Information Technology

About 1,500 small to medium-sized companies and 50 MSPs are still struggling to deal with the fallout from the massive ransomware attack launched by REvil last week.Dozens of small law offices and dental clinics are dealing with ransomware infections while 800 Coop supermarket chain stores in Sweden had to temporarily close after they were unable to open their cash registers.

Kaseya attack

Kaseya has not said if it is considering paying the ransom but ZDNet reported that the company missed a July 6 deadline they set for relaunching SaaS servers. It planned subsequent configuration changes to improve security, including an on-premise patch.Also: This major ransomware attack was foiled at the last minute. Here’s how According to a statement from Kaseya, “an issue was discovered that has blocked the release” of the VSA SaaS rollout. “The R&D and operations teams worked through the night and will continue to work until we have unblocked the release,” Kaseya said in a statement, adding that it is working “around the clock to resolve this issue and restore service.” Operators with REvil initially demanded $70 million for decryption keys but CNBC reported that private negotiators are saying the group is willing to lower their demands to $50 million, despite no changes to the figure on the leak site. “It’s just a business. We absolutely do not care about you and your deals, except getting benefits. If we do not do our work and liabilities — nobody will not cooperate with us,” the ransomware group said in a message on its site. 

“Its not in our interests. If you will not cooperate with our service — for us, its does not matter. But you will lose your time and data, cause just we have the private key. In practice — time is much more valuable than money.”In two of the most recent high profile ransomware attacks on Colonial Pipeline and meat processor JBS, both companies paid millions in ransoms to get their data and systems back online with varying success. Colonial Pipeline paid almost $5 million to DarkSide operators while JBS paid $11 million in Bitcoin to REvil, the same group behind the Kaseya attack. While the official government answer is for companies to never pay ransoms, Rep. Eric Swalwell told ZDNet that situations like this are why he believes “Congress, in partnership with the White House and law enforcement, needs to take a coordinated approach to consider questions like this.” “We can’t wait any longer. Every light on the dashboard is flashing. Ransomware attacks are increasing in frequency and threatening to shut down entire sectors of the US economy,” Swalwell said. “These attacks threaten both the economy and national security. Businesses are outmatched, and criminal organizations are holding them hostage. Ransomware is a threat to any person, business or organization that relies on computers.”Many cybersecurity experts urged Kaseya not to pay the ransom for a variety of reasons. Some said there was no evidence the decryption keys would work while others said payment would only validate the gang’s decision to launch such a widespread attack. Mat Gangwer, vice president of Sophos Managed Threat Response, explained that he was not aware of any examples of REvil’s decryptor not working and said there was no incentive for them to provide one that was unusable. “REvil has been quite proud of what they put together and wouldn’t want to jeopardize that here,” he said.Bryson Bort, CEO of SCYTHE, said the kind of ransom REvil was demanding was unprecedented. Bort said he thought it was “not on Kaseya to pay the $70 million” and that they would need to “collect money from affected parties for a combined payment.” “This has never been done before that I’m aware of. No one knows what that process would even look like — they individually contribute to the same wallet and just trust?” Bort asked.Also: Best enterprise identity access management softwareRoss McKerchar, Sophos vice president and CISO, said that regardless of whether the decryption keys are provided, the recovery effort will still be significant. “Impacted organizations use MSPs, to begin with, because they have limited IT resourcing, and these MSPs will be inundated with requests for assistance, restoring backups, and more, and the very tool MSPs use to access customer environments to remediate issues in this particular situation is offline,” McKerchar explained.

