Ransomware


6
Jan 20

The Hidden Cost of Ransomware: Wholesale Password Theft

Organizations in the throes of cleaning up after a ransomware outbreak typically will change passwords for all user accounts that have access to any email systems, servers and desktop workstations within their network. But all too often, ransomware victims fail to grasp that the crooks behind these attacks can and frequently do siphon every single password stored on each infected endpoint. The result of this oversight may offer attackers a way back into the affected organization, access to financial and healthcare accounts, or — worse yet — key tools for attacking the victim’s various business partners and clients.

In mid-November 2019, Wisconsin-based Virtual Care Provider Inc. (VCPI) was hit by the Ryuk ransomware strain. VCPI manages the IT systems for some 110 clients that serve approximately 2,400 nursing homes in 45 U.S. states. VCPI declined to pay the multi-million dollar ransom demanded by their extortionists, and the attack cut off many of those elder care facilities from their patient records, email and telephone service for days or weeks while VCPI rebuilt its network.

Just hours after that story was published, VCPI chief executive and owner Karen Christianson reached out to say she hoped I would write a follow-up piece about how they recovered from the incident. My reply was that I’d consider doing so if there was something in their experience that I thought others could learn from their handling of the incident.

I had no inkling at the time of how much I would learn in the days ahead.

EERIE EMAILS

On December 3, I contacted Christianson to schedule a follow-up interview for the next day. On the morning of Dec. 4 (less than two hours before my scheduled call with VCPI and more than two weeks after the start of their ransomware attack) I heard via email from someone claiming to be part of the criminal group that launched the Ryuk ransomware inside VCPI.

That email was unsettling because its timing suggested that whoever sent it somehow knew I was going to speak with VCPI later that day. This person said they wanted me to reiterate a message they’d just sent to the owner of VCPI stating that their offer of a greatly reduced price for a digital key needed to unlock servers and workstations seized by the malware would expire soon if the company continued to ignore them.

“Maybe you chat to them lets see if that works,” the email suggested.

The anonymous individual behind that communication declined to provide proof that they were part of the group that held VPCI’s network for ransom, and after an increasingly combative and personally threatening exchange of messages soon stopped responding to requests for more information.

“We were bitten with releasing evidence before hence we have stopped this even in our ransoms,” the anonymous person wrote. “If you want proof we have hacked T-Systems as well. You may confirm this with them. We havent [sic] seen any Media articles on this and as such you should be the first to report it, we are sure they are just keeping it under wraps.” Security news site Bleeping Computer reported on the T-Systems Ryuk ransomware attack on Dec. 3.

In our Dec. 4 interview, VCPI’s acting chief information security officer — Mark Schafer, CISO at Wisconsin-based SVA Consulting — confirmed that the company received a nearly identical message that same morning, and that the wording seemed “very similar” to the original extortion demand the company received.

However, Schafer assured me that VCPI had indeed rebuilt its email network following the intrusion and strictly used a third-party service to discuss remediation efforts and other sensitive topics. Continue reading →


27
Dec 19

Ransomware at IT Services Provider Synoptek

Synoptek, a California business that provides cloud hosting and IT management services to more than a thousand customers nationwide, suffered a ransomware attack this week that has disrupted operations for many of its clients, according to sources. The company has reportedly paid a ransom demand in a bid to restore operations as quickly as possible.

Irvine, Calif.-based Synoptek is a managed service provider that maintains a variety of cloud-based services for more than 1,100 customers across a broad spectrum of industries, including state and local governments, financial services, healthcare, manufacturing, media, retail and software. The company has nearly a thousand employees and brought in more than $100 million in revenue in the past year, according to their Web site.

A now-deleted Tweet from Synoptek on Dec. 20 warned against the dangers of phishing-based cyberattacks, less than three days prior to their (apparently phishing-based) Sodinokibi ransomware infestation.

News of the incident first surfaced on Reddit, which lit up on Christmas Eve with posts from people working at companies affected by the outage. The only official statement about any kind of incident came late Friday evening from the company’s Twitter page, which said that on Dec. 23 it experienced a “credential compromise which has been contained,” and that Synoptek “took immediate action and have been working diligently with customers to remediate the situation.”

