Blog
/

Thought Leadership

/
June 7, 2021

When Cyber-Attacks Become Ransomware-as-a-Service

Default blog imageDefault blog imageDefault blog imageDefault blog imageDefault blog imageDefault blog image
07
Jun 2021
Cyber attacks have occurred since the early days of the Internet. They can be extremely unpredictable. Learn about the dangers and unintended consequences!

In 1988, a Harvard graduate began an experiment to see how many computers were connected to the Internet. 24 hours later, 10% of all computers around the world had been taken down and the damages soared into the millions. Robert Tappan Morris had inadvertently created the first ever computer worm.

Once Morris realized the speed at which his program was replicating, he tried to send instructions to the victims to dismantle the worm and curb the attack. But it was too late. He was indicted one year later and faced fines of over $10,000.

Fast forward to the present day, and we’re facing the most recent example of a cyber-threat miscalculation, or a criminal group that simply did not understand the full impact their attack would have. The DarkSide ransomware group most likely only intended to hit the IT system and corporate business operations of Colonial Pipeline and underestimated the full impact the malware would have. The consequences were disastrous, halting the supply of fuel across the East Coast, leading to gas shortages, hoarding, and spikes in gasoline prices around the world.

In an apparent show of social responsibility, the DarkSide group issued a seemingly heartfelt apology for the attack on social media:

We are apolitical, we do not participate in geopolitics, do not need to tie us with a defined government and look for other our motives. From today, we introduce moderation and check each company that our partners want to encrypt to avoid social consequences in the future.

The motivation behind this statement is clear: self-preservation. The aftermath of the attack affected not only Colonial Pipeline but the DarkSide group themselves. They fell into the direct firing line of the full force of the US government, as well as becoming pariahs among other criminal groups for the attention they have drawn. It also appears they lost whatever formal or informal state supervision or protection they may have held.

As a result of the blowback and possible direct actions against them and their operating infrastructure, in less than a week, DarkSide announced that they would close their operations for good. They could however resurface under a different name, or join another group, if allowed in.

Misjudging the impact and collateral damage of a cyber-attack can lead to a range of unintended ramifications, from a cyber-crime group feeling increased heat from law enforcement to a nation state escalating a conflict greater than they intended.

It is for this reason that many ransomware groups historically have tended to keep their affairs under the radar. Over 70% of ransomware attacks target SMBs. Unfortunately, while many cyber-crime groups pledge to avoid larger bodies like hospitals and critical infrastructure, the allure of fast payouts for record-breaking ransoms has led to the healthcare sector, even vaccine efforts, being a heavy target for ransomware actors.

Following the incident at Colonial Pipeline, and no doubt in the fear of moving up the FBI’s Most Wanted list, a major Ransomware-as-a-Service (RaaS) group, REvil, announced the following policy:

  1. Work in the social sector (health care, educational institutions) is prohibited;
  2. It is forbidden to work on the gov-sector (state) of any country.

Organized cyber-crime groups often stress that they are apolitical and motivated solely by financial gain.

But when the boat is pushed too far, attacks can easily spill over into geopolitical tensions, encouraging governments to issue executive orders and pushing cyber-threats into the headlines – all bad business for criminal groups. And if a threat actor gets in over their head, they either need to lay low and rebrand in what is known as an ‘exit scam’, as ransomware groups such as Maze and Jokeroo have done in the past, or they’re shut down completely, as seen in the disruption of the Emotet botnet at the beginning of this year.

The effects of a cyber-attack are becoming increasingly difficult to predict and control. The reason for this is twofold. The first is this idea of interconnectivity. We live in a digitized world which is so interlinked that an attack on one server can have global consequences, whether that’s reverberations down the supply chain, IT converging with OT, or a cyber-threat against one country affecting the world.

More isolated than federal bodies, the private sector will most often take the brunt of this collateral damage. Just take NotPetya – where a targeted attack against Ukrainian infrastructure went into the wild paralyzing factories across the globe and costing shipping company Maersk $300 million.

The second reason is easier access to more sophisticated tools. The commercialization of cyber-crime has enabled less advanced actors to rent state-of-the-art malware and launch campaigns with speed and with ease. In fact, the Colonial Pipeline attack was likely orchestrated by an affiliate who had paid for the DarkSide malware. This makes it far more challenging to monitor who is being targeted. When it comes to RaaS, even the developers probably do not know for certain how their malware will be used.

When preparing any kind of cyber-attack, the intelligence that an actor has going into the target environment is rarely 100%. If the intention is to impact a single component of a bank, for example, but the attacker fails to realize that a nearby hospital relies on that same electrical grid, the situation can escalate very quickly. And when it’s a low-skilled attacker with little regard or understanding of what a high-powered tool can do, miscalculations become alarmingly easy.