John McClurg, CISO of BlackBerry, told ZDNet there is no golden rule when it comes to dealing with ransomware attacks. While paying ransoms is publicly discouraged, there are many instances where there may be no other way to recover. The financial impact of downed systems, reputational damage and the potential for permanent data loss can be catastrophic for many companies, McClurg said. David White, president of Axio, said Kaseya should instead reimburse individual companies for all the associated impacts connected to the attack, including any ransom payments individual companies may make. He argued that this would benefit the people who were hurt rather than the people behind the attack. According to White, it may also cost far less than the $70 million or $50 million ransom considering some companies may recover on their own. White added that in the recent case of JBS, the decryption keys worked after it paid a ransom but he cited analysis from Coveware that showed REvil sometimes demands a second payment and sometimes releases data that they promised to destroy. CYE CEO Reuven Aronashvili also noted that by paying ransoms, companies get put onto “blacklists” by ransomware gangs that know which companies will be willing to pay up in the event of an attack. Aronashvili also disputed White’s assessment of the cost of recovering, explaining that $70 million is “definitely lower than the accumulated costs of the different organizations.” But even with that, he suggested Kaseya not pay the ransom.  Allan Liska, a ransomware expert and member of the computer security incident response team at Recorded Future, explained that any ransom paid to REvil will probably be used to buy another exploit for a zero day.But he said that while Kaseya is feeling the heat for this fiasco, more pressure may be on REvil members, as evidenced by their willingness to drop their ransom demand from $70 million to $50 million. “This is a big mess for them that they don’t want. They still have a limited staff and we already know that REvil is behind on processing negotiations and publishing to their extortion sites. They’re just publishing data to their extortion sites from attacks that happened in the beginning of June,” Liska said. “They’re already overwhelmed with the number of attacks they have. Imagine having 1,500 victims going to your chat services trying to figure out what the ransom is and all this other stuff. It’s a mess for them. And you’ve now got the attention of all these different world governments.”The brazenness of the attack has not gone unnoticed by world leaders, who will now devote significant resources to bringing the group down, Liska said, adding that due to hubris, the people behind REvil will want this to go away as quickly as possible but can’t simply hand out decryption keys. REvil operators also have to contend with the fact that some MSPs may begin to help clients recover, damaging the group’s ability to profit from the attack. “So they’re going to get horribly bad press and they’re going to make very little money. This started off as a very sophisticated operation. You have a zero day vulnerability with a zero day exploit being pushed through MSPs to push down. And then after that, it all looks like a cracker jack operation,” Liska said. “It all looks like it’s amateur hour, so they may need to do something else to save a little bit of face because while the front part of it looks very effective, the aftermath looks like a complete disaster for them.” For Kaseya, Liska said paying the ransom would only compound the problems they face. In his experience, the decryptor given out to REvil victims has been lackluster and difficult to use. “So on top of whatever the ransom cost is, they’d have to pay Mandiant to write a real decryptor that they could distribute to the MSPs who could then distribute it to their clients. A lot of the clients that are hit hardest by this are lawyer shops that maybe have a staff of 10 or 15. They don’t have the infrastructure to be able to recover from something like this so they’re counting on their MSP to do it,” he said. 

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“But at the same time, you’d be giving a lot of money to a bad actor who has shown that they will use that money to do even worse things.”None of the MSPs have paid any ransoms but Liska said he has heard reports from other researchers who said some of the end victims have paid. But, overall, Liska told ZDNet he believes most people would understand if Kaseya decided against paying the ransom even if it would help a lot of people. Unlike other attacks, victims may be down for about a week or more, Liska added. “A lot of it is going to depend on how much access the MSPs have to backups and other things that can help with the restore,” Liska said. “It does look like Kaseya is ready to push out the patch in the next couple of days and if that happens then, all of the MSPs are going to be able to bring their VSA back online and really start assessing what the damage is.” More

A specially-crafted hotspot can cause big problems for your iPhone or iPad. Software engineer Carl Schou discovered that a specific network name — %secretclub%power — can completely disable your iPhone’s ability to connect to Wi-Fi. And beware, because things cannot be restored back to normal by rebooting the device or resetting the iPhone’s network settings.

You can permanently disable any iOS device’s WiFI by hosting a public WiFi named %secretclub%powerResetting network settings is not guaranteed to restore functionality.#infosec #0day— Carl Schou (@vm_call) July 4, 2021

Must read: Windows 11 chaos, and how copying Apple could have helped Microsoft avoid itAll of this sound vaguely familiar? That’s because only last month, Schou discovered something similar but not as nasty or tricky to fix.Unlike the previous bug that Schou discovered, recovery from this one isn’t easy. You can’t reset the network settings, and recovery from a backup doesn’t work.Schou got his Wi-Fi to work by going back to a backup and manually editing the file to remove the malicious network name.Not something your average user is going to be able to do.

This is an incredibly serious bug because it’s so easy to implement and start causing mayhem.So, how can you prevent this from happening to you? After all, little stops pranksters — or possibly a hacker using this as a vulnerability to do something more malicious — from setting up Wi-Fi hotspots with this name and no password.Go to Settings > Wi-Fi and make sure that Auto-Join Hotspots is set to Ask to Join or Never on your iPhone (and iPad). Do this. Do this now. More

Kaseya, an IT solutions developer for MSPs and enterprise clients, announced that it had become the victim of a cyberattack on July 2, over the American Independence Day weekend. 

