See how Darktrace's Cyber AI detected a fast-acting Dharma ransomware attack at every stage of the life cycle to prevent further damage to the system.
Executive summary
In the past few weeks, Darktrace has observed an increase in attacks against internet-facing systems, such as RDP. The initial intrusions usually take place via existing vulnerabilities or stolen, legitimate credentials. The Dharma ransomware attack described in this blog post is one such example.
Old threats can be damaging – Dharma and its variants have been around for four years. This is a classic example of ‘legacy’ ransomware morphing and adapting to bypass traditional defenses.
The intrusion shows signs that indicate the threat-actors are aware of – and are actively exploiting – the COVID-19 situation.
In the current threat landscape surrounding COVID-19, Darktrace recommends monitoring internet-facing systems and critical servers closely – keeping track of administrative credentials and carefully considering security when rapidly deploying internet-facing infrastructure.
Introduction
In mid-April, Darktrace detected a targeted Dharma ransomware attack on a UK company. The initial point of intrusion was via RDP – this represents a very common attack method of infection that Darktrace has observed in the broader threat landscape over the past few weeks.
This blog post highlights every stage of the attack lifecycle and details the attacker’s techniques, tools and procedures (TTP) – all detected by Darktrace.
Dharma – a varient of the CrySIS malware family – first appeared in 2016 and uses multiple intrusion vectors. It distributes its malware as an attachment in a spam email, by disguising it as an installation file for legitimate software, or by exploiting an open RDP connection through internet-facing servers. When Dharma has finished encrypting files, it drops a ransom note with the contact email address in the encrypted SMB files.
Darktrace had strong, real-time detections of the attack – however the absence of eyes on the user interface prior to the encryption activity, and without Autonomous Response deployed in Active Mode, these alerts were only actioned after the ransomware was unleashed. Fortunately, it was unable to spread within the organization, thanks to human intervention at the peak of the attack. However, Darktrace Antigena in active mode would have significantly slowed down the attack.
Timeline
The timeline below provides a rough overview of the major attack phases over five days of activity.
Figure 1: A timeline of the attack
Technical analysis
Darktrace detected that the main device hit by the attack was an internet-facing RDP server (‘RDP server’). Dharma used network-level encryption here: the ransomware activity takes place over the network protocol SMB.
Below is a chronological overview of all Darktrace detections that fired during this attack: Darktrace detected and reported every single unusual or suspicious event occurring on the RDP server.
Figure 2: An overview of Darktrace detections
Initial compromise
On April 7, the RDP server began receiving a large number of incoming connections from rare IP addresses on the internet.
On April 7, the RDP server began receiving a large number of incoming connections from rare IP addresses on the internet. This means a lot of IP addresses on the internet that usually don’t connect to this company started connection attempts over RDP. The top five cookies used to authenticate show that the source IPs were located in Russia, the Netherlands, Korea, the United States, and Germany.
It is highly likely that the RDP credential used in this attack had been compromised prior to the attack – either via common brute-force methods, credential stuffing attacks, or phishing. Indeed, a TTP growing in popularity is to buy RDP credentials on marketplaces and skip to initial access.
Attempted privilege escalation
The following day, the malicious actor abused the SMB version 1 protocol, notorious for always-on null sessions which offer unauthenticated users’ information about the machine – such as password policies, usernames, group names, machine names, user and host SIDs. What followed was very unusual: the server connected externally to a rare IP address located in Morocco.
Next, the attacker attempted a failed SMB session to the external IP over an unusual port. Darktrace detected this activity as highly anomalous, as it had previously learned that SMB is usually not used in this fashion within this organization – and certainly not for external communication over this port.
Figure 3: Darktrace detecting the rare external IP address
Figure 4: The SMB session failure and the rare connection over port 1047
Command and control traffic
As the entire attack occurred over five days, this aligns with a smash-and-grab approach, rather than a highly covert, low-and-slow operation.
Two hours later, the server initiated a large number of anomalous and rare connections to external destinations located in India, China, and Italy – amongst other destinations the server had never communicated with before. The attacker was now attempting to establish persistence and create stronger channels for command and control (C2). As the entire attack occurred over five days, this aligns with a smash-and-grab approach, rather than a highly covert, low-and-slow operation.
Actions on target
Notwithstanding this approach, the malicious actor remained dormant for two days, biding their time until April 10 — a public holiday in the UK — when security teams would be notably less responsive. This pause in activity provides supporting evidence that the attack was human-driven.
Figure 5: The unusual RDP connections detected by Darktrace
The RDP server then began receiving incoming remote desktop connections from 100% rare IP addresses located in the Netherlands, Latvia, and Poland.