Synoptek has not yet responded to multiple requests for comment. But two sources who work at the company have now confirmed their employer was hit by Sodinokibi, a potent ransomware strain also known as “rEvil” that encrypts data and demands a cryptocurrency payment in return for a digital key that unlocks access to infected systems. Those sources also say the company paid their extortionists an unverified sum in exchange for decryption keys.

Sources also confirm that both the State of California and the U.S. Department of Homeland Security have been reaching out to state and local entities potentially affected by the attack. One Synoptek customer briefed on the attack who asked to remain anonymous said that once inside Synoptek’s systems, the intruders used a remote management tool to install the ransomware on client systems. Continue reading →


16
Dec 19

Ransomware Gangs Now Outing Victim Businesses That Don’t Pay Up

As if the scourge of ransomware wasn’t bad enough already: Several prominent purveyors of ransomware have signaled they plan to start publishing data stolen from victims who refuse to pay up. To make matters worse, one ransomware gang has now created a public Web site identifying recent victim companies that have chosen to rebuild their operations instead of quietly acquiescing to their tormentors.

The message displayed at the top of the Maze Ransomware public shaming site.

Less than 48 hours ago, the cybercriminals behind the Maze Ransomware strain erected a Web site on the public Internet, and it currently lists the company names and corresponding Web sites for eight victims of their malware that have declined to pay a ransom demand.

“Represented here companies dont wish to cooperate with us, and trying to hide our successful attack on their resources,” the site explains in broken English. “Wait for their databases and private papers here. Follow the news!”

KrebsOnSecurity was able to verify that at least one of the companies listed on the site indeed recently suffered from a Maze ransomware infestation that has not yet been reported in the news media.

The information disclosed for each Maze victim includes the initial date of infection, several stolen Microsoft Office, text and PDF files, the total volume of files allegedly exfiltrated from victims (measured in Gigabytes), as well as the IP addresses and machine names of the servers infected by Maze. Continue reading →


7
Dec 19

Ransomware at Colorado IT Provider Affects 100+ Dental Offices

A Colorado company that specializes in providing IT services to dental offices suffered a ransomware attack that is disrupting operations for more than 100 dentistry practices, KrebsOnSecurity has learned.

Multiple sources affected say their IT provider, Englewood, Colo. based Complete Technology Solutions (CTS), was hacked, allowing a potent strain of ransomware known as “Sodinokibi” or “rEvil” to be installed on computers at more than 100 dentistry businesses that rely on the company for a range of services — including network security, data backup and voice-over-IP phone service.

Reached via phone Friday evening, CTS President Herb Miner declined to answer questions about the incident. When asked about reports of a ransomware attack on his company, Miner simply said it was not a good time and hung up.

The attack on CTS, which apparently began on Nov. 25 and is still affecting many of its clients, comes little more than two months after Sodinokibi hit Wisconsin-based dental IT provider PerCSoft, an intrusion that encrypted files for approximately 400 dental practices.

From talking to several companies hit and with third-party security firms called in to help restore systems, it seems that CTS declined to pay an initial $700,000 ransom demand for a key to unlock infected systems at all customer locations.

Thomas Terronez, CEO of Iowa-based Medix Dental, said he’s spoken with multiple practices that have been sidelined by the ransomware attack, and that some CTS clients had usable backups of their data available off-site, while others have been working with outside experts to independently negotiate and pay the ransom for their practice only.

Continue reading →


23
Nov 19

110 Nursing Homes Cut Off from Health Records in Ransomware Attack

A ransomware outbreak has besieged a Wisconsin based IT company that provides cloud data hosting, security and access management to more than 100 nursing homes across the United States. The ongoing attack is preventing these care centers from accessing crucial patient medical records, and the IT company’s owner says she fears this incident could soon lead not only to the closure of her business, but also to the untimely demise of some patients.

Milwaukee, Wisc. based Virtual Care Provider Inc. (VCPI) provides IT consulting, Internet access, data storage and security services to some 110 nursing homes and acute-care facilities in 45 states. All told, VCPI is responsible for maintaining approximately 80,000 computers and servers that assist those facilities.

