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Security

How cyber insurance is changing the security industry

As ransomware and other advanced threats continue their assault on businesses, organizations have increasingly turned to cyber insurance providers to help them out of a jam. However, this marketplace isn’t just growing—it’s changing. What was once considered necessary protection in case of file encryption and ransom demands is now an integral part of many businesses’ security infrastructures.

In response to changes in the work environment due to the pandemic, ransomware attacks and extortion techniques have evolved. So, too, has the industry that sprung up to assist organizations that had already been hit. More and more, companies are realizing that yes, they need to shore up preventative security, but they also must have a working plan for the very real potential of getting breached.

According to an October 2020 study by ReportLinker, the global cyber insurance market is expected to grow from $4.8 billion in 2019 to $16.9 billion by the end of 2025, a Compound Annual Growth Rate (CAGR) of 23 percent. After an onslaught of ransomware attacks last year on schools, cities, and government agencies, many organizations doubled down on cyber insurance to cover costs that might arise from another attack, such as investigative teams, remediation and recovery efforts, business interruption losses, digital data recovery, and more.

While the cyber insurance industry drew early criticism from security insiders for potentially juicing ransomware threat actors’ bank accounts, the sentiment has since shifted. In 2017, the NotPetya attack, one of the largest cyberattacks in history, caused $10 billion in damage worldwide. Only 3 percent of those costs were covered by cyber insurance. In the years since WannaCry, NotPetya, and other expensive attacks on businesses, organizations have moved to adopt more robust insurance policies, including coverage for nation-state attacks and hands-on assistance in bolstering existing security policies.

As ransomware attacks have increased in frequency and complexity, ransoming techniques have also evolved, switching the focus away from “simply” encrypting files and requiring a ransom to return them. Where many companies adapted to ransomware threats by instituting regular, automatic backups, cybercriminals returned the volley by threatening to release sensitive data to the public or disrupting operations for ransom.

Cyber insurance, paired with layered security software and employee awareness, can thus provide the additional protection necessary to prevent attacks when possible, and recover from an attack quickly when it’s not. Expect cyber insurance to continue evolving in this direction, filling in technical gaps and not just providing hefty ransom payments. In fact, that’s why we’ve recently partnered with Coalition, a leading cyber insurance provider, to help business customers further reduce their risk of cyberattacks.

To learn more about why cyber insurance should include coverage for state-sponsored attacks, read this article from the Harvard Business Review: https://hbr.org/2020/10/does-your-cyber-insurance-cover-a-state-sponsored-attack

For more information on the Malwarebytes and Coalition partnership: https://go.malwarebytes.com/Coalition-Malwarebytes-Partnership.html

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Security

RegretLocker ransomware encrypts virtual machines

Ransomware, ransomware, ransomware. At this point, the other malware families might be feeling some Jan Brady-level jealousy toward their flashier, more advanced brother. Ransomware is getting all the attention right now—for good reason.

Ransomware attacks have been ramping up in volume and in sophistication over the last year. Corporate targets have had to steel themselves against stealthy spear phishing campaigns, exposed RDP ports, zero-day exploits, and more. Now they have to worry about their virtual machines.

Using a combination of advanced attack techniques, a new ransomware family discovered in October called RegretLocker is able to encrypt virtual hard drives and close any files open by users for encryption. Why does this matter? RegretLocker is able to execute much more quickly than previous ransomware families and evade detection.

RegretLocker takes ransomware to the next level

RegretLocker ransomware appears fairly simple on the surface. It is accompanied by a short and sweet ransom note (as opposed to a long-winded soliloquy that has become common among ransomware threat actors). It uses email instead of Tor to accept ransom payments. When encrypting files, it applies a harmless-sounding .mouse extension.

But that’s where the simplicity ends. Instead of encrypting large files en masse, which can take a long time, RegretLocker mounts a virtual disk file so that each file may be encrypted individually, speeding up the process. In addition, RegretLocker uses the Windows Restart Manager API to terminate processes on Windows that can keep a file open during encryption, preventing users from salvaging open files.

RegretLocker follows in the footsteps of another ransomware family known as Ragnar Locker, which was first discovered in October 2019. Ragnar Locker deploys virtual machines to victim systems and launches the ransomware from inside. This gives the ransomware access to files on the local disk without being detected by security software deployed on the host system. In September 2020, Maze ransomware authors added Ragnar Locker’s virtual machine tactic to their bag of tricks.

The use of virtual machines by these ransomware families is not for the faint of heart—it’s complex, messy, and requires prior knowledge about the hardware and capabilities of its target networks, including whether or not the services had already been disabled. However, for threat actors looking to select and encrypt specific files quickly, or for those who’ve compromised a system but are looking to crack particularly difficult files, these methods represent the next evolution in a long chain of dangerous developments in ransomware.

