year nearly 460,000 bank cards were compromised using JS sniffers.

The threat of bank card data leaks is most acute for retail companies that have online sales channels, e-commerce companies that offer goods and services online, and banks that unwittingly become involved in incidents.

The main scenarios for illegally harvesting bank card data and most frequently attacked countries (the United States, India, South Korea) will remain the same. Latin America might become an increasingly attractive target for carders since it already has mature hacker community experienced in using Trojans for this purpose.

Phishing grows by 118%

Between H2 2019 and H1 2020, the number of phishing web resources found and blocked rose by 118% compared to the previous reporting period. Analysts mention the global pandemic and lockdowns as the main reasons: web-phishing, which is one of the simplest ways to earn money in the cybercriminal industry, attracted those who lost their incomes.

The increased demand for online purchases created a favorable environment for phishers. They quickly adapted to this trend and began carrying out phishing attacks on services and individual brands that previously did not have much financial appeal to them.

Scammers also changed their tactics. In previous years, attackers ended their campaigns after fraudulent websites were taken down and quickly switched to other brands. Today, they are automating their attacks instead and replacing the blocked pages with new ones.

Since the start of the year, there has been a rise in advanced social engineering, namely when multi-stage scenarios are used in phishing attacks. As part of such increasingly popular phishing schemes, threat actors first stake out the victim. They establish contact with the targeted individual (e.g., through a messenger), create an atmosphere of trust, and only then do they direct the victim to a phishing page.

One-time links turned out to be another phishing trend of the past year. After a user receives a link and clicks on it at least once, it will not be possible to obtain the same content again in order to collect evidence. This significantly complicates the process of taking down phishing resources.

Most web-phishing pages mimicked online services (39.6%). Phishers in particular gathered login credentials from user accounts on Microsoft, Netflix, Amazon, eBay, Valve Steam, etc. Online services were followed by email service providers (15.6%), financial organizations (15%), cloud storage systems (14.5%), payment services (6.6%), and bookmakers (2.2%).

On That Dusseldorf Hospital Ransomware Attack and the Resultant Death

Wired has a detailed story about the ransomware attack on a Dusseldorf hospital, the one that resulted in an ambulance being redirected to a more distant hospital and the patient dying. The police wanted to prosecute the ransomware attackers for negligent homicide, but the details were more complicated:

After a detailed investigation involving consultations with medical professionals, an autopsy, and a minute-by-minute breakdown of events, Hartmann believes that the severity of the victim’s medical diagnosis at the time she was picked up was such that she would have died regardless of which hospital she had been admitted to. “The delay was of no relevance to the final outcome,” Hartmann says. “The medical condition was the sole cause of the death, and this is entirely independent from the cyberattack.” He likens it to hitting a dead body while driving: while you might be breaking the speed limit, you’re not responsible for the death.

So while this might not be an example of death by cyberattack, the article correctly notes that it’s only a matter of time:

But it’s only a matter of time, Hartmann believes, before ransomware does directly cause a death. “Where the patient is suffering from a slightly less severe condition, the attack could certainly be a decisive factor,” he says. “This is because the inability to receive treatment can have severe implications for those who require emergency services.” Success at bringing a charge might set an important precedent for future cases, thereby deepening the toolkit of prosecutors beyond the typical cybercrime statutes.

“The main hurdle will be one of proof,” Urban says. “Legal causation will be there as soon as the prosecution can prove that the person died earlier, even if it’s only a few hours, because of the hack, but this is never easy to prove.” With the Düsseldorf attack, it was not possible to establish that the victim could have survived much longer, but in general it’s “absolutely possible” that hackers could be found guilty of manslaughter, Urban argues.

And where causation is established, Hartmann points out that exposure for criminal prosecution stretches beyond the hackers. Instead, anyone who can be shown to have contributed to the hack may also be prosecuted, he says. In the Düsseldorf case, for example, his team was preparing to consider the culpability of the hospital’s IT staff. Could they have better defended the hospital by monitoring the network more closely, for instance?

56% of organizations faced a ransomware attack, many paid the ransom

There’s a continued proliferation of ransomware, heightened concerns around nation-state actors, and the need for acceleration of both digital and security transformation, a CrowdStrike survey reveals.

faced ransomware attack

Proliferation of ransomware leads to more frequent payouts, costing millions

Survey data indicates ransomware attacks have proven to be especially effective, as 56% of organizations surveyed have suffered a ransomware attack in the last year. The COVID-19 pandemic catalyzed increasing concerns around ransomware attacks, with many organizations resorting to paying the ransom.

The global attitude shifts from a question of if an organization will experience a ransomware attack to a matter of when an organization will inevitably pay a ransom. Notable findings include:

  • Concern around ransomware attacks continues to increase, with the stark increase in this year’s findings (54%) compared to 2019 (42%) and 2018 (46%).
  • 71% of cybersecurity experts globally are more worried about ransomware attacks due to COVID-19.
  • Among those hit by ransomware, 27% chose to pay the ransom, costing organizations on average $1.1 million USD owed to hackers.
  • The APAC region is suffering the most when paying the ransom with the highest average payout at $1.18 million USD, followed by EMEA at $1.06 million and the U.S. at $0.99 million.

Fear of nation-state cyberattacks can stifle business growth in post COVID-19 world

Nation-state activity continues to weigh heavily on IT decision makers, as 87% of respondents agree that nation-state sponsored cyberattacks are far more common than people think.

As growing international tensions and the global election year have created a nesting ground for increased nation-state activity, organizations are under increased pressure to resume operations despite the increased value of intellectual property and vulnerabilities caused by COVID-19. Key highlights include:

  • Even with the massive rise in eCrime over the course of 2020, 73% believe nation-state sponsored cyberattacks will pose the single biggest threat to organizations like theirs in 2021. In fact, concerns around nation-states have steadily increased, as 63% of cybersecurity experts view nation-states as one of the cyber criminals most likely to cause concern, consistently rising from 2018 (54%) and 2019 (59%).
  • 89% are fearful that growing international tensions (e.g. U.S.-China trade war) are likely to result in a considerable increase in cyber threats for organizations.
  • Approximately two in five IT security professionals believe a nation-state cyberattack on their organization would be motivated by intelligence (44%) or to take advantage of vulnerabilities caused by COVID-19 (47%).

Digital and security transformation accelerated as business priority

In the wake of these threats, cybersecurity experts have accelerated their digital and security transformation efforts to address the growing activity from eCrime and nation-state actors.

While spend on digital transformation continues to trend upward, the COVID-19 pandemic accelerated the timeline for many organizations, costing additional investment to rapidly modernize security tools for the remote workforce. Security transformation rollout findings include:

  • 61% of respondents’ organizations have spent more than $1 million on digital transformation over the past three years.
  • 90% of respondents’ organizations have spent a minimum of $100,000 to adapt to the COVID-19 pandemic.
  • 66% of respondents have modernized their security tools and/or increased the rollout of cloud technologies as employees have moved to work remotely.
  • 78% of respondents have a more positive outlook on their organization’s overarching security strategy and architecture over the next 12 months.

“This year has been especially challenging for organizations of all sizes around the world, with both the proliferation of ransomware and growing tensions from nation-state actors posing a massive threat to regions worldwide,” said Michael Sentonas, CTO, CrowdStrike.

“Now more than ever, organizations are finding ways to rapidly undergo digital transformation to bring their security to the cloud in order to keep pace with modern-day threats and secure their ‘work from anywhere’ operations.

Cybersecurity teams around the globe are making strides in improving their security posture by moving their security infrastructure to the cloud and remaining diligent in their incident detection, response and remediation practices.”

