Statement by the ransomware gang suggests that the incident that crippled a major U.S. oil pipeline may not have exactly gone to plan for overseas threat actors.

The sophisticated threat is targeting Microsoft Exchange servers via ProxyLogon in a wave of fresh attacks against North American targets.

Security researchers mull possible perpetrators of the attack, and warned that the incident could be a harbinger of things to come. 

Microsoft researchers just released an open-source automation tool for security testing AI systems: “Counterfit.” Details on their blog.

Vinay Khanna, Ashwin Prabhu & Sriranga Seetharamaiah also contributed to this article. 

In the Cloud, security responsibilities are shared between the Cloud Service Provider (CSP) and Enterprise Security teams. To enable Security teams to provide compliance, visibility, and control across the application stack, CSPs and security vendors have added various innovative approaches across the different layers. In this blog we compare the approaches and provide a framework for Enterprises to think of these approaches.

Overview

Cloud Service Providers are launching new services at a breakneck pace to enable enterprise application developers to bring in new business value to the marketplace faster. For each of these services the CSPs are taking up more and more of the security responsibility while letting the enterprise security teams focus more on the application. To be able to provide visibility, security and enhance existing tools in such diverse and fast changing environments CSPs enable logs, APIs, Native agents and other technologies, that can be used by Enterprise security teams.

Comparison

There are many different approaches to security and each have varying tradeoffs in terms of the depth of visibility and security they provide, the ease of deployment, permissions required, the costs, and the scale they work at.

APIs and logs are the best approach to do get started with discovering your Cloud accounts and finding anomalous activity interesting to security teams in those accounts. It is easy to get access to data from various accounts using these mechanisms, without the security teams having to do much more than get cross account access to the numerous accounts in the organization. The approach provides great visibility but needs to be complemented with protection approaches.

Image and snapshot analysis are a good approach to get deeper data of the workloads both before the application starts and as they run. In this method the image/ snapshot of the disk of the running system can be analyzed to detect any anomalies, vulnerabilities, config incidents etc. Snapshots provide deep data of workloads but may not detect memory resident issues like fileless malware. Also, as we move to ephemeral workloads, analyzing snapshots periodically may have limited usage. The mechanism may not work for cloud services for which disk snapshots may not be possible to obtain. The approach provides deep data of snapshots but needs to be complemented with some protection approaches to be useful.

Native agents and scripts are a good approach to enable deeper visibility and controls by providing an easy way to enhance Cloud native agents like SSM on a machine. Based on the functionality agents can have high resource usage. Native agent support is limited by the CSP provided capabilities, like OS support/ features provided. In a lot of cases the native agents run commands that log the information needed, which implies we need to have the logging approach working in parallel.

DaemonSet and Sidecar containers is an approach to deploying agents easily in Container and serverless environments. Sidecar allow running one container per pod which provide deep data but the resource usage and the cost as a result are high, because multiple sidecars would run on a single server. Sidecars can work in Container Serverless models in which case DaemonSet containers do not work. As the functionality of a Sidecar and DaemonSet is like that of an agent, many of the agent limitations mentioned apply here too.

Agent approach provides the deepest visibility and best control of the environment in which an application runs, by running code coresident with the application. This approach is however harder because the security teams need to have deep discovery capabilities beforehand to be able to deploy these agents.  There is also friction in adding agents as it has to run on every machine and security teams do not have rights to run software on every machine, especially in the cloud. The resource usage and cost of a solution can be high depending on the use cases supported. Newer technologies like Extended Berkley Packet Filters (eBPF) enable reducing resource usage of agents to make them more palatable for broader usage.

Built-into-Image/ Build-into-code approach allows for the security being built into the application image deployed. This allows security functionality to be deployed without having to work on deploying an agent with each workload. This approach provides deep visibility of the application and works even for serverless workloads. Compiling in code adds immense friction by having to add code into the build process, and code libraries need to be available in every application language.

MVISION CNAPP

MVISION Cloud takes a Multi-pronged approach to securing applications and enable security teams to gain control of their Cloud environments.

