The Dangers of Double Extortion Ransomware Attacks
18
May 2021
Learn about the latest trend in ransomware attacks known as double extortion. Discover how Darktrace can help protect your organization from this threat.
A year and a half ago, ‘double extortion’ ransomware was being used by only one known threat actor. Now, over 16 ransomware groups actively utilize this tactic. So, what is it, and why has it become so popular?
What is double extortion ransomware?
The traditional story of ransomware was one of malicious code rapidly encrypting files with public-key RSA encryption, and then deleting those files if the victim did not pay the ransom.
However, after the infamous WannaCry and NotPetya ransomware campaigns over 2017, companies ramped up their cyber defense. More emphasis was placed on backups and restoration processes, so that even if files were destroyed, organizations had copies in place and could easily restore their data.
Yet in turn, cyber-criminals have also adapted their techniques. Now, rather than just encrypting files, double extortion ransomware exfiltrates the data first. This means that if the company refuses to pay up, information can be leaked online or sold to the highest bidder. Suddenly, all those backups and data recovery plans became worthless.
Maze ransomware and friends
In late 2019, Maze ransomware emerged as the first high-profile case of double extortion. Other strains soon followed, with the Sodinokibi attack — which crippled foreign exchange company Travelex — occurring on the final day of that year.
By mid-2020, hundreds of organizations were falling victim to double extortion attacks, various websites on the dark net were leaking company data, and the Ransomware-as-a-Service business was booming as developers sold and rented new types of malware.
Furthermore, cyber security regulations started being weaponized by cyber-criminals who could leverage the threat of having to pay a hefty compliance fine (CCPA, GDPR, NYSDFS regulations) to encourage their victims to keep quiet by offering them a ransom smaller than the penalty fee.
There were 1,200 double extortion ransomware incidents in 2020, across 63 countries, with over 60% of these aimed at the US and the UK.
Despite new legislation being written regularly to try and mitigate these attacks, they aren’t slowing down. According to a recent study by RUSI, there were 1,200 double extortion ransomware incidents in 2020 alone, across 63 different countries. 60% of these were aimed at organizations headquartered in the US, and the UK suffered the second highest number of breaches.
Last month, the cyber-criminal gang known as REvil released details about Apple’s new Macbook Pro on their site ‘Happy Blog’, threatening to release more blueprints and demanding a ransom of $50 million. And last week, Colonial Pipeline purportedly paid $5 million in bitcoin to recover from a devastating OT ransomware attack.
Anatomy of a double extortion ransomware attack
Darktrace has detected a huge upsurge in double extortion ransomware threats in the last year, most recently at an energy company based in Canada. The hackers had clearly done their homework, tailoring the attack to the company and moving quickly and stealthily once inside. Below is a timeline of this real-world incident, which was mostly carried out in the space of 24 hours.
Figure 1: A timeline of the attack
Darktrace detected every stage of the intrusion and notified the security team with high-priority alerts. If Darktrace Antigena had been active in the environment, the compromised server would have been isolated as soon as it began to behave anomalously, preventing the infection from spreading.
Encryption and exfiltration
The initial infection vector is not known, but the admin account was compromised most likely from a phishing link or a vulnerability exploit. This is indicative of a trend away from the widespread ‘spray and pray’ ransomware campaigns of the last decade, towards a more targeted approach.
Cyber AI identified an internal server engaging in unusual network scanning and attempted lateral movement using the Remote Desktop Protocol (RDP). Compromised admin credentials were used to spread rapidly from the server to another internal device, ‘serverps’.
The device ‘serverps’ initiated an outbound connection to TeamViewer, a legitimate file storage service, which was active for nearly 21 hours. This connection was used for remote control of the device and to facilitate the further stages of attack. Although TeamViewer was not in wide operation in the company’s digital environment, it was not blocked by any of the legacy defenses.
The device then connected to an internal file server and downloaded 1.95 TB of data, and uploaded the same volume of data to pcloud[.]com. This exfiltration took place during work hours to blend in with regular admin activity.
The device was also seen downloading Rclone software – an open source tool, which was likely applied to sync data automatically to the legitimate file storage service pCloud.
The compromised admin credential allowed the threat actor to move laterally during this time. Following the completion of the data exfiltration, the device ‘serverps’ finally began encrypting files on 12 devices with the extension *.06d79000.