Ransomware still the most common cyber threat to SMBs

Ransomware still remains the most common cyber threat to SMBs, with 60% of MSPs reporting that their SMB clients have been hit as of Q3 2020, Datto reveals.

ransomware SMBs

More than 1,000 MSPs weighed in on the impact COVID-19 has had on the security posture of SMBs, along with other notable trends driving ransomware breaches.

The impact of such attacks keeps growing: the average cost of downtime is now 94% greater than in 2019, and nearly six times higher than it was in 2018 increasing from $46,800 to $274,200 over the past two years, according to Datto’s research. Phishing, poor user practices, and lack of end user security training continue to be the main causes of successful ransomware attacks.

The survey also revealed the following:

  • MSPs a target: 95% of MSPs state their own businesses are more at risk. Likely due to increasing sophistication and complexity of ransomware attacks, almost half (46%) of MSPs now partner with specialized Managed Security Service Providers (MSSPs) for IT security assistance – to protect both their clients and their own businesses.
  • SMBs spend more on security: 50% of MSPs said their clients had increased their budgets for IT security in 2020, perhaps indicating awareness of the ransomware threat is growing.
  • Average cost of downtime continues to overshadow actual ransom amount: Downtime costs related to ransomware are now nearly 50X greater than the ransom requested.
  • Business continuity and disaster recovery (BCDR) remains the number one solution for combating ransomware, with 91% of MSPs reporting that clients with BCDR solutions in place are less likely to experience significant downtime during an attack. Employee training and endpoint detection and response platforms ranked second and third in tackling ransomware.

The impact of COVID-19 on ransomware and the cost of security disruptions

During the pandemic, the move to remote working and the accelerated adoption of cloud applications have increased security risks for businesses. More than half (59%) of MSPs said remote work due to COVID-19 resulted in increased ransomware attacks, and 52% of MSPs reported that shifting client workloads to the cloud increased security vulnerabilities.

As a result, SMBs need to take precautions to avoid the costly disruptions that occur in the aftermath of an attack. The survey also determined that healthcare was the most vulnerable industry during the pandemic (59%).

“Now more than ever organizations need to be vigilant in their approach to cybersecurity, especially in the healthcare industry as it’s managing and handling the most sensitive (and for criminals the most valuable) private data,” said Travis Lass, President of XLCON.

“The majority of our clients are small healthcare clinics, with no in-house IT. As ransomware attacks continue to increase, it’s critical we do everything we can to support them by arming them with best-in-class technology that will fend off malicious attackers looking to take advantage of the already fragile state of the healthcare industry.”

Top three ways ransomware is attacking entities

  • Phishing emails. 54% of MSPs report these as the most successful ransomware attack vector. The social engineering tactics used to deceive victims have become very sophisticated, making it vital for SMBs to offer extensive and consistent end user security education that goes beyond the basics of identifying phishing attacks.
  • Software-as-a-Service (SaaS) applications. Nearly one in four MSPs reported ransomware attacks on clients’ SaaS applications, with Microsoft being hit the hardest at 64%. These attacks mean that SMBs must consider the vulnerability of their cloud applications when planning their IT security measures and budgets.
  • Windows endpoint systems applications. These are the most targeted by hackers, with 91% of ransomware attacks targeting Windows PCs this year.

“The COVID-19 pandemic has accelerated the need for stronger security measures as remote working and cloud applications increase in prevalence,” remarked Ryan Weeks, CISO at Datto.

“Reducing the risk of cyberattacks requires a multi-layered approach rather than a single product – awareness, education, expertise, and purpose-built solutions all play a key role.

“The survey highlights how MSPs are taking the extra step to partner with MSSPs that can offer more security-focused experience, along with a more widespread use of security measures like SSO and 2FA – these are critical strategies businesses and municipalities need to adopt to protect themselves from cyber threats now and in the future.”

Malware activity spikes 128%, Office document phishing skyrockets

Nuspire released a report, outlining new cybercriminal activity and tactics, techniques and procedures (TTPs) throughout Q3 2020, with additional insight from Recorded Future.

malware activity q3 2020

Threat actors becoming even more ruthless

The report demonstrates threat actors becoming even more ruthless. Throughout Q3, hackers shifted focus from home networks to overburdened public entities, including the education sector and the Election Assistance Commission (EAC). Malware campaigns, like Emotet, utilized these events as phishing lure themes to assist in delivery.

“We continue to see attackers use newsjacking and typosquatting techniques to attack organizations with ransomware, especially this quarter with the Presidential election and schools moving to a virtual learning model,” said John Ayers, Nuspire Chief Strategy Product Officer.

“It’s important for organizations to understand the latest threat landscape is changing so they can better prepare for current themes and better understand their risk.”

Increase in malware activity

There has been a significant increase in malware activity over the course of Q3 2020; the 128% increase from Q2 represents more than 43,000 malware variants detected a day.

As Emotet made a significant appearance, new features in Emotet modules were discovered, implying the group will likely continue operations throughout the remainder of the next quarter to successfully gauge the viability of these new features.

“Intelligence is key to identifying these top threats like Emotet,” said Greg Lesnewich, Senior Intelligence Analyst, Recorded Future.

“Keeping a vigilant eye on how threats evolve, grow and adapt over time helps us understand how threat actors have been retooling their tactics. It’s more important than ever to consistently have visibility into the threat landscape.”

Additional findings

  • The ZeroAccess botnet made another big appearance in Q3. It resurged in Q2, coming in second for most used botnet, but then went quiet towards the end of Q2, coming back up in Q3.
  • Office document phishing skyrocketed during the second half of Q3, which could be due to the upcoming election, or because attackers have just finished retooling.
  • Ransomware attack on the automotive industry is on the rise. At the end of Q3 2020, references have already surpassed the 2019 total at 18,307, an increase of 79.15% with Q4 still remaining.
  • H-Worm Botnet, also known as Houdini, Dunihi, njRAT, NJw0rm, Wshrat, and Kognito, surged to the top of witnessed Botnet traffic for Q3 from the actors behind the botnet by deploying instances of Remote Access Trojans (RATs) using COVID-19 phishing lures and executable names.

Encryption-based threats grow by 260% in 2020

New Zscaler threat research reveals the emerging techniques and impacted industries behind a 260-percent spike in attacks using encrypted channels to bypass legacy security controls.

encryption-based threats

Showing that cybercriminals will not be dissuaded by a global health crisis, they targeted the healthcare industry the most. Following healthcare, the research revealed the top industries under attack by SSL-based threats were:

1. Healthcare: 1.6 billion (25.5 percent)
2. Finance and Insurance: 1.2 billion (18.3 percent)
3. Manufacturing: 1.1 billion (17.4 percent)
4. Government: 952 million (14.3 percent)
5. Services: 730 million (13.8 percent)

COVID-19 is driving a ransomware surge

Researchers witnessed a 5x increase in ransomware attacks over encrypted traffic beginning in March, when the World Health Organization declared the virus a pandemic. Earlier research from Zscaler indicated a 30,000 percent spike in COVID-related threats, when cybercriminals first began preying on fears of the virus.

Phishing attacks neared 200 million

As one of the most commonly used attacks over SSL, phishing attempts reached more than 193 million instances during the first nine months of 2020. The manufacturing sector was the most targeted (38.6 percent) followed by services (13.8 percent), and healthcare (10.9 percent).

30 percent of SSL-based attacks spoofed trusted cloud providers

Cybercriminals continue to become more sophisticated in avoiding detection, taking advantage of the reputations of trusted cloud providers such as Dropbox, Google, Microsoft, and Amazon to deliver malware over encrypted channels.

