Normal view

There are new articles available, click to refresh the page.
Today — 17 June 2024Main stream

The Snowballing of the Snowflake Breach: All About the Massive Snowflake Data Breach

Snowflake breach, Snowflake, Snowflake cyber incident, Snowflake Cyberattack

With companies coming forward every day announcing impacts from their third-party cloud data storage vendor, the Snowflake data breach seems to be snowballing into one of the biggest data breaches of the digital age. Here's everything to know about the Snowflake breach; we'll update this page as new information becomes available.

Why the Snowflake Breach Matters

Snowflake is a prominent U.S.-based cloud data storage and analytics company, with over 9,800 global customers. Its customer base includes major corporations like Adobe, AT&T, Capital One, DoorDash, HP, JetBlue, Mastercard, Micron, NBC Universal, Nielsen, Novartis, Okta, PepsiCo, Siemens, US Foods, Western Union, and Yamaha, among others. Snowflake holds approximately a 20% share of the data warehouse market and was recently ranked #1 on the Fortune Future 50 List, it an attractive target for cybercriminals. However, it is crucial to note that the breaches are not necessarily due to failures by Snowflake. The correlation does not imply causation, as emphasized by Snowflake’s Chief Information Security Officer Brad Jones. The company, along with its forensic partners, found no evidence of vulnerabilities or breaches within Snowflake’s platform.

Ongoing Investigation and Preliminary Results in Snowflake Breach

On May 31, Snowflake revealed that attackers accessed customer accounts using single-factor authentication. According to preliminary results, these attackers leveraged credentials obtained through infostealing malware.

Compromised Employee Account

Snowflake confirmed that a threat actor obtained credentials from a single former employee, accessing demo accounts that were isolated from production and corporate systems. Snowflake’s core systems are protected by Okta and Multi-Factor Authentication (MFA) but the demo accounts lacked such safeguards.

Test Environments Targeted

Demo accounts are often overlooked as security risks. Despite assurances that these accounts do not contain sensitive data, they remain attractive targets due to their perceived value. Cybercriminals exploit the perception gap, knowing that a claimed breach of a high-profile company like Snowflake can generate significant media attention.

Attack Path

The initial access point for the attackers was almost certainly compromised credentials obtained through infostealing malware. Mandiant, who helped Snowflake in its investigation, confirmed that the compromised credentials were from customer instances and were traced back to infostealer malware logs. Several variants of infostealer malware were used, including VIDAR, RISEPRO, REDLINE, RACOON STEALER, LUMMA, and METASTEALER.

Possible Reasons for the Breach

Mandiant confirmed that there was no breach of Snowflake’s enterprise environment. They identified that most credentials used by the attackers originated from historical infostealer infections. The lack of MFA and failure to rotate credentials for up to four years were significant factors. Network allow lists were also not used to restrict access to trusted locations.

Unconfirmed Threat Actor Claims

The threat actor also claimed to have logged into Snowflake’s ServiceNow using the same credentials. This claim has neither been confirmed nor explicitly refuted by Snowflake. Other unknowns include whether similar methods compromised other Snowflake employees, and the definition of "sensitive" data used for determining the impact on demo accounts. The investigation is ongoing, but Snowflake stands by its initial findings.

Affected Customers from Snowflake Breach

The data breaches began in April 2024, and the company claimed it had impacted a “limited” number of Snowflake customers. Snowflake initially did not disclose the exact number or the names of all affected customers. However, a comprehensive report from Mandiant two weeks after the initial disclosure revealed that 165 customers were impacted in the Snowflake data breach. While some victims have been identified through attackers’ offers to sell stolen data, others were revealed via mandatory public disclosures. Most companies have yet to confirm the impact. Following is a list of all companies know to have been impacted in the Snowflake data breach:
  • Santander Group: The company confirmed a compromise without mentioning Snowflake.
  • Impact: Santander Bank staff and 30 million customers’ data has allegedly been breached.
  • TicketMaster (Live Nation Entertainment subsidiary): Confirmed via an SEC 8-K report, with Snowflake identified as the third party involved.
  • Impact: 560 Million TicketMaster user details and card info potentially at risk.
  • LendingTree: Notified by Snowflake about a potential data impact involving QuoteWizard.
  • Impact: On June 1, a hacker going by the name “Sp1d3r” posted on the cybercriminal platform BreachForums that they had stolen the sensitive information of over 190 million people from QuoteWizard. The alleged database included customer details, partial credit card numbers, insurance quotes and other information.
  • Advance Auto Parts: Unconfirmed by the company, but a dark web listing claimed significant data theft.
  • Impact: Same actor as LendingTree claimed leak of 380 million customers and 358,000 former and current employees.
  • Pure Storage: The Pure Storage data breach involved a third party temporarily gaining access to the workspace, which housed data such as company names, LDAP usernames, email addresses, and the Purity software release version number.
  • Impact: The same threat actor known as “Sp1d3r” claimed responsibility, alleging the theft of 3 terabytes of data from the company’s Snowflake cloud storage that was reportedly being sold for $1.5 million.
Tech Crunch discovered over 500 login credentials and web addresses for Snowflake environments on a website used by attackers to search for stolen credentials. These included corporate email addresses found in a recent data dump from various Telegram channels.

Security Measures and Customer Support

Snowflake Chief Information Security Officer Brad Jones reiterated the company's findings, asserting that the breaches were not due to any vulnerabilities, misconfigurations, or breaches of Snowflake’s platform or personnel credentials. Snowflake is collaborating with customers to enhance security measures and plans to mandate advanced security controls such as multi-factor authentication (MFA) and network policies, especially for privileged accounts. The company acknowledges the friction in their MFA enrollment process and is working to streamline it. The shared responsibility model places MFA enforcement on customers, but Snowflake aims to make it a standard prerequisite due to the high sensitivity of the data stored in their cloud environments.

Key Recommendations for Snowflake Customers:

  1. Enforce Multi-Factor Authentication: Make MFA mandatory for all accounts, particularly those with privileged access.
  2. Regularly Rotate Credentials: Ensure that all credentials are regularly updated to prevent long-term exposure from previous leaks.
  3. Implement Network Allow Lists: Restrict access to trusted IP addresses to minimize unauthorized access.
  4. Enhance Logging and Monitoring: Improve logging and monitoring capabilities to detect and respond to suspicious activities promptly.
Snowflake has also published indicators of compromise and steps for detecting and preventing unauthorized user access here. Cloud security firm Permiso has developed an open-source tool dubbed "YetiHunter" to detect and hunt for suspicious activity in Snowflake environments based on the IoCs shared by SnowflakeMandiantDataDog, and its own intelligence. Editor's Note: This blog will be updated as additional breach information from Snowflake and its customers becomes available or is claimed by threat actors on underground forums for sale. Links and data to any additional IoCs related to the Snowflake breach will be published here too.
Before yesterdayMain stream

Young Cyber Scammer Arrested, Allegedly Behind Cyberattacks on 45 U.S. Companies

Young Cyber Scammer, Cyber Scammer,

A 22-year-old British national, allegedly the leader of an organized cybercrime group that targeted nearly four dozen U.S. companies, was arrested in Palma de Mallorca at the behest of the FBI, said the Spanish National Police. The young man allegedly orchestrated attacks on 45 companies in the United States through phishing campaigns, and subsequently gained unauthorized access to sensitive company information and cryptocurrency wallets.

Cyber Scammer Used Familiar Playbook

The modus operandi of the cybercriminal was simple: use phishing techniques to obtain access credentials from individuals,; use these credentials to infiltrate corporate work systems; exfiltrate sensitive company data that was likely monetized and put up for sale on dark web forums; and also access victims' cryptocurrency wallets to siphon them off. This modus operandi allowed the scammer to amass a significant amount of bitcoins. The Spanish police said the young cyber scammer managed to gain control over 391 bitcoins - approximately valued at over $27 million - from his victims. The arrest occurred at Palma airport as the suspect was preparing to leave Spain on a charter flight to Naples. The operation was conducted by agents of the Spanish National Police in collaboration with the FBI. The investigation, led by the Central Cybercrime Unit and supported by the Balearic Superior Headquarters, began in late May when the FBI’s Los Angeles office requested information about the suspect that they believed was in Spain. The FBI reported that an International Arrest Warrant had been issued by a Federal Court of the Central District of California, prompting intensified efforts to locate the suspect.

Laptop, Phone Seized

The suspect was carrying a laptop and a mobile phone at the time of his arrest, which were seized. The judicial authority subsequently ordered the suspect to be placed in provisional prison. The FBI did not immediately provide a response on whether the young British man would be extradited to the U.S. to be tried, nor did they release details on an indictment, but many similar cases in the recent past show the possibility of that happening soon.

Linked to Scattered Spider?

The cybercrime-focused vx-underground X account (formerly known as Twitter) said the U.K. man arrested was a SIM-swapper who operated under the alias “Tyler.” Fraudster's transfer the target’s phone number in a sim swapping attack to a device they control and intercept any text messages or phone calls to the victim. This includes one-time passcodes for authentication or password reset links sent over an SMS. “He is a known SIM-swapper and is allegedly involved with the infamous Scattered Spider group,” vx-underground tweeted. The details, however, could not be confirmed but independent journalist Brian Krebs said the accused is a 22-year-old from Dundee, Scotland named Tyler Buchanan, also allegedly known as “tylerb” on Telegram chat channels centered around SIM-swapping.
“Most notably he is believed to be a key component of the MGM ransomware attack, and is believed to be associated with several other high profile ransomware attacks performed by Scattered Spider.” - vx-underground
The initial access vector in the attack on MGM included targeting of a help desk executive with social engineering tactics. Mandiant in its latest report found Scattered Spider aka UNC3944 using the same modus operandi, and although no victim names were stated, it now suggests the possible linkage between them. *Update (June 17 5:45 AM EST): Added details on the 22-year old young cyber scammer's identity and possible links to Scattered Spider group.

Infrastructure of Websites Spreading Terrorist Propaganda Disrupted

Terrorist Propaganda, Propaganda, Europol

Europol coordinated two separate operations this week to disrupt 13 websites used in spreading terrorist propaganda online. This action followed a year-long operation involving ten law enforcement authorities across Europe. The targeted websites were linked to Islamic State, al-Qaeda and its affiliates, and the Syria-based rebel group Hay’at Tahrir al-Sham.
“The disrupted terrorist operated websites worked as a node and an archive for terrorist propaganda produced by the different IS [Islamic State] media outlets using a multiplatform approach.” - Capt. Alberto Rodríguez Vázquez of Spain's Guardia Civil.

Servers Taken Down in Europe and U.S.

Europol reported that servers were taken down in Germany, the Netherlands, the United States and Iceland under Operation HOPPER II. The authorities in Spain also arrested nine “radicalized individuals” from different nationalities. Spain's Guardia Civil led a separate operation, dubbed ALMUASASA, against media linked to the Islamic State’s I’LAM Foundation. Europol said this organization ran global communication channels, including radio stations, a news agency, and social media content.
“The network was designed to be resilient and low profile and that explains its multi-server hosting strategy. It operated both on the surface web and the dark web.” – Vázquez.

Terrorist Propaganda in 30 Languages

The organization communicated Islamic State directives and slogans in over 30 languages, including Spanish, Arabic, English, French, German, Danish, Turkish, Russian, Indonesian, and Pashto. Investigations revealed several terabytes of information, which will help law enforcement in further investigations into the terror group. The overall terrorist threat to the European Union remains high, with jihadist terrorism being a principal concern. Europol's operations followed the seizure of four computer servers in Romania, Ukraine, and Iceland, as part of ongoing investigations into religious and politically motivated terrorist groups.
“The servers supported multiple media outlets linked to Islamic State. They were used to disseminate worldwide propaganda and messages capable of inciting terrorism.” - Europol
According to Europol, the targeted websites enabled terrorist organizations and violent extremists to bypass the enhanced moderation and content removal efforts of mainstream online service providers. This helped them maintain a persistent online presence. The sites were used for recruitment, fundraising, inciting violence, and spreading propaganda, including manuals for creating explosives and content designed to radicalize and mobilize individuals. [caption id="attachment_77383" align="aligncenter" width="1024"]Terrorist Propaganda, Europol, Eurojust Jode de la Mata Amaya, national member for Spain, Eurojust (Source: YouTube)[/caption] The investigation has also revealed important details on the financing of the terrorist networks, which will be pivotal in future combat of threats from these networks, said Jode de la Mata Amaya, national member for Spain, Eurojust. All the 13 websites were referred for removal under European Union laws that mandate all hosting service providers remove flagged content within an hour of receiving a removal order or face penalties determined by individual member states.

Ukraine Detains Suspects Behind Bot Farms and Kremlin’s Propaganda Machinery

Bot Farms

Ukraine’s Security Service (SBU) detained two individuals accused of aiding Russian intelligence in hacking the phones of Ukrainian soldiers and spreading pro-Kremlin propaganda. The suspects operated bot farms using servers and SIM cards to create fake social media accounts. One bot farm in the Zhytomyr Oblast was hosted in an apartment of a Ukrainian woman. She allegedly registered over 600 virtual mobile numbers and several anonymous Telegram accounts.

Russian Intelligence Installed Spyware in Campaign

The woman sold or rented these accounts in exchange for cryptocurrency on online Russian underground marketplaces. Russian intelligence used these accounts and numbers to hack phones of Ukrainian military personnel by sending phishing emails containing spyware that collected sensitive confidential data. Russian hackers were recently observed using legitimate remote monitoring and management (RMM) software to spy on Ukraine and its allies. [caption id="attachment_77338" align="aligncenter" width="1024"]Bot Farms Source: SBU[/caption] According to the SBU, the accounts hosted on this bot farm were also used to spread pro-Kremlin propaganda purporting as ordinary Ukrainian citizens. Another 30-year-old man from Dnipro allegedly registered nearly 15,000 fake accounts on various social networks and messaging platforms using Ukrainian SIM cards. He sold these accounts to Russian intelligence services on darknet forums. [caption id="attachment_77337" align="aligncenter" width="1024"]Bot Farms Source: SBU[/caption] Both suspects face up to three years in prison or a fine if found guilty. The investigation continues.

Russian Bot Farms Used Since Invasion Started

Russia has used bot farms to disseminate Kremlin propaganda, incite panic and manipulate narratives since the beginning of its Ukrainian invasion. The Ukrainian authorities have busted dozens of bot farms and arrested hundreds of people across the country who operate them. In December 2022, they dismantled more than a dozen bot farms. In September of that year, two bot farms were taken down, while in August a group that operated more than 1 million bots was also dismantled. Bot farm operators typically receive payments in Russian rubles, a prohibited currency in Ukraine. These activities continued in the second year of the war, where the Ukrainian Cyber Police raided 21 locations across the country and seized computer equipment, mobile phones and more than 250 GSM gateways. This included 150,000 SIM cards of different mobile operators used in the illicit activities to create fake social media profiles.

UNC3944 aka ‘Scattered Spider’ Shifts Focus to Data Theft from SaaS Applications

UNC3944, Scattered Spider

The financially motivated UNC3944 threat group has shifted focus to data theft extortion from software-as-a-service applications but without the use of ransomware variants, which it is historically known for. UNC3944, also known as 0ktapus, Octo Tempest, Scatter Swine and Scattered Spider, is a financially motivated threat group that has demonstrated significant adaptability in its tactics since its inception in May 2022. According to Google-owned cybersecurity company Mandiant, the threat group has now evolved its strategies to include data theft from SaaS applications. It leverages cloud synchronization tools for data exfiltration, persistence mechanisms against virtualization platforms and lateral movement via SaaS permissions abuse, Mandiant said.

Data Theft Extortion Without Ransomware

UNC3944 initially focused on credential harvesting and SIM swapping attacks but over the years has transitioned to ransomware. Mandiant has now found evidence that shows the threat group has taken a further leap and now shifted primarily to data theft extortion without any ransomware deployment. UNC3944’s latest attack lifecycle often begins with social engineering techniques aimed at corporate help desks. Mandiant said the threat group gained initial access exploiting privileged accounts in multiple instances. The UNC3944 group used personally identifiable information (PII) such as Social Security numbers, birth dates and employment details likely scraped from social media profiles of the victims to bypass identity verification processes of help desks. They often claimed the need for a multi-factor authentication (MFA) reset due to receiving a new phone, enabling them to reset passwords and bypass MFA protections on privileged accounts.
“Evidence also suggests UNC3944 has occasionally resorted to fear mongering tactics to gain access to victim credentials. These tactics include threats of doxxing personal information, physical harm to victims and their families, and the distribution of compromising material.” - Mandiant

Phase I of UNC3944’s Attack Lifecycle

The first phase of the threat group’s attack lifecycle includes:
  • Social Engineering: UNC3944 conducted sophisticated social engineering attacks, leveraging extensive research on victims to gain help desk access.
  • Credential Harvesting: Used SMS phishing campaigns to harvest credentials.
  • Internal Reconnaissance: After gaining access, conducted reconnaissance on Microsoft applications like SharePoint to gather internal documentation on VPNs, VDI and remote work utilities.
  • Privilege Escalation: Abused Okta permissions to self-assign roles and gain broader access to SaaS applications.
[caption id="attachment_77144" align="aligncenter" width="1024"]UNC3944, SaaS UNC3944 attack lifecycle (Source: Mandiant)[/caption]

Phase II of the Attack Lifecycle

In the second phase of UNC3944’s attack lifecycle, the threat group employed aggressive persistence methods through the creation of new virtual machines in environments like vSphere and Azure. They use administrative privileges to create these machines and configure them to disable security policies, such as Microsoft Defender, to avoid detection. A lack of endpoint monitoring allowed the group to download tools like Mimikatz, ADRecon, and various covert tunneling utilities like NGROK, RSOCX and Localtonet to maintain access to the compromised device without needing VPN or MFA. UNC3944 has previously deployed Alphv ransomware on virtual machine file systems but Mandiant said since the turn of 2024, it has not observed ransomware deployment by this threat group.

Focus Shifts to SaaS Applications

The novel shift in UNC3944’s targeting is its exploitation of SaaS applications to gain further access and conduct reconnaissance.
“Mandiant observed access to such applications as vCenter, CyberArk, SalesForce, Azure, CrowdStrike, AWS, and GCP.”
Once the threat group gained access to any of the SaaS applications, they then used endpoint detection and response tooling to test access to the environment and further used tools like Airbyte and Fivetran to exfiltrate data to attacker-owned cloud storage.

Advanced Techniques of Phase II

Some of the advanced techniques demonstrated by UNC3944 in phase two of the attack lifecycle includes: ADFS Targeting: Exporting Active Directory Federated Services certificates to perform Golden SAML attacks for persistent cloud access. Data Exfiltration: Using cloud synchronization utilities to move data from SaaS platforms to external cloud storage. Endpoint Detection and Response (EDR): Creation of API keys in CrowdStrike’s console for executing commands and further testing access. Anti-Forensic Measures: UNC3944 employed anti-forensic techniques to obscure their activities. They use publicly available utilities to reconfigure virtual machines, disable logging, and remove endpoint protections. The attackers also used ISO files like PCUnlocker to reset local administrator passwords and bypass domain controls.

Abuse of M365 Delve Feature

Mandiant observed advanced M365 features like Microsoft Office Delve being used for data reconnaissance by UNC3944 for uncovering accessible data sources. Delve offers quick access to files based on group membership or direct sharing and shows personalized content recommendations from M365 sources and mapping organizational relationships. While this feature is useful for collaboration, UNC3944 exploited Delve for rapid reconnaissance, identifying active projects and sensitive information by recent modification. These resources typically lack sufficient security monitoring and logging. Traditional security controls, like firewalls and network flow sensors, are ineffective for detecting large data transfers from SaaS platforms. Identifying data theft with traditional logs is challenging, and real-time detection remains difficult with historical log analysis. The storage of sensitive data in SaaS applications poses significant risks that is often overlooked due to the perceived security of SaaS models. UNC3944 exploited these weaknesses and took advantage of inadequate logging and monitoring to perform data theft undetected.