1. Security teams often lack visibility into their ephemeral Cloud infrastructures and MVISION Cloud provides a seamless way by using Cross-Account IAM access and then using API and Logs to provide visibility into Cloud environments.
2. Using the same access MVISION Cloud can not only provide an Audit of the configuration of customer environment but also do image scans to identify vulnerabilities in the components of the workload.
3. MVISION Cloud can then help identify risk against resources, so security teams can focus on securing the right resources. All of this without having to deploy an agent.
4. Then using approaches like Sidecars, DaemonSet containers and agents MVISION CNAPP helps provide deep visibility and protect the applications against the most sophisticated attacks by providing File Integrity Monitoring (FIM), Application Allow Listing (AAL), Anti-Malware, run time Vulnerability analysis and performing hardening checks.
5. Using the data from all the sources MVISION CNAPP provides a Risk score against incidents to help security teams prioritize incidents and focus on the biggest risks.

Conclusion

The various approaches to security have their own unique tradeoffs and no one approach can satisfy all the requirements for the various teams, for the diverse set of platforms they support.

At any point of time different cloud services will be at different levels of adoption maturity. Security teams need to take an incremental approach where they start off adopting solutions that are easy to insert and can provide the basic guardrail of security and visibility, at the start of the service adoption cycle. As applications on a service mature and more high value apps come online, an approach to security that provides deeper discovery and control will be necessary to complement the existing approaches.

No one approach will be able to satisfy all customer use cases and at any time there will be different sets of security solutions that will be active. We are headed to a world of even more diverse security approaches, that have to all work seamlessly to help secure the Enterprise.

 

The post Cloud Native Security Approach Comparisons appeared first on McAfee Blogs.

Preface

Countries all over the world are racing to achieve so-called herd immunity against COVID-19 by vaccinating their populations. From the initial lockdown to the cancellation of events and the prohibition of business travel, to the reopening of restaurants, and relaxation of COVID restrictions on outdoor gatherings, the vaccine rollout has played a critical role in staving off another wave of infections and restoring some degree of normalcy. However, a new and troubling phenomenon is that consumers are buying COVID-19 vaccines on the black market due to the increased demand around the world. As a result, illegal COVID-19 vaccines and vaccination records are in high demand on darknet marketplaces.

The impact on society is that the proliferation of fraudulent test results and counterfeit COVID-19 vaccine records pose a serious threat to public health and spur the underground economy. Individuals undoubtedly long to return to their pre-pandemic routines and the freedom of travel and behavior denied them over the last year. However, the purchase of false COVID-19 test certifications or vaccination cards to board aircraft, attend an event or enter a country endangers themselves, even if they are asymptomatic. It also threatens the lives of other people in their own communities and around the world. Aside from the collective damage to global health, darknet marketplace transactions encourage the supply of illicit goods and services. The underground economy cycle continues as demand creates inventory, which in turn creates supply. In addition to selling COVID-19 vaccines, vaccination cards, and fake test results, cybercriminals can also benefit by reselling the names, dates of birth, home addresses, contact details, and other personally indefinable information of their customers. 

Racing Toward a Fully Vaccinated Society Along with a Growing Underground Vaccine Market

As we commemorate the one-year anniversary of the COVID-19 pandemic, at least 184 countries and territories worldwide have started their vaccination rollouts.[1] The United States is vaccinating Americans at an unprecedented rate. As of May 2021, more than 105 million Americans had been fully vaccinated. The growing demand has made COVID-19 vaccines the new “liquid gold” in the pandemic era.

However, following vaccination success, COVID-19 related cybercrime has increased. COVID-19 vaccines are currently available on at least a dozen darknet marketplaces. Pfizer-BioNTech COVID-19 vaccines (and we can only speculate as to whether they are genuine or a form of liquid “fool’s gold”) can be purchased for as little as $500 per dose from top-selling vendors. These sellers use various channels, such as Wickr, Telegram, WhatsApp and Gmail, for advertising and communications. Darknet listings associated with alleged Pfizer-BioNTech COVID-19 vaccines are selling for $600 to $2,500. Prospective buyers can receive the product within 2 to 10 days. Some of these supposed COVID-19 vaccines are imported from the United States, while others are packed in the United Kingdom and shipped to every country in the world, according to the underground advertisement.