At around 1:30 a.m. CT on Nov. 17, unknown attackers launched a ransomware strain known as Ryuk inside VCPI’s networks, encrypting all data the company hosts for its clients and demanding a whopping $14 million ransom in exchange for a digital key needed to unlock access to the files. Ryuk has made a name for itself targeting businesses that supply services to other companies — particularly cloud-data firms — with the ransom demands set according to the victim’s perceived ability to pay.

In an interview with KrebsOnSecurity today, VCPI chief executive and owner Karen Christianson said the attack had affected virtually all of their core offerings, including Internet service and email, access to patient records, client billing and phone systems, and even VCPI’s own payroll operations that serve nearly 150 company employees.

The care facilities that VCPI serves access their records and other systems outsourced to VCPI by using a Citrix-based virtual private networking (VPN) platform, and Christianson said restoring customer access to this functionality is the company’s top priority right now.

“We have employees asking when we’re going to make payroll,” Christianson said. “But right now all we’re dealing with is getting electronic medical records back up and life-threatening situations handled first.”

Christianson said her firm cannot afford to pay the ransom amount being demanded — roughly $14 million worth of Bitcoin — and said some clients will soon be in danger of having to shut their doors if VCPI can’t recover from the attack.

“We’ve got some facilities where the nurses can’t get the drugs updated and the order put in so the drugs can arrive on time,” she said. “In another case, we have this one small assisted living place that is just a single unit that connects to billing. And if they don’t get their billing into Medicaid by December 5, they close their doors. Seniors that don’t have family to go to are then done. We have a lot of [clients] right now who are like, ‘Just give me my data,’ but we can’t.” Continue reading →


19
Nov 19

Ransomware Bites 400 Veterinary Hospitals

National Veterinary Associates (NVA), a California company that owns more than 700 animal care facilities around the globe, is still working to recover from a ransomware attack late last month that affected more than half of those properties, separating many veterinary practices from their patient records, payment systems and practice management software. NVA says it expects to have all facilities fully back up and running normally within the next week.

Agoura Hills, Calif.-based NVA bills itself as is the largest private owner of freestanding veterinary hospitals in the United States. The company’s Web site says it currently owns roughly 700 veterinary hospitals and animal boarding facilities in the United States, Canada, Australia and New Zealand.

NVA said it discovered the ransomware outbreak on the morning of Sunday, Oct. 27, and soon after hired two outside security firms to investigate and remediate the attack. A source close to the investigation told KrebsOnSecurity that NVA was hit with Ryuk, a ransomware strain first spotted in August 2018 that targets mostly large organizations for a high-ransom return.

NVA declined to answer questions about the malware, or whether the NVA paid the ransom demand.

“It was ransomware, but we’ve been referring to it as a malware incident,” said Laura Koester, NVA’s chief marketing officer.

Koester said because every NVA hospital runs their IT operations as they see fit, not all were affected. More importantly, she said, all of the NVA’s hospitals have remained open and able to see clients (animals in need of care), and access to patient records has been fully restored to all affected hospitals.

“For a few days, some [pet owners] couldn’t do online bookings, and some hospitals had to look at different records for their patients,” Koester said. “But throughout this whole thing, if there was a sick animal, we saw them. No one closed their doors.”

The source close to the investigation painted a slight less rosy picture of the situation at NVA, and said the company’s response has been complicated by the effects of wildfires surrounding its headquarters in Los Angeles County: A year ago, a destructive wildfire in Los Angeles and Ventura Counties burned almost 100,00 acres, destroyed more than 1,600 structures, killed three people and prompted the evacuation of nearly 300,000 people — including all residents of Agoura Hills.

“The support center was scheduled to be closed on Friday Oct 25, 2019 due to poor air quality caused by wildfires to the north,” said the source, who asked to remain anonymous. “Around 2 am PT [Oct. 27], the Ryuk virus was unleashed at NVA. Approximately 400 locations were infected. [Microsoft] Active Directory and Exchange servers were infected. Many of the infected locations immediately lost access to their Patient Information Management systems (PIMs). These locations were immediately unable to provide care.”