Recommended Mitigation Steps

Mandiant researchers recommended a number of controls to protect against the threat group's tactics:
  • Implement host-based certificates and MFA for VPN access to ensure secure connections.
  • Have stricter conditional access policies and limit visibility and access within cloud tenants.
  • Have enhanced monitoring through centralized logs from SaaS applications and virtual machine infrastructures to detect suspicious activities.
  • Ensure comprehensive logging for SaaS applications to detect signs of malicious intent.

Daily Blood Sampling in London Hospitals Down from 10,000 to 400 After Synnovis Ransomware Attack

Synnovis ransomware attack, ransomware attack, Synnovis, NHS Blood Testing

In the aftermath of the Synnovis ransomware attack that struck last week, London hospitals continue to struggle to deliver patient care at an optimal level. The attack on the pathology services provider has brought down the daily blood sampling count in major London hospitals from 10,000 to merely 400 per day, according to Synnovis.
“Urgent requests are severely restricted at around 400 a day. Historically primary care and community services have generated around 10,000 samples a day for testing, which gives you an idea of the scale of the impact.” - Synnovis
Services including blood transfusions reportedly remain severely disrupted at Guy's and St Thomas' Hospital and King's College Hospital. Both hospitals are experiencing disruption of pathology services, particularly blood tests.

Blood Testing Severely Impacted After Synnovis Ransomware Attack

The biggest challenge that Synnovis is currently facing is that all its automated end-to-end laboratory processes are offline since all IT systems have been locked down in response to the ransomware attack. “This means we are having to log all samples manually when they arrive, select each test manually on analyzers and, once tests have been processed, type in each result on the laboratory’s computer system (the Laboratory Information Management System - LIMS),” Synnovis said. And this is not the end of it. Synnovis then must manually deliver these results to the Trust’s IT system so that the results can be further electronically submitted back to the requester. But since the Synnovis’ LIMS is presently disconnected from the Trusts’ IT systems, “this extensive manual activity takes so much time that it severely limits the number of pathology tests we can process at the moment,” Synnovis explained. The pathology service provider normally processes around 10,000 primary care blood samples a day, but at the moment is managing only up to 400 from across all six boroughs. “Despite the measures we know colleagues are taking to prioritize the most urgent samples, we are receiving many more than we can process and we have an increasing backlog,” Synnovis said. The lab services provider last week was able to process around 3,000 Full Blood Count samples but could not export results due to the lack of IT connectivity. “Of those tests processed, we have phoned through all results that sit outside of critical limits, however, we have been unable to return any results electronically and are unlikely to be able to do so,” Synnovis said. The impact of the Synnovis ransomware attack is also felt on NHS Blood and Transplant (NHSBT), as it appealed to the public earlier this week to urgently donate O blood-type (+ve and -ve) across England. The attack caused significant disruption on the hospitals’ ability to match patients’ blood types, leading to an increased demand for O-positive and O-negative blood donations that are medically considered safe for all patients.

Will Process only 'Clinically Critical' Blood Samples

To manage the inadequacy of the services, the service provider is momentarily only accepting blood samples that the requesting clinician considers to be “clinically critical.” Clinicians need to consider a test as “critical” only if a test result is needed within 24 hours to determine a patient’s urgent treatment or care plan. “As experts, your clinical view of what is considered ‘critical’ will be accepted by the laboratory, but we urge you to apply this definition carefully, given the severe capacity limitations we are facing,” Synnovis recommended. [caption id="attachment_77097" align="aligncenter" width="1024"]Synnovis ransomware attack Source: Synnovis[/caption] The pathology service provider is also working with NHS Trust to install laptops at the hub laboratory, which will give them access to the Trust IT systems to return test results electronically.

Caregivers Working Overtime

Doctors and caregivers at Guy's and St Thomas' Hospital and King's College Hospital have been putting in extra hours since the Synnovis ransomware attack disrupted services last week. But this is not enough, as KCH has already cancelled some of its operations and is working only at about 70% capacity. Three of its 17 operating theatres remain shut, BBC reported.

Black Basta Ransomware Affiliates Possibly Exploited Windows Bug as a Zero-Day

Black Basta Ransomware

The Black Basta ransomware gang may have exploited a Windows privilege escalation vulnerability as a zero-day before it was patched, new evidence suggests. Symantec researchers have revealed details that the Black Basta ransomware group linked to the Cardinal cybercriminal syndicate (also known as Storm-1811 or UNC4393) may have exploited a flaw in the Windows error reporting service as a zero-day prior to its March Patch Tuesday fix. Tracked as CVE-2024-26169, the vulnerability in question exists in the Windows Error Reporting Service. “An attacker who successfully exploited this vulnerability could gain SYSTEM privileges,” Microsoft said at the time of patching. The Redmond-based tech giant at the time reported no evidence of the bug being exploited in the wild. However, analysis of an exploit tool used in recent attacks indicated that it may have been compiled months before the official patch was released, indicating potential zero-day exploitation.

Black Basta’s Privilege Escalation Bug Exploitation

The Symantec team first uncovered the possible zero-day exploitation while investigating a recent ransomware attack attempt in which an exploit tool for CVE-2024-26169 was used. “Although the attackers did not succeed in deploying a ransomware payload in this attack, the tactics, techniques, and procedures (TTPs) used were highly similar to those described in a recent Microsoft report detailing Black Basta activity,” Symantec said. These TTPs included the use of batch scripts disguised as software updates, the researchers added.

Black Basta Exploit Tool Analysis

The exploit tool leverages a flaw where the Windows file “werkernel.sys” uses a null security descriptor for creating registry keys. The tool exploits this by creating a “HKLM\Software\Microsoft\Windows NT\CurrentVersion\Image File Execution Options\WerFault.exe” registry key, setting its “Debugger” value to its own executable pathname. This allows the attacker to start a shell with administrative privileges, Symantec explained. Two variants of the tool analyzed:
  • Variant 1 (SHA256: 4aae231fb5357c0647483181aeae47956ac66e42b6b134f5b90da76d8ec0ac63): Compiled on February 27, before the vulnerability was patched.
  • Variant 2 (SHA256: b73a7e25d224778172e394426c98b86215087d815296c71a3f76f738c720c1b0): Compiled on December 18, 2023, nearly three months before an official fix was released.
While time stamp values in executables can be modified, in this case the attackers likely had little motivation to alter them, suggesting genuine pre-patch compilation.

Indicators of Compromise

Symantec shared the following IoCs: 4aae231fb5357c0647483181aeae47956ac66e42b6b134f5b90da76d8ec0ac63 – Exploit tool b73a7e25d224778172e394426c98b86215087d815296c71a3f76f738c720c1b0 – Exploit tool a31e075bd5a2652917f91714fea4d272816c028d7734b36c84899cd583181b3d – Batch script 3b3bd81232f517ba6d65c7838c205b301b0f27572fcfef9e5b86dd30a1d55a0d – Batch script 2408be22f6184cdccec7a34e2e79711ff4957e42f1ed7b7ad63f914d37dba625 – Batch script b0903921e666ca3ffd45100a38c11d7e5c53ab38646715eafc6d1851ad41b92e – ScreenConnect

About Black Basta Ransomware

The latest attempts of exploiting a Windows privilege escalation bug comes a month after Microsoft revealed details of Black Basta ransomware operators abusing its Quick Assist application that enables a user to share their Windows or macOS device with another person over a remote connection. The U.S. Cybersecurity and Infrastructure Security Agency (CISA) and the FBI in a May advisory said Black Basta's affiliates have targeted over 500 private industry and critical infrastructure entities, including healthcare organizations, in North America, Europe, and Australia since its launch in April 2022. An analysis from blockchain analytics firm Elliptic indicates that Black Basta has accumulated at least $107 million in ransom payments since early 2022, targeting more than 90 victims. The largest ransom payment received was $9 million, and at least 18 of the ransoms exceeded $1 million each. The average ransom payment was $1.2 million.

UK and Canada Privacy Watchdogs Probe 23andMe Data Breach

genetic testing company 23andMe, 23andMe data breach, data breach

The United Kingdom and Canada privacy watchdogs announced a joint investigation this week to determine the security lapses in the genetic testing company 23andMe’s October data breach, which leaked ancestry data of 6.9 million individuals worldwide. The UK Information Commissioner John Edwards and Privacy Commissioner of Canada Philippe Dufresne will lead the investigation, pooling the resources and expertise of their respective offices.

Focus of 23andMe Data Breach Investigation

The joint investigation will examine three key aspects:
  • Scope of Information Exposed: The breadth of data affected by the breach and the potential harm to individuals arising from it.
  • Security Measures: Evaluate whether 23andMe had adequate safeguards to protect the sensitive information under its control.
  • Breach Notification: Review whether the company provided timely and adequate notification to the regulators and affected individuals, as mandated by Canadian (PIPEDA) and UK (GDPR) data protection laws.
Edwards said the investigation was needed to garner the trust of people in organizations that handle sensitive personal data. He stated:
“People need to trust that any organization handling their most sensitive personal information has the appropriate security and safeguards in place. This data breach had an international impact, and we look forward to collaborating with our Canadian counterparts to ensure the personal information of people in the UK is protected.”
Dufresne on the other hand stated the risks associated with genetic information in the wrong hands. He said:
“In the wrong hands, an individual’s genetic information could be misused for surveillance or discrimination. Ensuring that personal information is adequately protected against attacks by malicious actors is an important focus for privacy authorities in Canada and around the world.”
The data protection and privacy laws in the UK and Canada allow such joint investigations on matters that impact both jurisdictions. Each regulator will assess compliance with the relevant laws they oversee. Neither of the privacy commissioner offices however provided further details on how they would charge or penalize 23andMe, if found in violation of GDPR or PIPEDA. “No further comment will be made while the investigation is ongoing,” the UK ICO said. 23andMe acknowledges the joint investigation announced by the Privacy Commissioner of Canada and the UK Information Commissioner today.
“We intend to cooperate with these regulators’ reasonable requests relating to the credential stuffing attack discovered in October 2023,” a 23andMe spokesperson told The Cyber Express.

Genetic Testing Company 23andMe Data Breach Timeline

23andMe first disclosed details of the October data breach in an 8-K filing with the U.S. Securities and Exchange Commission. The genetic testing company said attackers scraped profiles of 23andMe users who opted in to using the company’s DNA Relatives feature. This profiling feature connects users with genetic distant relatives - or other 23andMe users who share their bits of DNA. The attackers used credential stuffing attacks that affected 0.1% of user accounts, the company told SEC. Using these accounts as a launchpad, hackers were able to access “a significant number of files containing profile information about other users' ancestry.” Threat actors claimed on underground forums that they were able to siphon “20 million pieces of code” from 23andMe. The claimed data set included information DNA ancestry backgrounds belonging to more than 1.3 million Ashkenazi Jewish and Chinese users. By the end of October, another threat actor claimed compromise of 4 million genetic profiles, which the company also investigated. The genetic testing company 23andMe said it notified the affected 6.9 million users - 5.5 million DNA Relatives profiles and 1.4 million Family Tree profile – in December. The company told federal regulators that the data breach incident was set to incur between $1 million and $2 million in one-time expenses. The company faces at least 30 class action lawsuits in U.S.state and federal jurisdictions as well as in Canada. 23andMe blamed the customers’ poor security hygiene for the breach and has since made two-step verification a prerequisite for account logon. It also mandated customers to reset their passwords. *Update 1 (June 12 – 12:00 AM EST): Added response from the 23andMe spokesperson.

Securing Operational Technology: The Foundation of Modern Industrial Operations in META Region

Securing Operational Technology, OT, IT, META Region, The Cyber Express, The Cyber Express News,

In the field of business operations in the META region, operational technology (OT) acts as a backbone, facilitating system maintenance, control, and optimization. From factories to energy projects, OT systems play an important role in increasing efficiency, ensuring safety, and maintaining reliability. However, with the increasing interconnectivity between OT and the Internet of Things (IoT), as well as the growing threat landscape, securing operational technology environments has never been more crucial.

Understanding Operational Technology

OT encompasses the hardware and software utilized to monitor and control physical devices and processes within industrial operations, including sectors such as manufacturing, energy, transportation, and utilities. It comprises of two main categories: Internet of Things (IoT) devices, which introduce networking capabilities to traditional OT systems, and Industrial Control Systems (ICS) - specialized systems dedicated to monitoring and controlling industrial processes.
Key functions of OT include:
  • Driving innovation, improving productivity, ensuring safety, reliability, and maintaining critical infrastructure.
  • Enhancing efficiency by automating and optimizing processes, minimizing downtime, reducing waste, and maximizing output.
  • Ensuring safety by monitoring environmental conditions, detecting abnormalities, and triggering automated responses to prevent accidents.
  • Providing reliable performance in harsh environments to prevent financial losses and risks to public safety.
  • Maintaining product quality and consistency by monitoring and adjusting production processes.
  • Enabling data-driven decision-making by generating insights into operations.
  • Managing critical infrastructure such as energy grids, water treatment plants, and transportation networks.

Differentiating OT from IT

While Operational Technology shares similarities with Information Technology (IT), it differs in several key aspects. IT focuses on managing digital information within organizations and OT controls highly technical specialist systems crucial for ensuring the smooth operation of critical processes. These systems include Supervisory Control and Data Acquisition (SCADA) systems, Programmable Logic Controllers (PLCs), sensors, and actuators, among others. OT is not just limited to manufacturing but can also be found in warehouses and in daily outdoor areas such as parking lots and highways. Some examples of OT include ATMs and other kiosks, connected buses, trains, and service fleets, weather stations, and even electric vehicles charging systems. The key difference between IT and OT is that IT is centered on an organization's front-end informational activities, while OT is focused on their back-end production. The merging of OT with IT, known as IT/OT convergence, aims at enhancing efficiency, safety, and security in industrial operations, yet also introduces challenges regarding cybersecurity as OT systems become more interconnected with IT networks.

IoT and OT Cybersecurity Forecast for META in 2024

Cybersecurity stands as a paramount concern for executives across various OT sectors in the META region. As the region witnesses a surge in cyber threats, organizations are increasingly investing in cybersecurity services and solutions to safeguard critical infrastructure and sensitive data. Modernization and optimization top the cyber-investment priorities for 2024, according to Pwc Digital Trust Insights 2024-Middle East Findings Report. More than half (53%) of chose optimization of existing technologies and investments in order to identify those with the highest potential to create value, while 43% selected technology modernization, including cyber infrastructure. The year 2024 is poised to bring new challenges and advancements in IoT and OT security, which could possibly shape the cybersecurity landscape in the META region.
Geopolitical Threats and APT Activity
With geopolitical tensions shaping the cybersecurity landscape, the META region is anticipated to witness heightened levels of Advanced Persistent Threat (APT) activity. Critical infrastructure, including shipping, power, and communications, will remain prime targets for cyber adversaries seeking to disrupt operations and undermine stability.
Escalating Costs of Cyber Attacks
The cost of cyberattacks is expected to escalate further in 2024, driven by an increase in ransom demands. Recent years have seen a significant rise in ransomware attacks globally, with cybercriminals targeting sectors such as healthcare and manufacturing. As ransom demands soar, organizations in the META region must bolster their cybersecurity defenses to mitigate financial and operational risks.
Heightened Threats to IoT and OT Deployments
Cyber threats targeting IoT and OT deployments are poised to intensify, posing significant risks to critical infrastructure and industrial systems. Health and safety departments, Industrial Control Systems (ICS), and IoT networks will remain prime targets for cyber adversaries, necessitating proactive cybersecurity measures to mitigate potential threats.
Focus on Network and Device Vulnerabilities
Cybercriminals will continue to exploit network and device vulnerabilities, highlighting the importance of robust patching and vulnerability scanning practices. Government infrastructures, finance, and retail sectors are particularly vulnerable to phishing attacks, underscoring the need for enhanced cybersecurity measures and employee awareness training.
Lookout for AI
With AI coming to the fore and large language models helping cybercriminals from drafting phishing mails to making AI-based robo-calling the surge of AI needs to be kept an eye on and better regulations will be the need of the hour. On the defense front, many vendors are also pushing the limits of GenAI, testing what’s possible. It could be some time before we see broad-scale use of defenceGPTs.  In the meantime, here are the three most promising areas for using GenAI in cyber defence: Threat detection and analysis; cyber risk and incident reporting; and adaptive controls that are tailored for organizations threat profile, technologies and business objectives.
Emphasis on Supply Chain Security
In 2024, supply chain vetting and internal security methods will become mainstream, as organizations strive to fortify their defenses against supply chain attacks. With compliance orders shifting from voluntary to mandatory, enterprises will be required to align with cybersecurity standards such as IEC 62443 to mitigate supply chain risks effectively.
Rise of Cyber Threat Intelligence
The year 2024 is poised to witness a surge in cyber threat intelligence investments, as organizations seek to enhance their threat detection and response capabilities. With C-level management increasingly involved in cybersecurity decision-making, enterprises will prioritize cyber threat intelligence feeds to bolster their security posture and safeguard critical infrastructure.
Expansion of Attack Surfaces
As digital transformation accelerates across sectors, the OT attack surface is expected to expand, providing cyber adversaries with new opportunities to exploit vulnerabilities. Industries such as manufacturing and healthcare must exercise caution and diligence in navigating the complexities of digital transformation to mitigate emerging cyber threats effectively.

Structuring a Secure OT Network

Despite its critical importance, OT faces significant vulnerabilities, particularly concerning cybersecurity. As OT systems become increasingly interconnected with IT networks and the IoT, they become more exposed to cyber threats. Moreover, the inability to shut down OT systems for maintenance or upgrades poses challenges in implementing security measures effectively. With the steady adoption of IoT and personal connected devices, an increase of over 4-fold in IoT malware attacks year-over-year has been reported in the Middle East region alone. This highlights persistence and ability of the cybercriminals to adapt to evolving conditions in launching IoT malware attacks. They are targeting legacy vulnerabilities, with 34 of the 39 most popular IoT exploits specifically directed at vulnerabilities that have existed for over three years. The biggest receiver of these attacks has been manufacturing, followed by oil & gas, power grids and maritime.

Securing Operational Technology with a 4-Phase Approach

To address these challenges, organizations must adopt a proactive approach to building secure OT environments. This involves implementing comprehensive security measures and adhering to industry best practices. A four-phase approach can guide organizations in building a secure OT network:
  1. Assess: Conduct an assessment to evaluate the current OT environment against industry standards and identify risks and vulnerabilities.
  2. Design: Develop a comprehensive design considering elements such as network segmentation, vendor security, and defense-in-depth strategies.
  3. Implement: Implement changes into the OT network while ensuring interoperability and compatibility with existing systems.
  4. Monitor and Respond: Establish mechanisms for detection and response to security incidents, enabling a dedicated security team to contain and eradicate threats effectively.
In addition to the four-phase approach, organizations can implement other security best practices, including access control, patch management, incident response planning, physical security measures, employee training, and vendor security assessments. By adopting a holistic approach to OT security and implementing robust security measures, organizations can mitigate cyber threats, protect critical infrastructure, and maintain the integrity and reliability of their operational systems. In an era of evolving cyber threats, securing Operational Technology is paramount to safeguarding industrial operations and ensuring the resilience of modern societies.

Three U.K. Nationals Charged for “Evolved Apes” NFT Scam

Evolved Apes

The U.S. Attorney today announced charges against three UK nationals for their involvement in the “Evolved Apes” NFT fraud scheme. The United States Attorney for the Southern District of New York Damian Williams and James Smith, the Assistant Director of the New York Field Office of the FBI, announced the unsealing of an indictment charging three UK nationals: Mohamed-Amin Atcha, Mohamed Rilazh Waleedh, and Daood Hassan, with conspiracy to commit wire fraud and money laundering.