Microsoft remains most targeted brand for SSL-based phishing

Since Microsoft technology is among the most adopted in the world, Zscaler identified Microsoft as the most frequently spoofed brand for phishing attacks, which is consistent with ThreatLabZ 2019 report. Other popular brands for spoofing included PayPal and Google. Cybercriminals are also increasingly spoofing Netflix and other streaming entertainment services during the pandemic.

“Cybercriminals are shamelessly attacking critical industries like healthcare, government and finance during the pandemic, and this research shows how risky encrypted traffic can be if not inspected,” said Deepen Desai, CISO and VP of Security Research at Zscaler. “Attackers have significantly advanced the methods they use to deliver ransomware, for example, inside of an organization utilizing encrypted traffic. The report shows a 500 percent increase in ransomware attacks over SSL, and this is just one example to why SSL inspection is so important to an organization’s defense.”

What is ad fraud and how can advertisers fight against it?

According to HP Enterprise’s Business of Hacking report, ad fraud is the easiest and most lucrative form of cybercrime, above activities such as credit card fraud, payment fraud and bank fraud. Luke Taylor, COO and Founder of TrafficGuard, explains why businesses should do what they can to detect and prevent it.

what is ad fraud

What is ad fraud?

Invalid traffic, which encompasses advertising fraud, is any advertising engagement that is not the result of genuine interest in the advertised offering. This could be fake clicks generated by malware, competitors clicking ads in order to drain your ad spend, or users clicking ads by accident. Ad fraud is a subset of invalid traffic, characterized by its malicious intentions, and has been around for as long as digital advertising.

Every time a consumer sees or clicks on an advertisement, the company advertising pays the website for that displayed ad, as well as any number of adtech vendors and traffic brokers that facilitate the process such as ad networks and exchanges. The more advertising engagement, the more money goes to the pockets of these vendors. Some genuinely grow their audiences, while others use trickery to get non-genuine human engagement or fake bot engagements.

Ad fraud and other forms of invalid traffic can cost up to 30% of an advertiser’s budget. Due to a lack of solutions, many advertisers have become complacent with this aggressive attrition to their ad campaigns, considering it an additional cost of online advertising. In 2018, advertisers lost $44 million of advertising spend per day to fraudulent traffic in North America alone. It’s anticipated to reach $100 million a day by 2023.

The reality is the advertising ecosystem is quite complex, making it difficult for businesses to see whether ad fraud is impacting them. As a result, businesses aren’t taking steps to check their risk, let alone seek protection.

How common is this form of cybercrime and does it affect everyone equally?

Wherever there is money in digital advertising, there is invalid traffic. All digital channels, all geographies and all players in the advertising ecosystem. Every advertiser is aware that ad fraud exists, however, most reject the idea that it is happening to them, because it’s difficult to detect without the proper tools. However, just because one chooses not to see the problem, doesn’t mean it’s not there – advertising fraud makes its way into every campaign (CPM, PPC, install campaigns) and every stage of the advertising journey (impressions, clicks, installs, events).

With fraud mitigation and ad quality assurance tools, businesses could achieve big improvements to their advertising performance. The average company now spends 16% of its IT budget on cybersecurity protection measures, yet the issue of ad fraud goes unaddressed, as security decision makers remain oblivious to this challenge. From fake mobile display traffic to bots, ad fraudsters are undercutting businesses’ marketing and customer acquisition efforts.

How do these fraudsters operate, what’s in it for them and how much money are they “collecting” from businesses’ advertising budgets?

Ad fraud is both easier to commit and more costly to businesses than other forms of fraudulent activity. Sophisticated criminal organizations are making billions from ad fraud. The reality is that it’s nearly impossible to pinpoint their exact origins given how complex the digital advertising ecosystem is. Like any successful business, fraudsters are adapting and diversifying in the pursuit profit. The more funds that flow to fraud, the more attractive and formidable this type of cybercrime will become. The more money that flows to fraud perpetrators, the less effective the whole digital advertising ecosystem will be.

What are its consequences on businesses’ bottom line and intelligence?

In addition to drained advertising budgets, there are several other negatives consequences coming from ad fraud that limit businesses’ bottom lines, intelligence and ability to grow.

Ad fraud, and other forms of invalid traffic skew advertising performance data. This is quite detrimental to marketing efforts, affecting everything from future budgeting to campaign optimization. The impact doesn’t just stop at advertising. Product, user experience and website design teams rely on data to improve the customer experience. If their baseline data is skewed, their efforts can be spent in the wrong areas.

Fraudulent advertising activity also reduces the effectiveness of the digital advertising ecosystem for everyone. Advertising intermediaries, the companies who connect advertisements to traffic sources, must spend time and money to address ad fraud. This reduces their ability to scale advertising to the best quality sources of traffic – limiting growth for all advertisers.

How can business protect their digital ad campaigns from this illicit activity?

The cost of ad fraud is much bigger than just the wasted media spend, which is why it is imperative to evade. Preventative, transparent tools which stop fraud at the source are the most effective. This prevents wasted media spend, polluted data and the time-consuming process of manual volume reconciliations.

Optimization is significantly more effective when based on verified traffic data, enabling you to safely and confidently scale your advertising. Some anti-fraud tools occur in a black box, where you’re asked to trust that it works. Businesses should have access to reporting that shows you how fraud prevention is helping your business overall. Transparency is essential to be able to see clear and defendable reasons for each invalidation.

Paying a ransom to prevent leaking of stolen data is a risky gamble

Ransomware groups have realized that their tactics are also very effective for targeting larger enterprises, and this resulted in a 31% increase of the average ransom payment in Q3 2020 (reaching $233,817), ransomware IR provider Coveware shared in a recently released report.

They also warned that cases where the attackers exfiltrated data and asked for an additional ransom to delete it have doubled in the same period, but that paying up is a definite gamble.

“Despite some companies opting to pay threat actors to not release exfiltrated data, Coveware has seen a fraying of promises of the cybercriminals (if that is a thing) to delete the data,” they noted.

The data cannot be credibly deleted, it’s not secured and is often shared with other parties, they said. Various ransomware groups have posted the stolen data online despite having been paid to not release it or have demanded another payment at a later date.

ransom payment

“Unlike negotiating for a decryption key, negotiating for the suppression of stolen data has no finite end. Once a victim receives a decryption key, it can’t be taken away and does not degrade with time. With stolen data, a threat actor can return for a second payment at any point in the future,” the company said.

“The track records are too short and evidence that defaults are selectively occurring is already collecting. Accordingly, we strongly advise all victims of data exfiltration to take the hard, but responsible steps. Those include getting the advice of competent privacy attorneys, performing an investigation into what data was taken, and performing the necessary notifications that result from that investigation and counsel.”

Other findings

Coveware’s analyst also found that improperly secured Remote Desktop Protocol (RDP) connections and compromised RDP credentials are the most prevalent way in for ransomware gangs, followed by email phishing and software vulnerabilities.

ransom payment

What’s interesting is that the “popularity” of RDP as an attack vector declines as the size of the target companies increases, bacuse larger companies are typically wise enough to secure it. The attackers must then switch to using more pricy means: RDP credentials can be purchased for less than $50, but email phishing campaigns and vulnerability exploits require more effort and time/money – even if they are performed by another attacker who then sells the access to the gang.

“The foothold created by the phishing email or CVE exploit is used to escalate privileges until the attacker can command a domain controller with senior administrative privileges. Once that occurs, the company is fully compromised and data exfiltration + ransomware are likely to transpire within hours or days,” they explained.