Figure 1: Dark web marketplace offering COVID-19 vaccines

Figure 2: Dark web marketplace offering COVID-19 vaccines

A vendor sells 10 doses of what they claim to be Moderna COVID-29 vaccines for $2,000. According to the advertisement, the product is available to ship to the United Kingdom and worldwide.

Figure 3: Dark web marketplace offering COVID-19 vaccines

Besides what are claimed to be COVID-19 vaccines, cybercriminals offer antibody home test kits for $152 (again, we do not know whether they are genuine or not). According to the advertisement, there are various shipping options available. It costs $41 for ‘stealth’ shipping to the United States, $10.38 to ship to the United Kingdom, and $20 to mail the vaccines internationally.

Figure 4: Dark web marketplace offering COVID-19 test kits

Proof of Vaccination in the Underground Market

On the darknet marketplaces, the sales of counterfeit COVID-19 test results and vaccination certificates began to outnumber the COVID vaccine offerings in mid-April. This shift is most likely because COVID-19 vaccines are now readily available for those who want them. People can buy and show these certificates without being vaccinated. A growing number of colleges will require students to have received a COVID-19 vaccine before returning to in-person classes by this fall.[2] Soon, COVID-19 vaccination proof is likely to become a requirement of some type of “passport” to board a plane or enter major events and venues.

The growing demand for proof of vaccination is driving an illicit economy for fake vaccination and test certificates. Opportunistic cybercriminals capitalize on public interest in obtaining a COVID-19 immunity passport, particularly for those who oppose COVID-19 vaccines or test positive for COVID-19 but want to return to school or work, resume travel or attend a public event. Counterfeit negative COVID-19 test results and COVID-19 vaccination cards are available for sale at various darknet marketplaces. Fake CDC-issued vaccination cards are available for $50. One vendor offers counterfeit German COVID-19 certificates for $23.35. Vaccination cards with customized information, such as “verified” batch or lot numbers for particular dates and “valid” medical and hospital information, are also available for purchase.

One darknet marketplace vendor offers to sell a digital copy of the COVID-19 vaccination card with detailed printing instructions for $50.

Figure 5: Dark web marketplace offering COVID-19 vaccination cards

One vendor sells CDC vaccination cards for $1,200 and $1,500, as seen in the following screenshot. These cards, according to the advertisement, can be personalized with details such as the prospective buyer’s name and medical information.

Figure 6: Dark web marketplace offering COVID-19 vaccination cards

Other darknet marketplace vendors offer fake CDC-issued COVID-19 vaccination card packages for $1,200 to $2,500. The package contains a PDF file that buyers can type and print, as well as personalized vaccination cards with “real” lot numbers, according to the advertisement. Prospective buyers can pay $1,200 for blank cards or $1,500 for custom-made cards with valid batch numbers, medical and hospital details.

Figure 7: Dark web marketplace offering COVID-19 vaccination cards

One vendor offers counterfeit negative COVID-19 test results and vaccine passports to potential buyers.

Figure 8: Dark web marketplace offering negative COVID-19 test results and vaccination cards

A seller on another dark web market sells five counterfeit German COVID-19 certificates for $23.35. According to the advertisement below, the product is available for shipping to Germany and the rest of the world.

Figure 9: Dark web marketplace offering German COVID-19 vaccination certificates

Conclusion

The proliferation of fraudulent test results and counterfeit COVID-19 vaccine records on darknet marketplaces poses a significant threat to global health while fueling the underground economy. While an increasing number of countries begin to roll out COVID-19 vaccines and proof of vaccination, questionable COVID vaccines and fake proofs are emerging on the underground market. With the EU and other jurisdictions opening their borders to those who have received vaccinations, individuals will be tempted to obtain false vaccination documents in their drive to a return to pre-pandemic normalcy that includes summer travel and precious time with missed loved ones. Those who buy questionable COVID-19 vaccines or forged vaccination certificates risk their own lives and the lives of others. Apart from the harm to global health, making payments to darknet marketplaces promotes the growth of illegal products and services. The cycle of the underground economy continues as demand generates inventory, which generates supply. These are the unintended consequences of an effective global COVID vaccine rollout. 