“Evolved Apes” Rug Pull Scam

The charges are in connection to their scheme of defrauding victims through the sale of non-fungible tokens (NFTs) from the “Evolved Apes” collection. According to the indictment, Atcha, Waleedh, and Hassan orchestrated a “rug pull” scam in the fall of 2021. In crypto vocabulary a rug pull is a type of exit scam in which developers first raise money from investors through the sale of tokens or NFTs and then abruptly shut down the project vanishing away with the raised funds. Evolved Apes was a collection of 10,000 unique NFTs. They advertised the NFT project in a way where the funds raised would be used to develop a related video game that would in turn increase the NFTs' value. The promised video game never materialized as the anonymous developer "Evil Ape" vanished a week after its launch, siphoning 798 ether [approximately $3 million at today's market price and $2.7 million at the time] from the project's funds. The trio then laundered the misappropriated funds through multiple cryptocurrency transactions to their personal accounts, the indictment said.
“As alleged, the defendants ran a scam to drive up the price of digital artwork through false promises about developing a video game. They allegedly took investor funds, never developed the game, and pocketed the proceeds. Digital art may be new, but old rules still apply: making false promises for money is illegal.” - Williams
Williams said thousands of people were tricked into believing in their false promises and thus bought these NFTs. But "NFT fraud is no game, and those responsible will be held accountable,” he stated. FBI Assistant Director James Smith called out the trio for "ghosting customers" and perpetrating the NFT scam "out of a selfish desire for a quick profit.”
"[This] not only reflects poor business integrity, it also violates the implicit trust buyers place in sellers when purchasing a product, no matter if that product is in a store or stored on a blockchain." - Smith
Atcha, Waleedh, and Hassan, all aged 23, are charged conspiracy to commit wire fraud and money laundering, both of which carries a maximum sentence of 20 years in prison. The actual sentences will be determined by a judge based on the U.S. Sentencing Guidelines and other statutory factors.

Rug Pulls and their Murky History

Rug pulls and cryptocurrency scams have reportedly cost people $27 billion till date. Total number of such incidents stands at 861 with the largest rug pull so far being that of OneCoin which was costed $4 billion in stolen funds. OneCoin, at its peak, was thought to have more than 3 million active members from across the globe. To date it is believed to be the most “successful” crypto scam as search continues for its perpetrator the “Cryptoqueen” Ruja Ignatova. She was added to the FBI’s ‘Ten Most Wanted Fugitive List’ in July 2022 - where she remains today.

The Missing Cryptoqueen was reported dead in unconfirmed reports but an investigation from the BBC team, whose results were published last week, said the investigating team received details on Ignatova’s various sightings and whereabout tip-offs even after her alleged murder took place. She allegedly has links with the Bulgarian underworld, whom she also entrusts with keeping her physically safe.

Vermin Hackers Resurface to Target Ukrainian Defense Forces with SPECTR Malware

Vermin Hackers, Vermin hackers target Ukrainian armed forces

Ukrainian cyber defenders uncovered the resurgence of Vermin hackers after a two-year hiatus. The hacker group is targeting the country’s defense forces with spear-phishing emails that infect their systems with SPECTR malware, which acts as a remote access trojan (RAT). The Computer Emergency Response Team of Ukraine (CERT-UA) in collaboration with the Cybersecurity Center of the Armed Forces of Ukraine detected and investigated a spear-phishing campaign targeting the Ukrainian Defense Forces. The campaign was orchestrated by the Vermin hacker group, which CERT-UA tracks as UAC-0020. This cyber campaign, marking the return of the Vermin group after a prolonged absence, has been named “SickSync” for easier identification and reference. Ukraine attributes the Vermin hackers to the law enforcement agencies in the occupied Luhansk region. CERT-UA has earlier claimed that the server equipment of the Vermin group has been hosted at the technical site of a Luhansk cloud hosting provider vServerCo (AS58271) for many years. Palo Alto’s Unit 42 had tracked a similar campaign of the Vermin hackers in 2018 targeting Ukrainians with phishing lures related to the Ukrainian Ministry of Defense.

Vermin Hackers’ Latest Campaign Details

The latest attack that involves the use of SPECTR malware marks Vermin's first significant activity since March 2022. SPECTR, a malware known since at least 2018, was used extensively in the current campaign aimed at the Ukrainian defense forces. The attackers leveraged the legitimate Syncthing software’s synchronization functionality to download stolen documents, files, passwords and other sensitive information from compromised computers. Syncthing supports peer-to-peer connections, meaning it can sync files between devices on a local network or between remote devices over the Internet. It is a free and open-source synchronization application that supports Windows, macOS, Linux, Android, Solaris, Darwin and BSD operating systems. The Vermin hackers exploited this legitimate software for data exfiltration, the CERT-UA said. Ukrainian cyber defenders last month reported that Russian hackers were employing a similar tactic of using legitimate remote monitoring software to spy on Ukraine and and its allies.

Vermin Attack Vectors

The attack was initiated via a spear-phishing email containing a password-protected archive file named “turrel.fop.vovchok.rar.” This archive contained a RarSFX archive “turrel.fop.ovchok.sfx.rar.scr” with the following contents:
  • pdf: a decoy file.
  • exe: an EXE installer created using InnoSetup (a free installer for Windows programs), containing both legitimate Syncthing components and SPECTR malware files. The “sync.exe” file was modified to change directory names, scheduled tasks, and disable user notifications, embedding the SPECTR malware within the SyncThing environment.
  • bat: a BAT file for initial execution.
RarSFX is a temporary installation files folder created by Bitdefender. It is used as Self Extracting Archives unpack site.

SPECTR Malware Components

SPECTR malware is loaded with the capabilities of a RAT and consists of the following modules:
  1. SpecMon: Calls “PluginLoader.dll” to execute DLL files containing the "IPlugin" class.
  2. Screengrabber: Takes screenshots every 10 seconds if certain program windows are detected (e.g., Word, Excel, Signal, WhatsApp).
  3. FileGrabber: Uses “robocopy.exe” to copy files with specific extensions (e.g., .pdf, .docx, .jpg) from user directories to %APPDATA%\sync\Slave_Sync\.
  4. Usb: Copies files from USB media with certain extensions using “robocopy.exe.”
  5. Social: Steals authentication data from messengers like Telegram, Signal, and Skype.
  6. Browsers: Steals browser data including authentication and session data from Firefox, Edge, Chrome and other Chromium-based browsers.
All this stolen information is stored in “%APPDATA%\sync\Slave_Sync\” location and transferred to the attacker’s computer using Syncthing's synchronization functionality. [caption id="attachment_75531" align="alignnone" width="1024"]Vermin Hackers, Vermin Hackers' Phishing mail and Malware compnents Example of an email and the contents of a malicious installer of Vermin hackers (Source: CERT-UA)[/caption]

Network IoCs and Preventive Measures

To identify potential misuse of Syncthing, the CERT-UA recommended monitoring interactions with the Syncthing infrastructure, specifically “*.syncthing.net” domains. Users are also requested to implement the following preventive measures for enhanced protection against Vermin hackers: Email Security: Implement robust email filtering and phishing protection to prevent malicious attachments from reaching end users. Endpoint Protection: Utilize advanced endpoint detection and response (EDR) solutions to detect and block malware execution. Network Monitoring: Monitor network traffic for unusual peer-to-peer connections, particularly involving Syncthing infrastructure. User Awareness: Conduct regular cybersecurity training for employees to recognize and report phishing attempts.

Sen. Wyden Urges HHS to Raise Cybersecurity Standards for Healthcare Sector

Wyden Urged HHS

Senator Ron Wyden (D-Ore.) is pressing the U.S. government to accelerate cybersecurity enhancements within the healthcare sector following the devastating Change Healthcare ransomware attack that exposed the protected health information of nearly a third of Americans. In a letter to Xavier Becerra, secretary of the U.S. Department of Health and Human Services, Wyden urged HHS to implement immediate, enforceable steps to improve “lax cybersecurity practices” of large healthcare organizations.
“It is clear that HHS’ current approach to healthcare cybersecurity — self-regulation and voluntary best practices — is woefully inadequate and has left the health care system vulnerable to criminals and foreign government hackers.”Wyden.
He stated that the sub-par cybersecurity standards have allowed hackers to steal patient information and disrupt healthcare services, which has caused “actual harm to patient health.”

MFA Could Have Stopped Change Healthcare Attack

The call from Wyden comes on the back of the ransomware attack on Change Healthcare — a subsidiary of UnitedHealth Group — which, according to its Chief Executive Officer Andrew Witty, could have been prevented with the basic cybersecurity measure of Multi-Factor Authentication (MFA). The lack of MFA on a Citrix remote access portal account that Change Healthcare used proved to be a key vulnerability that allowed attackers to gain initial access using compromised credentials, Witty told the Senate Committee on Finance in a May 1 hearing.
“HHS’ failure to regulate the cybersecurity practices of major health care providers like UHG resulted in what the American Hospital Association has described as the worst cyberattack against the healthcare sector in U.S. history.” - Wyden
The use of MFA is a fundamental cybersecurity practice that HHS should mandate for all healthcare organizations, Wyden argued. He called for the implementation of broader minimum and mandatory technical cybersecurity standards, particularly for critical infrastructure entities that are designated as "systemically important entities" (SIE) by the U.S. Cybersecurity and Infrastructure Security Agency. “These technical standards should address how organizations protect electronic information and ensure the healthcare system’s resiliency by maintaining critical functions, including access to medical records and the provision of medical care,” Wyden noted. He suggested that HHS enforce these standards by requiring Medicare program participants to comply.

Wyden’s Proposed Cybersecurity Measures for HHS

Wyden said HHS should mandate a range of cybersecurity measures as a result of the attack. “HHS must follow the lead of other federal regulators in mandating cybersecurity best practices necessary to protect the healthcare sector from further, devastating, easily-preventable cyberattacks,” Wyden argued. The Democratic senator proposed several measures to enhance cybersecurity in the healthcare sector, including:
  • Mandatory Minimum Standards: Establish mandatory cybersecurity standards, including MFA, for critical healthcare infrastructure.
  • Rapid Recovery Capabilities: Ensure that organizations can rebuild their IT infrastructure within 48 to 72 hours following an attack.
  • Regular Audits: Conduct regular audits of healthcare organizations to assess and improve their cybersecurity practices.
  • Technical Assistance: Provide technical security support to healthcare providers.
Wyden criticized HHS for its current insufficient regulatory oversight, which he believes contributes to the ongoing cyberattacks harming patients and national security. “The current epidemic of successful cyberattacks against the health care sector is a direct result of HHS’s failure to appropriately regulate and oversee this industry, harming patients, providers, and our national security,” Wyden said. He urged HHS to use all of its authorities to protect U.S. healthcare providers and patients from mounting cybersecurity risks.

The State of Ransomware in Healthcare

The healthcare sector was the most common ransomware target among all critical infrastructure sectors, according to FBI’s Internet Crime Report 2023. The number of attacks and individuals impacted have grown exponentially over the last three years. [caption id="attachment_75474" align="aligncenter" width="1024"]Healthcare ransomware attacks Ransomware attacks on healthcare in last three years. (Source: Emsisoft)[/caption]
“In 2023, 46 hospital systems with a total of 141 hospitals were impacted by ransomware, and at least 32 of the 46 had information, including protected health information, stolen.” - Emsisoft
A study from McGlave, Neprash, and Nikpay from the University of Minnesota School of Public Health found that in a five-year period starting in 2016, ransomware attacks likely killed between 42 and 67 Medicare patients. Their study further observed a decrease in hospital volume and services by 17-25% during the week following a ransomware attack that not only hit revenue but also increased in-hospital mortality among patients who were already admitted at the time of attack.

HHS Cybersecurity Response

HHS announced in December plans to update its cybersecurity regulations for the healthcare sector for the first time in 21 years. These updates would include voluntary cybersecurity performance goals and efforts to improve accountability and coordination. The Healthcare and Public Health Sector Coordinating Council also unveiled a five-year Health Industry Cybersecurity Strategic Plan in April, which recommends 10 cybersecurity goals to be implemented by 2029. Wyden acknowledged and credited the latest reform initiatives from HHS and the HSCC, but remains concerned about the lengthy implementation timeline, which he said requires urgency when it comes to the healthcare sector. The latest letter follows Wyden’s request last week to the SEC and FTC to investigate for any negligence in cybersecurity practices of UnitedHealth Group. HHS is currently investigating the potential UHG breach that resulted in the exposure of protected health information of hundreds of thousands of Americans.

Romanian Charged for Fraud Carried Out Through Card Skimming

Romanian Charged for Fraud Carried Out Through Card Skimming

A Romanian citizen has been charged with identity theft and bank fraud, which he conducted using card skimming at several large retail stores in Puerto Rico, the U.S. Attorney's Office said Tuesday. The accused, Vlad Terebes, was extradited on May 31 from the United Kingdom to Puerto Rico to face multiple charges related to identity theft and bank fraud. A federal grand jury indicted Terebes on September 21, 2023, with a 12-count indictment including conspiracy to commit identity theft, aggravated identity theft, conspiracy to commit access device trafficking in counterfeit access devices, trafficking in device-making equipment, and bank fraud. [caption id="attachment_75138" align="aligncenter" width="296"]Vlad Terebes, card skimming, card skimmers Vlad Terebes (source: PR Informa)[/caption]

Data of More Than 1,200 Customers Stolen

According to court documents, Terebes and his co-conspirators installed illicit card skimming equipment at various large retail stores in Manatí, Canóvanas, Caguas, and Carolina, Puerto Rico. The skimming equipment was used to steal credit and debit card information from unsuspecting customers. In a five-day period beginning March 8, 2022, Terebes and his co-conspirators collected the card numbers, names, and personally identifying information of approximately 1,215 customers, the Justice Department said. The scammers attempted to withdraw around $20,421 from these customers' bank accounts, but whether they were successful remains unclear. A local news agency in Puerto Rico, at the time, said the alleged group of hackers also installed card skimmers at Walmart stores and later fled the island. [caption id="attachment_75112" align="aligncenter" width="320"]card skimmers One of the Card Skimmers allegedly installed by Vlad Terebes and his co-conspirators (source: PR Informa)[/caption] One of them, identified as Terebes by the U.S. Secret Service, took a flight to Ft. Lauderdale, a preliminary investigation revealed. [caption id="attachment_75115" align="aligncenter" width="320"]card skimmers gang Vlad Terebes and his co-conspirators in Puerto Rico (source: PR Informa)[/caption] Terebes and his co-conspirators are allegedly all from Europe and ran a racket of stealing credit and debit card data to sell it on the underground market or the dark web. Terebes was arrested on February 2, 2024, in the UK at the request of U.S. law enforcement. Terebes was presented in federal court on June 3 before U.S. Magistrate Judge Marcos López of the District of Puerto Rico. López ordered detention of Terebes. If convicted, Terebes faces a maximum penalty of 30 years in prison, plus a mandatory consecutive sentence of at least two years for each aggravated identity theft charge. The final sentence will be determined by a federal district court judge, who will consider the U.S. Sentencing Guidelines and other statutory factors. "Financial fraud is one of the largest challenges facing American citizens and businesses today. Prevention and prosecution of crimes of this nature will remain a top priority for the U.S. Attorney’s Office, and we will not be deterred by individuals who attempt to flee from prosecution. In coordination with the Justice Department’s Office of International Affairs, we remain committed to the arrest and extradition of those who commit crimes in Puerto Rico," said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.

The Card Skimming Menace

Skimming involves installation of illegal hardware devices at ATMs, point-of-sale (POS) terminals, or fuel pumps. This hardware equipment captures data or records cardholders’ PINs based on its functionality. Criminals further use this data to create fake debit or credit cards and steal victims’ funds. [caption id="attachment_75111" align="aligncenter" width="612"]ATM Skimming, Card Skimmers, card skimming Source: FBI[/caption] The FBI estimates that card skimming costs financial institutions and consumers more than $1 billion each year. 2023 saw a significant increase in compromised cards resulting from skimming activity, according to a report from business analytics company FICO. Total number of compromised debit cards were up 96% from 2022, with more than 315,000 impacted cards identified. [caption id="attachment_75123" align="aligncenter" width="990"]Card skimmers, card skimming Source: FICO[/caption] Although the card skimming activities have seen a sharp rise, law enforcement has also stepped up its game cracking down these criminals. In February, the U.S. arrested five individuals for engaging in ATM skimming schemes involving theft of account information and PIN numbers. “The five defendants allegedly illegally obtained financial information using hidden devices implanted in ATMs to create counterfeit debit cards and steal thousands of dollars from over 600 unsuspecting victims,“ said FBI Assistant Director-in-Charge Smith. “The defendants' concerted efforts to conceal this fraudulent activity allowed the scam to plague the community for almost a year, highlighting the pervasive nature of criminal financial schemes.“

Australian Privacy Watchdog Files Lawsuit Against Medibank Over 2022 Data Breach

Lawsuit against Medibank, Medibank, Medibank Data Breach, Medibank Data Breach 2022

The Australian privacy watchdog on Wednesday filed a lawsuit against Medibank, the country's largest private health insurer, for failing to protect its 9.7 million customers' personal information in a 2022 data breach incident.

The Australian Information Commissioner said in a civil penalty proceedings filed in the Federal Court that Medibank "seriously interfered" with the privacy of Australians by failing to take reasonable steps to protect their data from misuse and unauthorized access. These issues are allegedly in breach of the country's Privacy Act 1988, according to the OAIC.

The legal actions follow an investigation from the Australian Information Commissioner Angelene Falk into the Medibank cyberattack in which threat actors accessed the personal information of millions of current and former Medibank customers. The personally identifiable data that was stolen in this breach also ended up being published on the dark web. “The release of personal information on the dark web exposed a large number of Australians to the likelihood of serious harm, including potential emotional distress and the material risk of identity theft, extortion and financial crime,” said acting Australian Information Commissioner Elizabeth Tydd. Tydd emphasized that Medibank’s business as a health insurance services provider involves collecting and holding customers’ personal and sensitive health information.
“We allege Medibank failed to take reasonable steps to protect personal information it held given its size, resources, the nature and volume of the sensitive and personal information it handled, and the risk of serious harm for an individual in the case of a breach,” Tydd said. “We consider Medibank’s conduct resulted in a serious interference with the privacy of a very large number of individuals.”
Privacy Commissioner Carly Kind put the responsibility of data security and privacy on the organizations that collect, use and store personal information. These orgnizations have a considerable responsibility to ensure that data is held safely and securely, particularly in the case of sensitive data, she said. “This case should serve as a wakeup call to Australian organizations to invest in their digital defenses,” Kind added.

Aim and Findings of OAIC's Medibank Data Breach Investigation

OAIC commenced the investigation into Medibank’s privacy practices in December 2022 following an October data breach of Medibank and its subsidiary ahm. The investigation focused on whether Medibank's actions constituted a privacy interference or breached Australian Privacy Principle (APP) 11.1. This law enforcement mandates organizations to take reasonable steps in the protection of information from misuse, interference, and unauthorized access. The OAIC's findings suggested that Medibank's measures were insufficient given the circumstances. Under section 13G of the Privacy Act, the Commissioner can apply for a civil penalty order for serious or repeated privacy interferences. For the period from March 2021 to October 2022, the Federal Court can impose a civil penalty of up to AU$2.2 million (approximately US$1.48 million) per violation.

A spokesperson for the health insurer did not detail the plan of action against the lawsuit but told The Cyber Express that ”Medibank intends to defend the proceedings.”

Set Aside Millions to Fix the Issues

Australia's banking regulator last year advised Medibank to set aside AU$250 million (approximately US$167 million) in extra capital to fix the weaknesses identified in its information security after the 2022 data breach incident. The Australian Prudential and Regulation Authority (APRA) said at the time that the capital adjustment would remain in place until an agreed remediation programe was completed by Medibank to the regulator's satisfaction. Medibank told investors and customers that it had sufficient existing capital to meet this adjustment. APRA also said it would conduct a technology review of Medibank that would expedite the remediation process for the health insurer. It did not immediately respond to The Cyber Express' request for an update on this matter.

Medibank Hacker Sanctioned and Arrested

The United States, Australia and the United Kingdom earlier in the year sanctioned a Russian man the governments believed was behind the 2022 Medibank hack. 33-year-old Aleksandr Gennadievich Ermakov, having aliases AlexanderErmakov, GustaveDore, aiiis_ermak, blade_runner and JimJones, was said to be the face behind the screen. Post the sanctions, Russian police arrested three men including Ermakov, on charges of violating Article 273 of the country's criminal code, which prohibits creating, using or disseminating harmful computer code, said Russian cybersecurity firm F.A.C.C.T. Extradition of Ermakov in the current political environment seems highly unlikely. The legal action against Medibank serves a critical reminder for organizations to prioritize data security and adhere to privacy regulations. The outcome of this lawsuit will likely influence how Australian entities manage and protect personal information in the future, reinforcing the need for stringent cybersecurity practices in an evolving digital landscape. “Organizations have an ethical as well as legal duty to protect the personal information they are entrusted with and a responsibility to keep it safe,” Kind said.