Companies/organizations in every industry can be a target, but attackers seem to prefer those in the professional services industry, healthcare and the public sector:

ransom payment

How to deal with the escalating phishing threat

In today’s world, most external cyberattacks start with phishing. For attackers, it’s almost a no-brainer: phishing is cheap and humans are fallible, even after going through anti-phishing training.

deal with phishing

Patrick Harr, CEO at SlashNext, says that while security awareness training is an important aspect of a multi-layered defense strategy, simulating attacks during computer-based training sessions is not an effective way to learn, because people don’t necessarily retain the information.

“Working from home, where there are more distractions, makes it even less likely that people really pay attention to these trainings. That’s why it’s not uncommon to see the same people who tune out training falling for scams again and again,” he noted.

That’s why defenders must preempt attacks, he says, and reinforce a lesson during a live attack. When something gets through and someone clicks on a malicious URL, defenders must be able to simultaneously block the attack and show the victim what the phisher was attempting to do.

Latest phishing trends

Harr, who has over 20 years of experience as a senior executive and GM at industry leading security and storage companies and as a serial entrepreneur and CEO at multiple successful start-ups, is now leading SlashNext, a cybersecurity startup that uses AI to predict and protect enterprise users from phishing threats.

He says that most CISOs assume phishing is a corporate email problem and their current line of defense is adequate, but they are wrong.

“We are detecting 21,000 new phishing attacks a day, many of which have moved beyond corporate email and simple credential stealing. These attacks can easily evade email phishing defenses that rely on static, reputation-based detection. That’s why we typically see 80-90% of attacks evading conventional lines of defense to compromise the network,” he told Help Net Security.

“Magnify this by 150,000 new zero-hour phishing threats a week, almost double the number of threats versus a year ago, and we can safely say, ‘Houston we have a problem!’”

They are seeing:

  • More text-based phishing, with no actual links, across SMS, gaming, search services, ad networks, and collaboration platforms like Zoom, Teams, Box, Dropbox, and Slack, as well as attacks on mobile devices
  • A proliferation of phishing payloads beyond credential stealing scams which have been around for ages
  • An increase in scareware, where phishers attempt to scare people into taking an action, such as sharing an email
  • Rogue software attacks embedded in browser extensions and social engineering schemes like the massive Twitter bitcoin scam that happened in July

“Finally, we’re seeing cybercriminals trying out innovative ways to evade detection. For example, bad actors may register a domain that lays dormant for months before going live,” he added, and noted that they’ve witnessed a 3,000% increase in the number of phishing attacks since everyone began working and learning from home, and they expect this growth trend will continue.

Advice for CISOs

His main advice to CISOs is not to be complacent and to be diligent: near term, mid-term, and long term.

“You’ve got to take a comprehensive, multi-layer phishing defense approach outside the firewall, where your biggest user population is working remotely, and inside the firewall for your internal users. You need to protect mobile devices and PC/Mac endpoints, with end-to-end encryption (E2EE) deployed,” he opined.

“You also have to be mindful of corporate users’ personal side as their personal and business lives have converged, and many people use the same devices and same credentials across personal and business accounts.

Thirdly, this type of attacks need to be prevented from happening. “Use AI-enabled defenses to fight AI-enabled attacks. Fight machines with machines and adopt a preemptive security posture.”

Finally: some attacks inevitably breach all defenses and they must be prepared to quickly detect and respond to attack, and perform the necessary cleanup.

Cybercrime capitalizing on the convergence of COVID-19 and 2020 election

The cybersecurity challenges of the global pandemic are now colliding with the 2020 U.S. presidential election resulting in a surge of cybercrime, VMware research reveals.

cybercrime 2020 election

Attacks growing increasingly sophisticated and destructive

As eCrime groups grow more powerful, these attacks have grown increasingly sophisticated and destructive – respondents reported that 82 percent of attacks now involve instances of counter incident response (IR), and 55 percent involve island hopping, where an attacker infiltrates an organization’s network to launch attacks on others within the supply chain.

“The disruption caused by COVID-19 has created a massive opportunity for criminals to restructure their businesses,” said Tom Kellermann, Head of Cybersecurity Strategy, VMware Carbon Black.

“The rapid shift to a remote world combined with the power and scale of the dark web has fueled the expansion of eCrime groups. And now ahead of the election, we are at cybersecurity tipping point, cybercriminals have become dramatically more sophisticated and punitive focused on destructive attacks.”

Data for the report is based on an online survey of eighty-three IR and cybersecurity professionals from around the world in September 2020.

Incidents of counter IR are at an all-time high, occurring in 82% of IR engagements

Suggesting the prevalence of increasingly sophisticated, often nation-state attackers, who have the resources and cyber savvy to colonize victims’ networks. Destructive attacks, which are often the final stage of counter IR have also surged, with respondents estimating victims experience them 54% of the time.

55% of cyberattacks target the victim’s digital infrastructure for the purpose of island hopping

The pandemic has left organizations increasingly vulnerable to such attacks as their employees shift to remote work – and less secure home networks and devices.

Custom malware is now being used in 50% of attacks reported by respondents

This demonstrates the scale of the dark web, where such malware and malware services can be purchased to empower traditional criminals, spies and terrorists, many of whom do not have the sophisticated resources to execute these attacks.

As we approach the 2020 presidential election, cybercrime remains a top concern

Drawing upon their security expertise – and in line with recent advisories from Cybersecurity & Infrastructure Security Agency (CISA) – 73% of respondents believe there will be foreign influence on the 2020 U.S. presidential election, and 60% believe it will be influenced by a cyberattack.

SMBs’ size doesn’t make them immune to cyberattacks

78% of SMBs indicated that having a privileged access management (PAM) solution in place is important to a cybersecurity program – yet 76% of respondents said that they do not have one that is fully deployed, a Devolutions survey reveals.

size cyberattacks

While it’s a positive trend that the majority of SMBs recognize the importance of having a PAM solution, the fact that most of the respondents don’t have a PAM solution in place reflects that there is inertia when it comes to deployment.

SMBs are not immune, company size doesn’t protect from cyberattacks

Global cybercrime revenues have reached $1.5 trillion per year. And according to IBM, the average price tag of a data breach is now $3.86 million per incident. Despite these staggering figures, there remains a common (and inaccurate) belief among many SMBs that the greatest security vulnerabilities exist in large companies.

However, there is mounting evidence that SMBs are more vulnerable than enterprises to cyberthreats – and the complacency regarding this reality can have disastrous consequences.

“SMBs must not assume that their relative smaller size will protect them from cyberattacks. On the contrary, hackers, rogue employees and others are increasingly targeting SMBs because they typically have weaker – and, in some cases, virtually non-existent – defense systems.

“SMBs cannot afford to take a reactive wait-and-see approach to cybersecurity because they may not survive a cyberattack. And even if they do, it could take several years to recover costs, reclaim customers and repair reputation damage,” said Devolutions CEO David Hervieux.

Key findings from the survey

To dig deeper into the mindset of SMBs about cybersecurity, Devolutions conducted a survey of 182 SMBs from a variety of industries – including IT, healthcare, education, and finance. Some notable findings include:

  • 62% of SMBs do not conduct a security audit at least once a year – and 14% never conduct an audit at all.
  • 57% of SMBs indicated they have experienced a phishing attack in the last three years.
  • 47% of SMBs allow end users to reuse passwords across personal and professional accounts.

These findings reinforce the need for better cybersecurity education for smaller companies.

