Ransomware Reality Check

26% Quarter-over-quarter increase in ransomware in Q4 2015

2.3M Users worldwide who encountered ransomware between April 2015 and March 2016, an increase of almost 18 percent over the previous year    

$325M Victim ransomware payments linked to one ransomware campaign

65% Respondents who paid the ransomware demands, according to Trend Micro Simply Security research; it took an average of 33 person hours to contain and remediate the original infection    

Attack, Adapt, Repeat

As threat actors test the water, we’re typically seeing two types of ransomware attacks:

  1. Phishing. Threat actors have sought to spread ransomware via widespread spam that includes malicious attachments, such as Word documents, that initiate the malware downloading process when clicked. This was the method reportedly used to infect Hollywood Presbyterian. New reports suggest attempts to increase the sophistication and realism of the spam emails. In one case, TeslaCrypt ransomware was distributed via emails disguised as United States Postal Service messages with malicious attachments appearing as receipts. In a similar campaign, threat actors attempted to dupe Windows-based users into downloading attachments weaponized with Locky ransomware or the Dridex Trojan by disguising them as Bank of America invoices; in this particular case, there are reportedly up to 11 different customized versions of the email.
  2. Compromised Website. A common attack vector for multiple kinds of malware, Web compromises and the use of exploit kits (EK) are another popular method for distributing ransomware. For the latter, Booz Allen has noted the increased use of the Angler and Nuclear EKs in Locky ransomware distribution. What’s interesting is that the previously referenced Locky spam campaign and the Angler EK distribution effort both use the same command and control infrastructure and Bitcoin wallet, suggesting that the group behind this ransomware campaign is seeking multiple attack vectors to maximize access to potential victims.

Systematic Encryptions

Regardless of the specific ransomware variant, attack vector, or method used to deploy it, once the ransomware is successfully activated it follows a standard process on the victim’s computer.

First, it systematically encrypts each file it finds, excluding important operating system files, so the system can continue to function in order to facilitate victim notification and ransom payment. Next, files in mapped network folders, and even unmapped network folders that are available to the victim, will be encrypted.

This includes files in cloud storage services that back up or synchronize files in real-time. The ransomware changes each file name and leaves “help” files throughout the victim’s computer systems that provide instructions for paying the ransom with Bitcoins in exchange for the decryption key—all of which is done anonymously through Tor software.

All About Advancments

Currently, all indicators suggest that threat actors are seeking to double down on ransomware by investing time and resources to increase the method’s sophistication and capability.

  • FTC Enforcement. The FTC chairwoman recently indicated that the FTC could consider an enforcement action against companies that fail to take preventative measures to protect against malware, even if the companies are not actually subject to an attack.
  • Decrypting Jigsaw. Checkpoint analysts have created an updated decryption tool for the Jigsaw ransomware strain that takes advantage of a flaw in the code. The flaw allows a user to manipulate the Bitcoin account call to indicate the ransom has been paid. The Jigsaw developers will likely fix this flaw quickly, but until then the decryption tool is available through the Checkpoint website.
  • Permanent Damage. A new ransomware variant named Alfa (or Alpha), from the developers of Cerber, creates an auto-run for the executable so that it starts every time a user logs into Windows. It also deletes the Shadow Volume Copies folder to prevent potential recovery of the encrypted files. Currently there are no tools available to decrypt the files impacted by Alfa/Alpha.
  • More Difficult to Detect. Malwarebytes Labs is tracking a new ransomware strain being developed called Satana, which combines Peyta and Mischa to rewrite the bootloader with a customized tiny kernel that blocks users from Windows and then encrypts files. Satana triggers a user control notification that repeats until the user chooses the “Yes” option, but otherwise all installation and encryption activities are silent.
  • New Coding Techniques. Researchers have identified new ransomware named RAA that is coded exclusively in JavaScript as client-side malware. In general, JS is utilized only by exploit kits to initiate the malware download. RAA includes a password stealing feature and demands $250 USD after encrypting the victim’s files.
  • Greater Urgency. TrendMicro reported in April 2016 that a new ransomware variant named Jigsaw makes copies of a victims files, encrypts the copies, then deletes the original files. Jigsaw then deletes an increasing number of encrypted files and raises the amount of the ransom on an hourly basis until the victim pays the ransom. Rebooting the computer results in the permanent deletion of 1,000 files in addition to hourly deletions. 
  • More Vulnerabilities. Cisco Talos indicated in April 2016 that a new ransomware campaign was leveraging JBOSS vulnerabilities to compromise servers and then pivot to deliver SamSam ransomware into the impacted organization. Talos estimated 3.2 million servers worldwide may be at risk of compromise through this method.

How To Get Ahead

Ransomware’s expanded capabilities and distribution are bringing the threat to center stage—its attack variations are limited only by the imagination and motivation of cybercriminals.

While the threat of ransomware is very real, there are numerous actions you and your organization can, and should, take in order to ensure your cybersecurity program is poised and prepared to meet this challenge:

Protect and Prepare

  • Conduct daily backups of important data and maintain them logically or physically segregated from your primary network to reduce potential encryption of back up data connected to the network.
  • Ensure robust patch management of operating systems and updates to third-party software. 
  • Restrict privileged access to endpoints and servers to reduce the risk of administrative rights being leveraged during an attack.
  • Implement advanced endpoint protection solutions that focus on Indicators of Compromise and Application Whitelisting.
  • Create a playbook that addresses specific ransomware attack issues such as payment, backup restoration, and communication.
  • Test backups on a regular basis to validate restoration capabilities and timelines.
  • Identify malicious activity as quickly as possible by forwarding all applicable logs to an aggregation solution such as Splunk and tailor the detection logic for indicators of malware. 

Recovery

  • Conduct exercises to ensure impacted systems can be recovered quickly and completely.
  • Attempt to recover the impacted system(s) with decryption tools that are available for numerous ransomware variants.
  • If ransom payment is an option, implement the plan to transfer bitcoins to the attackers quickly. Consider the use of a third-party proxy to manage the transaction. 

The Time Is Now

Ransomware is a highly effective tool in the threat actor repository—and it’s growing more sophisticated and lethal by the day.

Indications show that healthcare, retail, and manufacturing sectors will be the primary target of ransomware attacks going forward. This is largely the result of threat actors seeking to increase profit margins by switching focus from widespread, but less effective, attacks on individual users to target corporations specifically.

Cybersecurity leaders need to be prepared to address the risk ransomware poses to their networks, and their organization’s business. With recent headlines of ransomware attacks, your customers, employees, stakeholders, and potentially the FTC, will demand security against ransomware threats.

The companies that earn trust will win out in the long term, by demonstrating the commitment and ability to reduce the risk —as well as communicate, manage, and fix a problem when a ransomware incident does occur.

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Ransomware Reality Check: Getting Beyond the Headlines

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