It appears that attackers have carried out a supply chain ransomware attack by leveraging a vulnerability in Kaseya’s VSA software against multiple managed service providers (MSP) – and their customers. According to Kaseya CEO Fred Voccola, less than 0.1% of the company’s customers were embroiled in the breach — but as their clientele includes MSPs, this means that smaller businesses have also been caught up in the incident.  Present estimates suggest that 800 to 1500 small to medium-sized companies may have experienced a ransomware compromise through their MSP.  The attack is reminiscent of the SolarWinds security fiasco, in which attackers managed to compromise the vendor’s software to push a malicious update to thousands of customers. However, we are yet to find out just how widespread Kaseya’s ransomware incident will prove to be.  Here is everything we know so far. ZDNet will update this primer as we learn more. 

What is Kaseya?

Kaseya’s international headquarters is in Dublin, Ireland, and the company has a US headquarters in Miami, Florida. The vendor maintains a presence in 10 countries. Kaseya provides IT solutions including VSA, a unified remote-monitoring and management tool for handling networks and endpoints. In addition, the company provides compliance systems, service desks, and a professional services automation platform. The firm’s software is designed with enterprises and managed service providers (MSPs) in mind, and Kaseya says that over 40,000 organizations worldwide use at least one Kaseya software solution. As a provider of technology to MSPs, which serve other companies, Kaseya is central to a wider software supply chain. 

What happened?

On July 2 at 2:00 PM EDT, as previously reported by ZDNet, Kaseya CEO Fred Voccola announced “a potential attack against the VSA that has been limited to a small number of on-premise customers.”At the same time, out of an abundance of caution, Voccola urged clients to immediately shut down their VSA servers. “It’s critical that you do this immediately because one of the first things the attacker does is shut off administrative access to the VSA,” the executive said. Customers were notified of the breach via email, phone, and online notices. As Kaseya’s Incident Response team investigated, the vendor also decided to proactively shut down its SaaS servers and pull its data centers offline. By July 4, the company had revised its thoughts on the severity of the incident, calling itself the “victim of a sophisticated cyberattack.” Cyber forensics experts from FireEye’s Mandiant team, alongside other security companies, have been pulled in to assist. “Our security, support, R&D, communications, and customer teams continue to work around the clock in all geographies to resolve the issue and restore our customers to service,” Kaseya said, adding that more time is needed before its data centers are brought back online. Once the SaaS servers are operational, Kaseya will publish a schedule for distributing a security patch to on-prem clients. In a July 5 update, Kaseya said that a fix has been developed and would first be deployed to SaaS environments, once testing and validation checks are complete. “We are developing the new patch for on-premises clients in parallel with the SaaS Data Center restoration,” the company said. “We are deploying in SaaS first as we control every aspect of that environment. Once that has begun, we will publish the schedule for distributing the patch for on-premises customers.”

The ransomware attack, explained

The FBI described the incident succinctly: a “supply chain ransomware attack leveraging a vulnerability in Kaseya VSA software against multiple MSPs and their customers.”Huntress (1,2) has tracked 30 MSPs involved in the breach and believes with “high confidence” that the attack was triggered via an authentication bypass vulnerability in the Kaseya VSA web interface. According to the cybersecurity firm, this allowed the attackers to circumvent authentication controls, gain an authenticated session, upload a malicious payload, and execute commands via SQL injection, achieving code execution in the process. Kyle Hanslovan, CEO and co-founder of Huntress, told attendees of a webinar discussing the technical aspects of the attack on July 6 that the threat actors responsible were “crazy efficient.””There is no proof that the threat actors had any idea of how many businesses they targeted through VSA,” Hanslovan commented, adding that the incident seemed to be shaped more due to a “race against time.” “Some of the functionality of a VSA Server is the deployment of software and automation of IT tasks,” Sophos noted. “As such, it has a high level of trust on customer devices. By infiltrating the VSA Server, any attached client will perform whatever task the VSA Server requests without question. This is likely one of the reasons why Kaseya was targeted.”The vendor has also provided an in-depth technical analysis of the attack. Security expert Kevin Beaumont said that ransomware was pushed via an automated, fake, and malicious software update using Kaseya VSA dubbed “Kaseya VSA Agent Hot-fix”.”This fake update is then deployed across the estate — including on MSP client customers’ systems — as it [is] a fake management agent update,” Beaumont commented. “This management agent update is actually REvil ransomware. To be clear, this means organizations that are not Kaseya’s customers were still encrypted.”With a tip from RiskIQ, Huntress is also investigating an AWS IP address that may have been used as a launch point for the attack. On July 5, Kaseya released an overview of the attack, which began on July 2 with reports of ransomware deployment on endpoints. “In light of these reports, the executive team convened and made the decision to take two steps to try to prevent the spread of any malware: we sent notifications to on-premises customers to shut off their VSA servers and we shut down our VSA SaaS infrastructure,” the company says.According to the firm, zero-day vulnerabilities were exploited by the attackers to trigger a bypass authentication and for code execution, allowing them to infect endpoints with ransomware. However, Kaseya emphasizes that there is no evidence of the VSA codebase being “maliciously modified”. Wietse Boonstra, a Dutch Institute for Vulnerability Disclosure (DIVD) researcher, previously identified a number of vulnerabilities, tracked as CVE-2021-30116, which were used in the ransomware attacks. They were reported under a Coordinated Vulnerability Disclosure pact.”Once Kaseya was aware of our reported vulnerabilities, we have been in constant contact and cooperation with them. When items in our report were unclear, they asked the right questions,” DIVD says. “Also, partial patches were shared with us to validate their effectiveness. During the entire process, Kaseya has shown that they were willing to put in the maximum effort and initiative into this case both to get this issue fixed and their customers patched. ” 