London Hospitals Report Service Disruption from Synnovis Ransomware Attack

Synnovis Ransomware

Several major hospitals in London have faced service disruptions following a ransomware attack on a third-party responsible for providing pathology services. As a result, the Synnovis ransomware attack has been assigned a critical incident emergency status by the authorities. On Monday, a ransomware attack targeted Synnovis, a company offering pathology services such as blood tests for transfusions to various healthcare organizations. A spokesperson for NHS England London confirmed the incident, stating that the hospital network was currently disconnected from Synnovis IT servers.

Synnovis Ransomware Attack Has 'Significant Impact'

The Synnovis ransomware attack was having a "significant impact" on the delivery of services at Guy’s and St Thomas’ hospitals, King’s College Hospital NHS Foundation Trusts, and primary care services in southeast London, the spokesperson added.
"The immediate impact was reported on patients using NHS services within the two partner hospitals, as well as GP services across Bexley, Greenwich, Lewisham, Bromley, Southwark and Lambeth boroughs."
Royal Brompton and Harefield hospitals, renowned heart and lung centers in the UK, have also reportedly been impacted. As a result of the attack, some appointments have been canceled and patients redirected with short notice, placing additional strain on other hospitals.
"We are currently experiencing disruption to our pathology services, particularly blood tests."
"This is following a cyber attack affecting our pathology service provider Synnovis," said the NHS statement. "Very regrettably we have had to cancel some procedures and operations. We apologise unreservedly to all patients who are affected." The disruption in the blood transfusion IT system poses a risk to trauma cases, with only urgent blood components being transfused when critically necessary for patients. Efforts are underway by the Department of Health and Social Care, NHS England, and the National Cyber Security Centre to address the cyber incident and support affected organizations while prioritizing patient safety. The uncertainty surrounding the duration of the disruption raises concerns about resource availability and potential further critical incidents. The attack follows a similar one that hit NHS services in Scotland in March.

CEO's Statement on Synnovis Ransomware Attack

Mark Dollar, the CEO of Synnovis, acknowledged the severity of the situation, emphasizing the collaborative efforts between IT experts from Synnovis and the NHS to assess the extent of the damage and implement necessary measures. Patient care has been disrupted, leading to some activities being canceled or redirected to alternative providers to prioritize urgent needs, Dollar said.
"It is still early days and we are trying to understand exactly what has happened."
A taskforce of IT experts from Synnovis and the NHS is working to fully assess the impact this has had, and to take the appropriate action needed. We are working closely with NHS Trust partners to minimise the impact on patients and other service users."
"Regrettably this is affecting patients, with some activity already cancelled or redirected to other providers as urgent work is prioritised."
"We are incredibly sorry for the inconvenience and upset this is causing to patients, service users and anyone else affected. We are doing our best to minimise the impact and will stay in touch with local NHS services to keep people up to date with developments," Dollar added. Synnovis has invested heavily in ensuring that IT arrangements are of the highest order of safety but Dollar, citing the ransomware attack, said, "This is a harsh reminder that this sort of attack can happen to anyone at any time and that, dispiritingly, the individuals behind it have no scruples about who their actions might affect." As the healthcare sector continues to navigate the evolving landscape of cyber threats, stakeholders must remain vigilant, prioritize cybersecurity protocols, and collaborate to fortify defenses against ransomware attacks. Safeguarding patient data and preserving the trust of individuals relying on healthcare services are critical imperatives in the ongoing battle against cybercrime in the healthcare industry.

The Threat of Espionage on Linux Systems is Growing and Can’t be Ignored

Linux

Security companies have historically focused on espionage incidents related to Windows systems. This has led to them overlooking similar threats on Linux platforms, even though attacks on Linux servers are increasing with each passing day. As valuable data in sectors such as scientific research, technology and education are often hosted on Linux systems, heightened security measures to safeguard them is becoming a critical need. Researchers at QiAnXin Threat Intelligence Center have been monitoring Linux server attacks by unknown threat groups in a campaign called "Operation Veles." Of these, groups like UTG-Q-008 and UTG-Q-009 have caused significant damage, the researchers said.

Threat Group Successfully Targets Linux Systems

UTG-Q-008 specifically targets Linux systems using a vast botnet network for espionage in the research and education sectors. This group displays remarkable strength and endurance, with active domain names for more than ten years and sophisticated attack methods. The targets of UTG-Q-008 include over 5,000 network segments totaling more than 17 million IP addresses, mainly from the CN CER (China Education and Research) network. They also focus on advanced biological genetics and RNA immunotherapy research in China and the United States. UTG-Q-008 has access to abundant network resources, using new servers for each operation to execute attacks in a four-hour window beginning at midnight. These attacks involve short-lived shells, making traditional indicators of compromise ineffective. The group uses distributed SYN scans to identify open ports and conducts brute-force attempts to crack root passwords of various servers, including research servers, with minimal detection. Many organizations have moved away from using default SSH ports on their Linux servers situated at the network perimeter. As a result, the initial action by UTG-Q-008 involves leveraging the extensive network capabilities of botnets for executing distributed SYN scans. The researchers further detailed that they measured the frequency of SYN scans per individual IP address, estimating an average of 25-35 scans per second.

Emergence of Botnets in Linux Server Domains

The botnet resources are concentrated in China and the United States and include web servers, monitoring systems, and botnet nodes like Perlbot and Mirai, utilized for reconnaissance, brute-forcing, vulnerability exploitation, and Trojan delivery. The involvement of botnets in espionage activities is not uncommon, the researchers said, but the extent of their participation that matters. For example, in 2024, the Moobot botnet provided network proxies to APT28 for spear-phishing email delivery. In 2019, Lazarus utilized the TrickBot botnet to distribute exclusive malware for attack activities. However, based on a-year-long analysis of UTG-Q-008, researchers believe that the botnet behind this threat group is directly involved in espionage activities, based on its technical capabilities.

Linux Threat Group Achieves 'Impressive Results'

In their long-term engagement, researchers for the first time observed targeted attacks in which a direct involvement of a botnet was seen for espionage. The scale and quality of the affected entities has been impressive. In previous APT cases, achieving such "impressive results" in the Linux server domain would not be possible without a few 0-day vulnerabilities, the researchers said. UTG-Q-008's tools are stored on springboard servers in tar format, with the primary payload being Nanobot, similar to Perlbot. The group employs internal network scanners and lateral movement tools to compromise servers within internal networks. UTG-Q-008 deploys espionage plugins to collect sensitive data and installs "xmrig" cryptocurrency mining on compromised servers to conceal their activities after gaining initial access. The group operates primarily during standard working hours but has also been observed engaging in late-night activities possibly located in Eastern Europe. While UTG-Q-006 targets Windows devices, there is some overlap in operations and shared activity with UTG-Q-008, but the exact relationship between the groups is unclear. The emergence of UTG-Q-008 as a sophisticated threat that targets Linux-based systems shows the importance of enhancing security measures to protect critical research and development sectors from espionage activities. Strengthening defenses against such threats is essential to safeguard national technological advancements.

State-Sponsored Hackers Likely Accessed Employee Emails in British Columbia Government Network Cyberattack

British Columbia Government

A recent series of cyberattacks observed on the British Columbia government networks from state hackers may have compromised the personal information of its employees, authorities said. Shannon Salter, head of the B.C. Public Service, on Monday, provided an update on a recent cyber investigation. She disclosed that hackers, who attacked government networks in April "may have" accessed 22 email inboxes of provincial employees. Among these, a few inboxes contained sensitive personal information on 19 individuals, primarily consisting of employee personnel files. Salter confirmed that individuals potentially impacted by the breach have been notified. As a precaution, they will be offered credit monitoring and identity protection services. Despite the potential access, there has been no identified misuse of the information or evidence indicating that specific files were accessed by the threat actor. The investigation so far has not found hackers accessing any sensitive information collected by the government in the delivery of public services. Additionally, officials clarified that the cyberattack was not a ransomware attack and appears to have been carried out by a state or state-sponsored actor. Public Safety Minister Mike Farnworth reiterated Salter's comments and told reporters in a press briefing:
"At this time, we have no indication that the general public's information was accessed."
Farnworth did not reveal which ministry employees' emails were accessed by the hackers but said no cabinet members were affected as "these were [only] employee files."

British Columbia Cyberattacks Timeline

Initial Detection and Investigation
- April 10: The B.C. government detected potential cyberattack. - April 11: Government security experts confirmed the cyberattack after initiating an investigation.
Federal Involvement and Expert Consultation
- The incident was reported to the Canadian Centre for Cyber Security, which then engaged Microsoft's Diagnostics and Recovery Toolset (DaRT) due to the attack's sophistication. - April 17: Premier David Eby was briefed on the cyberattack.
Continued Threat and Security Measures
- April 29: Evidence of another hacking attempt by the same “threat actor” was discovered. - Same day, provincial employees were instructed to immediately change their passwords to 14 characters. The Office of the Chief Information Officer (OCIO) described this as part of routine security updates, though it was likely linked to the cyberattack.
Third Attempt and Final Disclosure
- May 6: Another cyberattack was identified, with the same threat actor responsible for all three incidents. - May 8: After briefing the B.C. NDP cabinet on May 8, the cybersecurity centre concurred that the public could be notified, leading to the eventual public announcement of the cyberattacks. The cyberattacks were not disclosed to the public until late evening on May 8, and was eventually announced during an ice hockey game, leading to accusations from B.C. United MLAs that the government was trying to conceal the attack. Opposition MLA Todd Stone questioned the delay in public disclosure, asking, “How much sensitive personal information was compromised, and why did the premier wait eight days to issue a discreet statement during a Canucks game to disclose this very serious breach to British Columbians?” Salter explained, at the time, that the cybersecurity centre advised against immediate public disclosure to prevent other hackers from exploiting vulnerabilities in government networks. Throughout these incidents, the government emphasized that the ongoing nature of the investigation required careful management of information to ensure system security and prevent further exploits.

Is Beijing Involved?

Although the sophistication of this hacking campaign made clear that it is likely a work of a state or state-sponsored hackers, authorities have remained tight-lipped and not attributed these cyberattacks to any particular country. The latest updates in the B.C. cyberattack, however, came on the same day that the Canadian Centre for Cyber Security warned of China's increased targeting of Canadian citizens and its organizations through the scale and scope of its cyber operations. The Cyber Centre said China’s cyber operations surpass other nation-state cyber threats in terms of volume, sophistication, and breadth of targeting. China’s cyber threat actors have targeted a wide range of sectors in Canada, including all levels of government, critical infrastructure, and the Canadian research and development sector. The Cyber Centre said the government networks have been compromised multiple times by Chinese actors, who still frequently attempt reconnaissance against these networks. Government entities at all levels, including federal, provincial, territorial, municipal, and indigenous are the prime targets of Chinese actors, and thus, should be aware of the espionage risk.

China Increasingly Targeting Canadians with Cyber Operations

China Increasingly Targeting Canadians with Cyber Operations

China is increasingly targeting Canadian citizens and organizations through the scale and scope of its cyber operations, warned the Canadian Centre for Cyber Security (Cyber Centre) in a cyber threat bulletin issued Monday. The Cyber Centre said China's cyber operations surpass other nation-state cyber threats in terms of volume, sophistication, and breadth of targeting. China's cyber threat actors have targeted a wide range of sectors in Canada, including all levels of government, critical infrastructure, and the Canadian research and development sector.
“The threat from China [to Canadian organizations] is very likely the most significant by volume, capability, and assessed intent. China-sponsored cyber threat actors will very likely continue targeting industries and technologies in Canada that contribute to the state’s strategic priorities.”
- Canada's National Cyber Threat Assessment 2023-2024

China Increasingly Targeting Canadians through Cyberespionage

Chinese cyber threat actors often operate under the directives of PRC intelligence services, targeting information that aligns with the national policy objectives of Beijing. This includes economic and diplomatic intelligence relevant to the PRC-Canada bilateral relationship and technologies prioritized in PRC's central planning, Canada said. Government of Canada networks have been compromised multiple times by Chinese actors, the Cyber Centre said. With all known compromises addressed, Chinese cyber threat actors still frequently conduct reconnaissance against federal networks, and other government organizations should be aware of the espionage risk. Last month, British Columbia, the westernmost province in Canada, reported facing multiple “sophisticated cybersecurity incidents” on government networks. Public Safety Minister and Solicitor General Mike Farnworth later told reporters that an unnamed state actor made three attempts to breach B.C. government networks. Chinese threat actors also target large datasets containing personal information for bulk data analysis and profiling, the Cyber Centre warned. Online services often collect personal information from their users to function. When personal information is exposed through data breaches or willingly released by the user, it can be used by cyber threat actors to facilitate identity theft or targeted fraud against the user. Cyber threat actors can collect financial details and social information, information on habits, health, and home security, and location and travel data. The targets include:
  • Government entities at all levels, including federal, provincial, territorial, municipal, and Indigenous.
  • Organizations or individuals in close partnership with government entities.
  • Universities, labs, and technology companies involved in research and development of PRC-prioritized technologies.
  • Individuals or organizations perceived as threats by the PRC, especially those advocating for Taiwan and Hong Kong independence and Chinese democracy.
[caption id="attachment_74511" align="aligncenter" width="1024"]Cyberespionage, China Increasingly Targeting Canadians Source: Canadian National Threat Assessment Report 2023-24[/caption]

Elections, Critical Infrastructure Targeted

Canada recently revealed unsuccessful Chinese attempts to interfere in past elections too. Beijing has refuted these allegations but the Canadian Security Intelligence Service (CSIS) in an annual report warned of ongoing Chinese interference in Canadian political affairs, risking democratic integrity.
“Canada’s strong democratic institutions, advanced economy, innovative research sectors, and leading academic institutions make Canada an attractive target for cyber-enabled espionage, sabotage, and foreign influenced activities, all of which pose significant threats to Canada’s national security,” the report said.
The report identified China as a state-based threat conducting widespread cyberespionage across various sectors, including government, academia, private industry, and civil society organizations. The Cyber Centre also shares concerns with the U.S. about PRC cyber threat groups pre-positioning network access for potential attacks on North American critical infrastructure in case of conflict in the Indo-Pacific.
"The Cyber Centre assesses that the direct threat to Canada’s critical infrastructure from PRC state-sponsored actors is likely lower than that to U.S. infrastructure, but should U.S. infrastructure be disrupted, Canada would likely be affected as well due to interoperability and interdependence in the sectors of greatest concern."
Sectors of greatest concern include energy, telecommunications, and transportation. However, the prelude to the attacks on the provincial government networks also saw the targeting of the healthcare sector in the country, which makes it a cause of concern too. The first of the attacks in this sector was on the retail and pharmacy chain London Drugs, followed by a cyberattack on the First Nations Health Authority (FNHA), which compromised its employee information and limited personal data.

Threat Tactics Detailed

PRC cyber threat actors are known for several sophisticated techniques, the report said:
  • Co-opting compromised small office and home office (SOHO) routers to conduct activity and avoid detection.
  • Using built-in network administration tools for malicious activity, blending into normal system traffic.
  • Compromising trusted service providers to access client information or networks.
  • Rapidly weaponizing and proliferating exploits for newly revealed vulnerabilities, posing a continuous risk.

Mitigating the Chinese Threat

The Cyber Centre advises the Canadian cybersecurity community, especially provincial, territorial, and municipal governments, to enhance their awareness and protection against PRC cyber threats. Recommended measures include:
  1. Isolate Critical Infrastructure: Isolate critical components and services from the Internet and internal networks and test manual controls for operational continuity.
  2. Increase Vigilance: Monitor networks for tactics, techniques, and procedures (TTPs) reported by the Cyber Centre and partners. Focus on identifying and assessing unusual network behavior.
  3. Restrict Movement: Pay attention to vulnerable entry points, such as third-party systems. Disable remote access from third-party systems during incidents.
  4. Enhance Security Posture: Patch systems focusing on vulnerabilities identified by the U.S. Cybersecurity and Infrastructure Security Agency. Enable logging, deploy network and endpoint monitoring, and implement multi-factor authentication. Create and test offline backups.
  5. Incident Response Plan: Have a cyber incident response plan and continuity of operations and communications plans ready and tested.
By adopting these measures, organizations can better defend against and mitigate PRC cyber threats, the report said.

Hugging Face Discloses Unauthorized Access to Spaces Platform

Hugging Face, Hugging Face AI

Hackers penetrated artificial intelligence (AI) company Hugging Face's platform to access its user secrets, the company revealed in a blog post. The Google and Amazon-funded Hugging Face detected unauthorized access to its Spaces platform, which is a hosting service for showcasing AI/machine learning (ML) applications and collaborative model development. In short, the platform allows users to create, host, and share AI and ML applications, as well as discover AI apps made by others.

Hugging Face Hack Exploited Tokens

Hugging Face suspects that a subset of Spaces' secrets may have been accessed without authorization. In response to this security event, the company revoked several HF tokens present in those secrets and notified affected users via email.
"We recommend you refresh any key or token and consider switching your HF tokens to fine-grained access tokens which are the new default," Hugging Face said.
The company has not disclosed the number of users impacted by the incident, which remains under investigation. Hugging Face said it has made "significant" improvements to tighten Spaces' security in the past few days, including org tokens that offer better traceability and audit capabilities, implementing key management service, and expanding its systems' ability to identify leaked tokens and invalidate them. It is also investigating the breach with external cybersecurity experts and reported the incident to law enforcement and data protection agencies.

Growing Threats Against AI-as-a-Service Providers

Risks faced by AI-as-a-service (AIaaS) providers like Hugging Face are increasing rapidly, as the explosive growth of this sector makes them a lucrative target for attackers who seek to exploit the platforms for malicious purposes. In early April, cloud security firm Wiz detailed two security issues in Hugging Face that could allow adversaries to gain cross-tenant access and poison AI/ML models by taking over the continuous integration and continuous deployment (CI/CD) pipelines. “If a malicious actor were to compromise Hugging Face's platform, they could potentially gain access to private AI models, datasets and critical applications, leading to widespread damage and potential supply chain risk," Wiz said in a report detailing the threat. One of the security issues that the Wiz researchers identified was related to the Hugging Face Spaces platform. Wiz found that an attacker could execute arbitrary code during application build time, enabling them to scrutinize network connections from their machine. Its examination revealed a connection to a shared container registry that housed images belonging to other customers, which the researchers could manipulate. Previous research by HiddenLayer identified flaws in the Hugging Face Safetensors conversion service, which could enable attackers to hijack AI models submitted by users and stage supply chain attacks. Hugging Face also confirmed in December that it fixed critical API flaws that were reported by Lasso Security. Hugging Face said it is actively addressing these security concerns and continues to investigate the recent unauthorized access to ensure the safety and integrity of its platform and users.

Hacker Links Ticketmaster and Santander Data Leaks to Snowflake Breach

Snowflake Breach

A threat actor has reportedly taken responsibility for recent data breaches involving Ticketmaster and Santander Bank, claiming they stole data after hacking an employee account at Snowflake, a third-party cloud storage company. Snowflake, however, has shot down these breach claims, attributing the breaches to poor credential hygiene in customer accounts instead.
"To date, we do not believe this activity is caused by any vulnerability, misconfiguration, or malicious activity within the Snowflake product," the cloud storage giant said in a statement today.
Snowflake's AI Data Cloud platform serves more than 9,000 customers, including major companies such as Adobe, AT&T, Capital One, DoorDash, HP, JetBlue, Mastercard, Micron, NBC Universal, Nielsen, Novartis, Okta, PepsiCo, Siemens, US Foods, Western Union, and Yamaha, among others.