[1] https[:]//www.cnn.com/interactive/2021/health/global-covid-vaccinations/

[2] https[:]//www.npr.org/2021/04/11/984787779/should-colleges-require-covid-19-vaccines-for-fall-more-campuses-are-saying-yes

The post “Fool’s Gold”: Questionable Vaccines, Bogus Results, and Forged Cards appeared first on McAfee Blogs.

Even as the internet kept us connected with family and friends during the pandemic, people remain understandably eager to reconnect in person as vaccines roll out and restrictions ease. In fact, people are making travel plans accordingly. Nearly two-thirds (64%) of people worldwide said that they’re planning to travel for leisure this year. And, as always, they’re bringing their devices with them. 

These are a few of the top-line findings from our 2021 Consumer Security Mindset Report: Travel Edition, which garnered responses from more than 11,000 people aged 18 to 75 in eleven countries across North and South America, Europe, Asia, and the South Pacific. More broadly, this survey provides insight into people’s plans and preferences for travel and how they view online security while traveling—particularly after relying heavily on the internet at home during the pandemic for more than a year. 

People are more connected and more protected in 2021 

Indeed, people feel more connected by the internet today than they did prior to the onset of COVID-19 with a significant 76% of respondents stating as much. In light of that increasing reliance on the internet, 61% reported implementing more protection for their devices, connected homes, and online activities in general. This was particularly the case in nations like India (86%), Mexico (79%), and Brazil (68%). However, other nations trended much lower than the average, such as the UK (47%) and France (34%). In the U.S., that figure was lower than the international trend with roughly half of the people implementing more protection. 

People are planning on traveling once again 

As called out earlier, people are taking the first steps toward leisure travel once again. Only 12% of people in the U.S said that they were planning on traveling internationally compared to a global average of 16%, while nations like Singapore (30%), the UK (25%), and Germany (24%) trending well above the average. In contrast, the outlook for domestic leisure travel appears exceptionally strong, particularly for respondents in Australia (88%), India (79%) and the U.S. (77%) who plan to travel as such. 

The pandemic has shaped people’s views on where they’d like to stay, with 62% stating that their preference for lodging has changed this year. Well over one-third of respondents in the U.S., Australia, Indonesia, and Canada said that staying with family and friends as their preferred option. Globally speaking, hotel and motel accommodations topped the list at 41%. Vacation home rentals entered the mix as well with roughly 25% of respondents saying a rental was part of their plan. 

Current attitudes on connecting to Wi-Fi while traveling 

Yet how have attitudes changed toward connecting to networks outside of the home, particularly after the past year saw the majority of people improve their security at home? 

For a baseline, we found that 80% of respondents said that they’ve connected a device when visiting a home or place that is not their own. The devices they mentioned most include laptops, streaming devices, Bluetooth speakers, and gaming devices as well. To connect those devices, they’ll use the home network of the friend’s or rental home where they’re staying (48%) or the network provided by the hotel where they’re staying (48%). And while in-between places, public Wi-Fi remains a popular means of network connection at 50%, along with airport Wi-Fi (41%) plus transit Wi-Fi (31%). 

As to how secure people feel on those networks, the answer varies greatly. While people expect low risk or no risk at all on their home network (85%) or a friend’s home (73%), they’re far less apt to trust other networks. In general, they see Wi-Fi networks as most vulnerable to cyber threats than any other network or device at 68% and feel most at risk connecting to networks in hotels (25%) and rentals (21%).  

Despite these findings, only 47% people said they take the same online security measures that they take at home when they’re on holiday or vacation. Similarly, just 52% of people check if the network they are joining is secure before they connect. Of that, 22% say they don’t check because they feel the network poses no threat and another 26% say that they simply don’t know how to check. 

Protecting your computers and devices while you’re away 

As travel becomes an actual possibility for people once again, it’s an opportunity to remember just how important security is outside the home. Whether people are at home or away, there will be banking to do, chances to shop online, and moments to stream a few shows while at the airport or on the road. Protecting laptops and mobile devices for travel become extra important when using public, airport, and public Wi-Fi, as those networks can expose people to more threats than their home networks.  