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Who has been impacted?

Over the weekend, Kaseya said that SaaS customers were “never at risk” and current estimates suggest that fewer than 40 on-prem clients worldwide have been affected. However, it should be noted that while a small number of Kaseya clients may have been directly infected, as MSPs, SMB customers further down the chain relying on these services could be impacted in their turn. According to reports, 800 Coop supermarket chain stores in Sweden had to temporarily close as they were unable to open their cash registers.Huntress said in a Reddit explainer that an estimated 1,000 companies have had servers and workstations encrypted. The vendor added that it is reasonable to suggest “thousands of small businesses” may have been impacted.”This is one of the farthest-reaching criminal ransomware attacks that Sophos has ever seen,” commented Ross McKerchar, Sophos VP. “At this time, our evidence shows that more than 70 managed service providers were impacted, resulting in more than 350 further impacted organizations. We expect the full scope of victim organizations to be higher than what’s being reported by any individual security company.”On July 5, Kaseya revised previous estimates to “fewer than 60” customers, adding that “we understand the total impact thus far has been to fewer than 1,500 downstream businesses.”Now, on July 6, the estimate is between 50 direct customers, and between 800 and 1,500 businesses down the chain. When it comes to SaaS environments, Kaseya says, “We have not found evidence that any of our SaaS customers were compromised.”In a press release dated July 6, Kaseya has insisted that “while impacting approximately 50 of Kaseya’s customers, this attack was never a threat nor had any impact to critical infrastructure.” 

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Kaseya CEO Fred Voccola said that the attack, “for the very small number of people who have been breached, it totally sucks.”

“We are two days after this event,” Voccola commented. “We have about 150 people that have probably slept a grand total of four hours in the last two days, literally, and that’ll continue until everything is as perfect as can be.” Less than 0.1% of the company’s customers experienced a breach. “Unfortunately, this happened, and it happens,” the executive added. “Doesn’t make it okay. It just means it’s the way the world we live in is today.”

What is ransomware?

Ransomware is a type of malware that specializes in the encryption of files and drives. In what has become one of the most severe and serious security problems modern businesses now face, ransomware is used by threat actors worldwide to hijack systems and disrupt operations. Once a victim’s system or network has been encrypted, cyber criminals will place a ransom note on the system, demanding payment in return for a decryption key (which may, or may not, work). Today’s ransomware operators may be part of Ransomware-as-a-Service (RaaS), when they ‘subscribe’ to access and use a particular type of ransomware. Another emerging trend is double extortion, in which a victim will have their information stolen during a ransomware raid. If they refuse to pay up, they may then face the prospect of their data being sold or published online. Common and well-known ransomware families include REvil, Locky, WannaCry, Gandcrab, Cerber, NotPetya, Maze, and Darkside. Read on: What is ransomware? Everything you need to know about one of the biggest menaces on the webSee also:

Who is responsible?

Charlie Osborne | ZDNet

The cyberattack has been attributed to the REvil/Sodinikibi ransomware group, which has claimed responsibility on its Dark Web leak site, “Happy Blog.”In an update over the weekend, the operators, believed to have ties to Russia, claimed that more than “a million” systems have been infected. REvil has offered a decryption key, allegedly universal and, therefore, able to unlock all encrypted systems, for the ‘bargain’ price of $70 million in the bitcoin (BTC) cryptocurrency.REvil has been previously linked to ransomware attacks against companies, including JBS, Travelex, and Acer. 

What are the ransomware payment terms?