“Conducting this survey reaffirmed to us that while progress is being made, there is a still a lot of work to do for many SMBs to protect themselves from cybercrime. We plan to conduct a survey like this each year so that we can identify the most current trends and in turn help our customers address their most pressing needs,” added Hervieux.

size cyberattacks

Protect from cyberattacks: The role of MSPs

One way for SMBs to close the cybersecurity gap is to seek out a trusted managed service provider (MSP) for guidance and implementation of cybersecurity solutions, monitoring and training programs. Because SMBs do not typically have huge IT departments like their enterprise counterparts, they often look to outside resources.

MSPs have an opportunity to strengthen their relationship with existing customers and expand their client base by becoming cyber experts who can advise SMBs on various cybersecurity issues, trends and solutions – as well as offer the ability to promptly respond to any security incidents that may arise and take swift action.

“We expect more and more MSPs will be adding cybersecurity solutions and expertise to their portfolio of offerings to meet this demand,” Hervieux concluded.

Prevent privileged account abuse

Organizations must keep critical assets secure, control and monitor sensitive information and privileged access, and vault and manage business-user passwords – all while ensuring that employees are productive and efficient. This is not an easy task for SMBs without the right solution in place.

Many PAM and password management solutions on the market are prohibitively expensive or too complex for what SMBs need.

Microsoft and partners cut off key Trickbot botnet infrastructure

Two weeks after someone (allegedly the US Cyber Command) temporarily interrupted the operation of the infamous Trickbot botnet, a coalition of tech companies headed by Microsoft has struck a serious blow against its operators.

Trickbot botnet

“We disrupted Trickbot through a court order we obtained as well as technical action we executed in partnership with telecommunications providers around the world. We have now cut off key infrastructure so those operating Trickbot will no longer be able to initiate new infections or activate ransomware already dropped into computer systems,” shared Tom Burt, corporate VP, Customer Security and Trust, Microsoft.

About Trickbot and the Trickbot botnet

Trickbot, which dates back to 2016, was originally a banking trojan, but due to its modular nature it is now capable of much more: gathering saved and entered credentials, browser histories, network and system information, installing a backdoor, harvesting email addresses, running various commands on a Windows domain controller to steal Active Directory credentials, launching brute force attacks against selected Windows systems running a RDP connection exposed to the Internet, and downloading and loading ransomware on the infected computer.

The malware is often delivered through spam and spear phishing campaigns, and occasionally through the Emotet botnet.

“In recent times, Trickbot has been implicated in targeted ransomware attacks, where credentials stolen by the malware were used by the Ryuk ransomware operators to compromise victims’ networks and encrypt all accessible computers. This assessment has been confirmed by Europol, which recently noted that ‘the relationship between Emotet [another botnet], Ryuk and Trickbot is considered one of the most notable in the cybercrime world’,” Symantec (Broadcom) researchers noted.

“Trickbot has infected over a million computing devices around the world since late 2016. While the exact identity of the operators is unknown, research suggests they serve both nation-states and criminal networks for a variety of objectives,” Burt explained, and noted that beyond infecting end user computers, Trickbot has also infected a number of IoT devices, such as routers.

Disruption attempts

Since late September, Trickbot has been hit twice by (then-unknown) attackers.

According to Brian Krebs, they first pushed out a new configuration file to Windows computers infected with Trickbot, instructing them to consider 127.0.0.1 (a “localhost” address) their new control server.

A week later, they did it again, but at the same time, “someone stuffed the control networks that the Trickbot operators use to keep track of data on infected systems with millions of new records,” apparently in an attempt to “dilute the Trickbot database and confuse or stymie the Trickbot operators.”

These efforts, which were subsequently revealed to have been mounted by the US Cyber Command, did not permanently affect the botnet.

But the technical and legal efforts lead by Microsoft and supported by FS-ISAC, ESET, Lumen’s Black Lotus Labs, NTT and Broadcom’s Symantec division are expected to considerably affect the botnet’s operation.

After gathering enough information about the botnet’s operation and C&C servers, Microsoft went to the United States District Court for the Eastern District of Virginia, which then court granted approval for Microsoft and partners to “disable the IP addresses, render the content stored on the command and control servers inaccessible, suspend all services to the botnet operators, and block any effort by the Trickbot operators to purchase or lease additional servers.”

The operation will be followed by further action by ISPs and CERTs around the world, who will attempt to reach Trickbot victims and help them remove the malware from their systems.

“This action also represents a new legal approach that our DCU is using for the first time. Our case includes copyright claims against Trickbot’s malicious use of our software code. This approach is an important development in our efforts to stop the spread of malware, allowing us to take civil action to protect customers in the large number of countries around the world that have these laws in place,” Burt pointed out.

“While our work might not remove the threat posed by TrickBot, it will raise the cost of doing business for the criminal gang behind the botnet because they will be forced to divert resources away from exploitation activities in order to rebuild the parts of their infrastructure that we disrupted,” the Black Lotus Labs team noted.

Europol analyzes latest trends, cybercrime impact within the EU and beyond

The global COVID-19 pandemic that hit every corner of the world forced us to reimagine our societies and reinvent the way we work and live. The Europol IOCTA 2020 cybercrime report takes a look at this evolving threat landscape.

europol IOCTA 2020

Although this crisis showed us how criminals actively take advantage of society at its most vulnerable, this opportunistic behavior should not overshadow the overall threat landscape. In many cases, COVID-19 has enhanced existing problems.

Europol IOCTA 2020

Social engineering and phishing remain an effective threat to enable other types of cybercrime. Criminals use innovative methods to increase the volume and sophistication of their attacks, and inexperienced cybercriminals can carry out phishing campaigns more easily through crime as-a-service.

Criminals quickly exploited the pandemic to attack vulnerable people; phishing, online scams and the spread of fake news became an ideal strategy for cybercriminals seeking to sell items they claim will prevent or cure COVID-19.

Encryption continues to be a clear feature of an increasing number of services and tools. One of the principal challenges for law enforcement is how to access and gather relevant data for criminal investigations.

The value of being able to access data of criminal communication on an encrypted network is perhaps the most effective illustration of how encrypted data can provide law enforcement with crucial leads beyond the area of cybercrime.

Malware reigns supreme

Ransomware attacks have become more sophisticated, targeting specific organizations in the public and private sector through victim reconnaissance. While the pandemic has triggered an increase in cybercrime, ransomware attacks were targeting the healthcare industry long before the crisis.

Moreover, criminals have included another layer to their ransomware attacks by threatening to auction off the comprised data, increasing the pressure on the victims to pay the ransom.

Advanced forms of malware are a top threat in the EU: criminals have transformed some traditional banking Trojans into modular malware to cover more PC digital fingerprints, which are later sold for different needs.

Child sexual abuse material continues to increase

The main threats related to online child abuse exploitation have remained stable in recent years, however detection of online child sexual abuse material saw a sharp spike at the peak of the COVID-19 crisis.

Offenders keep using a number of ways to hide this horrifying crime, such as P2P networks, social networking platforms and using encrypted communications applications.

Dark web communities and forums are meeting places where participation is structured with affiliation rules to promote individuals based on their contribution to the community, which they do by recording and posting their abuse of children, encouraging others to do the same.

Livestream of child abuse continues to increase, becoming even more popular than usual during the COVID-19 crisis when travel restrictions prevented offenders from physically abusing children. In some cases, video chat applications in payment systems are used which becomes one of the key challenges for law enforcement as this material is not recorded.

Payment fraud: SIM swapping a new trend

SIM swapping, which allows perpetrators to take over accounts, is one of the new trends. As a type of account takeover, SIM swapping provides criminals access to sensitive user accounts.

Criminals fraudulently swap or port victims’ SIMs to one in the criminals’ possession in order to intercept the one-time password step of the authentication process.