As with the majority of ransomware incidents, the encryption happened outside of office hours – overnight in local time – to minimize the chance of the security team responding quickly.
AI-powered investigation
Cyber AI Analyst reported on four incidents related to the attack, highlighting the suspicious behavior to the security team and providing a report on the affected devices for immediate remediation. Such concise reporting allowed the security team to quickly identify the scope of the infection and respond accordingly.
Figure 2: Cyber AI Analyst incident tray for a week
Cyber AI Analyst investigates on demand
Following further analysis on March 13, the security team employed Cyber AI Analyst to conduct on-demand investigations into the compromised admin credential in Microsoft 365, as well as another device which was identified as a potential threat.
Cyber AI Analyst created an incident for this other device, which resulted in the identification of unusual port scanning during the time period of infection. The device was promptly removed from the network.
Figure 3: Cyber AI Analyst incident for a compromised device, detailing an unusual internal download
Double trouble
The use of legitimate tools and ‘Living off the Land’ techniques (using RDP and a compromised admin credential) allowed the threat actors to carry out the bulk of the attack in less than 24 hours. By exploiting TeamViewer as a legitimate file storage solution for the data exfiltration, as opposed to relying on a known ‘bad’ or recently registered domain, the hackers easily circumvented all the existing signature-based defenses.
If Darktrace had not detected this intrusion and immediately alerted the security team, the attack could have resulted not only in a ‘denial of business’ with employees locked out of their files, but also in sensitive data loss. The AI went a step further in saving the team vital time with automatic investigation and on-demand reporting.
There is so much more to lose from double extortion ransomware. Exfiltration provides another layer of risk, leading to compromised intellectual property, reputational damage, and compliance fines. Once a threat group has your data, they might easily ask for more payments down the line. It is important therefore to defend against these attacks before they happen, proactively implementing cyber security measures that can detect and autonomously respond to threats as soon as they emerge.
Anomalous Connection / Suspicious Activity On High Risk Device
Anomalous File / Internal::Additional Extension Appended to SMB File
Compromise / Ransomware::Suspicious SMB Activity
Anomalous Connection / Sustained MIME Type Conversion
Device / Anomalous RDP Followed By Multiple Model Breaches
Anomalous Connection / Suspicious Read Write Ratio
Device / Large Number of Model Breaches
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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
Brianna Leddy
Director of Analysis
Based in San Francisco, Brianna is Director of Analysis at Darktrace. She joined the analyst team in 2016 and has since advised a wide range of enterprise customers on advanced threat hunting and leveraging Self-Learning AI for detection and response. Brianna works closely with the Darktrace SOC team to proactively alert customers to emerging threats and investigate unusual behavior in enterprise environments. Brianna holds a Bachelor’s degree in Chemical Engineering from Carnegie Mellon University.
Darktrace’s view on Operation Lunar Peek: Exploitation of Palo Alto firewall devices (CVE 2024-2012 and 2024-9474)
Introduction: Spike in exploitation and post-exploitation activity affecting Palo Alto firewall devices
As the first line of defense for many organizations, perimeter devices such as firewalls are frequently targeted by threat actors. If compromised, these devices can serve as the initial point of entry to the network, providing access to vulnerable internal resources. This pattern of malicious behavior has become readily apparent within the Darktrace customer base. In 2024, Darktrace Threat Research analysts identified and investigated at least two major campaigns targeting internet-exposed perimeter devices. These included the exploitation of PAN-OS firewall exploitation via CVE 2024-3400 and FortiManager appliances via CVE 2024-47575.
More recently, at the end of November, Darktrace analysts observed a spike in exploitation and post-exploitation activity affecting, once again, Palo Alto firewall devices in the days following the disclosure of the CVE 2024-0012 and CVE-2024-9474 vulnerabilities.
Threat Research analysts had already been investigating potential exploitation of the firewalls’ management interface after Palo Alto published a security advisory (PAN-SA-2024-0015) on November 8. Subsequent analysis of data from Darktrace’s Security Operations Center (SOC) and external research uncovered multiple cases of Palo Alto firewalls being targeted via the likely exploitation of these vulnerabilities since November 13, through the end of the month. Although this spike in anomalous behavior may not be attributable to a single malicious actor, Darktrace Threat Research identified a clear increase in PAN-OS exploitation across the customer base by threat actors likely utilizing the recently disclosed vulnerabilities, resulting in broad patterns of post-exploitation activity.