As far as we know, DarkSide itself was not a state-sponsored APT, merely a private criminal franchise. Yet they advertised their ransomware as the fastest in the world and managed to pull off one of the most disruptive critical infrastructure cyber-attacks of all time. As history has shown, from the Morris worm to Colonial Pipeline, when malware is fast and designed to propagate, it is unpredictable. It is nearly impossible to put a highly destructive genie back in the bottle.

As automation and AI-powered attacks become a reality, these trends will increase exponentially and transform the threat landscape. Ransomware is no longer a human-scalable problem. Organizational resilience depends not on throwing more people into the mix, or even upskilling existing teams – machine-speed attacks need a machine-speed response which can adapt as fast as an attack propagates. Thwarting ransomware is both a board-level issue and a national security concern. As such, self-learning AI technology proves critical in tackling the unpredictability and speed of the threats of today, and of tomorrow.

Thanks to Lucas Marsden-Smedley for his contributions.

Learn more about how Darktrace can detect attacks like Colonial Pipeline

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
Marcus Fowler
CEO of Darktrace Federal and SVP of Strategic Engagements and Threats

Marcus Fowler is the CEO of Darktrace Federal, working to help defend the U.S. Department of Defense (DoD), the Intelligence Community (IC), and Federal Civilian Agencies against cyber disruption and strengthen their defenses with complete AI-powered cybersecurity solutions. Marcus is a seasoned cybersecurity professional, with expertise on emerging and next generation cyber threats, trends, and conflicts. Marcus also serves as the SVP of Strategic Engagements and Threats at Darktrace, working closely with senior security leaders across industries on innovative cybersecurity strategy and business resilience.  

Previously, Marcus spent 15 years at the Central Intelligence Agency developing global cyber operations and technical strategies, leading cyber efforts with various US Intelligence Community elements and global partners. Prior to serving at the CIA, Marcus was an officer in the United States Marine Corps. Marcus has an engineering degree from the United States Naval Academy and a master's degree in international security studies from The Fletcher School. He also completed Harvard Business School’s Executive Education Advanced Management Program.

Book a 1-1 meeting with one of our experts
Share this article

More in this series

No items found.

Blog

/

December 19, 2024

/
No items found.

Darktrace Recognized in the Gartner® Magic Quadrant™ for Email Security Platforms

Default blog imageDefault blog image

Darktrace has been recognized in the first ever Gartner Magic Quadrant for Email Security Platforms (ESP).  As a Challenger, we have been recognized based on our Ability to Execute and Completeness of Vision.

The Gartner Magic Quadrant for Email Security is designed to help organizations evaluate which email security solutions might be the best fit for their needs by providing a visual representation of the market vendors and the strengths and cautions of different vendors. We encourage our customers to read the full report to get the complete picture.

Darktrace / EMAIL has a unique AI approach to identifying threats, including NLP and behavioral analysis, instead of traditional security measures like signatures and sandboxing – providing protection against advanced attacks like Business Email Compromise (BEC) and spear phishing. We believe our AI-first approach delivers high-quality solutions that our customers trust, allowing them to stay ahead of sophisticated threats that other tools miss.  

We’re proud of Darktrace’s rapid growth, geographic scale, and ability to execute effectively in the email security market, which reflect our commitment to delivering high-quality, reliable solutions that meet the evolving needs of our customers.

What do we believe makes Darktrace the fastest growing email security solution on the market?

An AI-first approach to innovation: Catching the threats others miss

As one of the founders of the ICES category, Darktrace has a long history of innovation, backed by over 200 patents. While other email security solutions are only just starting to apply machine learning (ML) techniques to outdated methods like signature analysis, reputation lists, and sandboxing, Darktrace has redefined the approach to email threat detection with its pioneering AI-driven anomaly detection engine.

Traditional ESPs often miss advanced threats because they rely on rules and signatures that focus on payloads and blindly trust known sources. This approach requires constant updates and frequently fails to detect threats like Business Email Compromise and Spear Phishing. In contrast, Darktrace / EMAIL uses advanced anomaly detection to identify the most sophisticated threats by focusing on unusual patterns and behaviors. This innovative approach has consistently delivered superior detection, stopping on average 58% of the threats that other solutions in the security stack miss.1

But our AI-first approach doesn’t stop at the inbox. At Darktrace, we transcend the limitations of traditional email security by leveraging a platform that unifies insights across multiple domains, providing robust protection against multi-domain threats. Our award-winning solutions defend the most popular attack vectors, including email, messaging, network, and identity protection. By combining signals from all domains, we establish unique behavioral profiles for each device and user, significantly enhancing detection precision.  