Criminal abuse of the dark web

In 2019 and early 2020 there was a high level of volatility on the dark web. The lifecycle of dark web market places has shortened and there is no clear dominant market that has risen over the past year.

Tor remains the preferred infrastructure, however criminals have started to use other privacy-focused, decentralized marketplace platforms to sell their illegal goods. Although this is not a new phenomenon, these sorts of platforms have started to increase over the last year.

OpenBazaar is noteworthy, as certain threats have emerged on the platform over the past year such as COVID-19-related items during the pandemic.

VP for Promoting our European Way of Life, Margaritis Schinas, who is leading the European Commission’s work on the European Security Union, said: “Cybercrime is a hard reality. While the digital transformation of our societies evolves, so does cybercrime which is becoming more present and sophisticated.

“We will spare no efforts to further enhance our cybersecurity and step up law enforcement capabilities to fight against these evolving threats.”

EU Commissioner for Home Affairs, Ylva Johansson, said: “The Coronavirus Pandemic has slowed many aspects of our normal lives. But it has unfortunately accelerated online criminal activity. Organised Crime exploits the vulnerable, be it the newly unemployed, exposed businesses, or, worst of all, children.

“The Europol IOCTA 2020 cybercrime report shows the urgent need for the EU to step up the fight against organised crime [online] and confirms the essential role of Europol in that fight”.

Companies that facilitate ransomware payments risk violating US sanctions

Companies that ransomware-hit US organizations hire to facilitate the paying of the ransom are at risk of breaking US sanctions, falling afoul of the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) regulations and may end up paying millions in fines.

Ransomware US sanctions

These include financial institutions, cyber insurance firms, and companies involved in digital forensics and incident response.

What is the OFAC?

The Office of Foreign Assets Control of the US Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals.

Sanctions can be enforced against foreign countries/regimes, organized groups and individuals that “threaten the national security, foreign policy or economy of the United​ States”. Ransomware-wielding gangs fall in that category.

In a security advisory published on Thursday, the OFAC mentioned the developer of Cryptolocker, Iranian supporters of SamSam ransomware-wielding gangs, the Lazarus Group (a cybercriminal organization sponsored by North Korea that used the WannaCry ransomware) and Evil Corp, a Russia-based cybercriminal organization that wields the Dridex malware, as malicious cyber actors under its cyber-related sanctions program.

The advisory’s salient points

“Ransomware payments made to sanctioned persons or to comprehensively sanctioned jurisdictions could be used to fund activities adverse to the national security and foreign policy objectives of the United States. Ransomware payments may also embolden cyber actors to engage in future attacks. In addition, paying a ransom to cyber actors does not guarantee that the victim will regain access to its stolen data,” the OFAC explained.

“OFAC encourages victims and those involved with addressing ransomware attacks to contact OFAC immediately if they believe a request for a ransomware payment may involve a sanctions nexus. Victims should also contact the US Department of the Treasury’s Office of Cybersecurity and Critical Infrastructure Protection if an attack involves a US financial institution or may cause significant disruption to a firm’s ability to perform critical financial services.”

OFAC might issue a special license allowing them to perform the transaction (the paying of the ransom), but each application “will be reviewed by OFAC on a case-by-case basis with a presumption of denial.”

Also, it won’t matter if the ransomware gangs involved are from countries under US sanctions or under sanctions themselves.

“OFAC may impose civil penalties for sanctions violations based on strict liability, meaning that a person subject to US jurisdiction may be held civilly liable even if it did not know or have reason to know it was engaging in a transaction with a person that is prohibited under sanctions laws and regulations administered by OFAC,” the advisory pointed out.

To pay or not to pay?

If would be best, of course, if a ransomware-hit organization didn’t have to pay the ransom in order to quickly recover their IT capabilities and return to functioning as normal, but sometimes paying up is the only option if they want to stay afloat and/or keep providing vital services.

In and of itself, paying a ransom is not against the law, but if the payment is made to an entity or individual under US sanctions, the action is technically illegal.

But, according to Dissent Doe, FBI and Secret Service officials that attended a panel at the Privacy + Security Forum in Washington, D.C., a year ago confirmed that the US government has never prosecuted any victim for paying ransom.

The same panel, which also gathered private sector lawyers and a representative of a consulting firm, also unanimously confirmed that in an overwhelming majority of cases, victims end up getting the decryption key and their data back after paying up.

“So although the public isn’t told this clearly because the government wants to discourage it, I will repeat what I have been saying for quite a while: for some entities, paying ransom will just be a business decision based on how much money they will lose if they cannot function due to the ransomware attack,” Doe noted.

A (potential) fine levied by the US government then becomes just a factor in that equation.

The biggest cyber threats organizations deal with today

Microsoft has released a new report outlining enterprise cyberattack trends in the past year (July 2019 – June 2020) and offering advice on how organizations can protect themselves.

Based on over 8 trillion daily security signals and observations from the company’s security and threat intelligence experts, the Microsoft Digital Defense Report 2020 draws a distinction between attacks mounted by cybercriminals and those by nation-state attackers.

The cybercrime threat

In the past year, cybercriminals:

  • Were quick to exploit the fear and uncertainty associated with COVID-19 as a lure in phishing emails, and the popularity of some SaaS offerings and other services
  • Exploited the lack of basic security hygiene and well-known vulnerabilities to gain access to enterprise systems and networks
  • Exploited supply chain (in)security by hitting vulnerable third-party services, open source software and IoT devices and using them as a way into the target organization

More often than not, phishing emails impersonate a well-known service such as Office 365 (Microsoft), Zoom, Amazon or Apple, in an attempt to harvest login credentials.

“While credential phishing and BEC continue to be the dominant variations, we also see attacks on a user’s identity and credential being attempted via password reuse and password spray attacks using legacy email protocols such as IMAP and SMTP,” Microsoft noted.

The attackers’ reason for exploiting these legacy authentication protocols is simple: they don’t support multi-factor authentication (MFA). Microsoft advises on enabling MFA and disabling legacy authentication.

Cybercriminals are also:

  • Increasingly use cloud services and compromised email and web hosting infrastructures to orchestrate phishing campaigns
  • Rapidly changing campaigns (sending domains, email addresses, content templates, and URL domains)
  • Constantly changing and evolving payload delivery mechanisms (poisoned search results, custom 404 pages hosting phishing payloads, etc.)

One of the biggest and most disruptive cybercrime threat in the past year was ransomware – particularly “human-operated” ransomware wielded by gangs that target ogranizations they believe will part with big sums if affected.

These gangs sweep the internet for easy entry points or use commodity malware to gain access to company networks and change ransomware payloads and attack tools depending on the “terrain” they landed in (and to avoid attribution).

“Ransomware criminals are intimately familiar with systems management concepts and the struggles IT departments face. Attack patterns demonstrate that cybercriminals know when there will be change freezes, such as holidays, that will impact an organization’s ability to make changes (such as patching) to harden their networks,” Microsoft explained.

“They’re aware of when there are business needs that will make businesses more willing to pay ransoms than take downtime, such as during billing cycles in the health, finance, and legal industries. Targeting networks where critical work was needed during the COVID-19 pandemic, and also specifically attacking remote access devices during a time when unprecedented numbers of people were working remotely, are examples of this level of knowledge.”

Some of them have even shortened their in-network dwell time before deploying the ransomware, going from initial entry to ransoming the entire network in less than 45 minutes.

Gerrit Lansing, Field CTO, Stealthbits, commented that the speed at which a targeted ransomware attack can happen is really determined by one thing: how quickly an adversary can compromise administrative privileges in Microsoft Active Directory.