How did exploitation occur?
CVE 2024-0012 is an authentication bypass vulnerability affecting unpatched versions of Palo Alto Networks Next-Generation Firewalls. The vulnerability resides in the management interface application on the firewalls specifically, which is written in PHP. When attempting to access highly privileged scripts, users are typically redirected to a login page. However, this can be bypassed by supplying an HTTP request where a Palo Alto related authentication header can be set to “off”. Users can supply this header value to the Nginx reverse proxy server fronting the application which will then send it without any prior processing [1].
CVE-2024-9474 is a privilege escalation vulnerability that allows a PAN-OS administrator with access to the management web interface to execute root-level commands, granting full control over the affected device [2]. When combined, these vulnerabilities enable unauthenticated adversaries to execute arbitrary commands on the firewall with root privileges.
Post-Exploitation Patterns of Activity
Darktrace Threat Research analysts examined potential indicators of PAN-OS software exploitation via CVE 2024-0012 and CVE-2024-9474 during November 2024. The investigation identified three main groupings of post-exploitation activity:
Exploit validation and initial payload retrieval
Command and control (C2) connectivity, potentially featuring further binary downloads
Potential reconnaissance and cryptomining activity
Exploit Validation
Across multiple investigated customers, Darktrace analysts identified likely vulnerable PAN-OS devices conducting external network connectivity to bin services. Specifically, several hosts performed DNS queries for, and HTTP requests to Out-of-Band Application Security Testing (OAST) domains, such as csv2im6eq58ujueonqs0iyq7dqpak311i.oast[.]pro. These endpoints are commonly used by network administrators to harden defenses, but they are increasingly used by threat actors to verify successful exploitation of targeted devices and assess their potential for further compromise. Although connectivity involving OAST domains were prevalent across investigated incidents, this activity was not necessarily the first indicator observed. In some cases, device behavior involving OAST domains also occurred shortly after an initial payload was downloaded.
Figure 1: Darktrace model alert logs detailing the HTTP request to an OAST domain immediately following PAN-OS device compromise.
Initial Payload Retrieval
Following successful exploitation, affected devices commonly performed behaviors indicative of initial payload download, likely in response to incoming remote command execution. Typically, the affected PAN-OS host would utilize the command line utilities curl and Wget, seen via use of user agents curl/7.61.1 and Wget/1.19.5 (linux-gnu), respectively.
In some cases, the use of these command line utilities by the infected devices was considered new behavior. Given the nature of the user agents, interaction with the host shell suggests remote command execution to achieve the outgoing payload requests.
While additional binaries and scripts were retrieved in later stages of the post-exploitation activity in some cases, this set of behaviors and payloads likely represent initial persistence and execution mechanisms that will enable additional functionality later in the kill chain. During the investigation, Darktrace analysts noted the prevalence of shell script payload requests. Devices analyzed would frequently make HTTP requests over the usual destination port 80 using the command line URL utility (curl), as seen in the user-agent field.
The observed URIs often featured requests for text files, such as “1.txt”, or shell scripts such as “y.sh”. Although packet capture (PCAP) samples were unavailable for review, external researchers have noted that the IP address hosting such “1.txt” files (46.8.226[.]75) serves malicious PHP payloads. When examining the contents of the “y.sh” shell script, Darktrace analysts noticed the execution of bash commands to upload a PHP-written web shell on the affected server.
Figure 2: PCAP showing the client request and server response associated with the download of the y.sh script from 45.76.141[.]166. The body content of the HTTP response highlights a shebang command to run subsequent code as bash script. The content is base64 encoded and details PHP script for what appears to be a webshell that will likely be written to the firewall device.
While not all investigated cases saw initial shell script retrieval, affected systems would commonly make an external HTTP connection, almost always via Wget, for the Executable and Linkable Format (ELF) file “/palofd” from the rare external IP 38.180.147[.]18.
