Ransomware


1
Jul 20

Ransomware Gangs Don’t Need PR Help

We’ve seen an ugly trend recently of tech news stories and cybersecurity firms trumpeting claims of ransomware attacks on companies large and small, apparently based on little more than the say-so of the ransomware gangs themselves. Such coverage is potentially quite harmful and plays deftly into the hands of organized crime.

Often the rationale behind couching these events as newsworthy is that the attacks involve publicly traded companies or recognizable brands, and that investors and the public have a right to know. But absent any additional information from the victim company or their partners who may be affected by the attack, these kinds of stories and blog posts look a great deal like ambulance chasing and sensationalism.

Currently, more than a dozen ransomware crime gangs have erected their own blogs to publish sensitive data from victims. A few of these blogs routinely issue self-serving press releases, some of which gallingly refer to victims as “clients” and cast themselves in a beneficent light. Usually, the blog posts that appear on ransom sites are little more than a teaser — screenshots of claimed access to computers, or a handful of documents that expose proprietary or financial information.

The goal behind the publication of these teasers is clear, and the ransomware gangs make no bones about it: To publicly pressure the victim company into paying up. Those that refuse to be extorted are told to expect that huge amounts of sensitive company data will be published online or sold on the dark web (or both).

Emboldened by their successes, several ransomware gangs recently have started demanding two ransoms: One payment to secure a digital key that can unlock files, folders and directories encrypted by their malware, and a second to avoid having any stolen information published or shared with others.

KrebsOnSecurity has sought to highlight ransomware incidents at companies whose core business involves providing technical services to others — particularly managed service providers that have done an exceptionally poor job communicating about the attack with their customers.

Overall, I’ve tried to use each story to call attention to key failures that frequently give rise to ransomware infections, and to offer information about how other companies can avoid a similar fate.

But simply parroting what professional extortionists have posted on their blog about victims of cybercrime smacks of providing aid and comfort to an enemy that needs and deserves neither.

Maybe you disagree, dear readers? Feel free to sound off in the comments below.


9
Jun 20

Florence, Ala. Hit By Ransomware 12 Days After Being Alerted by KrebsOnSecurity

In late May, KrebsOnSecurity alerted numerous officials in Florence, Ala. that their information technology systems had been infiltrated by hackers who specialize in deploying ransomware. Nevertheless, on Friday, June 5, the intruders sprang their attack, deploying ransomware and demanding nearly $300,000 worth of bitcoin. City officials now say they plan to pay the ransom demand, in hopes of keeping the personal data of their citizens off of the Internet.

Nestled in the northwest corner of Alabama, Florence is home to roughly 40,000 residents. It is part of a quad-city metropolitan area perhaps best known for the Muscle Shoals Sound Studio that recorded the dulcet tones of many big-name music acts in the 1960s and 70s.

Image: Florenceal.org

On May 26, acting on a tip from Milwaukee, Wisc.-based cybersecurity firm Hold Security, KrebsOnSecurity contacted the office of Florence’s mayor to alert them that a Windows 10 system in their IT environment had been commandeered by a ransomware gang.

Comparing the information shared by Hold Security dark web specialist Yuliana Bellini with the employee directory on the Florence website indicated the username for the computer that attackers had used to gain a foothold in the network on May 6 belonged to the city’s manager of information systems.

My call was transferred to no fewer than three different people, none of whom seemed eager to act on the information. Eventually, I was routed to the non-emergency line for the Florence police department. When that call went straight to voicemail, I left a message and called the city’s emergency response team.

That last effort prompted a gracious return call the following day from a system administrator for the city, who thanked me for the heads up and said he and his colleagues had isolated the computer and Windows network account Hold Security flagged as hacked.

“I can’t tell you how grateful we are that you helped us dodge this bullet,” the technician said in a voicemail message for this author. “We got everything taken care of now, and some different protocols are in place. Hopefully we won’t have another near scare like we did, and hopefully we won’t have to talk to each other again.”

But on Friday, Florence Mayor Steve Holt confirmed that a cyberattack had shut down the city’s email system. Holt told local news outlets at the time there wasn’t any indication that ransomware was involved.

However, in an interview with KrebsOnSecurity Tuesday, Holt acknowledged the city was being extorted by DoppelPaymer, a ransomware gang with a reputation for negotiating some of the highest extortion payments across dozens of known ransomware families.

The average ransomware payment by ransomware strain. Source: Chainalysis.

Holt said the same gang appears to have simultaneously compromised networks belonging to four other victims within an hour of Florence, including another municipality that he declined to name. Holt said the extortionists initially demanded 39 bitcoin (~USD $378,000), but that an outside security firm hired by the city had negotiated the price down to 30 bitcoin (~USD $291,000).

Like many other cybercrime gangs operating these days, DoppelPaymer will steal reams of data from victims prior to launching the ransomware, and then threaten to publish or sell the data unless a ransom demand is paid.

Holt told KrebsOnSecurity the city can’t afford to see its citizens’ personal and financial data jeopardized by not paying.

“Do they have our stuff? We don’t know, but that’s the roll of the dice,” Holt said. Continue reading →


2
Jun 20

REvil Ransomware Gang Starts Auctioning Victim Data

The criminal group behind the REvil ransomware enterprise has begun auctioning off sensitive data stolen from companies hit by its malicious software. The move marks an escalation in tactics aimed at coercing victims to pay up — and publicly shaming those who don’t. But it may also signal that ransomware purveyors are searching for new ways to profit from their crimes as victim businesses struggle just to keep the lights on during the unprecedented economic slowdown caused by the COVID-19 pandemic.

