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 A Little Sunshine

Three stories here last week pored over several years’ worth of internal chat records stolen from the Conti ransomware group, the most profitable ransomware gang in operation today. The candid messages revealed how Conti evaded law enforcement and intelligence agencies, what it was like on a typical day at the   show more ...

Conti office, and how Conti secured the digital weaponry used in their attacks. This final post on the Conti conversations explores different schemes that Conti pursued to invest in and steal cryptocurrencies. When you’re perhaps the most successful ransomware group around — Conti made $180 million last year in extortion payments, well more than any other crime group, according to Chainalysis — you tend to have a lot digital currency like Bitcoin. This wealth allowed Conti to do things that regular investors couldn’t — such as moving the price of cryptocurrencies in one direction or the other. Or building a cryptocurrency platform and seeding it with loads of ill-gotten crypto from phantom investors. One Conti top manager — aptly-named “Stern” because he incessantly needled Conti underlings to complete their assigned tasks — was obsessed with the idea of creating his own crypto scheme for cross-platform blockchain applications. “I’m addicted right now, I’m interested in trading, defi, blockchain, new projects,” Stern told “Bloodrush” on Nov. 3, 2021. “Big companies have too many secrets that they hold on to, thinking that this is their main value, these patents and data.” In a discussion thread that spanned many months in Conti’s internal chat room, Stern said the plan was to create their own crypto universe. “Like Netherium, Polkadot and Binance smart chain, etc.,” Stern wrote. “Does anyone know more about this? Study the above systems, code, principles of work. To build our own, where it will already be possible to plug in NFT, DEFI, DEX and all the new trends that are and will be. For others to create their own coins, exchanges and projects on our system.” It appears that Stern has been paying multiple developers to pursue the notion of building a peer-to-peer (P2P) based system for “smart contracts” — programs stored on a blockchain that run whenever predetermined conditions are met. It’s unclear under what context the Conti gang was interested in smart contracts, but the idea of a ransomware group insisting on payments via smart contracts is not entirely new. In 2020, researchers from Athens University School of Information Sciences and Technology in Greece showed (PDF) how ransomware-as-a-service offerings might one day be executed through smart contracts. Before that, Jeffrey Ladish, an information security consultant based in Oakland, Calif., penned a two-part analysis on why smart contracts will make ransomware more profitable. “By using a smart contract, an operator can trustlessly sell their victims a decryption key for money,” Ladish wrote. “That is, a victim can send some money to a smart contract with a guarantee that they will either receive the decryption key to their data or get their money back. The victim does not have to trust the person who hacked their computer because they can verify that the smart contract will fairly handle the exchange.” The Conti employee “Van” appears to have taken the lead on the P2P crypto platform, which he said was being developed using the Rust programming language. “I am trying to make a p2p network in Rust,” Van told a co-worker “Demon” on Feb. 19, 2022. “I’m sorting it out and have already started writing code.” “It’s cool you like Rust,” Demon replied. “I think it will help us with smart contracts.” Stern apparently believed in his crypto dreams so much that he sponsored a $100,000 article writing contest on the Russian language cybercrime forum Exploit, asking interested applicants to put forth various ideas for crypto platforms. Such contests are an easy way to buy intellectual property for ongoing projects, and they’re also effective recruiting tools for cybercriminal organizations. “Cryptocurrency article contest! [100.000$],” wrote mid-level Conti manager “Mango,” to boss Stern, copying the title of the post on the Exploit forum. “What the hell are you doing there…” A few days later Mango reports to Stern that he has “prepared everything for both the social network and articles for crypto contests.” DISTRIBUTED DENIAL OF DISCORD? On June 6, 2021, Conti underling “Begemot” pitched Stern on a scheme to rip off a bunch of people mining virtual currencies, by launching distributed denial-of-service (DDoS) attacks against a cryptocurrency mining pool. “We find young forks on exchanges (those that can be mined), analyze their infrastructure,” Begemot wrote. Begemot continues: “Where are the servers, nodes, capitalization, etc. Find a place where crypto holders communicate (discord, etc. ). Let’s find out the IP of the node. Most likely it will be IPv6. We start ddosing. We fly into the chat that we found earlier and write that there are problems, the crypt is not displayed, operations are not carried out (because the crypt depends on mining, there will really be problems ). Holders start to get nervous and withdraw the main balance. Crypto falls in price. We buy at a low price. We release ddos. Crypto grows again. We gain. Or a variant of a letter to the creators about the possibility of a ransom if they want the ddos ​​to end. From the main problem points, this is the implementation of Ipv6 DDoS.” Stern replies that this is an excellent idea, and asks Begemet to explain how to identify the IP address of the target. SQUID GAMES It appears Conti was involved in “SQUID,” a new cryptocurrency which turned out to be a giant social media scam that netted the fraudsters millions of dollars. On Oct. 31, 2021, Conti member “Ghost” sent a message to his colleagues that a big “pump” moneymaking scheme would be kicking off in 24 hours. In crypto-based pump-and-dump scams, the conspirators use misleading information to inflate the price of a currency, after which they sell it at a profit. “The big day has arrived,” Ghost wrote. “24 hours remaining until the biggest pump signal of all time! The target this time will be around 400% gains possibly even more. We will be targeting 100 million $ volume. With the bull market being in full effect and volumes being high, the odds of reaching 400% profit will be very high once again. We will do everything in our power to make sure we reach this target, if you have missed our previous big successful pumps, this is also the one you will not want to miss. A massive pump is about to begin in only 24 hours, be prepared.” Ghost’s message doesn’t mention which crypto platform would be targeted by the scam. But the timing aligns with a pump-and-dump executed against the SQUID cryptocurrency (supposedly inspired by the popular South Korean Netflix series). SQUID was first offered to investors on Oct. 20, 2021. The now-defunct website for the cryptocurrency scam SQUID. As Gizmodo first reported on Nov. 1, 2021, just prior to the scam SQUID was trading at just one cent, but in less than a week its price had jumped to over $2,856. Gizmodo referred to the scam as a “rug pull,” which happens when the promoter of a digital token draws in buyers, stops trading activity and makes off with the money raised from sales. SQUID’s developers made off with an estimated $3.38 million (£2.48m). “The SQUID crypto coin was launched just last week and included plenty of red flags, including a three-week old website filled with bizarre spelling and grammatical errors,” Gizmodo’s Matt Novak wrote. “The website, hosted at SquidGame.cash, has disappeared, along with every other social media presence set up by the scammers.”