Alleged Snowflake Breach Details

According to cybersecurity firm Hudson Rock, the threat actor claims to have accessed data from additional high-profile companies using Snowflake's services, including Anheuser-Busch, State Farm, Mitsubishi, Progressive, Neiman Marcus, Allstate, and Advance Auto Parts. The method described involved bypassing Okta's authentication by using stolen credentials to log into a Snowflake employee's ServiceNow account. From there, they allegedly generated session tokens to extract data from Snowflake customers. Hudson Rock reported that the threat actor claimed the breach affected up to 400 companies, showing evidence of access to over 2,000 customer instances related to Snowflake's Europe servers.

Extortion Attempt and Malware Involvement

The threat actor claimed to have attempted to extort Snowflake for $20 million to buy back the stolen data, but Snowflake did not respond. Hudson Rock noted that a Snowflake employee was infected with a Lumma-type Infostealer in October, which stole their corporate credentials. The malware infection was supported by screenshots shared by the threat actor.

Snowflake Responds

Snowflake has confirmed breaches of customer accounts but denied that any vulnerability or misconfiguration in its products was exploited. The cloud storage company stated that they observed unauthorized access to certain customer accounts , which they said is likely unrelated to any flaws in Snowflake's infrastructure.
"We believe this is the result of ongoing industry-wide, identity-based attacks with the intent to obtain customer data. Research indicates that these types of attacks are performed with our customers’ user credentials that were exposed through unrelated cyber threat activity.
Snowflake has notified the "limited" number of customers about these attacks and urged them to enhance their account security by enabling multi-factor authentication (MFA).

Tools and Indicators of Compromise

The company published a security bulletin containing Indicators of Compromise (IoCs), investigative queries, and guidance for securing affected accounts. One IoC indicates that the threat actors used a custom tool named "RapeFlake" to exfiltrate data from Snowflake's databases. Another showed the use of "DBeaver Ultimate" data management tools, with logs indicating connections from the "DBeaver_DBeaverUltimate" user agent. Snowflake also shared query to identify access from suspected clients and how to disable a suspected user. But this might not be enough. A very important step here is: "If you have enabled the ALLOW_ID_TOKEN parameter on your account, the user must be left in the disabled state for 6 hours to fully invalidate any possible unauthorized access via this ID token feature.  If the user is re-enabled before this time the attacker may be able to generate a new session using an existing ID token, even after the password has been reset or MFA has been enabled." While a threat actor claims to have breached Snowflake and accessed data from numerous high-profile companies, Snowflake maintains that these breaches resulted from compromised customer accounts rather than any inherent vulnerabilities in their systems. Snowflake continues to investigate the incidents and has taken steps to improve customer account security.

Andariel APT Using DoraRAT and Nestdoor Malware to Spy on South Korean Businesses

Andariel APT, Remote Access Trojan, RAT, North Korea

Researchers have uncovered new attacks by a North Korean advanced persistent threat actor – Andariel APT group – targeting Korean corporations and other organizations. The victims include educational institutions and companies in the manufacturing and construction sectors. The attackers employed keyloggers, infostealers, and proxy tools alongside backdoors to control and extract data from compromised systems, said researchers at the AhnLab Security Intelligence Center (ASEC). The malware used in these attacks includes strains previously attributed to the Andariel APT group, including the backdoor "Nestdoor." Additional tools include web shells and proxy tools linked to the North Korean Lazarus group that now contain modifications compared to earlier versions. Researchers first observed a confirmed attack case where a malware was distributed via a web server running an outdated 2013 version of Apache Tomcat, which is vulnerable to various attacks. "The threat actor used the web server to install backdoors, proxy tools, etc.," the researchers said. [caption id="attachment_73866" align="aligncenter" width="1000"]Andariel APT Apache Tomcat compromised to spread malware by Andariel APT. (Credit: Ahnlab)[/caption]

Malware Used by Andariel APT in this Campaign

The first of the two malware strains used in the latest campaign was Nestdoor, a remote access trojan (RAT) that has been active since May 2022. This RAT can execute commands from the threat actor to control infected systems. Nestdoor has been found in numerous Andariel attacks, including those exploiting the VMware Horizon product’s Log4Shell vulnerability (CVE-2021-44228). The malware is developed in C++ and features capabilities such as file upload/download, reverse shell, command execution, keylogging, clipboard logging, and proxy functionalities. A specific case in 2022 involved Nestdoor being distributed alongside TigerRAT using the same command and control (C&C) server. Another incident in early 2024 saw Nestdoor disguised as an OpenVPN installer. This version maintained persistence via the Task Scheduler and communicated with a C&C server. The Andariel APT has been developing new malware strains in the Go language for each campaign. Dora RAT, a recent discovery is one such malware strain. The backdoor malware supports reverse shell and file transfer operations and exists in two forms: a standalone executable and an injected process within "explorer.exe." The latter variant uses an executable in WinRAR SFX format, which includes an injector malware. The Dora RAT has been signed with a valid certificate from a UK software developer in an attempt to make it look legitimate.

Additional Malware Strains

  • Keylogger/Cliplogger: Performs basic functions like logging keystrokes and clipboard contents, stored in the “%TEMP%” directory.
  • Stealer: It is designed to exfiltrate files from the system, potentially handling large quantities of data.
  • Proxy: Includes both custom-created proxy tools and open-source Socks5 proxy tools. Some proxies are similar to those used by the Lazarus group in past attacks.
The Andariel group, part of the larger Lazarus umbrella, has shifted from targeting national security information to also pursuing financial gains. Last month, the South Korean National Police Agency revealed a targeted campaign of the Andariel APT aimed at stealing the country’s defense technology. Andariel APT hackers gained access to defense industry data by compromising an employee account, which was used in maintaining servers of a defense industry partner. The hackers injected malicious code into the partner’s servers around October 2022, and extracted stored defense technology data. This breach exploited a loophole in how employees used their personal and professional email accounts for official system access. Andariel APT's initial attack methodology primarily includes spear phishing, watering hole attacks, and exploiting software vulnerabilities. Users should remain cautious with email attachments from unknown sources and executable files from websites. Security administrators are advised to keep software patched and updated, including operating systems and browsers, to mitigate the risk of malware infections, the researchers recommended.

IoCs to Watch for Signs of Andariel APT Attacks

IoCs to monitor for attacks from Andariel APT group include: MD5s – 7416ea48102e2715c87edd49ddbd1526: Nestdoor – Recent attack case (nest.exe) – a2aefb7ab6c644aa8eeb482e27b2dbc4: Nestdoor – TigerRAT attack case (psfile.exe) – e7fd7f48fbf5635a04e302af50dfb651: Nestdoor – OpenVPN attack case (openvpnsvc.exe) – 33b2b5b7c830c34c688cf6ced287e5be: Nestdoor launcher (FirewallAPI.dll) – 4bc571925a80d4ae4aab1e8900bf753c: Dora RAT dropper (spsvc.exe) – 951e9fcd048b919516693b25c13a9ef2: Dora RAT dropper (emaupdate.exe) – fee610058c417b6c4b3054935b7e2730: Dora RAT injector (version.dll) – afc5a07d6e438880cea63920277ed270: Dora RAT injector (version.dll) – d92a317ef4d60dc491082a2fe6eb7a70: Dora RAT (emaupdate.exe) – 5df3c3e1f423f1cce5bf75f067d1d05c: Dora RAT (msload.exe) – 094f9a757c6dbd6030bc6dae3f8feab3: Dora RAT (emagent.exe) – 468c369893d6fc6614d24ea89e149e80: Keylogger/Cliplogger (conhosts.exe) – 5e00df548f2dcf7a808f1337f443f3d9: Stealer (msload.exe) C&Cs – 45.58.159[.]237:443: Nestdoor – Recent attack case – 4.246.149[.]227:1443: Nestdoor – TigerRAT attack case – 209.127.19[.]223:443: Nestdoor – OpenVPN attack case – kmobile.bestunif[.]com:443 – Dora RAT – 206.72.205[.]117:443 – Dora RAT

Researchers Uncover New Data Theft Campaign of Advanced Threat Actor ‘LilacSquid’

Researchers Uncover New Data Theft Campaign of Advanced Threat Actor 'LilacSquid'

Researchers discovered a new data theft campaign, active since at least 2021, attributed to an advanced persistent threat (APT) actor dubbed "LilacSquid." This campaign, observed by researchers at Cisco Talos, targets a diverse set of industries, including IT organizations in the United States, energy companies in Europe, and pharmaceutical firms in Asia. This broad victimology suggests that LilacSquid is agnostic to industry verticals, aiming to steal data from various sectors.

Use of Open-Source Tools and Customized Malware

The campaign from LilacSquid employs MeshAgent, an open-source remote management tool and a customized version of QuasarRAT that researchers refer as "PurpleInk," as primary implants after compromising vulnerable application servers exposed to the internet. LilacSquid exploits public-facing application server vulnerabilities and compromised remote desktop protocol (RDP) credentials to deploy a range of open-source tools and customized malware, including MeshAgent, SSF, PurpleInk, and loaders InkBox and InkLoader.

LilacSquid's Long-Term Access for Data Theft through Persistence

Talos assessed with high confidence that LilacSquid has been active since at least 2021, focusing on establishing long-term access to compromised organizations to siphon valuable data to attacker-controlled servers. The campaign has successfully compromised entities in Asia, Europe, and the United States across various sectors such as pharmaceuticals, oil and gas, and technology. LilacSquid uses two primary infection chains: exploiting vulnerable web applications and using compromised RDP credentials. [caption id="attachment_73284" align="aligncenter" width="1024"]LilacSquid LilacSquid Initial Access and Activity. (Credit: Cisco Talos)[/caption] Once a system is compromised through exploiting vulnerabilities on internet facing devices, LilacSquid deploys multiple access tools, including MeshAgent, SSF, InkLoader, and PurpleInk. [caption id="attachment_73286" align="aligncenter" width="1024"]LilacSquid, RDP LilacSquid's Lateral Movement via RDP. (Credit: Cisco Talos)[/caption] MeshAgent, downloaded using bitsadmin utility, connects to its command and control (C2) server, conducts reconnaissance, and activates other implants. On the other hand InkLoader, a .NET-based malware loader, is used when RDP credentials are compromised. It persists across reboots and executes PurpleInk, with the infection chain tailored for remote desktop sessions.

PurpleInk Implant of LilacSquid

PurpleInk, derived from QuasarRAT, has been customized extensively since 2021.
"Although QuasarRAT has been available to threat actors since at least 2014, we observed PurpleInk being actively developed starting in 2021 and continuing to evolve its functionalities separate from its parent malware family."
It features robust remote access capabilities, including process enumeration, file manipulation, system information gathering, remote shell access, and proxy server communication. Different variants of PurpleInk exhibit varying functionalities, with some stripped-down versions retaining core capabilities to evade detection. InkBox, an older loader used by LilacSquid, reads from a hardcoded file path on disk, decrypts its contents, and runs PurpleInk. Since 2023, LilacSquid has modularized the infection chain, with PurpleInk running as a separate process via InkLoader. [caption id="attachment_73282" align="aligncenter" width="1024"]LilacSquid, PurpleInk PurpleInk Activation Chain (Credit: Cisco Talos)[/caption] Post-exploitation, MeshAgent activates other tools like SSF and PurpleInk. MeshAgent, configured with MSH files, allows operators to control infected devices extensively, managing files, viewing and controlling desktops, and gathering device information.

Parallels with North Korean APT Groups

The tactics, techniques, and procedures (TTPs) used in this campaign show similarities to those of North Korean APT groups, such as Andariel and Lazarus. Andariel is known for using MeshAgent to maintain post-compromise access, while Lazarus extensively employs SOCKs proxy and tunneling tools, along with custom malware, to create channels for secondary access and data exfiltration. LilacSquid has similarly deployed SSF and other malware to establish tunnels to their remote servers. The LilacSquid campaign highlights the persistent and evolving threat posed by sophisticated APT actors. By leveraging a combination of open-source tools and customized malware, LilacSquid successfully infiltrates and maintains long-term access to diverse organizations worldwide. IoCs to detect LilacSquid's PurpleInk infection:

PurpleInk: 2eb9c6722139e821c2fe8314b356880be70f3d19d8d2ba530adc9f466ffc67d8

Network IOCs 

67[.]213[.]221[.]6 192[.]145[.]127[.]190 45[.]9[.]251[.]14 199[.]229[.]250[.]142

7 New Pegasus Infections Found on Media and Activists’ Devices in the EU

Pegasus Spyware, NSO Group, Spyware

Seven Russian and Belarusian-speaking independent journalists and opposition activists based in Europe were targeted or infected with NSO Group’s proprietary Pegasus spyware. A joint investigation by Citizen Lab and Access Now detailed incidents from August 2020 to January 2023 and concluded that a single NSO Group customer might be responsible for at least five of these cases.

Threats Against Critics of Russian and Belarusian Regimes

In September 2023, Citizen Lab and Access Now reported the hacking of exiled Russian journalist Galina Timchenko, CEO and publisher of Meduza, with Pegasus spyware. Building on these findings, the investigation, in collaboration with digital security expert Nikolai Kvantiliani, now reveals the targeting of seven additional Russian and Belarusian-speaking civil society members and journalists. Many of these individuals, living in exile, have vocally criticized the Russian government, including its invasion of Ukraine, and have faced severe threats from Russian and Belarusian state security services. Critics of the Russian and Belarusian governments typically face intense retaliation, including surveillance, detention, violence, and hacking. The repression has escalated following Russia’s 2022 invasion of Ukraine, with laws severely curtailing the operations of media and civil society organizations. An example of this is the Russian government designating the Munk School of Global Affairs & Public Policy at the University of Toronto, home to the Citizen Lab, as an “Undesirable Organization,” in March 2024. Many opposition activists and independent media groups have relocated abroad to continue their work. Despite the geographic distance, these exiled communities face ongoing threats, including violent attacks, surveillance, and digital risks. For instance, Meduza reported a significant Distributed Denial of Service (DDoS) attack on their website during Russia’s 2024 presidential elections.

Investigation Confirmed Pegasus Spyware Targeting

The investigation confirmed that the following individuals were targeted or infected with Pegasus spyware. Their names are published with their consent. [caption id="attachment_73182" align="aligncenter" width="1532"]Pegasus Spyware, New Pegasus Spyware Infections, Latest Pegasus Spyware Infections Table Showing Individuals Identified in the Latest Pegasus Spyware Infections (Credit: Citizen Lab)[/caption] Access Now and Citizen Lab confirmed that five victims' phones had Apple IDs used by Pegasus operators in hacking attempts. Exploits leveraging bugs in HomeKit can leave the attacker's Apple ID email address on the victim's device. Citizen Lab believes each Apple ID is tied to a single Pegasus operator, although one operator may use multiple IDs. The same Apple ID was found on the phones of Pavlov, Radzina, and a second anonymous victim. A different email account targeted both Erlikh and Pavlov’s phones on November 28, 2022. Artifacts from Andrei Sannikov and Natallia Radzina’s phones contained another identical email. This indicates that a single Pegasus spyware operator may have targeted at least three of the victims, possibly all five. [caption id="attachment_73184" align="aligncenter" width="1024"]Pegasus Spyware Credit: Citizen Lab[/caption] The investigators could not attribute the attacks to a specific operator but certain trends pointed to Estonia’s involvement. Based on previous investigation, Poland, Russia, Belarus, Lithuania, and Latvia are all known to be customers of the NSO Group’s spyware, but the likeliness of their involvement is low as they do not target victims outside their borders, the investigators said. Estonia, however, is known to use Pegasus extensively beyond its borders, including in multiple European countries.

Concerns Over Digital Transnational Repression

This pattern of targeting raises serious concerns about the legality and proportionality of such actions under international human rights law. The attacks occurred in Europe, where the targeted individuals sought safety, prompting questions about host states’ obligations to prevent and respond to these human rights violations. The ongoing investigation highlights the persistent threats faced by exiled Russian and Belarusian journalists and activists. As digital transnational repression continues, it underscores the urgent need for robust international measures to protect freedom of expression and privacy for these vulnerable groups.
“Access Now [urged] governments to establish an immediate moratorium on the export, sale, transfer, servicing, and use of targeted digital surveillance technologies until rigorous human rights safeguards are put in place to regulate such practices, and to ban the use of spyware technologies such as Pegasus that have a history of enabling human rights abuses.”
Apple recently issued notifications to users in more than 90 countries alerting them of possible mercenary spyware attacks. The tech giant replaced the term "state-sponsored" in its alerts with "mercenary spyware attacks," drawing global attention. Previously, Apple used "state-sponsored" for malware threats, but now it highlights threats from hacker groups. Apple noted that while these attacks were historically linked to state actors and private entities like the NSO Group’s Pegasus, the new term covers a broader range of threats.

Operation Endgame – Largest Ever Operation Against Multiple Botnets Used to Deliver Ransomware

Operation Endgame

In a joint international law enforcement action dubbed “Operation Endgame,” the agencies and judicial authorities dismantled major botnet infrastructure, targeting notorious malware droppers like IcedID, SystemBC, Pikabot, Smokeloader, Bumblebee and TrickBot. In a Thursday announcement Europol said that between May 27 and 29, Operation Endgame led to four arrests and the takedown of over 100 servers worldwide.
“This is the largest ever operation against botnets, which play a major role in the deployment of ransomware,” Europol said.
Botnets are used for different types of cybercrime including ransomware, identity theft, credit card scams, and several other financial crimes. “The dismantled botnets consisted of millions of infected computer systems,” a joint press statement from the Operation Endgame team said. Led by France, Germany, and the Netherlands, and supported by Eurojust, the operation involved countries including Denmark, the United Kingdom, the United States, Armenia, Bulgaria, Lithuania, Portugal, Romania, Switzerland, and Ukraine. Operation Endgame resulted in:
  • 4 arrests - 1 in Armenia and 3 in Ukraine.
  • 16 location searches - 1 in Armenia, 1 in the Netherlands, 3 in Portugal, and 11 in Ukraine.
  • Over 100 servers dismantled or disrupted in countries such as Bulgaria, Canada, Germany, Lithuania, the Netherlands, Romania, Switzerland, the UK, the US, and Ukraine.
  • Over 2,000 domains seized and brought under law enforcement control.
  • 8 summons were also served against other suspects.

Targeting the Cybercrime Infrastructure

Operation Endgame focused on high-value targets, their criminal infrastructure behind various malware and the freezing of illicit proceeds. “The malware, whose infrastructure was taken down during the action days, facilitated attacks with ransomware and other malicious software,” according to Europol. One primary suspect, the Europol said, earned at least €69 million in cryptocurrency by renting out sites for ransomware deployment. Authorities are closely monitoring these transactions and have secured permissions to seize the assets. The infrastructure and financial seizures had a global impact on the dropper ecosystem, the authorities believe.

Key Dropper Malware Dismantled in Operation Endgame

- SystemBC: Facilitated anonymous communication between infected systems and command-and-control servers. - Bumblebee: Delivered via phishing campaigns or compromised websites, enabling further payload execution. - Smokeloader: Used primarily to download and install additional malicious software. - IcedID (BokBot): Evolved from a banking trojan to a multi-purpose tool for various cybercrimes. - Pikabot: Enabled ransomware deployment, remote takeovers, and data theft through initial system access.
“All of them are now being used to deploy ransomware and are seen as the main threat in the infection chain,” Europol said.
[caption id="attachment_72953" align="aligncenter" width="1920"]Operation Endgame Operation Endgame seizure notice (Credit: Europol)[/caption]

The Role of Dropper Malware in Cyberattacks

Droppers are essential tools in cyberattacks, acting as the initial vector to bypass security and install harmful software such as ransomware and spyware. They facilitate further malicious activities by enabling the deployment of additional malware on compromised systems.

How Droppers Operate

  1. Infiltration: Enter systems through email attachments, compromised websites, or bundled with legitimate software.
  2. Execution: Install additional malware on the victim's computer without the user's knowledge.
  3. Evasion: Avoid detection by security software through methods like code obfuscation and running in memory.
  4. Payload Delivery: Deploy additional malware, potentially becoming inactive or removing itself to evade detection.
The success of the operation was bolstered by private partners such as Bitdefender, Sekoia, Shadowserver, Proofpoint, and Fox-IT, among others. Their support was crucial in disrupting the criminal networks and infrastructure, the authorities said.