This pioneering approach has led to introducing industry-first advancements like QR code analysis and automated incident investigations, alongside game-changing functionality including:

  • Microsoft Teams security with advanced messaging analysis: The ability to identify critical early phishing and insider threats across both email and Microsoft Teams messaging.  
  • AI analyst narratives for improved end user reporting: that reduces phishing investigations by 60% by exposing unique narratives that provide the context of each received email and give feedback to each employee as they interact with their mail.2
  • Mailbox Security Assistant: to perform advanced behavioral browser analysis and stop malicious links within webpages, detecting and remediating 70% more malicious phishing links than traditional tools.3  
  • AI based, autonomous data loss prevention: to immediately secure your organization from misdirected emails, insider threats, and data loss—both classified and unclassified- without any administrative overhead.

Customer trust that fuels exponential growth

With almost 5,000 customers in under 5 years, we've doubled the growth rate of other vendors in the email security market. Our rapid market penetration, fueled by customer satisfaction and pioneering technology, showcases our revolutionary approach and sets new industry standards. 

Darktrace’s exceptional customer retention is fueled by an unparalleled customer experience, extensive regional support, dedicated account teams, and cutting-edge scalable technology. We pride ourselves on having a global network with local expertise, consisting of 110 worldwide offices which provide local language and technical support to offer multilingual, in-house assistance to our customer base.

Check it out – Darktrace / EMAIL has the highest percentage of 5-star ratings with a 4.8 rating on Gartner® Peer Insights™.4

Supporting every stage of your email security journey

Darktrace / EMAIL supports your security maturity journey, from first time security buyers to mature security stacks looking to augment their existing ESPs – by handling advanced threats without extensive tuning. And unlike other solutions that create a siloed and parallel solution, it works harmoniously with native email providers to create a modern email security stack. That’s why Darktrace performs well with first-time email security buyers and has strong renewal rates.

Integrating with Microsoft and Google via API, we replace traditional Secure Email Gateways (SEGs) with a modern, comprehensive email security stack. By combining approaches, our solution merges attack-centric analysis, which learns attack patterns and threat intelligence, with a business-centric approach that understands user behavior and inbox activity to deliver a unified stack that defends the entire threat spectrum – leading Darktrace to be recognized as Microsoft Partner of the year UK 2024.  

Our user-friendly, self-learning AI solution requires minimal tuning and deployment, making it perfect for customers looking for a highly usable but lightly configurable solution that will accompany them throughout their lifetime as they mature their email security stack in line with the evolving threat landscape.

Learn more

Get complimentary access to the full Gartner® Magic Quadrant™ for Email Security Platforms here.

To learn more about Darktrace / EMAIL or to get a free demo, check out the product hub.

References

1 From September 1 – December 31 2023, 58% of the phishing emails analyzed by Darktrace / EMAIL had already passed through native spam filtering and email security controls. (Darktrace End of Year Threat Report 2023)

2 When customers deployed the Darktrace / EMAIL Outlook Add-in there was a 60% decrease in incorrectly reported phishing emails. Darktrace Internal Research, 2024

3 Once a user reports phishing that contains a link, an automated second level triage engages our link analysis infrastructure expanding the signals analyzed. Darktrace Internal Research, 2024

4 Based on 252 reviews as of 19th December 2024

Continue reading
About the author
Carlos Gray
Product Manager

Blog

/

December 17, 2024

/

Inside the SOC

Cleo File Transfer Vulnerability: Patch Pitfalls and Darktrace’s Detection of Post-Exploitation Activities

Default blog imageDefault blog image

File transfer applications: A target for ransomware

File transfer applications have been a consistent target, particularly for ransomware groups, in recent years because they are key parts of business operations and have trusted access across different parts of an organization that include potentially confidential and personal information about an organization and its employees.

Recent targets of ransomware criminals includes applications like Acellion, Moveit, and GoAnywhere [1]. This seems to have been the case for Cleo’s managed file transfer (MFT) software solutions and the vulnerability CVE-2024-50623.

Threat overview: Understanding Cleo file transfer vulnerability

This vulnerability was believed to have been patched with the release of version 5.8.0.21 in late October 2024. However, open-source intelligence (OSINT) reported that the Clop ransomware group had managed to bypass the initial patch in late November, leading to the successful exploitation of the previously patched CVE.