Over the past 24 hours, the crooks responsible for spreading the ransom malware “REvil” (a.k.a. “Sodin” and “Sodinokibi“) used their Dark Web “Happy Blog” to announce its first ever stolen data auction, allegedly selling files taken from a Canadian agricultural production company that REvil says has so far declined its extortion demands.

A partial screenshot from the REvil ransomware group’s Dark Web blog.

The victim firm’s auction page says a successful bidder will get three databases and more than 22,000 files stolen from the agricultural company. It sets the minimum deposit at $5,000 in virtual currency, with the starting price of $50,000.

Prior to this auction, REvil — like many other ransomware gangs — has sought to pressure victim companies into paying up mainly by publishing a handful of sensitive files stolen from their extortion targets, and threatening to release more data unless and until the ransom demand is met.

Experts say the auction is a sign that ransomware groups may be feeling the financial pinch from the current economic crisis, and are looking for new ways to extract value from victims who are now less likely or able to pay a ransom demand.

Lawrence Abrams, editor of the computer help and news Web site BleepingComputer, said while some ransomware groups have a history of selling victim data on cybercrime forums, this latest move by REvil may be just another tactic used by criminals to force victims to negotiate a ransom payment.

“The problem is a lot of victim companies just don’t have the money [to pay ransom demands] right now,” Abrams said. “Others have gotten the message about the need for good backups, and probably don’t need to pay. But maybe if the victim is seeing their data being actively bid on, they may be more inclined to pay the ransom.” Continue reading →


11
May 20

Ransomware Hit ATM Giant Diebold Nixdorf

Diebold Nixdorf, a major provider of automatic teller machines (ATMs) and payment technology to banks and retailers, recently suffered a ransomware attack that disrupted some operations. The company says the hackers never touched its ATMs or customer networks, and that the intrusion only affected its corporate network.

Canton, Ohio-based Diebold [NYSE: DBD] is currently the largest ATM provider in the United States, with an estimated 35 percent of the cash machine market worldwide. The 35,000-employee company also produces point-of-sale systems and software used by many retailers.

According to Diebold, on the evening of Saturday, April 25, the company’s security team discovered anomalous behavior on its corporate network. Suspecting a ransomware attack, Diebold said it immediately began disconnecting systems on that network to contain the spread of the malware.

Sources told KrebsOnSecurity that Diebold’s response affected services for over 100 of the company’s customers. Diebold said the company’s response to the attack did disrupt a system that automates field service technician requests, but that the incident did not affect customer networks or the general public.

“Diebold has determined that the spread of the malware has been contained,” Diebold said in a written statement provided to KrebsOnSecurity. “The incident did not affect ATMs, customer networks, or the general public, and its impact was not material to our business. Unfortunately, cybercrime is an ongoing challenge for all companies. Diebold Nixdorf takes the security of our systems and customer service very seriously. Our leadership has connected personally with customers to make them aware of the situation and how we addressed it.” Continue reading →


6
May 20

Europe’s Largest Private Hospital Operator Fresenius Hit by Ransomware

Fresenius, Europe’s largest private hospital operator and a major provider of dialysis products and services that are in such high demand thanks to the COVID-19 pandemic, has been hit in a ransomware cyber attack on its technology systems. The company said the incident has limited some of its operations, but that patient care continues.

Based in Germany, the Fresenius Group includes four independent businesses: Fresenius Medical Care, a leading provider of care to those suffering from kidney failure; Fresenius Helios, Europe’s largest private hospital operator (according to the company’s Web site); Fresenius Kabi, which supplies pharmaceutical drugs and medical devices; and Fresenius Vamed, which manages healthcare facilities.

Overall, Fresenius employs nearly 300,000 people across more than 100 countries, and is ranked 258th on the Forbes Global 2000. The company provides products and services for dialysis, hospitals, and inpatient and outpatient care, with nearly 40 percent of the market share for dialysis in the United States. This is worrisome because COVID-19 causes many patients to experience kidney failure, which has led to a shortage of dialysis machines and supplies.

On Tuesday, a KrebsOnSecurity reader who asked to remain anonymous said a relative working for Fresenius Kabi’s U.S. operations reported that computers in his company’s building had been roped off, and that a cyber attack had affected every part of the company’s operations around the globe.

The reader said the apparent culprit was the Snake ransomware, a relatively new strain first detailed earlier this year that is being used to shake down large businesses, holding their IT systems and data hostage in exchange for payment in a digital currency such as bitcoin.

Fresenius spokesperson Matt Kuhn confirmed the company was struggling with a computer virus outbreak.

“I can confirm that Fresenius’ IT security detected a computer virus on company computers,” Kuhn said in a written statement shared with KrebsOnSecurity. “As a precautionary measure in accordance with our security protocol drawn up for such cases, steps have been taken to prevent further spread. We have also informed the relevant investigating authorities and while some functions within the company are currently limited, patient care continues. Our IT experts are continuing to work on solving the problem as quickly as possible and ensuring that operations run as smoothly as possible.” Continue reading →


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 →