Wait for Operation Endgame Season 2

Operation Endgame signifies a major victory, but this is not really the end of it. Taking cue from the Marvel cinematic movie ‘Avengers – Endgame,’ the law enforcement is set to to release a part two of this operation in a few hours from now as they said their efforts continue.
“This is Season 1 of operation Endgame. Stay tuned. It sure will be exciting. Maybe not for everyone though. Some results can be found here, others will come to you in different and unexpected ways,” the authorities said.
“Feel free to get in touch, you might need us. Surely, we could both benefit from an openhearted dialogue. You would not be the first one, nor will you be the last. Think about (y)our next move.” Future actions will be announced on the Operation Endgame website, possibly targeting suspects and users, and ensuring accountability. The news of this massive botnet takedown operation comes a day after the announcement of the dismantling of “likely the world’s largest botnet ever” – the 911 S5 botnet. The botnet’s alleged administrator Yunhe Wang, was arrested last week and a subsequent seizure of infrastructure and assets was announced by the FBI. The recent law enforcement actions represent a historic milestone in combating cybercrime, dealing a significant blow to the dropper malware ecosystem that supports ransomware and other malicious activities. The operation's success underscores the importance of international cooperation and the need for robust cybersecurity measures to tackle evolving threats.

911 S5 Botnet — Likely the World’s Largest Botnet Ever, Dismantled

911 S5, Botnet

The FBI, in collaboration with international partners, has successfully dismantled the 911 S5 botnet's massive network that infected over 19 million IP addresses across 200 countries and facilitated several cybercriminal activities, including cyberattacks, financial frauds, identity theft, and child exploitation. In addition to the infrastructural takedown of the 911 S5 botnet, Chinese national YunHe Wang, the alleged administrator of the botnet, was also arrested on May 24, U.S. Attorney General Merrick Garland said in a Wednesday press briefing.
“Working with our international partners, the FBI conducted a joint, sequenced cyber operation to dismantle the 911 S5 Botnet—likely the world’s largest botnet ever,” said FBI Director Christopher Wray.
“We arrested its administrator, Yunhe Wang, seized infrastructure and assets, and levied sanctions against Wang and his co-conspirators,” Wray added. Wang and two of his associates, along with three Thailand-based businesses linked to the botnet, were sanctioned by the U.S. Treasury Department on Tuesday. Wang faces up to 65 years in prison on charges that include computer fraud, wire fraud, and money laundering.

911 S5 Botnet Operations

Beginning in 2014, Wang allegedly developed and distributed malware that compromised millions of Windows operating systems worldwide, including over 600,000 IP addresses in the U.S. Wang allegedly spread malware through malicious VPN programs like MaskVPN and DewVPN, as well as through pirated software bundled with malware. Wang managed and controlled approximately 150 dedicated servers worldwide.
“Using the dedicated servers, Wang was able to deploy and manage applications, command and control the infected devices, operate his 911 S5 service and provide to paying customers access to the proxied IP addresses associated with the infected devices,” Wang's indictment said.
The residential proxy service that Wang developed and operated allowed subscribers to access the more than 19 million compromised IP addresses, which helped them mask their online activities. This service generated approximately $99 million for Wang. The 911 S5 botnet facilitated a range of cybercrimes, including cyberattacks, large-scale fraud, child exploitation, harassment, bomb threats, and export violations, Garland said. One such example is that of customers using the botnet's services for fraudulently filing 560,000 unemployment insurance claims that resulted in a confirmed loss of $5.9 billion from federal pandemic relief programs. In another instance, the 911 S5 botnet customers used the service to file more than 47,000 Economic Injury Disaster Loan applications, which again resulted in the loss of millions of dollars.

Infrastructure and Assets Seized

Authorities seized 23 internet domains and more than 70 servers, which formed the core of the 911 S5 botnet and its successor services. This action effectively shut down the botnet and prevented Wang from reconstituting the service under a new name, Clourouter.io. The U.S. Department of Justice emphasized that this seizure closed existing malicious backdoors used by the botnet. Wang allegedly used the proceeds from the botnet to purchase properties across the globe, including the U.S., China, Singapore, Thailand, the United Arab Emirates, and St. Kitts and Nevis, where he also holds a citizenship. Authorities have moved to forfeit his assets, which include 21 properties and a collection of luxury cars such as a Ferrari F8, several BMWs, and a Rolls Royce.

Investigation Triggered by Ecommerce Incident

The investigation into the 911 S5 botnet was initiated following a probe into more than 2,000 fraudulent orders placed with stolen credit cards on ShopMyExchange, an e-commerce platform linked to the Army and Air Force Exchange Service. The perpetrators in Ghana and the U.S. were found to be using IP addresses acquired from 911 S5.
“Although approximately 2,525 fraudulent orders valued at $5.5 million were submitted, credit card fraud detection systems and federal investigators were able to thwart the bulk of the attempted purchases, reducing the actual loss to approximately $254,000,“ the Justice Department said.
The latest takedown is part of a broader effort of the Justice Department to combat nation-state hacking and international cybercrime. At the beginning of the year, the Justice Department dismantled botnets linked to the China-affiliated hacking group Volt Typhoon, followed by the disruption of botnet controlled by the Russian APT28 group associated with the Russian military intelligence, the GRU. Google-owned cybersecurity firm Mandiant also warned last week that Chinese state hackers are increasingly using vast proxy server networks, built from compromised online devices and virtual private servers, to evade detection during their cyberespionage campaigns. Garland highlighted the global collaboration in this operation, underscoring the Justice Department's commitment to disrupting cybercrime networks that pose a significant threat to individuals and national security. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

U.S. Treasury Sanctions Chinese Nationals Behind Billion-Dollar 911 S5 Botnet Fraud

911 S5 Botnet, Botnet, US Treasury Department, Treasury Sanction, Fraud

The U.S. Treasury Department sanctioned three Chinese nationals on Tuesday for their alleged involvement in operating the 911 S5 proxy botnet widely used for fraudulent activities, including credit card theft and Coronavirus Aid, Relief, and Economic Security program frauds. The sanctions are aimed at curbing the operations linked to the botnet, which caused major financial losses amounting to "billions" of dollars to the U.S. government.

The Rise and Demise of 911 S5 Botnet

The botnet in question played a critical role in executing numerous fraudulent schemes through stolen residential IP addresses.
"The 911 S5 botnet compromised approximately 19 million IP addresses and facilitated the submission of tens of thousands of fraudulent applications related to the Coronavirus Aid, Relief, and Economic Security Act programs by its users, resulting in the loss of billions of dollars to the U.S. government."
911 S5 is a residential proxy botnet that allows its paying users, often cybercriminals, to select the IP addresses they can use to connect to the internet using intermediary, internet-connected computers that have been compromised without the computer owners’ knowledge. 911 S5 essentially enables cybercriminals to conceal their originating location, effectively defeating fraud detection systems, the U.S. Treasury explained. The 911 S5 botnet was also implicated in a series of bomb threats made in July 2022, according to the Treasury. Investigators found links of IP addresses within the proxy botnet network being used in this incident. The network was connected to 911 S5, a residential proxy service that allowed users to mask their IP addresses by routing their web activity through compromised devices. The 911 S5 service went offline in July 2022, following a purported hacking incident that damaged essential data. The disruption was reported by independent journalist Brian Krebs. Despite its shutdown, the impacts of its previous operations continued to reverberate, leading to the current sanctions.

The Individuals and Businesses Sanctioned

The sanctioned individuals include Yunhe Wang, allegedly the administrator of the botnet; Jingping Liu, accused of laundering proceeds for Wang; and Yanni Zheng, who reportedly acted as power of attorney for Wang and facilitated business transactions on his behalf through the company Spicy Code Company Limited. The men are believed to reside in Singapore and Thailand, countries that were acknowledged as partners in the sanctions announcement. Three businesses registered in Thailand were also sanctioned for their connections to Wang. These sanctions require that any property and interests owned by the three men within the U.S. be reported to the Treasury, and prohibit U.S. citizens or residents from engaging in business with them. Only these three individuals and the businesses implicated in their fraudulent schemes were sanctioned by the Treasury, but no indictments or legal actions were revealed by the U.S. Department of Justice (DOJ), as is the case in many other instances.

Broader Ongoing Cybersecurity Concerns

The sanctions against these individuals are part of a broader effort by the U.S. government to address cybersecurity threats linked to state-sponsored hacking groups. Google-owned cybersecurity firm Mandiant warned last week that Chinese state hackers are increasingly using vast proxy server networks, built from compromised online devices and virtual private servers, to evade detection during their cyberespionage campaigns. In January, the DOJ announced the takedown of a botnet associated with Volt Typhoon, a hacking group with ties to the Chinese government. This group was known for infecting home and office routers with malware to obscure its hacking activities. The concerted actions by U.S. authorities and private defenders highlight the ongoing challenges and complexities in combating cybercrime and protecting critical financial and infrastructural systems from sophisticated malicious actors. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

North Korean Threat Actor Deploying New FakePenny Ransomware: Microsoft

Fakepenny ransomware, Moonstone Sleet, North Korea

Microsoft has uncovered a new “FakePenny” ransomware variant being deployed by a North Korean threat actor to target organizations in the software, information technology, education and defense industrial base sectors for both espionage and monetary gains. The threat actor, which Microsoft tracks as Moonstone Sleet, was first observed delivering a new custom ransomware variant in April, to an undisclosed company whose networks it compromised a couple of months earlier. The ransomware is straightforward and contains a loader and an encryptor module. North Korean threat actor groups have previously developed such custom ransomware, but “this is the first time we have observed this threat actor deploying ransomware,” the tech giant said.
“Microsoft assesses that Moonstone Sleet’s objective in deploying the ransomware is financial gain, suggesting the actor conducts cyber operations for both intelligence collection and revenue generation.”
FakePenny ransomware demands exorbitant ransoms, with recent demands reaching $6.6 million in Bitcoin. “This is in stark contrast to the lower ransom demands of previous North Korea ransomware attacks, like WannaCry 2.0 and H0lyGh0st,” Microsoft said. Notably, the ransom note used by FakePenny ransomware closely resembles the one employed in the infamous NotPetya ransomware attack, which is attributed to the North Korean group Seashell Blizzard. This continuity in tactics highlights the interconnected nature of North Korean cyber operations.

Moonstone Sleet’s Strategy and Tradecraft

Moonstone Sleet has a diverse set of operations supporting its financial and espionage objectives. This group has been observed creating fake companies, employing trojanized versions of legitimate tools, and even developing malicious games to infiltrate targets. Their ability to conduct concurrent operations and quickly evolve and adapt their techniques is notable. The threat actor, as noted earlier, has several different tradecrafts under its belt. In early August 2023, Moonstone Sleet delivered a compromised version of PuTTY, an open-source terminal emulator, through platforms like LinkedIn, Telegram, and freelancing websites. The trojanized software decrypted and executed the embedded malware when the user provided an IP and password mentioned in a text document contained in the malicious Zip file that the threat actor sent. The same technique was used by another North Korean actor Diamond Sleet. Moonstone Sleet has also targeted victims using malicious “npm” packages distributed through freelancing sites and social media. These packages often masqueraded as technical assessments, lead to additional malware downloads when executed. Since February 2024, Moonstone Sleet has also taken a different approach by using a malicious game called DeTankWar to infect devices. The group approached targets posing as a game developer or fake company, presenting the game as a blockchain project. Upon launching the game, additional malicious DLLs were loaded, executing a custom malware loader known as “YouieLoad.” This loader performs network and user discovery and browser data collection.

Fake Companies and Work-for-Hire Schemes

Since January 2024, Moonstone Sleet has created several fake companies, including StarGlow Ventures and C.C. Waterfall, to deceive targets. These companies posed as software development and IT service firms, often related to blockchain and AI, to establish trust and gain access to organizations. Moonstone Sleet has also pursued employment opportunities in legitimate companies, which is consistent with reports of North Korea using remote IT workers to generate revenue. Recently, U.S. charged North Korean job fraud nexus that was amassing funds to support its nuclear program. The nexus scammed more than 300 U.S. companies and accumulated at least $6.8 million. This employment tactic could also provide another avenue for gaining unauthorized access to organizations. Moonstone Sleet’s notable attacks include compromising a defense technology company to steal credentials and intellectual property and deploying ransomware against a drone technology firm.
“Despite being new, Moonstone Sleet has demonstrated that it will continue to mature, develop, and evolve, and has positioned itself to be a preeminent threat actor conducting sophisticated attacks on behalf of the North Korean regime.”

Defending Against Moonstone Sleet

To defend against Moonstone Sleet, Microsoft recommends endpoint detection and response (EDR), implementing attack surface reduction rules to block executable content from email clients and webmail, preventing executable files from running unless they meet specific criteria, use advanced protection against ransomware, and block credential stealing from LSASS. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

OpenAI Announces Safety and Security Committee Amid New AI Model Development

OpenAI Announces Safety and Security Committee

OpenAI announced a new safety and security committee as it begins training a new AI model intended to replace the GPT-4 system that currently powers its ChatGPT chatbot. The San Francisco-based startup announced the formation of the committee in a blog post on Tuesday, highlighting its role in advising the board on crucial safety and security decisions related to OpenAI’s projects and operations. The creation of the committee comes amid ongoing debates about AI safety at OpenAI. The company faced scrutiny after Jan Leike, a researcher, resigned, criticizing OpenAI for prioritizing product development over safety. Following this, co-founder and chief scientist Ilya Sutskever also resigned, leading to the disbandment of the "superalignment" team that he and Leike co-led, which was focused on addressing AI risks. Despite these controversies, OpenAI emphasized that its AI models are industry leaders in both capability and safety. The company expressed openness to robust debate during this critical period.

OpenAI's Safety and Security Committee Composition and Responsibilities

The safety committee comprises company insiders, including OpenAI CEO Sam Altman, Chairman Bret Taylor, and four OpenAI technical and policy experts. It also features board members Adam D’Angelo, CEO of Quora, and Nicole Seligman, a former general counsel for Sony.
"A first task of the Safety and Security Committee will be to evaluate and further develop OpenAI’s processes and safeguards over the next 90 days." 
The committee's initial task is to evaluate and further develop OpenAI’s existing processes and safeguards. They are expected to make recommendations to the board within 90 days. OpenAI has committed to publicly releasing the recommendations it adopts in a manner that aligns with safety and security considerations. The establishment of the safety and security committee is a significant step by OpenAI to address concerns about AI safety and maintain its leadership in AI innovation. By integrating a diverse group of experts and stakeholders into the decision-making process, OpenAI aims to ensure that safety and security remain paramount as it continues to develop cutting-edge AI technologies.

Development of the New AI Model

OpenAI also announced that it has recently started training a new AI model, described as a "frontier model." These frontier models represent the most advanced AI systems, capable of generating text, images, video, and human-like conversations based on extensive datasets. The company also recently launched its newest flagship model GPT-4o ('o' stands for omni), which is a multilingual, multimodal generative pre-trained transformer designed by OpenAI. It was announced by OpenAI CTO Mira Murati during a live-streamed demo on May 13 and released the same day. GPT-4o is free, but with a usage limit that is five times higher for ChatGPT Plus subscribers. GPT-4o has a context window supporting up to 128,000 tokens, which helps it maintain coherence over longer conversations or documents, making it suitable for detailed analysis. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

Anatsa Banking Trojan Found in PDF and QR Code Reader Apps on Google Play Store

Anatsa Banking Trojan, Banking Trojan, Malware

Researchers have observed a significant increase in attempts to spread the Anatsa Banking Trojan under the veil of legitimate-looking PDF and QR code reader apps on the Google Play store. Also known as TeaBot, the malware employs dropper applications that appear harmless to users, deceiving them into unwittingly installing the malicious payload, said researchers at cybersecurity firm Zscaler. Once installed, Anatsa extracts sensitive banking credentials and financial information from various global financial applications. It achieves this through overlay and accessibility techniques, allowing it to discreetly intercept and collect data.

Distribution and Impact of Anatsa Banking Trojan

Two malicious payloads linked to Anatsa were found in the Google Play store, distributed by threat actors. The campaign impersonated PDF reader and QR code reader applications to attract numerous installations. The high number of installations, which had surpassed 70,000 at the time of analysis, further convinced victims of the applications' legitimacy. Anatsa employs remote payloads retrieved from Command and Control (C&C) servers to perform additional malicious activities. The dropper application contains encoded links to remote servers, from which the subsequent stage payload is downloaded. Along with the payload, the malware fetches a configuration file from the remote server to execute the next stage of the attack.

Anatsa Infection Steps

The Anatsa banking trojan works by employing a dropper application and executing a payload to launch its malicious activities. Dropper Application:
  • The fake QR code application downloads and loads the DEX file.
  • The application uses reflection to invoke code from the loaded DEX file.
  • Configuration for loading the DEX file is downloaded from the C&C server.
Payload Execution:
  • After downloading the next stage payload, Anatsa performs checks on the device environment to detect analysis environments and malware sandboxes.
  • Upon successful verification, it downloads the third and final stage payload from the remote server.
Malicious Activities:
  • The malware injects uncompressed raw manifest data into the APK, deliberately corrupting the compression parameters in the manifest file to hinder analysis.
  • Upon execution, the malware decodes all encoded strings, including those for C&C communication.
  • It connects with the C&C server to register the infected device and retrieve a list of targeted applications for code injections.
Data Theft:
  • After receiving a list of package names for financial applications, Anatsa scans the device for these applications.
  • If a targeted application is found, Anatsa communicates this to the C&C server.
  • The C&C server then supplies a counterfeit login page for the banking operation.
  • This fake login page, displayed within a JavaScript Interface (JSI) enabled web view, tricks users into entering their banking credentials, which are then transmitted back to the C&C server.
[caption id="attachment_71735" align="aligncenter" width="1038"]Anatsa Banking Trojan Attack Chain Anatsa Banking Trojan Attack Chain (Source: Zscaler)[/caption] The Anatsa banking trojan is increasing in prevalence and infiltrates the Google Play store disguised as benign applications. Using advanced techniques such as overlay and accessibility, it stealthily exfiltrates sensitive banking credentials and financial data. By injecting malicious payloads and employing deceptive login pages, Anatsa poses a significant threat to mobile banking security.

Best Practices to Stop the Anatsa Trojan

To protect against such threats, Cyble's Research and Intelligence Labs suggests following essential cybersecurity best practices:
  • Install Software from Official Sources: Only download software from official app stores like the Google Play Store or the iOS App Store.
  • Use Reputable Security Software: Ensure devices, including PCs, laptops, and mobile devices, use reputable antivirus and internet security software.
  • Strong Passwords and Multi-Factor Authentication: Use strong passwords and enable multi-factor authentication whenever possible.
  • Be Cautious with Links: Be careful when opening links received via SMS or emails.
  • Enable Google Play Protect: Always have Google Play Protect enabled on Android devices.
  • Monitor App Permissions: Be wary of permissions granted to applications.
  • Regular Updates: Keep devices, operating systems, and applications up to date.
By adhering to these practices, users can establish a robust first line of defense against malware and other cyber threats, Cyble researchers said. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

Cencora Data Breach Far More Widespread than Earlier Thought

Cencora data breach

The impact of the Cencora data breach is far more widespread than earlier thought as more than a dozen pharmaceutical giants including Novartis and GlaxoSmithKline disclose personal and health information data leaks stemming from the February breach incident. Cencora Inc., formerly recognized as AmerisourceBergen, and its Lash Group affiliate announced in a February filing with the Securities and Exchange Commission (SEC) that the company faced a cybersecurity incident where “data from its information systems had been exfiltrated.” Cencora is a major pharmacy company with over 46,000 employees and approximately $262.2 billion in revenue in 2023. Based in Pennsylvania, it operates in around 50 countries globally. The popular American drug wholesaler did not disclose the extent of the data breach in its February SEC filing but did confirm at the time that some of the data exfiltrated in the attack could contain personal information. Last week, however, Cencora and The Lash Group clients began notifying state Attorneys General about a data breach that stemmed from the February cybersecurity incident at Cencora. At least 15 pharmaceutical companies reported that the personal data of hundreds of thousands of individuals were compromised. Notifications identified the following affected companies:
  • AbbVie Inc.
  • Acadia Pharmaceuticals Inc.
  • Bayer Corporation
  • Bristol Myers Squibb Company and Bristol Myers Squibb Patient Assistance Foundation
  • Dendreon Pharmaceuticals LLC
  • Endo Pharmaceuticals Inc.
  • Genentech, Inc.
  • GlaxoSmithKline Group of Companies and the GlaxoSmithKline Patient Access Programs Foundation
  • Incyte Corporation
  • Marathon Pharmaceuticals, LLC/PTC Therapeutics, Inc.
  • Novartis Pharmaceuticals Corporation
  • Pharming Healthcare, Inc.
  • Regeneron Pharmaceuticals, Inc.
  • Sumitomo Pharma America, Inc. / Sunovion Pharmaceuticals Inc.
  • Tolmar
State Attorneys General often announce data breaches without specifying the number of affected people but AG’s office in Texas does disclose the number impacting the state residents. Based on these partial numbers, at least 542,000 individuals seem to be impacted from the Cencora data breach, till date. The Cyber Express reached out to Cencora for confirming the total number of individuals impacted to understand the full extent of the data breach but did not receive any communication till the time of publishing the article.