With that, here are five things people can do to protect themselves and others while traveling: 

1. Connect with caution. Be cautious when connecting to public Wi-Fi while on vacation and make sure the Wi-Fi is secure and attached to a trusted source. Ensure that you don’t conduct any financial transactions or share any personal details while on public Wi-Fi. 
2. Look into using a virtual private network (VPN). A VPN can provide bank-grade encryption that protects your data while you shop, bank, or simply surf online when connected to public Wi-Fi. 
3. Consider a holistic security solution. Understand what tools are available to you in order to give you peace of mind that your identity and personal information across all of our devices are safeguarded this summer travel season. 
4. Update your software. Before you travel, check for any software updates on your devices. Updates often fix security bugs in addition to adding features or providing performance boosts. 
5. Keep devices protected and close. Distracted vacationers are the perfect target for thieves looking to steal devices—whether that’s a phone, laptop, tablet, or game. Ensure accounts have multi-factor authentication to double-check the authenticity of digital users in case the device gets in the wrong hands.

Stay Updated  

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The post Seeking Reconnection: Internet Usage and the Return to Travel appeared first on McAfee Blogs.

Microsoft today released fixes to plug at least 55 security holes in its Windows operating systems and other software. Four of these weaknesses can be exploited by malware and malcontents to seize complete, remote control over vulnerable systems without any help from users. On deck this month are patches to quash a wormable flaw, a creepy wireless bug, and yet another reason to call for the death of Microsoft’s Internet Explorer (IE) web browser.

While May brings about half the normal volume of updates from Microsoft, there are some notable weaknesses that deserve prompt attention, particularly from enterprises. By all accounts, the most pressing priority this month is CVE-2021-31166, a Windows 10 and Windows Server flaw which allows an unauthenticated attacker to remotely execute malicious code at the operating system level. With this weakness, an attacker could compromise a host simply by sending it a specially-crafted packet of data.

“That makes this bug wormable, with even Microsoft calling that out in their write-up,” said Dustin Childs, with Trend Micro’s ZDI program. “Before you pass this aside, Windows 10 can also be configured as a web server, so it is impacted as well. Definitely put this on the top of your test-and-deploy list.”

Kevin Breen from Immersive Labs said the fact that this one is just 0.2 points away from a perfect 10 CVSS score should be enough to identify just how important it is to patch.

“For ransomware operators, this kind of vulnerability is a prime target for exploitation,” Breen said. “Wormable exploits should always be a high priority, especially if they are for services that are designed to be public facing. As this specific exploit would not require any form of authentication, it’s even more appealing for attackers, and any organization using HTTP.sys protocol stack should prioritize this patch.”

Breen also called attention to CVE-2021-26419 — a vulnerability in Internet Explorer 11 — to make the case for why IE needs to stand for “Internet Exploder.” To trigger this vulnerability, a user would have to visit a site that is controlled by the attacker, although Microsoft also recognizes that it could be triggered by embedding ActiveX controls in Office Documents.

“IE needs to die – and I’m not the only one that thinks so,” Breen said. “If you are an organization that has to provide IE11 to support legacy applications, consider enforcing a policy on the users that restricts the domains that can be accessed by IE11 to only those legacy applications. All other web browsing should be performed with a supported browser.”

Another curious bug fixed this month is CVE-2020-24587, described as a “Windows Wireless Networking Information Disclosure Vulnerability.” ZDI’s Childs said this one has the potential to be pretty damaging.

“This patch fixes a vulnerability that could allow an attacker to disclose the contents of encrypted wireless packets on an affected system,” he said. “It’s not clear what the range on such an attack would be, but you should assume some proximity is needed. You’ll also note this CVE is from 2020, which could indicate Microsoft has been working on this fix for some time.”

Microsoft also patched four more security holes its Exchange Server corporate email platform, which recently was besieged by attacks on four other zero-day Exchange flaws that resulted in hundreds of thousands of servers worldwide getting hacked. One of the bugs is credited to Orange Tsai of the DEVCORE research team, who was responsible for disclosing the ProxyLogon Exchange Server vulnerability that was patched in an out-of-band release back in March.