In the last few days Cleo has published a new vulnerability, CVE-2024-55956, which is not a patch bypass of the CVE-2024-50623 but rather another vulnerability. This is also an unauthenticated file write vulnerability but while CVE-2024-50623 allows for both reading and writing arbitrary files, the CVE-2024-55956 only allows for writing arbitrary files and was addressed in version 5.8.0.24 [2].

Darktrace Threat Research analysts have already started investigating potential signs of devices running the Cleo software with network traffic supporting this initial hypothesis.

Comparison of CVE-2024-50623 and CVE-2024-55956

While CVE-2024-50623 was initially listed as a cross-site scripting issue, it was updated on December 10 to reflect unrestricted file upload and download. This vulnerability could lead to remote code execution (RCE) in versions of Cleo’s Harmony, VLTrader, and LexiCom products prior to 5.8.0.24. Attackers could leverage the fact that files are placed in the "autorun" sub-directory within the installation folder and are immediately read, interpreted, and evaluated by the susceptible software [3].

CVE-2024-55956, refers to an unauthenticated user who can import and execute arbitrary Bash or PowerShell commands on the host system by leveraging the default settings of the Autorun directory [4]. Both CVEs have occurred due to separate issues in the “/Synchronization” endpoint.

Investigating post exploitation patterns of activity on Cleo software

Proof of exploitation

Darktrace’s Threat Research analysts investigated multiple cases where devices identified as likely running Cleo software were detected engaging in unusual behavior. Analysts also attempted to identify any possible association between publicly available indicators of compromise (IoCs) and the exploitation of the vulnerability, using evidence of anomalous network traffic.

One case involved an Internet-facing device likely running Cleo VLTrader software (based on its hostname) reaching out to the 100% rare Lithuanian IP 181.214.147[.]164 · AS 15440 (UAB Baltnetos komunikacijos).

This activity occurred in the early hours of December 8 on the network of a customer in the energy sector. Darktrace detected a Cleo server transferring around over 500 MB of data over multiple SSL connections via port 443 to the Lithuanian IP. External research reported that this IP appears to be a callback IP observed in post-exploitation activity of vulnerable Cleo devices [3].

While this device was regularly observed sending data to external endpoints, this transfer represented a small increase in data sent to public IPs and coupled with the rarity of the destination, triggered a model alert as well as a Cyber AI Analyst Incident summarizing the transfer. Unfortunately, due to the encrypted connection no further analysis of the transmitted data was possible. However, due to the rarity of the activity, Darktrace’s Autonomous Response intervened and prevented any further connections to the IP.

 Model Alert Event Log show repeated connections to the rare IP, filtered with the rarity metric.
Figure 1: Model Alert Event Log show repeated connections to the rare IP, filtered with the rarity metric.
Shows connections to 181.214.147[.]164 and the amount of data transferred.
Figure 2: Shows connections to 181.214.147[.]164 and the amount of data transferred.

On the same day, external connections were observed to the external IP 45.182.189[.]225, along with inbound SSL connections from the same endpoint. OSINT has also linked this IP to the exploitation of Cleo software vulnerabilities [5].

Outgoing connections from a Cleo server to an anomalous endpoint.
Figure 3: Outgoing connections from a Cleo server to an anomalous endpoint.
 Incoming SSL connections from the external IP 45.182.189[.]225.
Figure 4: Incoming SSL connections from the external IP 45.182.189[.]225.

Hours after the last connection to 181.214.147[.]164, the integration detection tool from CrowdStrike, which the customer had integrated with Darktrace, issued an alert. This alert provided additional visibility into host-level processes and highlighted the following command executed on the Cleo server:

“D:\VLTrader\jre\bin\java.exe" -jar cleo.4889

Figure 5: The executed comand “D:\VLTrader\jre\bin\java.exe" -jar cleo.4889 and the Resource Location: \Device\HarddiskVolume3\VLTrader\jre\bin\java.exe.

Three days later, on December 11, another CrowdStrike integration alert was generated, this time following encoded PowerShell command activity on the server. This is consistent with post-exploitation activity where arbitrary PowerShell commands are executed on compromised systems leveraging the default settings of the Autorun directory, as highlighted by Cleo support [6]. According to external researchers , this process initiates connections to an external IP to retrieve JAR files with webshell-like functionality for continued post-exploitation [3]. The IP embedded in both commands observed by Darktrace was 38.180.242[.]122, hosted on ASN 58061(Scalaxy B.V.). There is no OSINT associating this IP with Cleo vulnerability exploitation at the time of writing.

Another device within the same customer network exhibited similar data transfer and command execution activity around the same time, suggesting it had also been compromised through this vulnerability. However, this second device contacted a different external IP, 5.45.74[.]137, hosted on AS 58061 (Scalaxy B.V.).