Cyber Forensic Findings from the Cencora Data Breach

Cencora detected the cyberattack on February 21, and took immediate action to contain and prevent further unauthorized access. Based on the investigation that likely concluded in April, Cencora said personal information including first name, last name, address, date of birth, health diagnosis, and medications and prescriptions was compromised in the attack. AmerisourceBergen Specialty Group (ABSG), a unit of Cencora, said Friday the breach involved data of a prescription supply program run by the now defunct subsidiary, Medical Initiatives Inc. Further details on how the supply program was exploited remain unclear. U.S. has been rocked by a host of cybersecurity breaches linked to the healthcare industry in recent days. While Change Healthcare cyberattack was one of the most notable ones, the Medstar and Ascension breaches have displayed the vulnerability of the healthcare sector to cyberattacks. The latest in the list of healthcare data breaches is the Sav-Rx data breach that compromised the health data of more than 2.8 million people. Cencora’s investigation, however, found no connection with other major healthcare cyberattacks and, in its notifications, said they were unaware of any actual or attempted misuse of the stolen data. The company said it has not seen any public disclosure of the stolen data, till date. The affected individuals have been offered 24 months of credit monitoring and identity theft remediation services at no cost and steps have also been taken to harden defenses to prevent such security breaches in the future. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

Russian Hackers Use Legit Remote Monitoring Software to Spy on Ukraine and Allies

Remote Monitoring, RMM

Russian hackers were found using legitimate remote monitoring and management software to spy on Ukraine and its allies. The malicious scripts required for downloading and running the RMM program on the victims’ computers are hidden among the legitimate Python code of the “Minesweeper” game from Microsoft. The Government Computer Emergency Response Team of Ukraine (CERT-UA), operating under the State Special Communications Service, warned that Russian cybercriminals are using the legitimate SuperOps RMM software program to gain unauthorized access to Ukrainian organizations’ information systems, particularly those in the financial sector. The Cyber Security Center of the National Bank of Ukraine (CSIRT-NBU) and CERT-UA recorded and analyzed phishing emails sent to victims with a Dropbox link containing an executable file (.SCR) that was about 33 megabytes in size. The emails were sent from the address “support@patient-docs-mail.com,” which impersonated a medical center and had the subject line “Personal Web Archive of Medical Documents.” The .SCR file contained a Python clone of the Minesweeper game along with malicious Python code that downloads additional scripts from a remote source “anotepad.com.” The Minesweeper code contained a function named “create_license_ver” which is repurposed to decode and execute the hidden malicious code. The legitimate SuperOps RMM program is eventually downloaded and installed from a ZIP file, granting attackers remote access to the victim’s computer. The CERT-UA found five similar files, named after financial and insurance institutions in Europe and the USA, indicating that these cyberattacks, which took place between February and March 2024, have a wide geographic reach. CERT-UA tracked this threat activity to an actor it identified as UAC-0188. UAC-0118, also known as FRwL or FromRussiaWithLove, is a Russian state-aligned hacktivist threat actor group that emerged during the Russia-Ukraine war in 2022. They primarily targeted critical infrastructure, media, energy and government entities. FRwL has been previously linked to the use of the Vidar stealer and Somnia ransomware, which they employ as a data wiper rather than for financial gain. While there is no direct evidence linking FRwL to the Russian Main Intelligence Directorate, it is possible that they coordinate activities with state-aligned hacktivist groups.

Possible Defense Against Ongoing Remote Monitoring Campaign

CERT-UA recommends the following:
  • Organizations not using SuperOps RMM should verify the absence of network activity associated with the domain names: [.]superops[.]com, [.]superops[.]ai.
  • Improve employee cyber hygiene.
  • Use and constantly update anti-virus software.
  • Regularly update operating systems and software.
  • Use strong passwords and change them regularly.
  • Back up important data.

Ukrainian Financial Institutions Also on Smokeloader’s Radar

The financially motivated group UAC-0006 has actively launched phishing attacks targeting Ukraine through 2023. CERT-UA reported the resurfacing of UAC-0006 in spring 2024, with hackers attempting to distribute Smokeloader, a common malware in the group’s toolkit. This threat group’s goal has primarily been to steal credentials and execute unauthorized fund transfers, posing a significant risk to financial systems. SmokeLoader is a malicious bot application and trojan that can evade security measures to infect Windows devices. It can then install other malware, steal sensitive data and damage files, among other issues. Throughout 2023, UAC-0006 conducted several phishing campaigns against Ukraine, exploiting financial lures and using ZIP and RAR attachments to distribute Smokeloader CERT-UA last week issued another warning about a significant surge in UAC-0006 activity. Hackers have conducted at least two campaigns to distribute Smokeloader, displaying similar patterns to previous attacks. The latest operations involve emails with ZIP archives containing images that include executable files and Microsoft Access files with macros that execute PowerShell commands to download and run other executable files. After initial access, the attackers download additional malware, including TALESHOT and RMS. The botnet currently consists of several hundred infected computers. CERT-UA anticipates an increase in fraudulent operations involving remote banking systems and thus, strongly recommends enhancing the security of accountants’ automated workstations and ensuring the implementation of necessary policies and protection mechanisms to reduce infection risks. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

Sav-Rx Data Breach Potentially Compromised PII and Health Data of 2.8M Individuals

Sav-Rx Data Breach

Sav-Rx, a medication benefits management service provider, experienced a data breach incident that potentially exposed the personal and health information of more than 2.8 million individuals in the United States. Sav-Rx, operating under A&A Services, provides medication benefits management services to various health plans, which requires collecting and storing personal data from health plan participants and employees. The incident was first detected on October 8, last year, when the company identified an unauthorized access to its computer network, a breach notification to the Maine Attorney General said. Sav-Rx engaged third-party cybersecurity experts to contain and investigate the breach. The affected IT systems were restored the next business day, ensuring no disruption to patient care or prescription services. The investigation revealed that an unauthorized third party accessed non-clinical systems and obtained files containing personal and health information, such as:
  • names,
  • dates of birth,
  • social security numbers,
  • email addresses,
  • physical addresses,
  • phone numbers,
  • eligibility data, and
  • insurance identification numbers.
Clinical and financial information remained secure. The breach investigation concluded on April 30, and notifications to impacted individuals were sent out beginning May 24. Sav-Rx confirmed that the unauthorized party destroyed the acquired data and did not further disseminate it. Whether it paid a ransom in exchange of this is unclear as Sav-Rx did not immediately respond to a comment request from The Cyber Express. Although additional details about the attackers and their motive remain under wraps, Conti ransomware group had reportedly, at the time, claimed responsibility for the attack and demanded an undisclosed amount for not publishing the leaked data. To mitigate potential harm, the company offers two years of complimentary credit monitoring and identity theft protection through Equifax. Sav-Rx advises affected individuals to monitor their credit reports and account statements for signs of fraud or identity theft. Affected individuals can contact Sav-Rx's call center at 888-326-0815 for further assistance and information regarding credit monitoring services. Sav-Rx implemented enhanced security measures, including 24/7 security operations, multi-factor authentication, BitLocker encryption, new firewalls, and system hardening protocols, to prevent future incidents. The company promptly notified law enforcement authorities after detecting the breach. For more information about the incident, people can visit the FAQ page on the company’s website.

Call for Class Action Against Sav-Rx Data Breach

Considering the widespread impact where the personal and health information of 2,812,336 individuals was compromised, Abington Cole + Ellery, an Oklahoma-based law firm has initiated a class action lawsuit investigation in the Sav-Rx data breach. ACE requested victims interested in participating as a class representative in this class action against Sav-Rx to submit their details in an online form.

Ransomware Attacks on Healthcare Bleeding Billions from U.S. Economy

A recent study revealed that over the past several years, more than 500 successful ransomware attacks have impacted nearly 10,000 healthcare providers, exposing over 52 million patient records and costing the US economy $77.5 billion in downtime alone. Another study by Proofpoint and Ponemon found that 68% of respondents reported disrupted patient care due to ransomware attacks, 46% noted increased mortality rates, and 38% saw more complications in medical procedures. Additionally, ransomware attacks were linked to 42 to 67 patient deaths over five years and a 33% monthly increase in deaths among hospitalized Medicare patients. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

Chrome Fixes Fourth Zero-Day in Two Weeks, Eighth in 2024

Zero-Day, Chrome Zero-Day

Google released a new Chrome update on Thursday to fix the fourth zero-day vulnerability in two weeks and eighth overall in 2024.
The high-severity flaw, tracked as CVE-2024-5274, is rooted in a type confusion weakness within the Chrome V8 JavaScript and WebAssembly engine.
"Google is aware that an exploit for CVE-2024-5274 exists in the wild," the company said in an advisory. Google did not provide details on the bug or the exploitation but credited Clement Lecigne of Google’s Threat Analysis Group (TAG) and Brendon Tiszka of Chrome Security for reporting the flaw. There is no knowledge of any bug bounty reward for this discovery. "Successful exploitation of this vulnerability could allow for arbitrary code execution in the context of the logged on user," the Center for Internet Security explained. Depending on the privileges associated with the logged on user, an attacker could then install programs; view, change, or delete data; or create new accounts with full user rights. Users whose accounts are configured to have less rights on the system could be less impacted than those who operate with administrative user rights." Chrome vulnerabilities are often targeted by commercial spyware vendors. Google TAG researchers have previously reported several zero-days exploited by spyware vendors, including security defects in Google’s browser. CVE-2024-5274 is the fourth zero-day patched in the last 15 days, following CVE-2024-4671 (use-after-free in Visuals), CVE-2024-4761 (out-of-bounds write in V8), and CVE-2024-4947 (type confusion in V8). So far this year, Google has resolved a total of eight Chrome zero-days. Three of these, CVE-2024-2886, CVE-2024-2887, and CVE-2024-3159, were demonstrated at the Pwn2Own Vancouver 2024 hacking contest in March. Complete list of zero-days published in 2024:
  • CVE-2024-0519: Out-of-bounds memory access in V8
  • CVE-2024-2886: Use-after-free in WebCodecs (presented at Pwn2Own 2024)
  • CVE-2024-2887: Type confusion in WebAssembly (presented at Pwn2Own 2024)
  • CVE-2024-3159: Out-of-bounds memory access in V8 (presented at Pwn2Own 2024)
  • CVE-2024-4671 - Use-after-free in Visuals
  • CVE-2024-4761 - Out-of-bounds write in V8
  • CVE-2024-4947 - Type confusion in V8
The latest Chrome version has now been rolled out as 125.0.6422.112 for Linux and 125.0.6422.112/.113 for Windows and macOS. Google also released Chrome for Android versions 125.0.6422.112/.113 with the same security fixes.

Opera Rolled-Out Update to Fix Chrome Zero-Day

The current version of Opera browser is based on Chromium, the same engine that Google Chrome uses. Opera released a subsequent patch on Friday to fix the same bug.
Dear Opera Users! The latest stable release of Opera – 110.0.5130.39, incorporates a crucial 0-day fix for CVE-2024-5274, enhancing user security. This update ensures safer browsing for everyone.
Opera is available on Windows, macOS, Linux, Android and iOS. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

Courtroom Recording Platform Abused to Deliver Backdoor Implant

Courtroom recording Platform

Hackers compromised a popular courtroom recording platform used across jails and prisons around the globe, to gain full control of systems through a backdoor implanted in a software update. Justice AV Solutions (JAVS) software records events like lectures, court hearings and council meetings, with over 10,000 installations worldwide. Users can download it through the vendor's website as a Windows-based installer package. This week, the company announced it had identified a security issue with a previous version of its JAVS Viewer software. The company stated on Thursday, “Through ongoing monitoring and collaboration with cyber authorities, we identified attempts to replace our Viewer 8.3.7 software with a compromised file.” JAVS removed all versions of Viewer 8.3.7 from its website, reset all passwords and conducted a full internal audit of its systems. The company confirmed that all currently available files on the JAVS website are genuine and malware-free. It also verified that no JAVS source code, certificates, systems, or other software releases were compromised. The malicious file containing malware did not originate from JAVS or any associated third party. As a precautionary measure, the company urged users to verify any JAVS software they install is digitally signed by the company.
“Manually check for file 'fffmeg.exe': If the malicious file is found or detected, we recommend a full re-image of the PC and a reset of any credentials used by the user on that computer.”
If Viewer 8.3.7.250 is the version currently installed, but no malicious files are found, JAVS advised uninstalling the Viewer software and performing a full Anti-Virus/malware scan. “Please reset any passwords used on the affected system before upgrading to a newer version of Viewer 8,” the company recommended. Cybersecurity firm Rapid7 analyzed the issue and found that the corrupted JAVS Viewer software, which opens media and logs files, included a backdoored installer that gives attackers full access to affected systems. Based on the open-source intelligence, Rapid7 determined that the binary fffmpeg.exe is associated with the GateDoor and Rustdoor malware family. These malwares perform malicious actions such as collecting information, downloading additional files, and executing commands. RustDoor focuses on backdoor functions, but GateDoor has many loader functions. “The infrastructure used by the two malware appears to be related to a RaaS affiliate called ShadowSyndicate, and the possibility that they are cybercrime collaborators who specialize in providing infrastructure cannot be ruled out,” said S2W, the company who first observed the backdoors earlier in February. Rapid7 tracked the issue as CVE-2024-4978 and coordinated the disclosure with the U.S. Cybersecurity and Infrastructure Security Agency (CISA). Rapid7 noted that the malicious versions of the software were signed by "Vanguard Tech Limited," allegedly based in London. In its advisory, Rapid7 urged users to reimage all endpoints where the software was installed and reset credentials on web browsers and for any accounts logged into affected endpoints, both local and remote.
“Simply uninstalling the software is insufficient, as attackers may have implanted additional backdoors or malware. Re-imaging provides a clean slate,” Rapid7 advised.
The issue first surfaced on platform X (formerly Twitter) in April when a threat intelligence researcher claimed that “malware is being hosted on the official website of JAVS.” On May 10, Rapid7 responded to an alert on a client's system and traced an infection back to an installer downloaded from the JAVS website. The malicious file downloaded by the victim was no longer available on the website, and it's unclear who removed it. A few days later, researchers found a different installer file containing malware on the JAVS website, confirming the vendor site as the source of the initial infection. JAVS did not comment on the discrepancy between their findings and Rapid7's analysis. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

An ‘Unwelcome Development’ in MediSecure Data Breach Incident

MediSecure Data Breach Incident, E-Prescription, eRx

Australian cyber chief announced Friday an “unwelcome development” in the recently disclosed MediSecure data breach. A hacker claimed to possess the patient data likely siphoned during the ransomware attack and listed it for sale on a Russian hacking forum for $50,000.
“We are aware a dataset purporting to be from the MediSecure breach has been advertised for sale on a dark web marketplace, along with a sample of the data,” said Australia’s National Cyber Security Coordinator, Lieutenant General Michelle McGuinness.
She said that all federal agencies involved in the response to the data breach incident “are aware of the advertisement” and “are working with MediSecure to verify the data that has been posted online.” MediSecure, only one of the two providers of electronic prescription services to healthcare professionals in Australia, announced last week that it had fallen victim to a large-scale ransomware attack. Preliminary investigation over the weekend revealed that it was an “isolated” attack and no impact on current e-Prescriptions was observed. However, personal and health data of its customers and providers until November 2023 was likely accessed, the company confirmed. The Australian Federal Police and Australian Signals Directorate are now investigating and responding to the incident under joint standing arrangements of Operation Aquila.

The Hacker Claim and Attempted Sale

A week after the MediSecure data breach incident became public, a Russian hacking forum member claimed to have 6.5 terabytes of data including personal information of thousands of Australians, available for sale. The post on the forum read, “For sale: Database of an Australian medical prescriptions company MedSecure [sic].” It detailed the information available, including citizens' insurance numbers, phone numbers, addresses, full names, supplier and contractor information, emails, username and passwords for the MediSecure website, prescription details and IP addresses of site visitors. The forum member stated they would sell the information to only one buyer. Hacktivist tracker CyberKnow group indicated that their research suggested the forum post was likely legitimate. They noted the threat actor created this Russian hacker forum account on May 15, likely for the sole purpose of selling the stolen MediSecure data. CyberKnow group said the actor’s pivot to the new forum could also be due to the recent seizure of BreachForums. The threat actor has not posted anything else to the forum.
“It appears from the limited information that this is not a traditional ransomware extortion shakedown and it begs to wonder if there was any negotiation or extorting attempt between the threat actor and Medisecure,” CyberKnow group said.
“Australians should recognize that the cyberthreat landscape is diverse, and groups and actors can impact businesses regardless of their capability, organization, or structure,” it added. The cyber chief McGuinness warned Australians against searching for this alleged MediSecure data set. “Accessing stolen sensitive or personal information on the dark web only feeds the business model of cybercriminals,” she said. “While this is an unwelcome development, I want to again assure Australians that if individuals are at risk of serious harm through the publication of their information, then we will work with MediSecure to make sure that individuals are appropriately informed, so they may take steps to protect themselves from any further risk to their personal information.”

Hack Calls for Stricter Legislative Reforms

Earlier this week, Australian Privacy Commissioner Carly Kind accepted there are ongoing challenges in how organizations collect and protect customer data. She said, “any major data breach reinforces the reality of today’s world: there are increasing cyber threats and continual challenges to digital defenses.” Kind advised organizations to prioritize protecting individuals' personal information, review and improve their practices and only collect necessary information. She urged, “Know what information you hold. And if that information is not necessary to your business, delete it.” She also called for urgent legislative reforms to ensure all Australian organizations build the highest levels of security into their operations.
“The coverage of Australia’s privacy legislation lags behind the advancing skills of malicious cyber actors. Reform of the Privacy Act is urgent, to ensure all Australian organizations build the highest levels of security into their operations and the community’s personal information is protected to the maximum extent possible,” Kind said.
The OAIC’s office is additionally investigating whether MediSecure complied with federal laws requiring companies to notify authorities of a data breach. Media Disclaimer: This article is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

BEC and Healthcare Benefits Scammer Sentenced to 10 Years Over $4.5M Fraud

BEC, BEC Scammer

A Georgia man was sentenced to 10 years in prison after being convicted of money laundering and conspiracy in connection with a digital fraud network that included business email compromise (BEC) attacks, romance scams, and healthcare benefits frauds, the U.S. Department of Justice announced. Malachi Mullings, 31, from Sandy Springs scammed over $4.5 million from his victims and laundered the proceeds through 20 bank accounts opened in the name of a shell company, The Mullings Group LLC. The scams relied on a variety of common techniques used in BEC scams and targeted elderly individuals of a health care benefit program, private companies and romance scam victims. “In one instance, Mullings laundered $310,000 that was fraudulently diverted from a state Medicaid program and had been intended as reimbursement for a hospital,” the Justice Department said. In another instance, Mullings was able to get $260,000 from a romance scam, which he used to buy a Ferrari. The sentencing of Mullings comes after he pleaded guilty in January 2023 to one count of conspiracy to commit money laundering and seven counts of various money laundering offenses. Mullings was first charged in February 2022, along with nine others from multiple states across the country. They were all charged in connection with multiple business email compromise, money laundering and wire fraud schemes that targeted Medicare, state Medicaid programs, private health insurers, and numerous other victims, which resulted in more than $11.1 million in total losses. “These defendants defrauded numerous individuals, companies, and federal programs, resulting in millions of dollars in financial losses to vital federal programs meant to provide assistance to those in need,” said U.S. Attorney Ryan Buchanan, at the time. “Millions of American citizens rely on Medicaid, Medicare, and other health care systems for their health care needs. These subjects utilized complex financial schemes, such as BECs and money laundering, to defraud and undermine health care systems across the United States,” said Luis Quesada, who at the time was Assistant Director of the FBI’s Criminal Investigative Division.
“Elder fraud and romance fraud schemes utilized by the subjects often target our most vulnerable citizens and the FBI is committed to pursuing justice for those who were victimized by these schemes.”
Together, the fraud schemes of these 10 scammers deceived five state Medicaid programs, two Medicare Administrative Contractors, and two private health insurers, who made payments to them and their co-conspirators instead of depositing the reimbursement payments into bank accounts belonging to the hospitals.