What’s more, there are not many ways to protect against these types of ransomware attacks outside of preventing them from happening in the first place. (Though Malwarebytes’ Anti-Ransomware technology blocks RegretLocker from launching.)

What we can take away from these latest developments in ransomware is that cybercriminals have been busy doing what they do best: developing new tricks and workarounds that had previously prevented their malware from being as dangerous as it could be. The best defense, as it has always been, is awareness and proactive protection.

To learn more about RegretLocker ransomware, take a look at our blog on Malwarebytes Labs: https://blog.malwarebytes.com/ransomware/2020/11/regretlocker-new-ransomware-can-encrypt-windows-virtual-hard-disks/

And here is Bleeping Computer’s take on RegretLocker: https://www.bleepingcomputer.com/news/security/new-regretlocker-ransomware-targets-windows-virtual-machines/

For information on Ragnar Locker’s attack on gaming company Capcom: https://threatpost.com/gaming-giant-capcom-ragnar-locker-ransomware/160996/

Categories
Security

Maze ransomware group calls it quits… maybe

2020 has claimed victim nearly 200,000 small businesses across the United States—a gut punch of a statistic. But there’s one group closing up shop that I won’t shed any tears over: Maze ransomware.

Last week, the notorious Maze ransomware group known for corporate targeting and data extortion schemes announced they are shutting down operations. So why aren’t security folks like me rejoicing? First, we’ve seen ransomware families disappear before, only to come back with a smarter business plan for distribution or key updates that increase their potency. Second, never trust the word of a cybercriminal.

Back in May 2019, Malwarebytes researchers discovered a new strain of ransomware known as Maze, distributed via the Fallout exploit kit. Soon after, we found that Maze was spreading indiscriminately through other exploit kits, such as Spelevo, as well as through spam campaigns using documents laced with malicious macros.

As time went on, Maze operators began to adopt a more targeted approach, likely looking for a higher return on investment. They began going after organizations with spear phishing campaigns or by exploiting vulnerabilities in exposed infrastructure. Nothing new there. However, Maze was a pioneer in some regards, as it was one of the first to threaten its victims with leaking sensitive data if the ransom was not paid. Its authors also adopted clever tricks to evade detection by leveraging virtual machines to encrypt files.

Rumors began months ago that the threat actors behind Maze ransomware might be abandoning ship, as several of its affiliates switched to an up-and-coming ransomware family known as Egregor, which likely shares some of its code with Maze. In fact, it’s possible that former Maze developers are the ones behind the Egregor project, which would explain the recruitment of their affiliates.

On November 1, coincidentally my birthday, the group behind Maze released a statement claiming that they were done for good. The error-laden message (more of a rant) went on to claim that the future will be lived entirely online, therefore Maze’s efforts were meant to help prepare companies by forcing them to increase their security—typical rhetoric among delusional criminals who try to reframe their acts as benevolent.

There’s no doubt the Maze developers and distributors made enough money to call it a day. Their so-called press release is perhaps a distraction meant to hide conflicts or internal disagreements. It could also be a smokescreen for a potential shift to Egregor. When a cybercriminal says, “We never had partners or official successors,” you can count on the opposite to be true.

Whether Maze is actually gone, we can’t yet say for sure. We thought Ryuk had vanished earlier in 2020, only to have it return. At the same time, the affiliate shift to Egregor is reminiscent of the shift away from GandCrab to Sodinokibi ransomware in 2019.

Unfortunately, history has shown us that when a crime group decides to close their doors, it’s rarely because they have seen the error in their ways. Because of this, it’s best to continue to guard against, at the very least, the types of attack vectors used by Maze ransomware. I suggest:

  • Updating software and hardware to shore up vulnerabilities (protecting against exploit kits)
  • Boosting protection against brute force attacks and exposed RDP ports
  • Increasing employee awareness on sophisticated spear phishing tactics
  • Segmenting sensitive data into more restrictive servers

For more information on the Maze ransomware group’s retirement, take a look at our blog on Malwarebytes Labs: https://blog.malwarebytes.com/ransomware/2020/11/maze-ransomware-gang-announces-retirement/

For an in-depth threat spotlight on Maze ransomware’s capabilities: https://blog.malwarebytes.com/threat-spotlight/2020/05/maze-the-ransomware-that-introduced-an-extra-twist

For TechCrunch’s take on Maze’s retirement: https://techcrunch.com/2020/11/02/maze-ransomware-group-shutting-down