Such requests were frequently made without prior hostname lookups, suggesting that the process or script initiating the requests already contained the external IP address. Analysts noticed a consistent SHA1 hash present for all identified instances of “/palofd” downloads (90f6890fa94b25fbf4d5c49f1ea354a023e06510). Multiple open-source intelligence (OSINT) vendors have associated this hash sample with Spectre RAT, a remote access trojan with capabilities including remote command execution, payload delivery, process manipulation, file transfers, and data theft [3][4].
Figure 3: Advanced Search log metrics highlighting details of the “/palofd” file download over HTTP.
Several targeted customer devices were observed initiating TLS/SSL connections to rare external IPs with self-signed TLS certificates following exploitation. Model data from across the Darktrace fleet indicated some overlap in JA3 fingerprints utilized by affected PAN-OS devices engaging in the suspicious TLS activity. Although JA3 hashes alone cannot be used for process attribution, this evidence suggests some correlation of source process across instances of PAN-OS exploitation.
These TLS/SSL sessions were typically established without the specification of a Server Name Indication (SNI) within the TLS extensions. The SNI extension prevents servers from supplying an incorrect certificate to the requesting client when multiple sites are hosted on the same IP. SSL connectivity without SNI specification suggests a potentially malicious running process as most software establishing TLS sessions typically supply this information during the handshake. Although the encrypted nature of the connection prevented further analysis of the payload packets, external sources note that JavaScript content is transmitted during these sessions, serving as initial payloads for the Sliver C2 platform using Wget [5].
C2 Communication and Additional Payloads
Following validation and preliminary post-compromise actions, examined hosts would commonly initiate varying forms of C2 connectivity. During this time, devices were frequently detected making further payload downloads, likely in response to directives set within C2 communications.
Palo Alto firewalls likely exploited via the newly disclosed CVEs would commonly utilize the Sliver C2 platform for external communication. Sliver’s functionality allows for different styles and formatting for communication. An open-source alternative to Cobalt Strike, this framework has been increasingly popular among threat actors, enabling the generation of dynamic payloads (“slivers”) for multiple platforms, including Windows, MacOS, Linux.
These payloads allow operators to establish persistence, spawn new shells, and exfiltrate data. URI patterns and PCAPs analysis yielded evidence of both English word type encoding within Sliverand Gzip formatting.
For example, multiple devices contacted the Sliver-linked IP address 77.221.158[.]154 using HTTP to retrieve Gzip files. The URIs present for these requests follow known Sliver Gzip formatted communication patterns [6]. Investigations yielded evidence of both English word encoding within Sliver, identified through PCAP analysis, and Gzip formatting.
Figure 4: Sample of URIs observed in Advanced Searchhighlighting HTTP requests to 77.221.158[.]154 for Gzip content suggest of Sliver communication.
Figure 5: PCAP showing English word encoding for Sliver communication observed during post-exploitation C2 activity.
External connectivity during this phase also featured TCP connection attempts over uncommon ports for common application protocols. For both Sliver and non-Sliver related IP addresses, devices utilized destination ports such as 8089, 3939, 8880, 8084, and 9999 for the HTTP protocol. The use of uncommon destination ports may represent attempts to avoid detection of connectivity to rare external endpoints. Moreover, some external beaconing within included URIs referencing the likely IP of the affected device. Such behavior can suggest the registration of compromised devices with command servers.
Targeted devices also proceeded to download additional payloads from rare external endpoints as beaconing/C2 activity was ongoing. For example, the newly registered domain repositorylinux[.]org (IP: 103.217.145[.]112) received numerous HTTP GET requests from investigated devices throughout the investigation period for script files including “linux.sh” and “cron.sh”. Young domains, especially those that present as similar to known code repositories, tend to host harmful content. Packet captures of the cron.sh file reveal commands within the HTTP body content involving crontab operations, likely to schedule future downloads. Some hosts that engaged in connectivity to the fake repository domain were later seen conducting crypto-mining connections, potentially highlighting the download of miner applications from the domain.