Internal reconnaissance
The IP address 85.93.20[.]6, hosted at the time of investigation in Panama, made two connections to the server, using an administrative credential. On April 12, as other inbound RDP connections scanned the network, the volume of data transferred by the RDP server to this IP address spiked. The RDP server never scans the internal network. Darktrace identified this as highly unusual activity.
Figure 6: Darktrace detects the anomalous external data transfer
Lateral movement and payload execution
Finally, on April 12, the attackers executed the Dharma payload at 13:45. The RDP server wrote a number of files over the SMB protocol, appended with a file extension containing a throwaway email account possibly evoking the current COVID-19 pandemic, ‘cov2020@aol[.]com’. The use of string ‘…@aol.com].ROGER’ and presence of a file named ‘FILES ENCRYPTED.txt’ resembles previous Dharma compromises.
Parallel to the encryption activity, the ransomware tried to spread and infect other machines by initiating successful SMB authentications using the same administrator credential seen during the internal reconnaissance. However, the destination devices did not encrypt any files themselves.
It was during the encryption activity that the internal IT staff pulled the plug from the compromised RDP server, thus ending the ransomware activity.
Conclusion
This incident supports the idea that ‘legacy’ ransomware may morph to resurrect itself to exploit vulnerabilities in remote working infrastructure during this pandemic.
Dharma executed here a fast-acting, planned, targeted, ransomware attack. The attackers used off-the-shelf tools (RDP, abusing SMB1 protocol) blurring detection and attribution by blending in with typical administrator activity.
Darktrace detected every stage of the attack without having to depend on threat intelligence or rules and signatures, and the internal security team acted on the malicious activity to prevent further damage.
This incident supports the idea that ‘legacy’ ransomware may morph to resurrect itself to exploit vulnerabilities in remote working infrastructure during this pandemic. Poorly-secured public-facing systems have been rushed out and security is neglected as companies prioritize availability – sacrificing security in the process. Financially-motivated actors weaponize these weak points.
The use of the COVID-related email ‘cov2020@aol[.]com’ during the attack indicates that the threat-actor is aware of and abusing the current global pandemic.
Recent attacks, such as APT41’s exploitation of the Zoho Manage Engine vulnerability last March, show that attacks against internet-facing infrastructure are gaining popularity as the initial intrusion vector. Indeed, as many as 85% of ransomware attacks use RDP as an entry vector. Ensuring that backups are isolated, configurations are hardened, and systems are patched is not enough – real-time detection of every anomalous action can help protect potential victims of ransomware.
Technical Details
Some of the detections on the RDP server:
Compliance / Internet Facing RDP server – exposure of critical server to Internet
Anomalous Connection / Application Protocol on Uncommon Port – external connections using an unusual port to rare endpoints
Device / Large Number of Connections to New Endpoints – indicative of peer-to-peer or scanning activity
Compliance / Incoming Remote Desktop – device is remotely controlled from an external source, increased rick of bruteforce
Compromise / Ransomware / Suspicious SMB Activity – reading and writing similar volumes of data to remote file shares, indicative of files being overwritten and encrypted
Anomalous File / Internal / Additional Extension Appended to SMB File – device is renaming network share files with an added extension, seen during ransomware activity
The graph below shows the timeline of Darktrace detections on the RDP server. The attack lifecycle is clearly observable.
Figure 7: The model breaches occurring over time
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Inside the SOC
Darktrace cyber analysts are world-class experts in threat intelligence, threat hunting and incident response, and provide 24/7 SOC support to thousands of Darktrace customers around the globe. Inside the SOC is exclusively authored by these experts, providing analysis of cyber incidents and threat trends, based on real-world experience in the field.
Author
Max Heinemeyer
Chief Product Officer
Max is a cyber security expert with over a decade of experience in the field, specializing in a wide range of areas such as Penetration Testing, Red-Teaming, SIEM and SOC consulting and hunting Advanced Persistent Threat (APT) groups. At Darktrace, Max is closely involved with Darktrace’s strategic customers & prospects. He works with the R&D team at Darktrace, shaping research into new AI innovations and their various defensive and offensive applications. Max’s insights are regularly featured in international media outlets such as the BBC, Forbes and WIRED. Max holds an MSc from the University of Duisburg-Essen and a BSc from the Cooperative State University Stuttgart in International Business Information Systems.
From Royal to BlackSuit: Understanding the Tactics and Impact of a Sophisticated Ransomware Strain
What is BlackSuit Ransomware?