The ransomware note claims that files are “encrypted, and currently unavailable.” A file extension .csruj has reportedly been used. Operators are demanding payment in return for a decryption key and one ‘freebie’ file decryption is also on the table to prove the decryption key works. The operators add (spelling unchanged):”Its just a business. We absolutely do not care about you and your deals, except getting benefits. If we do not do our work and liabilities – nobody will not cooperate with us. Its not in our interests. If you will not cooperate with our service –for us, its does not matter. But you will lose your time and data, cause just we have the private key. In practice – time is much more valuable than money.”Sophos malware analyst Mark Loman shared a screenshot on Twitter of a ransomware note planted on an infected endpoint demanding $44,999. John Hammond, senior security researcher at Huntress, told ZDNet that the company has already seen ransom demands of up to $5 million. Kevin Beaumont says that, unfortunately, he has observed victims “sadly negotiating” with the ransomware’s operators. Fabian Wosar, CTO of Emsisoft, has also explained in a Twitter thread why using a key obtained by a single organization paying up is unlikely to be a viable path for unlocking all victims. “REvil absolutely has the capability of decrypting only a single victim without these purchased decryption tools being applicable for other victims hit by the same campaign public key,” the security expert noted.CNBC reports that the universal ransom demand has been reduced to $50 million in private conversations. However, as of July 7, the public demand for $70 million on the threat group’s leak site remains unchanged.

What are the reactions so far?

At the time of the breach, Kaseya notified law enforcement and cybersecurity agencies, including the Federal Bureau of Investigation (FBI) and US Cybersecurity and Infrastructure Security Agency (CISA).The FBI and CISA have released a joint statement on the security incident and are urging customers to run a tool provided by Kaseya to determine the risk of exploit, and to both enable and enforce multi-factor authentication (MFA) on enterprise accounts, wherever possible.Kaseya has been holding meetings with the FBI and CISA “to discuss systems and network hardening requirements prior to service restoration for both SaaS and on-premises customers.”The White House is asking organizations to inform the Internet Crime Complaint Center (IC3) if they suspect they have been compromised.On Saturday, US President Biden said he has directed federal intelligence agencies to investigate. “Targeting [an] MSP platform (that is managing many customers at once) was very well thought and planned,” Amit Bareket, CEO of Perimeter 81, told ZDNet. “What’s unique is that hackers are becoming more strategic and targeting platforms that will filtrate down to many companies with one shot. RMMs [remote monitoring and management] are basically keys to many many companies, which amount to the kingdom for bad actors.”The White House has attempted to strengthen its stance on cybercrime in light of this attack, warning Russian President Vladimir Putin that unless he deals with the problem in his own backyard, “we will take action or reserve the right to take action on our own.” 

Are there any recovery plans?

As of July 4, Kaseya says the company has now moved on from a root cause analysis of the attack to recovery and patch plans, consisting of:Communication of our phased recovery plan with SaaS first followed by on-premises customers.  Kaseya will be publishing a summary of the attack and what we have done to mitigate it.   Some lightly-used legacy VSA functionality will be removed as part of this release out of an abundance of caution. A specific list of the functionality and its impact on VSA capabilities will be outlined in the release notes.  There will be new security measures implemented including enhanced security monitoring of our SaaS servers by FireEye and enablement of enhanced WAF capabilities. We have successfully completed an external Vulnerability Scan, checked our SaaS Databases for Indicators of Compromise, and have had external security experts review our code to ensure a successful service restart.Data centers starting with the EU will be restored, followed by the UK, APAC, and then North American systems.  By late evening on July 5, Kaseya said a patch has been developed and it is the firm’s intention to bring back VSA with “staged functionality” to hasten the process. The company explained: The first release will prevent access to functionality used by a very small fraction of our user base, including: Classic Ticketing Classic Remote Control (not LiveConnect). User Portal Kaseya has now published an updated timeline for its restoration efforts, starting with the relaunch of SaaS servers, now set for July 6, 4:00 PM EDT and 7:00 PM EDT. Configuration changes to improve security will follow, including an on-premise patch, expected to land in 24 hours, or less, from the time SaaS servers come back online. “We are focused on shrinking this time frame to the minimal possible — but if there are any issues found during the spin-up of SaaS, we want to fix them before bringing our on-premises customers up,” the firm says. Additional security improvements include the creation of 24/7 SOCs for VSA, as well as a complimentary CDN with a web application firewall (WAF) for every VSA. Update July 7: The timeline has not been met. Kaseya said that “an issue was discovered that has blocked the release” of the VSA SaaS rollout. “We apologize for the delay and R&D and operations are continuing to work around the clock to resolve this issue and restore service,” Kaseya commented.In a service update, the vendor said it has been unable to resolve the problem.”The R&D and operations teams worked through the night and will continue to work until we have unblocked the release,” Kaseya added.July 7, 12 pm EDT: Kaseya hopes to resolve the SaaS systems rollout no later than the evening of Thursday, July 8. A playbook is currently being written up, due to be published today, which will provide guidelines for impacted businesses to deploy the upcoming on-prem VSA patch.