Additional payloads observed during this time largely featured variations of shell scripts, PHP content, and/or executables. Typically, shell scripts direct the device to retrieve additional content from external servers or repositories or contain potential configuration details for subsequent binaries to run on the device. For example, the “service.sh” retrieves a tar-compressed archive, a configuration JSON file as well as a file with the name “solr” from GitHub, potentially associated with the Apache Solr tool used for enterprise search. These could be used for further enumeration of the host and/or the network environment. PHP scripts observed may involve similar web shell functionality and were retrieved from both rare external IPs identified as well by external researchers [7]. Darktrace also detected the download of octet-stream data occurring mid-compromise from an Amazon Web Services (AWS) S3 bucket. Although no outside research confirmed the functionality, additional executable downloads for files such as “/initd”(IP: 178.215.224[.]246) and “/x6” (IP: 223.165.4[.]175) may relate to tool ingress, further Trojan/backdoor functionality, or cryptocurrency mining.
Figure 7: PCAP specifying the HTTP response headers and body content for the service.sh file request. The body content shown includes variable declarations for URLs that will eventually be called by the device shell via bash command.
Reconnaissance and Cryptomining
Darktrace analysts also noticed additional elements of kill chain operations from affected devices after periods of initial exploit activity. Several devices initiated TCP connections to endpoints affiliated with cryptomining pools such as us[.]zephyr[.]herominers[.]com and xmrig[.]com. Connectivity to these domains indicates likely successful installation of mining software during earlier stages of post-compromise activity. In a small number of instances, Darktrace observed reconnaissance and lateral movement within the time range of PAN-OS exploitation. Firewalls conducted large numbers of internal connectivity attempts across several critical ports related to privileged protocols, including SMB and SSH. Darktrace detected anonymous NTLM login attempts and new usage of potential PAN-related credentials. These behaviors likely constitute attempts at lateral movement to adjacent devices to further extend network compromise impact.
Figure 8: Model alert connection logs detailing the uncommon failed NTLM logins using an anonymous user account following PAN-OS exploitation.
Conclusion
Darktrace Threat Research and SOC analysts increasingly detect spikes in malicious activity on internet-facing devices in the days following the publication of new vulnerabilities. The latest iteration of this trend highlighted how threat actors quickly exploited Palo Alto firewall using authentication bypass and remote command execution vulnerabilities to enable device compromise. A review of the post-exploitation activity during these events reveals consistent patterns of perimeter device exploitation, but also some distinct variations.
Prior campaigns targeting perimeter devices featured activity largely confined to the exfiltration of configuration data and some initial payload retrieval. Within the current campaign, analysts identified a broader scope post-compromise activity consisting not only of payloads downloads but also extensive C2 activity, reconnaissance, and coin mining operations. While the use of command line tools like curl featured prominently in prior investigations, devices were seen retrieving a generally wider array of payloads during the latest round of activity. The use of the Sliver C2 platform further differentiates the latest round of PAN-OS compromises, with evidence of Sliver activity in about half of the investigated cases.
Several of the endpoints contacted by the infected firewall devices did not have any OSINT associated with them at the time of the attack. However, these indicators were noted as unusual for the devices according to Darktrace based on normal network traffic patterns. This reality further highlights the need for anomaly-based detection that does not rely necessarily on known indicators of compromise (IoCs) associated with CVE exploitation for detection. Darktrace’s experience in 2024 of multiple rounds of perimeter device exploitation may foreshadow future increases in these types of comprise operations.
Credit to Adam Potter (Senior Cyber Analyst), Alexandra Sentenac (Senior Cyber Analyst), Emma Foulger (Principal Cyber Analyst) and the Darktrace Threat Research team.
Cloud Security: Addressing Common CISO Challenges with Advanced Solutions
Cloud adoption is a cornerstone of modern business with its unmatched potential for scalability, cost efficiency, flexibility, and net-zero targets around sustainability. However, as organizations migrate more workloads, applications, and sensitive data to the cloud it introduces more complex challenges for CISO’s. Let’s dive into the most pressing issues keeping them up at night—and how Darktrace / CLOUD provides a solution for each.
1. Misconfigurations: The Silent Saboteur
Misconfigurations remain the leading cause of cloud-based data breaches. In 2023 alone over 80% of data breaches involved data stored in the cloud.1 Think open storage buckets or overly permissive permissions; seemingly minor errors that are easily missed and can snowball into major disasters. The fallout of breaches can be costly—both financially and reputationally.