“Going from initial infiltration to total ownership of Active Directory can be a matter of seconds. Once these privileges are compromised, an adversary’s ability to deploy ransomware to all machines joined to Active Directory is unfettered, which explains how an adversary can go from initial infiltration to total ransomware infection in such a short period of time,” he noted.

Finally, to counter the threat of supply chain insecurity, Microsoft advises companiessupply to:

  • Vet their service providers thoroughly
  • Use systems to automatically identify open source software components and vulnerabilities in them
  • Map IoT assets, apply security policies to reduce the attack surface, and to use a different network for IoT devices and be familiar with all exposed interfaces

enterprise cyberattack trends 2020

Nation-state threats

The company has been following and mapping the activities of a number of nation-state actors and has found that – based on the nation state notifications they deliver to their customers – the attackers’ primary targets are not in the critical infrastructure sectors.

Instead, the top targeted industry sectors are non-governmental organizations (advocacy groups, human rights organizations, nonprofit organizations, etc.) and professional services (consulting firms and contractors):

enterprise cyberattack trends 2020

Microsoft found the most common attack techniques used by nation-state actors in the past year are reconnaissance, credential harvesting, malware, and VPN exploits. Web shell-based attacks are also on the rise.

The report delineates steps organizations can take to counter each of these threats as well as to improve their security and the security of their remote workforce.

“Given the leap in attack sophistication in the past year, it is more important than ever that we take steps to establish new rules of the road for cyberspace; that all organizations, whether government agencies or businesses, invest in people and technology to help stop attacks; and that people focus on the basics, including regular application of security updates, comprehensive backup policies, and, especially, enabling MFA. Our data shows that enabling MFA would alone have prevented the vast majority of successful attacks,” the Microsoft Security Team concluded.

Large US hospital chain hobbled by Ryuk ransomware

US-based healtchare giant Universal Health Services (UHS) has suffered a cyberattack on Sunday morning, which resulted in the IT network across its facilities to be shut down.

UHS cyberattack

Location of UHC facilities

What happened?

UHS operates nearly 400 hospitals and healthcare facilities throughout the US, Puerto Rico and the UK.

“We implement extensive IT security protocols and are working diligently with our IT security partners to restore IT operations as quickly as possible. In the meantime, our facilities are using their established back-up processes including offline documentation methods,” the company stated on Monday.

“Patient care continues to be delivered safely and effectively. No patient or employee data appears to have been accessed, copied or misused.”

No more details were shared about the nature of the “IT security issue” (as they chose to call it), leaving the door open for unconfirmed reports from professed insiders (employees at some of the affected facilities) to proliferate online.

A Reddit thread started on Monday is chock full of them:

  • The attack involved ransomware – Ryuk ransomware, to be more specific
  • It’s unknown how many systems have been affected, i.e., how widespread is the damage
  • “All UHS hospitals nationwide in the US currently have no access to phones, computer systems, internet, or the data center”
  • Ambulances are being rerouted to other hospitals, information needed to treat patients – health records, lab works, cardiology reports, medications records, etc. – is either temporarily unavailable or received with delay, affecting patient treatment
  • “4 people died tonight alone due to the waiting on results from the lab to see what was going on”

Was it Ryuk?

While most of these reports have yet to be verified, it seems almost certain that ransomware is in play.

Bleeping Computer was told by an employee that the encrypted files sported the .ryk extension and another employee described a ransom note that points to Ryuk ransomware.

“Ryuk can be difficult to detect and contain as the initial infection usually happens via spam/phishing and can propagate and infect IoT/IoMT devices, as we’ve seen with UHS hospital phones and radiology machines. Once on an infected host, it can pull passwords out of memory and then laterally moves through open shares, infecting documents, and compromised accounts,” commented Jeff Horne, CSO, Ordr.

Justin Heard, Director of Security, Intelligence and Analytics at Nuspire, noted that up until recently, Ryuk was used solely to target financial services, but over the last several months Ryuk has been seen targeting manufacturing, oil and gas, and now healthcare.

“Ryuk is known to target large organizations across industries because it demands a very high ransom. The ransomware operators likely saw UHS as the opportunity to make a quick buck given the urgency to keep operations going, and the monetary loss associated with that downtime could outweigh the ransom demand,” he explained.

“Ryuk Ransomware is run by a group called Wizard Spider, which is known as the Russia-based operator of the TrickBot banking malware. Ryuk is one of the most evasive ransomware out there. Nuspire Intelligence has repeatedly seen the triple threat combo of Ryuk, TrickBot and Emotet to wreak the most damage to a network and harvest the most amount of data.”

Some ransomware operators have previously stated that they would refrain from hitting healthcare organizations. Despite that, the number of attacks targeting medical institutions continues to rise.

Your best defense against ransomware: Find the early warning signs

As ransomware continues to prove how devastating it can be, one of the scariest things for security pros is how quickly it can paralyze an organization. Just look at Honda, which was forced to shut down all global operations in June, and Garmin, which had its services knocked offline for days in July.

Ransomware isn’t hard to detect but identifying it when the encryption and exfiltration are rampant is too little too late. However, there are several warning signs that organizations can catch before the real damage is done. In fact, FireEye found that there is usually three days of dwell time between these early warning signs and detonation of ransomware.

So, how does a security team find these weak but important early warning signals? Somewhat surprisingly perhaps, the network provides a unique vantage point to spot the pre-encryption activity of ransomware actors such as those behind Maze.

Here’s a guide, broken down by MITRE category, of the many different warning signs organizations being attacked by Maze ransomware can see and act upon before it’s too late.

Initial access

With Maze actors, there are several initial access vectors, such as phishing attachments and links, external-facing remote access such as Microsoft’s Remote Desktop Protocol (RDP), and access via valid accounts. All of these can be discovered while network threat hunting across traffic. Furthermore, given this represents the actor’s earliest foray into the environment, detecting this initial access is the organization’s best bet to significantly mitigate impact.

ATT&CK techniques

Hunt for…

T1193 Spear-phishing attachment
T1192 Spear-phishing link

  • Previously unseen or newly registered domains, unique registrars
  • Doppelgangers of your organization / partner’s domains or Alexa top 500
T133 External Remote Services
  • Inbound RDP from external devices
T1078 Valid accounts
  • Exposed passwords across SMB, FTP, HTTP, and other clear text usage
T1190 Exploit public-facing application
  • Exposure and exploit to known vulnerabilities

Execution

The execution phase is still early enough in an attack to shut it down and foil any attempts to detonate ransomware. Common early warning signs to watch for in execution include users being tricked into clicking a phishing link or attachment, or when certain tools such as PsExec have been used in the environment.

ATT&CK techniques

Hunt for…

T1024 User execution

  • Suspicious email behaviors from users and associated downloads
T1035 Service execution
  • File IO over SMB using PsExec, extracting contents on one system and then later on another system
T1028 Windows remote management
  • Remote management connections excluding known good devices

Persistence

Adversaries using Maze rely on several common techniques, such as a web shell on internet-facing systems and the use of valid accounts obtained within the environment. Once the adversary has secured a foothold, it starts to become increasingly difficult to mitigate impact.

ATT&CK techniques

Hunt for…

T1100 Web shell

  • Unique activity connections (e.g. atypical ports and user agents) from external connections
T1078 Valid accounts
  • Remote copy of KeePass file stores across SMB or HTTP

Privilege escalation

As an adversary gains higher levels of access it becomes significantly more difficult to pick up additional signs of activity in the environment. For the actors of Maze, the techniques used for persistence are similar to those for privileged activity.