What can customers do?

Kaseya has released a tool, including Indicators of Compromise (IoC), which can be downloaded via Box. There are two PowerShell scripts for use: one on a VSA server, and the other has been designed for endpoint scanning. The self-assessment scripts should be used in offline mode. They were updated on July 5 to also scan for data encryption and REvil’s ransom note.However, the scripts are only for potential exploit risk detection and are not security fixes. Kaseya will release patches as quickly as it can, but in the meantime, customers simply have to wait. “All on-premises VSA Servers should continue to remain offline until further instructions from Kaseya about when it is safe to restore operations,” the firm said. “A patch will be required to be installed prior to restarting the VSA.”Cado Security has provided a GitHub repository for responders, including malware samples, IoCs, and Yara Rules. Truesec CSIRT has also released a script on GitHub to identify and mitigate damage on infected systems. Kaseya has also warned that “customers who experienced ransomware and receive a communication from the attackers should not click on any links  —  they may be weaponized.” More

The SideCopy advanced persistent threat (APT) group has expanded its activities, and now, new Trojans are being used in campaigns across India. 

The APT has been active since at least 2019 and appears to focus on targets of value in cyberespionage. Last year, Cyware said that SideCopy was involved in a number of attacks, including those targeting Indian defense forces and military personnel. On Wednesday, researchers from Cisco Talos said a recent surge in activity “signals a boost” in the APT’s development of techniques, tactics, and tools, with multiple, new remote access trojans (RATs) and plugins now in play.  An interesting aspect of SideCopy is the group’s attempts to confuse security researchers by copying techniques usually reserved for Sidewinder, a separate APT believed to have attacked the Pakistani military and other targets across China.  SideCopy has also taken reference from Transparent Tribe, also known as PROJECTM, APT36, or Mythic Leopard. This group also strikes at Indian government and military units; however, Transparent Tribe has recently shifted its focus to Afghanistan.  According to Talos, SideCopy has expanded from the deployment of a C#-based RAT called CetaRAT, the Allakore Trojan, and njRAT to four new customized Trojans and two further commodity RATs known as Lilith and Epicenter.  SideCopy’s original infection chain used malicious .LNK files and .DLLs to deploy a Trojan on a victim’s machine. Link lures will often relate to the Indian army operational; however, the group also uses honeytraps — in particular, the promise of explicit photos of women.

However, since last year, SideCopy’s attack chain has evolved to a .LNK file, three HTML application files, three loader .DLLs, and then multiple RATs — including two versions of CetaRAT deployed in the same strike. Decoy documents and images may also be used in the initial stages of an attack.  In other variations, such as an attack chain that was designed to deploy njRAT, the group used a dropper hidden in a self-extracting .RAR archive, and in others, the .LNK element is completely abandoned in favor of malicious .ZIP archives hosted on attacker-controlled websites.   DetaRAT, ReverseRAT, and MargulasRAT are new Trojans joining CetaRAT. They contain typical functions for this kind of malware — the creation of a link between a victim machine and a command-and-control (C2) server, data theft, process tampering, clipboard data stealing, and screenshot capture — with the exception of ReverseRAT, which is a simple reverse shell and removable drive monitor.  Once infected, plugins are also deployed, including functions such as enumeration, keylogging, and browser credential stealers. One set of plugins of note are “Nodachi,” written in the Goland programming language and designed to steal files from an Indian multi-factor authentication (MFA) app called Kavach.  “What started as a simple infection vector by SideCopy to deliver a custom RAT has evolved into multiple variants of infection chains delivering several RATs,” Talos says. “The use of these many infection techniques — ranging from LNK files to self-extracting RAR .exes and MSI-based installers — is an indication that the actor is aggressively working to infect their victims.” Previous and related coverage Have a tip? Get in touch securely via WhatsApp | Signal at +447713 025 499, or over at Keybase: charlie0 More

Following the latest series of ransomware attacks, the White House has said the US will take action against the gangs involved, if the Russian government doesn’t. The June ransomware attack on Colonial Pipeline, which distributes much of the fuel to the eastern seaboard of the US, was a turning point in discussions about cybercrime between US president Joe Biden and Russian president Vladimir Putin. 