Since late 2023, Darktrace has detected BlackSuit ransomware infiltrating multiple customer networks in the US. This ransomware has targeted a wide range of industries, including arts, entertainment, real estate, public administration, defense, and social security.
Emerging in May 2023, BlackSuit is believed to be a spinoff of Royal ransomware due to similarities in code and Conti, and most likely consists of Russian and Eastern European hackers [1]. Recorded Future reported that the ransomware had affected 95 organizations worldwide, though the actual number is likely much higher [2]. While BlackSuit does not appear to focus on any particular sector, it has targeted multiple organizations in the healthcare, eduction, IT, government, retail and manufacturing industries [3]. Employing double extortion tactics, BlackSuit not only encrypts files but also steals sensitive data to leverage ransom payments.
BlackSuit has demanded over USD 500 million in ransoms, with the highest individual demand reaching USD 60 million [4]. Notable targets include CDK Global, Japanese media conglomerate Kadokawa, multiple educational institutions, Octapharma Plasma, and the government of Brazil [5][6][7][8].
Darktrace’s Coverage of BlackSuit Ransomware Attack
Case 1, November 2023
The earliest attack on a Darktrace customer by BlackSuit was detected at the start of November 2023. The unusual network activity began on a weekend—a time commonly chosen by ransomware groups to increase their chances of success, as many security teams operate with reduced staff. Darktrace identified indicators of the attackers’ presence on the network for almost two weeks, during which a total of 15 devices exhibited suspicious behavior.
The attack commenced with unusual internal SMB (Server Message Block) connections using a compromised service account. An internal device uploaded an executable (zzza.exe) to a domain controller (DC) and shortly after, wrote a script (socks5.ps1) to another device. According to a Cybersecurity Advisory from the CISA (Cybersecurity and Infrastructure Security Agency, US), the script file was a PowerShell reverse proxy [9].
Approximately an hour and a half later, the device to which the script was written exhibited uncommon WMI (Windows Management Instrumentation) activity. Two hours after receiving the executable file, the DC was observed making an outgoing NTLM request, using PowerShell to remotely execute commands, distributing differently named executable files (<PART OF THE CUSTOMER’S NAME>.exe), and controlling services on other devices.
Eighteen hours after the start of the unusual activity, Darktrace detected another device making repeated connections to “mystuff.bublup[.]com”, which the aforementioned CISA Advisory identifies as a domain used by BlackSuit for data exfiltration [9].
About ten minutes after the suspicious executables were distributed across the network, and less than 24 hours after the start of the unusual activity, file encryption began. A total of ten devices were seen appending the “.blacksuit” extension to files saved on other devices using SMB, as well as writing ransom notes (readme.blacksuit.txt). The file encryption lasted less than 20 minutes.
During this compromise, external connections to endpoints related to ConnectWise’s ScreenConnect remote management tool were also seen from multiple servers, suggesting that the tool was likely being abused for command-and-control (C2) activity. Darktrace identified anomalous connectivity associated with ScreenConnect was seen up to 11 days after the start of the attack.
10 days after the start of the compromise, an account belonging to a manager was detected adding “.blacksuit” extensions to the customer’s Software-a-Service (SaaS) resources while connecting from 173.251.109[.]106. Six minutes after file encryption began, Darktrace flagged the unusual activity and recommended a block. However, since Autonomous Response mode was not enabled, the customer’s security team needed to manually confirm the action. Consequently, suspicious activity continued for about a week after the initial encryption. This included disabling authentication on the account and an unusual Teams session initiated from the suspicious external endpoint 216.151.180[.]147.
Case 2, February 2024
Another BlackSuit compromise occurred at the start of February 2024, when Darktrace identified approximately 50 devices exhibiting ransomware-related activity in another US customer’s environment. Further investigation revealed that a significant number of additional devices had also been compromised. These devices were outside Darktrace’s purview to the customer’s specific deployment configuration. The threat actors managed to exfiltrate around 4 TB of data.
Initial access to the network was gained via a virtual private network (VPN) compromise in January 2024, when suspicious connections from a Romanian IP address were detected. According to CISA, the BlackSuit group often utilizes the services of initial access brokers (IAB)—actors who specialize in infiltrating networks, such as through VPNs, and then selling that unauthorized access to other threat actors [9]. Other initial access vectors include phishing emails, RDP (Remote Desktop Protocol) compromise, and exploitation of vulnerable public-facing applications.
Similar to the first case, the file encryption began at the end of the working week. During this phase of the attack, affected devices were observed encrypting files on other internal devices using two compromised administrator accounts. The encryption activity lasted for approximately six and a half hours. Multiple alerts were sent to the customer from Darktrace’s Security Operations Centre (SOC) team, who began reviewing the activity within four minutes of the start of the file encryption.