ATT&CK techniques

Hunt for…

T1100 Web shell

  • Web shells on external facing web and gateway systems
T1078 Valid accounts
  • Remote copy of password files across SMB (e.g. files with “passw”)

Defense evasion

To hide files and their access to different systems, adversaries like the ones who use Maze will rename files, encode, archive, and use other mechanisms to hide their tracks. Attempts to hide their traces are in themselves indicators to hunt for.

ATT&CK techniques

Hunt for…

T1027 Obfuscated files or information

  • Adversary tools by port usage, certificate issuer name, or unknown protocol communications
T1078 Valid accounts
  • New account creation from workstations and other non-admin used devices

Credential access

There are several defensive controls that can be put in place to help limit or restrict access to credentials. Threat hunters can enable this process by providing situational awareness of network hygiene including specific attack tool usage, credential misuse attempts and weak or insecure passwords.

ATT&CK techniques

Hunt for…

T110 Brute force

  • RDP brute force attempts against known username accounts
T1081 Credentials in files
  • Unencrypted passwords and password files in the environment

Discovery

Maze adversaries use a number of different methods for internal reconnaissance and discovery. For example, enumeration and data collection tools and methods leave their own trail of evidence that can be identified before the exfiltration and encryption occurs.

ATT&CK techniques

Hunt for…

T1201 Password policy discovery

  • Traffic of devices copying the password policy off file shares
  • Enumeration of password policy
T1018 Remote system discovery

T1087 Account discovery

T1016 System network configuration discovery

T1135 Network share discovery

T1083 File and directory discovery

  • Enumeration for computer names, accounts, network connections, network configurations, or files

Lateral movement

Ransomware actors use lateral movement to understand the environment, spread through the network and then to collect and prepare data for encryption / exfiltration.

ATT&CK techniques

Hunt for…

T1105 Remote file copy

T1077 Windows admin shares

  • Suspicious SMB file write activity
  • PsExec usage to copy attack tools or access other systems
  • Attack tools copied across SMB
T1076 Remote Desktop Protocol

T1028 Windows remote management

T1097 Pass the ticket

  • HTTP POST with the use of WinRM user agent
  • Enumeration of remote management capabilities
  • Non-admin devices with RDP activity

Collection

In this phase, Maze actors use tools and batch scripts to collect information and prepare for exfiltration. It is typical to find .bat files or archives using the .7z or .exe extension at this stage.

ATT&CK techniques

Hunt for…

T1039 Data from network share drive

  • Suspicious or uncommon remote system data collection activity

Command and control (C2)

Many adversaries will use common ports or remote access tools to try and obtain and maintain C2, and Maze actors are no different. In the research my team has done, we’ve also seen the use of ICMP tunnels to connect to the attacker infrastructure.

ATT&CK techniques

Hunt for…

T1043 Common used port

T1071 Standard application layer protocol

  • ICMP callouts to IP addresses
  • Non-browser originating HTTP traffic
  • Unique device HTTP script like requests
T1105 Remote file copy
  • Downloads of remote access tools through string searches
T1219 Remote access tools
  • Cobalt strike BEACON and FTP to directories with cobalt in the name

Exfiltration

At this stage, the risk of exposure of sensitive data in the public realm is dire and it means an organization has missed many of the earlier warning signs—now it’s about minimizing impact.

ATT&CK techniques

Hunt for…

T1030 Data transfer size limits

  • External device traffic to uncommon destinations
T1048 Exfiltration over alternative protocol
  • Unknown FTP outbound
T1002: Data compressed
  • Archive file extraction

Summary

Ransomware is never good news when it shows up at the doorstep. However, with disciplined network threat hunting and monitoring, it is possible to identify an attack early in the lifecycle. Many of the early warning signs are visible on the network and threat hunters would be well served to identify these and thus help mitigate impact.

How the FIN7 Cybercrime Gang Operates

How the FIN7 Cybercrime Gang Operates

The Grugq has written an excellent essay on how the Russian cybercriminal gang FIN7 operates. An excerpt:

The secret of FIN7’s success is their operational art of cyber crime. They managed their resources and operations effectively, allowing them to successfully attack and exploit hundreds of victim organizations. FIN7 was not the most elite hacker group, but they developed a number of fascinating innovations. Looking at the process triangle (people, process, technology), their technology wasn’t sophisticated, but their people management and business processes were.

Their business… is crime! And every business needs business goals, so I wrote a mock FIN7 mission statement:

Our mission is to proactively leverage existing long-term, high-impact growth strategies so that we may deliver the kind of results on the bottom line that our investors expect and deserve.

How does FIN7 actualize this vision? This is CrimeOps:

  • Repeatable business process
  • CrimeBosses manage workers, projects, data and money.
  • CrimeBosses don’t manage technical innovation. They use incremental improvement to TTP to remain effective, but no more
  • Frontline workers don’t need to innovate (because the process is repeatable)

Sidebar photo of Bruce Schneier by Joe MacInnis.

eCrime campaigns outpace state-sponsored activity in first half of 2020

CrowdStrike has released an annual report that reviews intrusion trends during the first half of 2020 and provides insights into the current landscape of adversary tactics, which has been heavily impacted this year by the remote workforce environment of COVID-19.

eCrime activity

The report also includes recommendations for defending against the prevalent tools, techniques and procedures (TTPs) utilized by threat actors.

“Just like everything this year, the threat landscape has proven unpredictable and precarious as eCrime and state-sponsored actors have opportunistically taken aim at industries unable to escape the chaos of COVID-19, demonstrating clearly how cyber threat activity is intrinsically linked to global economic and geo-political forces,” said Jennifer Ayers, VP of OverWatch and Security Response at CrowdStrike.

“OverWatch threat hunting data demonstrates how adversaries are keenly attuned to their victim’s environment and ready to pivot to meet changing objectives or emerging opportunities. For this reason, organizations must implement a layered defense system that incorporates basic security hygiene, endpoint detection and response (EDR), expert threat hunting, strong passwords and employee education to properly defend their environments.”

First half of 2020 hands-on-keyboard intrusion activity surpasses all of 2019

An explosion in hands-on-keyboard intrusions was observed in the first half of 2020 that has already surpassed the total seen throughout all of 2019.

This significant increase is driven primarily by the continued acceleration of eCrime activity but has also been impacted by the effects of the pandemic, which presented an expanded attack surface as organizations rapidly adopted remote workforces and created opportunities for adversaries to exploit public fear through COVID-19 themed social engineering strategies.

eCrime continues to increase in volume and reach

Sophisticated eCrime activity continues to outpace state-sponsored activity, an upward trend witnessed over the past three years, accounting for over 80% of interactive intrusions.

This does not indicate a reduction in nation-state activity, but rather reflects the extraordinary success threat actors have seen with targeted intrusions using ransomware and Ransomware-as-a-Service (RaaS) models, which have contributed to a proliferation of activity from a wider array of eCrime actors.

eCrime activity

Targeting of the manufacturing sector increases dramatically

There was a sharp escalation of activity in the manufacturing sector in the first half of 2020 in terms of both the quantity and sophistication of intrusions from both eCriminals and nation states, making it the second most targeted vertical observed by OverWatch.

Healthcare and food and beverage also saw increased targeting, suggesting that adversaries have adjusted their targets to the shifting economic conditions resulting from the pandemic, focusing on industries made vulnerable by complex operating environments that experienced sudden changes in demand.

China continues its aim at telecommunications companies

The telecommunications industry continues to be a popular target for the nation-states, specifically China. There were six different China-based actors, whose motivations are likely associated with espionage and data theft objectives, conducting campaigns against telecommunications companies in the first half of the year.