Elder Fraud Growing: FBI Data

Elder fraud complaints increased by 14% in 2023, according to a recently released report by the FBI’s Internet Crime Complaint Center (IC3). The associated losses reported by those over the age of 60 topped at $3.4 billion, an almost 11% increase in reported losses from 2022. While tech support scams were the most widely reported kind of elder fraud, personal data breaches, confidence and romance scams, non-payment or non-delivery scams, and investment scams rounded out the top five most common types of elder fraud reported to IC3 last year. [caption id="attachment_69765" align="aligncenter" width="1400"] Source: IC3[/caption] Investment scams were the costliest elder fraud in 2023 and cost victims more than $1.2 billion in losses last year. Tech support scams, business email compromise scams, confidence and romance scams, government impersonation scams, and personal data breaches, all respectively cost victims hundreds of millions of dollars in 2023. [caption id="attachment_69767" align="aligncenter" width="1400"]BEC, Scammer, IC3, Elder Fraud, Elderly Fraud Source: IC3[/caption] On the state level, Florida ranked second in the country for the number of complaints and reported losses.
“It’s disturbing to hear the stories of financial hardship these schemes create,” said FBI Tampa Field Special Agent Rodney Crawford.
“Combatting the financial exploitation of those over 60 years of age continues to be a priority of the FBI,” said FBI Assistant Director Michael Nordwall, who leads the Bureau’s Criminal Investigative Division. “Along with our partners, we continually work to aid victims and to identify and investigate the individuals and criminal organizations that perpetrate these schemes and target the elderly.” The agency regards elderly fraud as a more insidious threat than the report shows. Many of these crimes likely go unreported, as “only about half” of the fraud scam complaints that get through to IC3 include IC3 data, the report said. Media Disclaimer: This article is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

Thousands at Risk in the U.S. from Critical GitHub Enterprise Server Flaw

GitHub Enterprise Server

Thousands of GitHub Enterprise Server (GHES) instances in the United States using SAML single sign-on (SSO) authentication are at high risk of compromise from a critical vulnerability that now has a proof-of-concept exploit available on the open internet. GitHub Enterprise Server, a self-hosted platform for software development, acts as a self-contained virtual appliance. It helps build and ship software using Git version control, powerful APIs, productivity and collaboration tools, and integrations. GHES is recommended for use in enterprises that are subject to regulatory compliance, which helps to avoid issues that arise from software development platforms in the public cloud. GitHub rolled out fixes on Monday to address a maximum severity vulnerability in the GitHub Enterprise Server that could allow an attacker to bypass authentication protections. The critical flaw, tracked as CVE-2024-4985, has the maximum severity rating possible on the CVSS scale since it allowed attackers unauthorized access to the targeted instance without requiring prior authentication. “On instances that use SAML single sign-on (SSO) authentication with the optional encrypted assertions feature, an attacker could forge a SAML response to provision and/or gain access to a user with administrator privileges,” GitHub explained. GitHub said that encrypted assertions are not enabled by default. “Instances not utilizing SAML SSO or utilizing SAML SSO authentication without encrypted assertions are not impacted,” it further added. Encrypted assertions improve GHES instance's security with SAML SSO by encrypting the messages that an SAML identity provider (IdP) sends. GitHub noted that the critical vulnerability impacts all versions of GHES prior to 3.13.0. It has been fixed in versions 3.9.15, 3.10.12, 3.11.10 and 3.12.4. The users upgrading to the latest patch could, however, face some issues. Known issues with this updated version are:
  • Custom firewall rules are removed during the upgrade process.
  • During the validation phase of a configuration run, a “No such object” error may occur for the Notebook and Viewscreen services. This error can be ignored as the services should still correctly start.
  • If the root site administrator is locked out of the Management Console after failed login attempts, the account does not unlock automatically after the defined lockout time. Someone with administrative SSH access to the instance must unlock the account using the administrative shell.
  • If an instance is configured to forward logs to a target server with TLS enabled, certificate authority (CA) bundles that a site administrator uploads using ghe-ssl-ca-certificate-install are not respected, and connections to the server fail.
  • The mbind: Operation not permitted error in the /var/log/mysql/mysql.err file can be ignored. MySQL 8 does not gracefully handle when the CAP_SYS_NICE capability isn't required, and outputs an error instead of a warning.
  • On an instance hosted in AWS, system time may lose synchronization with Amazon's servers after an administrator reboots the instance.
  • On an instance with the HTTP X-Forwarded-For header configured for use behind a load balancer, all client IP addresses in the instance's audit log erroneously appear as 127.0.0.1.
  • In some situations, large .adoc files stored in a repository do not render properly in the web UI. The raw contents are still available to view as plaintext.
  • On an instance in a cluster configuration, restoration of a backup using ghe-restore will exit prematurely if Redis has not restarted properly.
  • On an instance with GitHub Actions enabled, Actions workflows that deploy GitHub Pages sites may fail.
  • Repositories originally imported using ghe-migrator will not correctly track Advanced Security contributions.

Thousands at Risk as PoC Goes Public

ODIN, an Internet search engine by Cyble for attack surface management and threat intelligence, found that nearly 3,000 instances of Github Enterprise Server exposed to the internet are vulnerable to CVE-2024-4985. Of these, the most number of instances (2.09k) that are currently unpatched and at risk of being exploited are from the U.S., who is distantly followed by Ireland which has 331 vulnerable instances. ODIN’s customers can use the query: services.modules.http.title:"Github Enterprise" to track the vulnerable instances. [caption id="attachment_69721" align="aligncenter" width="300"]GitHub Enterprise Server Country-wise distribution of GitHub Enterprise Servers vulnerable to CVE-2024-4985 (Source: ODIN by Cyble)[/caption] This maximum severity bug needs urgent patching as a proof-of-concept is now available on GitHub itself. The GitHub user has given a step-by-step guidance on the PoC exploit owing to which widespread exploitation could be expected soon, if not already taking place. Media Disclaimer: This article is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

UK’s ICO Warns Not to Ignore Data Privacy as ‘My AI’ Bot Investigation Concludes

ICO Warns, Chat GPT, Chat Bot

UK data watchdog has warned against ignoring the data protection risks in generative artificial intelligence and recommended ironing out these issues before the public release of such products. The warning comes on the back of the conclusion of an investigation from the U.K.’s Information Commissioner’s Office (ICO) into Snap, Inc.'s launch of the ‘My AI’ chatbot. The investigation focused on the company's approach to assessing data protection risks. The ICO's early actions underscore the importance of protecting privacy rights in the realm of generative AI. In June 2023, the ICO began investigating Snapchat’s ‘My AI’ chatbot following concerns that the company had not fulfilled its legal obligations of proper evaluation into the data protection risks associated with its latest chatbot integration. My AI was an experimental chatbot built into the Snapchat app that has 414 million daily active users, who on a daily average share over 4.75 billion Snaps. The My AI bot uses OpenAI's GPT technology to answer questions, provide recommendations and chat with users. It can respond to typed or spoken information and can search databases to find details and formulate a response. Initially available to Snapchat+ subscribers since February 27, 2023, “My AI” was later released to all Snapchat users on April 19. The ICO issued a Preliminary Enforcement Notice to Snap on October 6, over “potential failure” to assess privacy risks to several million ‘My AI’ users in the UK including children aged 13 to 17. “The provisional findings of our investigation suggest a worrying failure by Snap to adequately identify and assess the privacy risks to children and other users before launching My AI,” said John Edwards, the Information Commissioner, at the time.
“We have been clear that organizations must consider the risks associated with AI, alongside the benefits. Today's preliminary enforcement notice shows we will take action in order to protect UK consumers' privacy rights.”
On the basis of the ICO’s investigation that followed, Snap took substantial measures to perform a more comprehensive risk assessment for ‘My AI’. Snap demonstrated to the ICO that it had implemented suitable mitigations. “The ICO is satisfied that Snap has now undertaken a risk assessment relating to My AI that is compliant with data protection law. The ICO will continue to monitor the rollout of My AI and how emerging risks are addressed,” the data watchdog said. Snapchat has made it clear that, “While My AI was programmed to abide by certain guidelines so the information it provides is not harmful (including avoiding responses that are violent, hateful, sexually explicit, or otherwise dangerous; and avoiding perpetuating harmful biases), it may not always be successful.” The social media platform has integrated safeguards and tools like blocking results for certain keywords like “drugs,” as is the case with the original Snapchat app. “We’re also working on adding additional tools to our Family Center around My AI that would give parents more visibility and control around their teen’s usage of My AI,” the company noted.

‘My AI’ Investigation Sounds Warning Bells

Stephen Almond, ICO Executive Director of Regulatory Risk said, “Our investigation into ‘My AI’ should act as a warning shot for industry. Organizations developing or using generative AI must consider data protection from the outset, including rigorously assessing and mitigating risks to people’s rights and freedoms before bringing products to market.”
“We will continue to monitor organisations’ risk assessments and use the full range of our enforcement powers – including fines – to protect the public from harm.”
Generative AI remains a top priority for the ICO, which has initiated several consultations to clarify how data protection laws apply to the development and use of generative AI models. This effort builds on the ICO’s extensive guidance on data protection and AI. The ICO’s investigation into Snap’s ‘My AI’ chatbot highlights the critical need for thorough data protection risk assessments in the development and deployment of generative AI technologies. Organizations must consider data protection from the outset to safeguard individuals' data privacy and protection rights. The final Commissioner’s decision regarding Snap's ‘My AI’ chatbot will be published in the coming weeks. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

CyberArk to Acquire Venafi for $1.54 Billion, Enhancing Machine Identity Security

CyberArk to Acquire Venafi

CyberArk, a leading identity security provider announced its definitive agreement to acquire Venafi, a leading machine identity management provider from Thoma Bravo. The acquisition will merge Venafi’s advanced machine identity management capabilities with CyberArk’s identity security expertise, creating a comprehensive platform for enterprise-scale machine identity security. CyberArk CEO Matt Cohen said in a Monday investors call, "Our combined solutions and expertise will uniquely address the growing identity security needs of global enterprises to secure the explosive growth of machine identities. These identities are increasingly leveraged in sophisticated cyberattacks." The rise in digital transformation and cloud migration has led to a surge in machine identities, including workloads, applications, IoT devices and containers. Machine identities now outnumber human identities significantly, with over 40 machine identities for each human identity. These identities, if unprotected, are prime targets for cybercriminals. Effective management and security of machine identities are crucial, especially with shorter certificate lifecycles and the need for quantum-ready solutions. Forrester says there is a growing urgency in managing machine identities due to their exponential increase. Historically, enterprises have focused less on machine identities compared to human identities because of the former's unique requirements and lifecycle challenges. However, the growth in machine identities for devices and cloud workloads demands improved management to mitigate associated risks, it said. "Cloud computing has expanded the attack surface, increasing the connectivity between humans and machines in a perimeter-less world," Cohen said. "Every workload, API application, consumer and IoT device is now connected, and each connection point creates a potential vulnerability."
CyberArk is proficient in securing and managing access secrets, and Cohen states that acquiring Venafi will enhance these capabilities for machine identities, which is crucial due to cloud computing, connectivity, and regulatory demands. Traditional methods lack the necessary visibility, context, automation and scalability for today's enterprises, Cohen noted. Poorly managed identities can lead to costly downtime, unhappy customers and higher cyber risks, and with this technological acquisition he planned to address these issues.

The Acquisition, a Mix of Strategic Synergies

Technological Integration: The integration of Venafi’s certificate lifecycle management, private Public Key Infrastructure (PKI), IoT identity management and cryptographic code signing with CyberArk’s secrets management will enhance security against the misuse and compromise of machine identities. This unified solution will support rapid risk mitigation across various deployment models, including SaaS and hybrid environments. Market Expansion: Venafi’s strengths in PKI and certificate management will expand CyberArk’s total addressable market by nearly $10 billion, reaching approximately $60 billion. Chip Virnig, a partner at Thoma Bravo said, "We believe CyberArk is a great partner for Venafi and that the scaled end-to-end machine identity security platform created by this strategic combination will deliver significant value to shareholders."

Acquisition Details

Transaction Value: CyberArk will acquire Venafi for an enterprise value of approximately $1.54 billion, consisting of about $1 billion in cash and $540 million in CyberArk shares. Board Approvals: The Boards of both CyberArk and Venafi have approved the transaction. Closing Timeline: The acquisition is expected to close in the second half of 2024, pending regulatory approvals and customary conditions.

Financial Impact

Revenue Contribution: Venafi is expected to add approximately $150 million in annual recurring revenue (ARR). Business Model: Venafi boasts a strong business model with 95% recurring revenue, including SaaS and term-based licenses. Synergies and Expansion: The transaction is anticipated to be immediately accretive to margins and drive significant revenue synergies through cross-selling, up-selling, and geographic expansion. CyberArk is considered one of the global leaders in identity security, offering solutions for both human and machine identities across various environments, including business applications, hybrid clouds, and DevOps lifecycles. The company acquired multi-cloud security and compliance provider C3M in July 2022 for $28.3 million to enhance its cloud privilege security offerings. CyberArk also acquired Aapi.io in March 2022 to bolster Identity Lifecycle Management capabilities and broaden Identity Automation and Orchestration capabilities across its Identity Security Platform. Venafi on the other hand is a pioneer in machine identity management, protecting machine-to-machine connections through cryptographic key and digital certificate orchestration. Venafi’s solutions offer global visibility and automated remediation to safeguard machine identities across diverse environments, ensuring secure information flow and preventing untrusted machine communication. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

“Incognito Market” Operator Arrested for Running $100M Narcotics Marketplace

“Incognito Market” Operator Arrested for Running $100M Narcotics Marketplace

The U.S. law enforcement has arrested an alleged operator of "Incognito Market," a major online dark web narcotics marketplace that facilitated more than $100 million in illegal narcotics sales globally. Rui-Siang Lin, a 23-year-old from Taiwan, was arrested at John F. Kennedy Airport on May 18 for allegedly operating the Incognito Market using the pseudonym "Pharoah." Lin oversaw all aspects of the site, including managing employees, vendors and customers, revealed an unsealed indictment filed with the federal court at the U.S. Southern District of New York. Since its inception in October 2020 until its closure in March, Incognito Market sold vast quantities of illegal narcotics, including hundreds of kilograms of cocaine and methamphetamines, globally via the dark web site that could be reached through Tor web browser. The underground marketplace facilitated an overall sale of more than $100 million of narcotics in its 41 months of operation. The popularity of this marketplace can be gauged from the fact that by June 2023 it was generating sales of $5 million per month. [caption id="attachment_69369" align="aligncenter" width="2560"]Incognito Market Credit: Justice Department[/caption]

Features and Transactions of Incognito Market

Incognito Market mimicked legitimate e-commerce sites with features like branding, advertising and customer service. Users could search listings for various narcotics after logging in with unique credentials. [caption id="attachment_69367" align="aligncenter" width="624"]Incognito Market Credit: Justice Department[/caption] The site offered illegal narcotics and misbranded prescription drugs, including heroin, cocaine, LSD, MDMA, oxycodone, methamphetamines, ketamine, and alprazolam. [caption id="attachment_69368" align="aligncenter" width="624"]Incognito Market Credit: Justice Department[/caption] “For example, in November 2023, an undercover law enforcement agent received several tablets that purported to be oxycodone, which were purchased on Incognito Market. Testing on those tablets revealed that they were not authentic oxycodone at all and were, in fact, fentanyl pills,” the Justice Department said. Vendors paid a non-refundable admission fee of $750 and a 5% commission on each sale to Incognito Market, according to the indictment. This fee funded market operations, including salaries and server costs. Incognito Market also operated its own “bank,” to facilitate the illicit transactions. This bank allowed users to deposit cryptocurrency, which facilitated anonymous transactions between buyers and sellers while deducting the site’s commission, again of 5%. [caption id="attachment_69376" align="aligncenter" width="398"]Incognito Market Credit: Justice Department[/caption] This banking service obscured the locations and identities of vendors and customers from each other and from law enforcement. It kept the financial information of vendors and buyers separate, making it more difficult for any one actor on the marketplace to learn any other actor’s true identity, a complaint filed against Lin said. The bank also offered an “escrow” service enabling both buyers and customers to have additional security concerning their narcotics transactions. The escrow service was set in such a way that a buyer’s money would be released to a seller only after specified actions, for example, the shipment of narcotics is made. “With the escrow service, sellers know they will be paid for their illegal narcotics and buyers know their payments will be released to sellers after specified events occur,” the complaint said.

The Exit Scam

As Lin suddenly shuttered the Incognito Market in March 2024, he tried pulling an exit scam stealing the users’ funds stored in its escrow system and also tried to ransom the market’s drug vendors. Lin demanded ransom in the range of $100 to $2,000 from them in exchange of not turning their data over to the law enforcement. Incognito Market

Lin’s Technical Prowess

Lin seems like a knowledgeable person in the field of security and cryptocurrency, as per social media accounts listed in the complaint against him. Lin’s GitHub account describes him as a “Backend and Blockchain Engineer, Monero Enthusiast.” This GitHub account has approximately 35 publicly available software coding projects. “Collectively, these coding projects indicate that LIN has significant technical computing knowledge, including knowledge necessary to administer a site like (“Incognito Marketplace”),” the complaint said. The coding projects include operation of cryptocurrency servers and web applications like PoW Shield, a tool to mitigate DDoS attacks; Monero Merchant, a software tool that allows online merchants to accept XMR for payment; and Koa-typescript-framework, a webframe software program used as a foundation for web applications. Lin also did a YouTube interview explaining how his anti-DDoS tool “PoW Shield” worked for Pentester Academy TV in October 2021, displaying his technical prowess. The final evidence that law enforcement found linking Lin to the administrator “Pharoah” of Incognito Market was a “simple” hand-drawn workflow diagram of a darknet marketplace that was mailed from Lin’s personal email address. [caption id="attachment_69380" align="aligncenter" width="1690"]Incognito Market Workflow of Darknet Marketplace sent from Lin's personal email account. Credit: Justice Department[/caption] “This diagram appears to be a plan for a darknet market. Notably, the diagram indicated “vendor,” “listing,” “pgp key,” and “admin review,” all of which are features of (Incognito Market),” the complaint said.

Charges and Potential Sentences

Lin faces the following potential sentencing, if convicted:
  • Continuing Criminal Enterprise: Mandatory minimum penalty of life in prison.
  • Narcotics Conspiracy: Maximum penalty of life in prison.
  • Money Laundering: Maximum penalty of 20 years in prison.
  • Conspiracy to Sell Adulterated and Misbranded Medication: Maximum penalty of five years in prison.
A federal district court judge will determine Lin's sentence after reviewing the U.S. Sentencing Guidelines and other statutory factors. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.
❌
❌