How Darktrace / CLOUD Helps:
Darktrace / CLOUD continuously monitors your cloud asset configurations, learning your environment and using these insights to flag potential misconfigurations. New scans are triggered when changes take place, then grouped and prioritised intelligently, giving you an evolving and prioritised view of vulnerabilities, best practice and mitigation strategies.
2. Hybrid Environments: The Migration Maze
Many organizations are migrating to the cloud, but hybrid setups (where workloads span both on-premises and cloud environments) create unique challenges and visibility gaps which significantly increase complexity. More traditional and most cloud native security tooling struggles to provide adequate monitoring for these setups.
How Darktrace / CLOUD Helps:
Provides the ability to monitor runtime activity for both on-premises and cloud workloads within the same user interface. By leveraging the right AI solution across this diverse data set, we understand the behaviour of your on-premises workloads and how they interact with cloud systems, spotting unusual connectivity or data flow activity during and after the migration process.
This unified visibility enables proactive detection of anomalies, ensures seamless monitoring across hybrid environments, and provides actionable insights to mitigate risks during and after the migration process.
3. Securing Productivity Suites: The Last Mile
Cloud productivity suites like Microsoft 365 (M365) are essential for modern businesses and are often the first step for an organization on a journey to Infrastructure as a Service (IaaS) or Platform as a Service (PaaS) use cases. They also represent a prime target for attackers. Consider a scenario where an attacker gains access to an M365 account, and proceeds to; access sensitive emails, downloading files from SharePoint, and impersonating the user to send phishing emails to internal employees and external partners. Without a system to detect these behaviours, the attack may go unnoticed until significant damage is done.
How Darktrace helps:
Darktrace’s Active AI platform integrates with M365 and establishes an understanding of normal business activity, enabling the detection of abnormalities across its suite including Email, SharePoint and Teams. By identifying subtle deviations in behaviour, such as:
• Unusual file accesses
• Anomalous login attempts from unexpected locations or devices.
• Suspicious email forwarding rules created by compromised accounts.
Darktrace’s Autonomous Response can act precisely to block malicious actions, by disabling compromised accounts and containing threats before they escalate. Precise actions also ensure that critical business operations are maintained even when a response is triggered.
4. Agent Fatigue: The Visibility Struggle
To secure cloud environments, visibility is critical. If you don’t know what’s there, how can you secure it? Many solutions require agents to be deployed on every server, workload, and endpoint. But managing and deploying agents across sprawling hybrid environments can be both complex and time-consuming when following change controls, and especially as cloud resources scale dynamically.
How Darktrace / CLOUD Helps:
Darktrace reduces or eliminates the need for widespread agent deployment. Its agentless by default, integrating directly with cloud environments and providing instant visibility without the operational headache. Darktrace ensures coverage with minimal friction. By intelligently graphing the relationships between assets and logically grouping your deployed Cloud resources, you are equipped with real-time visibility to quickly understand and protect your environment.
So why Darktrace / CLOUD?
Darktrace’s Self-Learning AI redefines cloud security by adapting to your unique environment, detecting threats as they emerge, and responding in real-time. From spotting misconfigurations to protecting productivity suites and securing hybrid environments. Darktrace / CLOUD simplifies cloud security challenges without adding operational burdens.
From Chaos to Clarity
Cloud security doesn’t have to be a game of endless whack-a-mole. With Darktrace / CLOUD, CISOs can achieve the visibility, control, and proactive protection they need to navigate today’s complex cloud ecosystems confidently.
![PCAP showing the client request and server response associated with the download of the y.sh script from 45.76.141[.]166. The body content of the HTTP response highlights a shebang command to run subsequent code as bash script. The content is base64 encoded and details PHP script for what appears to be a webshell that will likely be written to the firewall device.](https://cdn.prod.website-files.com/626ff4d25aca2edf4325ff97/675700c4a98f6ccec0f1a975_6756f988e443cb72200722b4_Screenshot%25202024-12-09%2520at%252014.06.53.png)
![Sample of URIs observed in Advanced Searchhighlighting HTTP requests to 77.221.158[.]154 for Gzip content suggest of Sliver communication.](https://cdn.prod.website-files.com/626ff4d25aca2edf4325ff97/6757623084734b0dbf6418e4_675761ed5dcf48e9b0b0befb_Screenshot%25202024-12-09%2520at%25201.31.31%25E2%2580%25AFPM.png)