The source shared internal communications from different NVA executives to their hospitals about the extent of the remediation efforts and possible source of the compromise, which seemed to suggest that at least some NVA properties have been struggling to accommodate patients. Continue reading →


22
Oct 19

Ransomware Hits B2B Payments Firm Billtrust

Business-to-business payments provider Billtrust is still recovering from a ransomware attack that began last week.  The company said it is in the final stages of bringing all of its systems back online from backups.

With more than 550 employees, Lawrence Township, N.J.-based Billtrust is a cloud-based service that lets customers view invoices, pay, or request bills via email or fax. In an email sent to customers today, Billtrust said it was consulting with law enforcement officials and with an outside security firm to determine the extent of the breach.

“Our standard security and back-up procedures have been and remain instrumental in our ability to execute the ongoing restoration of services,” the email reads. “Out of an abundance of caution, we cannot disclose the precise ransomware strains but will do so as soon as prudently possible.

In an interview with KrebsOnSecurity on Monday evening, Billtrust CEO Steven Pinado said the company became aware of a malware intrusion on Thursday, Oct. 17.

“We’re aware of the malware and have been able to stop the activity within our systems,” Pinado said. “We immediately started focusing on control, remediation and protection. The impact of that was several systems were no longer available to our customers. We’ve been fighting the fight, working on restoring services and also digging into the root cause.”

A report from BleepingComputer cites an unnamed source saying the ransomware strain that hit Billtrust was the BitPaymer ransomware, but that information could not be confirmed.

One of Billtrust’s customers has published a day-by-day chronology of the attack and communications from the company here (h/t @gossithedog). Continue reading →


29
Aug 19

Ransomware Bites Dental Data Backup Firm

PerCSoft, a Wisconsin-based company that manages a remote data backup service relied upon by hundreds of dental offices across the country, is struggling to restore access to client systems after falling victim to a ransomware attack.

West Allis, Wis.-based PerCSoft is a cloud management provider for Digital Dental Record (DDR), which operates an online data backup service called DDS Safe that archives medical records, charts, insurance documents and other personal information for various dental offices across the United States.

The ransomware attack hit PerCSoft on the morning of Monday, Aug. 26, and encrypted dental records for some — but not all — of the practices that rely on DDS Safe.

PercSoft did not respond to requests for comment. But Brenna Sadler, director of  communications for the Wisconsin Dental Association, said the ransomware encrypted files for approximate 400 dental practices, and that somewhere between 80-100 of those clients have now had their files restored.

Sadler said she did not know whether PerCSoft and/or DDR had paid the ransom demand, what ransomware strain was involved, or how much the attackers had demanded.

But updates to PerCSoft’s Facebook page and statements published by both PerCSoft and DDR suggest someone may have paid up: The statements note that both companies worked with a third party software company and were able to obtain a decryptor to help clients regain access to files that were locked by the ransomware.

Update: Several sources are now reporting that PerCSoft did pay the ransom, although it is not clear how much was paid. One member of a private Facebook group dedicated to IT professionals serving the dental industry shared the following screenshot, which is purportedly from a conversation between PerCSoft and an affected dental office, indicating the cloud provider was planning to pay the ransom:

Another image shared by members of that Facebook group indicates the ransomware that attacked PerCSoft is an extremely advanced and fairly recent strain known variously as REvil and Sodinokibi.

Original story:

However, some affected dental offices have reported that the decryptor did not work to unlock at least some of the files encrypted by the ransomware. Meanwhile, several affected dentistry practices said they feared they might be unable to process payroll payments this week as a result of the attack. Continue reading →


19
Jul 19

QuickBooks Cloud Hosting Firm iNSYNQ Hit in Ransomware Attack

Cloud hosting provider iNSYNQ says it is trying to recover from a ransomware attack that shut down its network and has left customers unable to access their accounting data for the past three days. Unfortunately for iNSYNQ, the company appears to be turning a deaf ear to the increasingly anxious cries from its users for more information about the incident.

A message from iNSYNQ to customers.

Gig Harbor, Wash.-based iNSYNQ specializes in providing cloud-based QuickBooks accounting software and services. In a statement posted to its status page, iNSYNQ said it experienced a ransomware attack on July 16, and took its network offline in a bid to contain the spread of the malware.