“While none of these flaws are deemed critical in nature, it is a reminder that researchers and attackers are still looking closely at Exchange Server for additional vulnerabilities, so organizations that have yet to update their systems should do so as soon as possible,” said Satnam Narang, staff research engineer at Tenable.

As always, it’s a good idea for Windows users to get in the habit of updating at least once a month, but for regular users (read: not enterprises) it’s usually safe to wait a few days until after the patches are released, so that Microsoft has time to iron out any kinks in the new armor.

But before you update, please make sure you have backed up your system and/or important files. It’s not uncommon for a Windows update package to hose one’s system or prevent it from booting properly, and some updates have been known to erase or corrupt files.

So do yourself a favor and backup before installing any patches. Windows 10 even has some built-in tools to help you do that, either on a per-file/folder basis or by making a complete and bootable copy of your hard drive all at once.

And if you wish to ensure Windows has been set to pause updating so you can back up your files and/or system before the operating system decides to reboot and install patches on its own schedule, see this guide.

If you experience glitches or problems installing any of these patches this month, please consider leaving a comment about it below; there’s a better-than-even chance other readers have experienced the same and may chime in here with some helpful tips.

The FBI confirmed this week that a relatively new ransomware group known as DarkSide is responsible for an attack that caused Colonial Pipeline to shut down 5,550 miles of pipe, stranding countless barrels of gasoline, diesel and jet fuel on the Gulf Coast. Here’s a closer look at the DarkSide cybercrime gang, as seen through their negotiations with a recent U.S. victim that earns $15 billion in annual revenue.

New York City-based cyber intelligence firm Flashpoint said its analysts assess with a moderate-strong degree of confidence that the attack was not intended to damage national infrastructure and was simply associated with a target which had the finances to support a large payment.

“This would be consistent with DarkSide’s earlier activities, which included several ‘big game hunting’ attacks, whereby attackers target an organization that likely possesses the financial means to pay the ransom demanded by the attackers,” Flashpoint observed.

In response to public attention to the Colonial Pipeline attack, the DarkSide group sought to play down fears about widespread infrastructure attacks going forward.

“We are apolitical, we do not participate in geopolitics, do not need to tie us with a defined government and look for other our motives [sic],” reads an update to the DarkSide Leaks blog. “Our goal is to make money, and not creating problems for society. From today we introduce moderation and check each company that our partners want to encrypt to avoid social consequences in the future.”

First surfacing on Russian language hacking forums in August 2020, DarkSide is a ransomware-as-a-service platform that vetted cybercriminals can use to infect companies with ransomware and carry out negotiations and payments with victims. DarkSide says it targets only big companies, and forbids affiliates from dropping ransomware on organizations in several industries, including healthcare, funeral services, education, public sector and non-profits.

Like other ransomware platforms, DarkSide adheres to the current badguy best practice of double extortion, which involves demanding separate sums for both a digital key needed to unlock any files and servers, and a separate ransom in exchange for a promise to destroy any data stolen from the victim.

At its launch, DarkSide sought to woo affiliates from competing ransomware programs by advertising a victim data leak site that gets “stable visits and media coverage,” as well as the ability to publish victim data by stages. Under the “Why choose us?” heading of the ransomware program thread, the admin answers:

“High trust level of our targets. They pay us and know that they’re going to receive decryption tools. They also know that we download data. A lot of data. That’s why the percent of our victims who pay the ransom is so high and it takes so little time to negotiate.”

In late March, DarkSide introduced a “call service” innovation that was integrated into the affiliate’s management panel, which enabled the affiliates to arrange calls pressuring victims into paying ransoms directly from the management panel.

In mid-April the ransomware program announced new capability for affiliates to launch distributed denial-of-service (DDoS) attacks against targets whenever added pressure is needed during ransom negotiations.

DarkSide also has advertised a willingness to sell information about upcoming victims before their stolen information is published on the DarkSide victim shaming blog, so that enterprising investment scammers can short the company’s stock in advance of the news.