In this case, the threat actor utilized SystemBC proxy malware for command and control (C2). A domain controller (DC) was seen connecting to 137.220.61[.]94 on the same day the file encryption took place. The DC was also observed connecting to a ProxyScrape domain around the same time, which is related to the SOCKS5 protocol used by SystemBC. During this compromise, RDP, SSH, and SMB were used for lateral movement within the network.
Signs of threat actors potentially being on the network were observed as early as two days prior to the file encryption. This included unusual internal network scanning via multiple protocols (ICMP, SMB, RDP, etc.), credential brute-forcing, SMB access failures, and anonymous SMBv1 sessions. These activities were traced to IP addresses belonging to two desktop devices in the VPN subnet associated with two regular employee user accounts. Threat actors were seemingly able to exploit at least one of these accounts due to LDAP legacy policies being in place on the customer’s environment.
Case 3, August 2024
The most recently observed BlackSuit compromise occurred in August 2024, when a device was observed attempting to brute-force the credentials of an IT administrator. This activity continued for 11 days.
Once the admin’s account was successfully compromised, network scanning, unusual WMI, and SAMR (Security Account Manager Remote protocol) activity followed. A spike in the use of this account was detected on a Sunday—once again, the attackers seemingly targeting the weekend—when the account was used by nearly 50 different devices.
The compromised admin’s account was exploited for data gathering via SMB, resulting in the movement of 200 GB of data between internal devices in preparation for exfiltration. The files were then archived using the naming convention “*.part<number>.rar”.
Around the same time, Darktrace observed data transfers from 19 internal devices to “bublup-media-production.s3.amazonaws[.]com,” totaling just over 200 GB—the same volume of data gathered internally. Connections to other Bublup domains were also detected. The internal data download and external data transfer activity took approximately 8-9 hours.
Unfortunately, Darktrace was not configured in Autonomous Response mode at the time of the attack, meaning any mitigative actions to stop the data gathering or exfiltration required human confirmation.
Once the information was stolen, the threat actor moved on to the final stage of the attack—file encryption. Five internal devices, using either the compromised admin account or connecting via anonymous SMBv1 sessions, were seen encrypting files and writing ransom notes to five other devices on the network. The attempts at file encryption continued for around two hours, but Darktrace’s Autonomous Response capability was able to block the activity and prevent the attack from escalating.
Conclusion
The persistent and evolving threat posed by ransomware like BlackSuit underscores the critical importance of robust cybersecurity measures across all sectors. Since its emergence in 2023, BlackSuit has demonstrated a sophisticated approach to infiltrating networks, leveraging double extortion tactics, and demanding substantial ransoms. The cases highlighted above illustrate the varied methods and persistence of BlackSuit attackers, from exploiting VPN vulnerabilities to abusing remote management tools and targeting off-hours to maximize impact.
Although many similar connection patterns, such as the abuse of Bublup services for data exfiltration or the use of SOCKS5 proxies for C2, were observed during cases investigated by Darktrace, BlackSuit actors are highly sophisticated and tailors their attacks to each target organization. The consequences of a successful attack can be highly disruptive, and remediation efforts can be time-consuming and costly. This includes taking the entire network offline while responding to the incident, restoring encrypted files from backups (if available), dealing with damage to the organization’s reputation, and potential lawsuits.
These BlackSuit ransomware incidents emphasize the need for continuous vigilance, timely updates to security protocols, and the adoption of autonomous response technologies to swiftly counteract such attacks. As ransomware tactics continue to evolve, organizations must remain agile and informed to protect their critical assets and data. By learning from these incidents and enhancing their cybersecurity frameworks, organizations can better defend against the relentless threat of ransomware and ensure the resilience of their operations in an increasingly digital world.
Credit to Signe Zaharka (Principal Cyber Analyst) and Adam Potter (Senior Cyber Analyst)
Darktrace’s First 6: Half-Year Threat Report 2024 highlights the latest attack trends and key threats observed by the Darktrace Threat Research team in the first six months of 2024.