 Expert Blogs and Opinion

Responding to cyberattacks and building national cyber resilience has never been – and will never be – the sole responsibility of governments. It requires a whole-of-society approach grounded in international cooperation efforts.

 Expert Blogs and Opinion

As cyberattacks grow in scale and sophistication, private and public sector entities are recognizing the need for a system to proactively share threat intelligence information: a global collective defense.

 Identity Theft, Fraud, Scams

FortiGuard Labs recently came across an interesting phishing e-mail masquerading as a purchase order addressed to a Ukrainian manufacturing organization that deals with raw materials and chemicals.

 Trends, Reports, Analysis

A new SpyCloud report examined trends related to exposed data. Researchers identified 1.7 billion exposed credentials, a 15% increase from 2020, and 13.8 billion recaptured PII records obtained from breaches in 2021.

 Trends, Reports, Analysis

A threat actor launched an attack using DanaBot against the webmail server belonging to the Ukrainian Ministry of Defense. The malware was utilized to deploy another second-stage malware.

 Malware and Vulnerabilities

The CISA added more than 60 flaws affecting Cisco and Microsoft products. All the Cisco vulnerabilities are rated critical as they can be abused by cybercriminals to run arbitrary code and for privilege escalation. Most vulnerabilities have a due date of March 24. The cybersecurity agency recommends all entities fix all security issues added to its known vulnerabilities catalog. 

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Ubuntu Security Notice 5316-1 - Reginaldo Silva discovered that due to a packaging issue, a remote attacker with the ability to execute arbitrary Lua scripts could possibly escape the Lua sandbox and execute arbitrary code on the host.

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Red Hat Security Advisory 2022-0759-01 - Kernel-based Virtual Machine offers a full virtualization solution for Linux on numerous hardware platforms. The virt:rhel module contains packages which provide user-space components used to run virtual machines using KVM. The packages also provide APIs for managing and interacting with the virtualized systems. Issues addressed include a privilege escalation vulnerability.

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Proof of concept for a vulnerability in the Linux kernel existing since version 5.8 that allows overwriting data in arbitrary read-only files. This leads to privilege escalation because unprivileged processes can inject code into root processes.

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Unpatched software is a computer code containing known security weaknesses. Unpatched vulnerabilities refer to weaknesses that allow attackers to leverage a known security bug that has not been patched by running malicious code. Software vendors write additions to the codes, known as "patches," when they come to know about these application vulnerabilities to secure these weaknesses. Adversaries

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Linux distributions are in the process of issuing patches to address a newly disclosed security vulnerability in the kernel that could allow an attacker to overwrite arbitrary data into any read-only files and allow for a complete takeover of affected systems. Dubbed "Dirty Pipe" (CVE-2022-0847, CVSS score: 7.8) by IONOS software developer Max Kellermann, the flaw "leads to privilege escalation

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Details have been disclosed about a now-addressed critical vulnerability in Microsoft's Azure Automation service that could have permitted unauthorized access to other Azure customer accounts and take over control. "This attack could mean full control over resources and data belonging to the targeted account, depending on the permissions assigned by the customer," Orca Security researcher Yanir

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As many as seven security vulnerabilities have been disclosed in PTC's Axeda software that could be weaponized to gain unauthorized access to medical and IoT devices. Collectively called "Access:7," the weaknesses – three of which are rated Critical in severity – potentially affect more than 150 device models spanning over 100 different manufacturers, posing a significant supply chain risk.

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A broad range of threat actors, including Fancy Bear, Ghostwriter, and Mustang Panda, have launched phishing campaigns against Ukraine, Poland, and other European entities amid Russia's invasion of Ukraine. Google's Threat Analysis Group (TAG) said it took down two Blogspot domains that were used by the nation-state group FancyBear (aka APT28) – which is attributed to Russia's GRU military

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Google is officially buying cybersecurity company Mandiant in an all-cash deal approximately valued at $5.4 billion, the two technology firms announced Tuesday. Mandiant is expected to be folded into Google Cloud upon the closure of the acquisition, which is slated to happen later this year, adding to the latter's growing portfolio of security offerings such as BeyondCorp Enterprise, VirusTotal,

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Samsung on Monday confirmed a security breach that resulted in the exposure of internal company data, including the source code related to its Galaxy smartphones. "According to our initial analysis, the breach involves some source code relating to the operation of Galaxy devices, but does not include the personal information of our consumers or employees," the electronics giant told Bloomberg.

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Cybersecurity researchers on Tuesday disclosed 16 new high-severity vulnerabilities in various implementations of Unified Extensible Firmware Interface (UEFI) firmware impacting multiple HP enterprise devices. The shortcomings, which have CVSS scores ranging from 7.5 to 8.8, have been uncovered in HP's UEFI firmware. The variety of devices affected includes HP's laptops, desktops, point-of-sale

2022-03
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