“The attack impacted data belonging to certain iNSYNQ clients, rendering such data inaccessible,” the company said. “As soon as iNSYNQ discovered the attack, iNSYNQ took steps to contain it. This included turning off some servers in the iNSYNQ environment.”

iNSYNQ said it has engaged outside cybersecurity assistance and to determine whether any customer data was accessed without authorization, but that so far it has no estimate for when those files might be available again to customers.

Meanwhile, iNSYNQ’s customers — many of them accountants who manage financial data for a number of their own clients — have taken to Twitter to vent their frustration over a lack of updates since that initial message to users.

In response, the company appears to have simply deleted or deactivated its Twitter account (a cached copy from June 2019 is available here). Several customers venting about the outage on Twitter also accused the company of unpublishing negative comments about the incident from its Facebook page.

Some of those customers also said iNSYNQ initially blamed the outage on an alleged problem with U.S.-based nationwide cable ISP giant Comcast. Meanwhile, competing cloud hosting providers have been piling on to the tweetstorms about the iNSYNQ outage by marketing their own services, claiming they would never subject their customers to a three-day outage.

iNSYNQ has not yet responded to requests for comment.

Update, 4:35 p.m. ET: I just heard from iNSYNQ’s CEO Elliot Luchansky, who shared the following:

While we have continually updated our website and have emailed customers once if not twice daily during this malware attack, I acknowledge we’ve had to keep the detail fairly minimal.

Unfortunately, and as I’m sure you’re familiar with, the lack of detailed information we’ve shared has been purposeful and in an effort to protect our customers and their data- we’re in a behind the scenes trench warfare doing everything we possibly can to secure and restore our system and customer data and backups. I understand why our customers are frustrated, and we want more than anything to share every piece of information that we have.

Our customers and their businesses are our number one priority right now. Our team is working around the clock to secure and restore access to all impacted data, and we believe we have an end in sight in the near future.

You know as well as we that no one is 100% impervious to this – businesses large and small, governments and individuals are susceptible. iNSYNQ and our customers were the victims of a malware attack that’s a totally new variant that hadn’t been detected before, confirmed by the experienced and knowledgeable cybersecurity team we’ve employed.

Continue reading →


15
Jul 19

Is ‘REvil’ the New GandCrab Ransomware?

The cybercriminals behind the GandCrab ransomware-as-a-service (RaaS) offering recently announced they were closing up shop and retiring after having allegedly earned more than $2 billion in extortion payments from victims. But a growing body of evidence suggests the GandCrab team have instead quietly regrouped behind a more exclusive and advanced ransomware program known variously as “REvil,” “Sodin,” and “Sodinokibi.”

“We are getting a well-deserved retirement,” the GandCrab administrator(s) wrote in their farewell message on May 31. “We are a living proof that you can do evil and get off scot-free.”

However, it now appears the GandCrab team had already begun preparations to re-brand under a far more private ransomware-as-a-service offering months before their official “retirement.”

In late April, researchers at Cisco Talos spotted a new ransomware strain dubbed Sodinokibi that was used to deploy GandCrab, which encrypts files on infected systems unless and until the victim pays the demanded sum. A month later, GandCrab would announce its closure.

A payment page for a victim of REvil, a.k.a. Sodin and Sodinokibi.

Meanwhile, in the first half of May an individual using the nickname “Unknown” began making deposits totaling more than USD $130,000 worth of virtual currencies on two top cybercrime forums. The down payments were meant to demonstrate the actor meant business in his offer to hire just a handful of affiliates to drive a new, as-yet unnamed ransomware-as-a-service offering.

“We are not going to hire as many people as possible,” Unknown told forum members in announcing the new RaaS program. “Five affiliates more can join the program and then we’ll go under the radar. Each affiliate is guaranteed USD 10,000. Your cut is 60 percent at the beginning and 70 percent after the first three payments are made. Five affiliates are guaranteed [USD] 50,000 in total. We have been working for several years, specifically five years in this field. We are interested in professionals.”

Asked by forum members to name the ransomware service, Unknown said it had been mentioned in media reports but that he wouldn’t be disclosing technical details of the program or its name for the time being. Continue reading →