Kaseya attack

Biden in June said critical infrastructure should be “off-limits” to these style of cyberattacks and is pressuring Putin to get a grip on ransomware gangs operating in Russia’s jurisdiction. While the US intelligence community has not attributed the attack to one gang, most cybersecurity experts are pointing to gangs operating out of Russia.SEE: Network security policy (TechRepublic Premium)The question over ransomware came up again after last week’s attack on US tech firm Kaseya, whose VSA remote management and monitoring software was compromised, leading to about 1,500 companies being affected. While few critical infrastructure providers appear to have been hit, it has forced the closure of dozens of Coop supermarket stores in Sweden since Sunday. Affected Coop stores remained closed until Tuesday as it replaced cash registers. REvil offers its ransomware infrastructure as a service to any gang who’s willing to pay. The attackers have demanded $70 million for a universal decryption key that would resolve the issue for Kaseya, its managed service provider (MSP) customers, and MSPs’ customers. White House press secretary Jen Psaki on Tuesday offered an update to the US response to Russian-based cybercrime.

“As the President made clear to President Putin when they met, if the Russian government cannot or will not take action against criminal actors residing in Russia, we will take action or reserve the right to take action on our own,” said Psaki. She said a high level of the US national security team has been in touch with a high level of Russian officials to discuss the attacks.But she said that even if the ransomware gangs were not operating with the permission of the Russian government, stopping the attacks was still Russia’s responsibility.”Even as it is criminal actors who are taking these actions against the United States or entities – private-sector entities in the United States, even as – even without the engagement of the Russian government, they still have a responsibility. That continues to be the President’s view and the administration’s view,” she said.  The G7 alliance, which includes Canada, France, Germany, Italy, Japan, the UK and the US, in June warned countries from which ransomware gangs operated to reign them in. Colonial ended up paying $4 million to its ransomware attackers while JBS, which was also compromised by a REvil-related gang, paid $11 million.   Kaseya on Tuesday issued a statement outlining its efforts to minimize impact on critical infrastructure. 

It said the REvil attack impacted about 50 Kaseya customers. “Of the approximately 800,000 to 1,000,000 local and small businesses that are managed by Kaseya’s customers, only about 800 to 1,500 have been compromised,” Kaseya said in a statement. SEE: Ransomware: Paying up won’t stop you from getting hit again, says cybersecurity chiefThe attack exploited a previously unknown flaw in Kaseya’s VSA software and only impacted customers with on-premise VSA servers. Kaseya however took its VSA software-as-a-service (SaaS) product offline too and was expected to bring it back online on July 6. The company issued a notice late on July 6 that it deferred its SaaS restoration due to an undisclosed issue. “We apologize for the delay and R&D and operations are continuing to work around the clock to resolve this issue and restore service. We will be providing a status update at 8 AM US EDT,” it said in a statement.    More

Law enforcement has arrested an individual suspected of being a prolific cybercriminal responsible for phishing, carding, and bank fraud. 

Kaseya attack

On Tuesday, Interpol and Group-IB revealed the results of a two-year probe into “Dr HeX,” a target of Interpol’s Operation Lyrebird, leading to a suspect being apprehended in May with the help of Moroccan police.Interpol has accused the miscreant of prolific cybercrime, including phishing campaigns targeting French speakers and widespread website defacement. He is also suspected of developing and selling phishing exploit kits, used to steal the financial details of victims and to conduct financial fraud, on underground forums.  Dr HeX reportedly impersonated online banking services to lure unwitting visitors into submitting their account credentials and was also involved in the carding industry — the sale and use of credit card information without the owner’s consent. In addition, the alleged cybercriminal targeted French-speaking telecom firms, numerous banks in the country, and enterprise companies with attacks designed to distribute malware.  The individual, as of yet unnamed, is being accused of targeting “thousands of unsuspecting victims over several years.”

Cybersecurity firm Group-IB, a member of the Project Gateway initiative — a collaborative effort between Interpol and private sector organizations to tackle cybercrime — was heavily involved in the investigation.  Group-IB has actively monitored the activities of Dr HeX, which allegedly included attacks on 134 websites between 2009 and 2018.  The firm used signatures left on the defaced domains, together with a phishing kit containing the same Dr HeX brand — and a contact email — to map out the cybercriminal’s activities and to help track the suspect down. Further investigation led to the discovery of a YouTube channel and connections to an Arabic crowdfunding platform. The team then found two domains registered with the same email address included in the phishing kit, and overall, a total of five email accounts, six nicknames, and the suspect’s YouTube, Facebook, Instagram, and Skype accounts were discovered.”Group-IB analysts have also found the cybercriminal’s posts on several popular underground platforms intended for malware trading that indicate the latter’s involvement in malware development,” the company added. The suspect, a citizen of Morocco, is now under investigation for his alleged criminal activities.  Previous and related coverage Have a tip? Get in touch securely via WhatsApp | Signal at +447713 025 499, or over at Keybase: charlie0 More

The UK Information Commissioner’s Office (ICO) has launched an investigation into the improper use of private emails and communication channels by government officials. 