Focuses on anomaly detection and behavioral analysis to identify threats
Maps mitigated cases to known, publicly attributed threats for deeper context
Offers guidance on improving security posture to defend against persistent threats
Appendices
Darktrace Model Detections
Anomalous Connection / Data Sent to Rare Domain
Anomalous Connection / High Volume of New or Uncommon Service Control
Anomalous Connection / New or Uncommon Service Control
Anomalous Connection / Rare WinRM Outgoing
Anomalous Connection / SMB Enumeration
Anomalous Connection / Suspicious Activity On High Risk Device
Anomalous Connection / Suspicious Read Write Ratio
Anomalous Connection / Suspicious Read Write Ratio and Unusual SMB
Anomalous Connection / Sustained MIME Type Conversion
.blacksuit - File extension – When encrypting the files, this extension is appended to the filename – High
readme.blacksuit.txt – ransom note - A file demanding cryptocurrency payment in exchange for decrypting the victim's files and not leaking the stolen data – High
mystuff.bublup[.]com, bublup-media-production.s3.amazonaws[.]com – data exfiltration domains related to an organization and project management app that has document sharing functionality – High
137.220.61[.]94:4001 – SystemBC C2 related IP address (this tool is often used by other ransomware groups as well) - Medium
173.251.109[.]106 – IP address seen during a SaaS BlackSuit compromise (during file encryption) – Medium
216.151.180[.]147 – IP address seen during a SaaS BlackSuit compromise (during an unusual Teams session) - Medium
MITRE ATT&CK Mapping
Tactic - Technqiue
Account Manipulation - PERSISTENCE - T1098
Alarm Suppression - INHIBIT RESPONSE FUNCTION - T0878
Application Layer Protocol - COMMAND AND CONTROL - T1071
Automated Collection - COLLECTION - T1119
Block Command Message - INHIBIT RESPONSE FUNCTION - T0803
Block Reporting Message - INHIBIT RESPONSE FUNCTION - T0804
Onomastics Gymnastics: How Darktrace Detects Spoofing and Business Email Compromise in Multi-Name Users
Note: For privacy reasons, actual surnames and email addresses observed in these incidents below have been replaced with fictitious placeholder names, using the common Spanish names “Fulano” and “Mengano”.
Naming conventions
Modeling names and their variants of members of an organization is a critical component to properly detect if those same names and variants are being spoofed by malicious actors. For many predominantly English-speaking organizations, these variants can largely be captured by variants of a person’s given name (e.g. James-Jimmy-Jim) and a consistent, singular surname or family name (e.g. Smith). Naming conventions, however, are far from universal. This piece will review how Darktrace / EMAIL manages the common naming conventions of much of the Spanish-speaking world, and can use its modeling to create high-fidelity detections of multiple types of spoofing attempts.
A brief summary of the common convention across Spain and much of Spanish-speaking America: most people are given one or two given names (e.g. Roberto, Juan, María, Natalia), and their surnames are the first surname of their father, followed by the first surname of their mother. While there are various exceptions to this norm, the below graphic Wikipedia [1][2] highlights the general rule.
Detection of improper name usage
Implicit in the above comment that shortening to one surname follows the convention of using the first surname, shortening to the second surname is often a tell-tale sign of someone unfamiliar with the person or their broader culture. This can be a useful corroborating feature in detecting a spoof attempt – analogous to a spelling error.
In the case of a Spanish customer, this misuse of name shortening contributed to the detection of a spoof attempt trying to solicit a response by impersonating an internal user forwarding information about ‘Data Protection’.
While the limited communication history from the sender and the nature of the text content already marks the mail as suspicious, Darktrace / EMAIL notes the personal name used in the email is similar to a high-value user (‘whale’ to use the terminology of spearphishing). The additional context provided by the detection of the attempted spoof prompted more severe actioning of this email, leading to a ‘Hold’ action instead of a less-severe ‘Unspoof’ action via a banner on the email.
Malicious email properly using both surnames
Misusing the name-shortening convention is not the only way that Darktrace / EMAIL can detect spoofing attempts. In the case of another Spanish customer, Darktrace observed a whale impersonation being sent to 230 users with solicitation content, but no links or attachments. Although the name was modeled internally in the “Surname, Given-name” format, Darktrace identified the spoofing attempt targeting a high-value user and took action, blocking the series of emails from reaching end-user inboxes to prevent unsuspecting users from responding.
In Summary: A case of onomastics gymnastics
The variety in valid usage of human language can be a barrier to evaluating when a given text is benign or malicious. Despite this, Darktrace / EMAIL is designed to manage this variety, as exemplified by the detections of two spoofing attempts seen against organizations using the distinct Spanish-speaking world’s common naming convention. The scope of this design as seen in this onomastic context, extends to a wide range of detections surrounding emails and their behavioral anomalies.
Credit to Roberto Romeu (Principal Cyber Analyst), Justin Torres (Senior Cyber Analyst) and Natalia Sánchez Rocafort (Senior Analyst Consultant).
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