NotPetya Ransomware Believed to be Camouflaged Disk-Wiper

The NotPetya ransomware attacks on Tuesday this week initially looked like another WannaCry-style attack. They used similar NSA exploits to spread infections, ransoms were demanded and like WannaCry, the attacks rapidly spread around the globe. However, closer inspection of NotPetya ransomware has revealed that all may not be as it first appeared.

The purpose of ransomware is to lock files with powerful encryption to prevent files from being accessed. A ransom demand is then issued. Payment of the ransom will see the keys to unlock the decryption supplied. Organizations get their files back. The attackers get a big payday.

There have been many cases when ransomware has encrypted files, yet the attackers are not capable of supplying the keys. These attacks have tended to be conducted by amateurs or show the authors have been sloppy and failed to check that decryption is possible.

If attackers do not make good on their promise to supply valid keys to unlock the encryption, word will soon spread on social media and security websites that paying the ransom will not enable organizations to recover their files. That means the campaign will likely not be profitable.

Developing a new ransomware variant is not a quick and easy process. It does not make sense for a threat actor to go to all the trouble of developing ransomware, devising a sophisticated multi-vector campaign to spread the ransomware, but then forget about essential elements that make it possible to receive ransom payments.  That is, unless the aim of the campaign is not to make money.

In the case of the recent NotPetya ransomware attacks, the actors behind the campaign appear to have made some serious errors if making money was their aim.

First, the ransom demand was only $300 per infected machine, which is well below the current average payment demanded by ransomware gangs.

As for the errors, they were numerous. Petya ransomware, which NotPetya closely resembles, provides the victim with an installation ID. That ID is unique to the victim. It is used to determine who has paid the ransom. In the latest attacks, the IDs consisted entirely of random characters. As Kaspersky Lab explained, that means it is not possible for the attackers to identify the victims that pay up.

Successful ransomware campaigns use a different Bitcoin address for each victim, yet only one Bitcoin account was used by the attackers. The email address used by the attacker was hosted by Posteo. The German firm quickly shut down that account, meaning it was not possible to check who had paid. That would be a serious oversight by the attackers, who surely must have suspected that would occur.

NotPetya ransomware also does not encrypt files. Like Petya, it replaces and encrypts the Master File Table (MFT). However, NotPetya ransomware corrupts the MFT, wiping out the first 24 sector blocks. Petya ransomware did not do that, instead modifications were made that could be reversed. As a result, NotPetya causes permanent damage ensuring recovery is not possible.

These factors suggest that Petya was modified and turned into a wiper to cause permanent damage rather than make money. That would suggest this was a state-sponsored attack designed attack to cause major disruption. Due to the extent to which Ukraine was attacked, that country appears to be the main target. As for who was responsible for the attack… that has yet to be established. However, many people in Ukraine have strong suspicions.

Study Reveals Misplaced Confidence in Cyber Response Plans

Confidence in cyber response plans doesn’t appear to be lacking according to a new study conducted by Deloitte. However, that does not mean organizations are prepared for cyberattacks when they occur. The survey revealed that while confidence is high and IT professionals believe they are well prepared to deal with attacks, their cyber response plans may not be effective.

The only way to determine whether cyber response plans will function as planned is to conduct regular tests. If plans are not tested, organizations will not be able to determine with any degree of certainty, if their plans will be effective.

As the recent Ponemon Institute Cost of a Data Breach study confirmed, the ability to respond quickly to a data breach can reduce breach resolution costs considerably. For that to happen, a response plan must have been developed prior to the breach being experienced and that plan must be effective.

The Deloitte study revealed that 76% of business executives were confident that in the event of a cyberattack they would be able to respond quickly and implement their cyberattack response policies. Yet, the study also revealed that 82% of respondents had not tested their response plans in the past year. They had also not documented their plans with business stakeholders in the past year.

A lot can change in a year. New software solutions are implemented, configurations change as do personnel. Only regular testing will ensure that plans work and staff know their roles when an attack occurs.

Cyberattack simulations are a useful tool to determine how attack response plans will work in practice. As is often the case, plans look great on paper but often fail when put in place. Running simulations every 6 months will help to ensure that a fast and effective response to a cyberattack is possible. However, the survey showed that only 46% of respondents conduct simulations twice a year or more frequently.

A data breach can have dire consequences for a company. The study showed that many companies are most concerned about disruptions to business processes as a result of a cyberattack, although loss of trust and tarnishing of a brand should be of more concern. When a data breach is experienced, customers often choose to take their business elsewhere resulting in a considerable loss of revenue. A fast and efficient breach response can help restore faith in a brand and reduce the churn rate.

If you want to reduce the impact of a data breach and reduce costs, it is essential for cyber response plans to be developed and tested. With the volume of cyberattacks now occurring, it is highly probable that those plans will need to be implemented. By then it will be too late to determine whether they are effective. That could prove extremely costly.

Domain Shadowing Crackdown Sees 40,000 Malicious Subdomains Taken Down

Hackers have been phishing for domain credentials and using the logins to gain access to websites and create malicious subdomains – a process called domain shadowing – and using those subdomains as gates that redirect users to sites loaded with the RIG exploit kit.

The RIG exploit kit probes for vulnerabilities in web browsers and exploits flaws to download malware. Those malware downloads usually occur silently without the users’ knowledge. All that is required for infection is an out of date browser or plugin and for the victim to be directed to a website hosting the exploit kit. RIG has primarily been used to download banking Trojans and Cerber ransomware. While use of the exploit kit is nowhere near the level of Angler prior to its demise, the Rig exploit kit is now the leading EK used by cybercriminals and activity has increased sharply in recent months.

Cybercriminals have been generating traffic to the malicious subdomains using malvertising campaigns – malicious adverts sneaked onto third party ad networks. Those ads are then syndicated across a wide range of high traffic websites and redirect visitors to the malicious subdomains. Other techniques used to drive traffic to the sites include malicious Chrome popups and iframes inserted into compromised WordPress, Drupal and Joomla! Websites.

Tens of thousands of subdomains have been created on legitimate websites that have been compromised by hackers. Cybercriminals are understood to have been obtaining login credentials to websites using malware.

The subdomains were mostly created on websites hosted by GoDaddy. The domain registrar has been working with RSA Security and independent security researchers to identify the compromised websites and take down the subdomains. In total, around 40,000 subdomains were taken down in May.

While this take down is certainly good news, it is unclear how much of an effect it will have on Rig EK operations as little is known about the RIG infrastructure and the total number of websites that have had malicious subdomains added. However, RSA Security says these takedowns have resulted in “a significant loss of capabilities to RIG operations”. RSA and GoDaddy are working to prevent cybercriminals from using domain shadowing and are monitoring for new subdomains that are created. It is unclear if sites purchased through other domain registrars have been targeted in a similar way.

Domain shadowing is a problem because content filters typically have problems identifying malicious subdomains on a genuine website. Since the subdomains only remain active for around 24 hours before being shut down, cybercriminals can avoid domain blacklisting.

However, content filters can prevent users from visiting known malicious websites and they offer protection against webpages hosting exploit kits. They can also be configured to block the downloading of specific file types.

Organizations care also strongly advised to ensure browsers and plugins are kept up to date, especially Java, Silverlight and Adobe Flash plugins. Malware downloaded by the RIG exploit kit most commonly leverages the CVE-2015-8651 vulnerability, although other common exploits include CVE-2016-0189, CVE-2015-2419, and CVE-2014-6332