Kaseya attack

Following Matt Hancock’s abrupt departure after breaking social distancing guidelines, concerns were raised that the former health secretary, as well as minister Lord Bethell, had potentially conducted government business across improper channels — including private email accounts. An investigation may also include other online forms of communication, such as WhatsApp. Elizabeth Denham, the UK’s Information Commissioner, said on July 6 that the data protection watchdog is now investigating the Department of Health and Social Care, branding the suggestion that officials are using these accounts to “conduct sensitive official business” as “concerning.” “It concerns the public to feel there may be a loss of transparency about decisions affecting them and their loved ones,” Denham commented. “And as the regulator of data protection and freedom of information laws, it concerns me.” The Information Commissioner has now served official notices on the department and others who may be connected to the inquiry, requesting information and the preservation of evidence.  The ICO’s probe will try to establish whether or not government officials have used private correspondence channels in their roles in ways that have breached freedom of information regulations or data protection laws. 

According to the ICO, transparency is critical to democratic principles — and when a government has been making decisions over a period of 18 months that have deeply impacted our lives, the need to maintain security standards cannot be overlooked. Denham said that following a national crisis, and considering that the government’s own Code of Practice sets clear guidelines for data protection, “it is through transparency and explaining these decisions that people can understand and trust them.” “The use of private correspondence channels does not in itself break freedom of information or data protection rules,” she said. “But my worry is that information in private email accounts or messaging services is forgotten, overlooked, autodeleted, or otherwise not available when a freedom of information request is later made. This frustrates the freedom of information process, and puts at risk the preservation of official records of decision making.”Once completed, the results of the investigation will be published.  The ICO can take a variety of actions depending on the results of the investigation. This could include simple best-practice recommendations and enforcement notices up to criminal prosecution — a prospect that may be considered if there is any evidence that “information has been deliberately destroyed, altered, or concealed after it has been requested under the Freedom of Information Act.” Denham says that she will “not comment further until the conclusion of our investigative work.” Previous and related coverage Have a tip? Get in touch securely via WhatsApp | Signal at +447713 025 499, or over at Keybase: charlie0 More

Microsoft has released an out-of-band patch for the security flaw known as PrintNightmare that is under attack already and lets attackers take control of a PC.The PrintNightmare bug is being tracked as CVE-2021-1675 and CVE-2021-34527. It’s a critical bug in the Windows print spooler with exploit code in the public domain before Microsoft had a chance to release a patch for it. Admins were advised to disable the Print Spooler service until a patch was made available. 

The remote code execution vulnerability surfaces when the Windows Print Spooler service improperly performs privileged file operations, according to Microsoft. “An attacker who successfully exploited this vulnerability could run arbitrary code with SYSTEM privileges. An attacker could then install programs; view, change, or delete data; or create new accounts with full user rights,” it warned in an advisory. SEE: Network security policy (TechRepublic Premium)Microsoft has now completed its investigation and released security updates to address the security bug.     “The security updates released on and after July 6, 2021 contain protections for a remote code execution exploit in the Windows Print Spooler service known as “PrintNightmare”, documented in CVE-2021-34527, as well as for CVE-2021-1675,” Microsoft said. 

“We recommend that you install these updates immediately,” Microsoft said. The bug looks to be a serious concern at Microsoft, which has taken the rare step of releasing patches for Windows 7. That version of Windows reached the end of mainstream support on January 14, 2020. Very occasionally Microsoft releases patches for unsupported versions of Windows. It did that for Windows XP in 2017 after the WannaCry ransomware attacks, which were blamed on North Korean hackers. Windows 7 accounts for a smaller share of all Windows PCs out there today, but the numbers remained significantly large enough for Google to maintain Chrome support for Windows 7 until July 2021. SEE: Ransomware: Paying up won’t stop you from getting hit again, says cybersecurity chiefHowever, some versions of Windows will get patches at a later date. “Updates are not yet available for Windows 10 version 1607, Windows Server 2016, or Windows Server 2012. Security updates for these versions of Windows will be released soon,” Microsoft noted. It’s also published queries that security teams who use Microsoft 365 Defender can use to hunt down exploits for the print spooler vulnerability.  More