“Now our team and partners encrypt many companies that are trading on NASDAQ and other stock exchanges,” DarkSide explains. “If the company refuses to pay, we are ready to provide information before the publication, so that it would be possible to earn in the reduction price of shares. Write to us in ‘Contact Us’ and we will provide you with detailed information.”

DarkSide also started recruiting new affiliates again last month — mainly seeking network penetration testers who can help turn a single compromised computer into a full-on data breach and ransomware incident.

“We have grown significantly in terms of the client base and in comparison to other projects (judging by the analysis of publicly available information), so we are ready to grow our team and a number of our affiliates in two fields,” DarkSide explained. The advertisement continued:

“Network penetration testing. We’re looking for one person or a team. We’ll adapt you to the work environment and provide work. High profit cuts, ability to target networks that you can’t handle on your own. New experience and stable income. When you use our product and the ransom is paid, we guarantee fair distribution of the funds. A panel for monitoring results for your target. We only accept networks where you intend to run our payload.”

DarkSide has shown itself to be fairly ruthless with victim companies that have deep pockets, but they can be reasoned with. Cybersecurity intelligence firm Intel 471 observed a negotiation between the DarkSide crew and a $15 billion U.S. victim company that was hit with a $30 million ransom demand in January 2021, and in this incident the victim’s efforts at negotiating a lower payment ultimately reduce the ransom demand by almost two-thirds.

The first exchange between DarkSide and the victim involved the usual back-and-forth establishing of trust, wherein the victim asks for assurances that stolen data will be deleted after payment.

When the victim counter-offered to pay just $2.25 million, DarkSide responded with a lengthy, derisive reply, ultimately agreeing to lower the ransom demand to $28.7 million.

“The timer it [sic] ticking and in in next 8 hours your price tag will go up to $60 million,” the crooks replied. “So, you this are your options first take our generous offer and pay to us $28,750 million US or invest some monies in quantum computing to expedite a decryption process.”

The victim complains that negotiations haven’t moved the price much, but DarkSide countered that the company can easily afford the payout. “I don’t think so,” they wrote. “You aren’t poor and aren’t children if you f*cked up you have to meet the consequences.”

The victim firm replies a day later saying they’ve gotten authority to pay $4.75 million, and their tormentors agree to lower the demand significantly to $12 million.

The victim replies that this is still a huge amount, and it tries to secure additional assurances from the ransomware group if it agrees to pay the $12 million, such as an agreement not to target the company ever again, or give anyone access to its stolen data. The victim also tried to get the attackers to hand over a decryption key before paying the full ransom demand.

The crime gang responded that its own rules prohibit it from giving away a decryption key before full payment is made, but they agree to the rest of the terms.

The victim firm agrees to pay an $11 million ransom, and their extortionists concur and promise not to attack or help anyone else attack the company’s network going forward.

Flashpoint assesses that at least some of the criminals behind DarkSide hail from another ransomware outfit called “REvil,” a.k.a. “Sodinokibi” (although Flashpoint rates this finding at only “moderate” confidence). REvil is widely considered to be the newer name for GandCrab, a ransomware-as-a-service offering that closed up shop in 2019 after bragging that it had extorted more than $2 billion.

Experts say ransomware attacks will continue to grow in sophistication, frequency and cost unless something is done to disrupt the ability of crooks to get paid for such crimes. According to a report late last year from Coveware, the average ransomware payment in the third quarter of 2020 was $233,817, up 31 percent from the second quarter of last year. Security firm Emsisoft found that almost 2,400 U.S.-based governments, healthcare facilities and schools were victims of ransomware in 2020.

Last month, a group of tech industry heavyweights lent their imprimatur to a task force that delivered an 81-page report to the Biden administration on ways to stymie the ransomware industry. Among many other recommendations, the report urged the White House to make finding, frustrating and apprehending ransomware crooks a priority within the U.S. intelligence community, and to designate the current scourge of digital extortion as a national security threat.

Further reading: Intel 471’s take on the Colonial Pipeline attack.

Four Confess to ‘Bulletproof Hosting’