Like the first device, multiple connections to this IP were detected, with almost 600 MB of data transferred over the SSL protocol.

The Security Integration Detection Model that was triggered  and the PowerShell command observed
Figure 6: The Security Integration Detection Model that was triggered  and the PowerShell command observed
 Incoming connections from the external IP 38.180.242[.]122.
Figure 7: Incoming connections from the external IP 38.180.242[.]122.
Connections to the external IP 5.45.74[.]137.
Figure 8: Connections to the external IP 5.45.74[.]137.
Figure 9: Autonomous Response Actions triggered during the suspicious activities

While investigating potential Cleo servers involved in similar outgoing data activity, Darktrace’s Threat Research team identified two additional instances of likely Cleo vulnerability exploitation used to exfiltrate data outside the network. In those two instances, unusual outgoing data transfers were observed to the IP 176.123.4[.]22 (AS 200019, AlexHost SRL), with around 500 MB of data being exfiltrated over port 443 in one case (the exact volume could not be confirmed in the other instance). This IP was found embedded in encoded PowerShell commands examined by external researchers in the context of Cleo vulnerability exploitation investigations.

Conclusion

Overall, Cleo software represents a critical component of many business operations, being utilized by over 4,000 organizations worldwide. This renders the software an attractive target for threat actors who aim at exploiting internet-facing devices that could be used to compromise the software’s direct users but also other dependent industries resulting in supply chain attacks.

Darktrace / NETWORK was able to capture traffic linked to exploitation of CVE-2024-50623 within models that triggered such as Unusual Activity / Unusual External Data to New Endpoint while its Autonomous Response capability successfully blocked the anomalous connections and exfiltration attempts.

Information on new CVEs, how they're being exploited, and whether they've been patched can be fast-changing, sometimes limited and often confusing. Regardless, Darktrace is able to identify and alert to unusual behavior on these systems, indicating exploitation.

Credit to Maria Geronikolou, Alexandra Sentenac, Emma Fougler, Signe Zaharka and the Darktrace Threat Research team

Insights from Darktrace’s First 6: Half-year threat report for 2024

First 6: half year threat report darktrace screenshot

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

References

[1] https://blog.httpcs.com/en/file-sharing-and-transfer-software-the-new-target-of-hackers/

[2] https://attackerkb.com/topics/geR0H8dgrE/cve-2024-55956/rapid7-analysis

[3] https://www.huntress.com/blog/threat-advisory-oh-no-cleo-cleo-software-actively-being-exploited-in-the-wild

[4] https://nvd.nist.gov/vuln/detail/CVE-2024-55956

[5] https://arcticwolf.com/resources/blog/cleopatras-shadow-a-mass-exploitation-campaign/

[6] https://support.cleo.com/hc/en-us/articles/28408134019735-Cleo-Product-Security-Advisory-CVE-Pending

[7] https://support.cleo.com/hc/en-us/articles/360034260293-Local-HTTP-Users-Configuration

Darktrace Model Alerts

Anomalous Connection / Data Sent to Rare Domain

Unusual Activity / Unusual External Data to New Endpoint

Unusual Activity / Unusual External Data Transfer

Device / Internet Facing Device with High Priority Alert

Anomalous Server Activity / Rare External from Server

Anomalous Connection / New User Agent to IP Without Hostname

Security Integration / High Severity Integration Incident

Security Integration / Low Severity Integration Detection

Autonomous Response Model Detections

Antigena / Network / Insider Threat / Antigena Large Data Volume Outbound Block

Antigena / Network / Significant Anomaly / Antigena Significant Server Anomaly Block

Antigena / Network / Significant Anomaly / Antigena Controlled and Model Alert

Cyber AI Analyst Incidents

Unusual External Data Transfer

MITRE ATT&CK Mapping

Tactic – Technique

INITIAL ACCESS – Exploit Public-Facing Application

COMMAND AND CONTROL – Application Layer Protocol (Web Protocols)

COMMAND AND CONTROL – Encrypted Channel

PERSISTENCE – Web Shell

EXFILTRATION - Exfiltration Over C2 Channel

IoC List

IoC       Type    Description + Probability

181.214.147[.]164      IP Address       Likely C2 Infrastructure

176.123.4[.]22            IP Address       Likely C2 Infrastructure

5.45.74[.]137               IP Address           Possible C2 Infrastructure

38.180.242[.]122        IP Address       Possible C2 Infrastructure

Continue reading
About the author
Maria Geronikolou
Cyber Analyst
Your data. Our AI.
Elevate your network security with Darktrace AI