Ransomware 2.0 is around the corner and it’s a massive threat to the enterprise

The profits from ransomware are making it one of the fastest growing types of malware and new versions could negatively impact entire industries, according to a Cisco report.

ransomware2.0

Despite the efforts made to improve cybersecurity at many organizations, there are too many systems with aging infrastructure and vulnerabilities that leave companies at risk, with ransomware one of the most sinister threats, according to a new Cisco report.

Ransomware is a top concern because it’s become an area of intense focus for cybercriminals due to its effectiveness at generating revenue. Once a cybercriminal hacks into a company’s files and encrypts them, victims have little option but to pay the asking price for the code to decrypt their files. Ransomware is becoming more ominous as new versions are continually being developed.

“The landscape is simple. Attackers can move at will. They’re shifting their tactics all the time. Defenders have a number of processes they have to go through,” said Jason Brvenik, principal engineer with Cisco’s security business group, discussing the Cisco 2016 Midyear Cybersecurity Report.

Cisco used data from its customers to create the report, since there are more than 16 billion web requests that go through the Cisco system daily, with nearly 20 billion threats blocked daily, and with more than 1.5 million unique malware samples daily, which works out to 17 new pieces of malware every second, Brvenik said.

Brvenik has the following recommendations for companies wanting to improve security:

  • Improve network hygiene – Improve aging infrastructure to limit vulnerabilities.
  • Integrate defenses – Use machine learning techniques combined with novel data views.
  • Measure time to detection – Find out how long an attacker can live in your network before they are found.
  • Protect your users everywhere they are – Protect users whether they’re on a laptop, a smartphone, or another device. Don’t just protect networks but protect users. They are the target.

The next step in the evolution of malware will be ransomware 2.0, which Brvenik said “will start replicating on its own and demand higher ransoms. You’ll come in Monday morning and 30% of your machines and 50% of your servers will be encrypted. That’s really a nightmare scenario.”

Ransomware campaigns started out primarily through email and malicious advertising, but now some attackers are using network and server-side vulnerabilities as well. Self-propagating ransomware will be the next step to create ransomware 2.0, and companies need to take steps to prepare and protect their company’s network, Brvenik said.

New modular strains of ransomware will be able to quickly switch tactics to maximize efficiency. For example, future ransomware attacks will evade detection by being able to limit CPU usage and refrain from command-and-control actions. These new ransomware strains will spread faster and self-replicate within organizations before coordinating ransom activities, according to the report.

JexBoxx, an open source tool for testing and exploiting JBoss application services, had been used to allow the attackers to gain access to networks in the targeted companies. Once the attackers had access to the network, they encrypted multiple Windows systems using SamSam.

Overall, in all aspects of cybersecurity, there are too many companies with vulnerabilities that haven’t been addressed. Out of 103,121 Cisco devices connected to the internet that were studied for the report, each device on average was running 28 known vulnerabilities. The devices were actively running known vulnerabilities for an average of 5.64 years, and more than 9 percent had known vulnerabilities older than 10 years, according to the report.

“In April, Cisco estimated that 10% of all JBoss servers worldwide were compromised. And they were compromised using readily available tools and old vulnerabilities. Adobe Flash is still a favorite. It gives a viable attack surface for them. And we see Microsoft Silverlight vulnerabilities. This means to us that people are opportunizing those that work for them,” Brvenik said.

Brevik noted that the nature of the attack is also likely to change, focusing on service-oriented technologies and systems, with teams ready to attack and try to compromise systems. Advertising is a viable model for attack.

“We saw a 300% increase in the use of HTTPS with malware over the past four months. Ad injection is the biggest contributor. Adversaries are using HTTPS traffic to expand time to operate. That’s the attacker opportunity as it exists today,” he said.

It’s no longer reasonable to expect to block 100% of threats, but being able to detect the threat fast, and limit the time the attacker is in your system is key to minimizing the damage. In December 2014, the median time before an attack was detected was 50 hours. In April 2016, it dipped to a median of 13 hours for the previous six months, Brvenik said.

“It is a living number as defenses improve and attackers change. This is good. It says that for the customers that have these systems, when they are compromised, they’re now down to 13 hours as a median time to detect it. I wouldn’t leave the door to my house open for 13 hours; and that’s what you’re doing when you leave your door open to attackers for 13 hours.”

Industries that previously thought they were immune because their business was of little interest to attackers are wrong.

“No industry is safe,” Brvenik said. “Assuming that what you do is of no interest to attackers is not a good way to think of it.”

Three takeaways for the readers

  1. Of more than 100,000 Cisco connected devices studied for the report, an average of 28 vulnerabilities were running on each one.
  2. Self-propagating ransomware is around the corner and companies need to protect themselves from the threat.
  3. Ransomware is giving massive profits to attackers, encouraging them to create even more sinister ways to attack. The average time of attack lasts 13 hours, down from 50 hours in 2014.

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Ransomware-as-a-service is exploding: Be ready to pay

RaaS has outgrown smaller targets and now threatens governments, NGOs, and SMBs.

ransomware

It starts with a fast click on a link in a harmless-looking email. Then your PC slows to a crawl. A message suddenly pops up and takes over your screen. “Your files and hard drive have been locked by strong encryption. Pay us a fee in 12 hours, or we will delete everything.” Then a bright red clock begins counting down. No antivirus will save your machine. Pay the fee or lose everything.

You’re the latest victim of a ransomware attack. The scary thing is, you’re not alone. The ransomware market ballooned quickly, from a $400,000 US annual haul in 2012, to nearly $18 million in 2015. The average ransom—the sweet spot of affordability for individuals and SMBs—is about $300 dollars, often paid in cash vouchers or Bitcoin.

The ransomware market scaled up so quickly, claims a recent report by Imperva, due to the rise of ransomware-as-a-service, or RaaS. Here’s how it works:

  • Ransomware authors are marketing on-demand versions of code, using traditional malware distributors in a classic affiliate model.
  • The ransomware author collects the ransom and shares it with the distributor.
  • Malware is distributed through spam email messages, malicious advertisements, and BlackHat SEO sites.
  • According to the Imperva report, “in classical affiliate marketing, the larger cut goes to the possessor of the product. In RaaS … the ransomware author gets a small cut of the funds (5%-25%) while the rest goes to the distributor (affiliate).”
  • Using the deep web, TOR, and Bitcoin, the report says, “this model, based on TOR and Bitcoins, is designed to keep the identity of the author and the distributor hidden from law enforcement agencies.”

Phishing in particular, is a highly effective tactic for malware distribution.

The well-worded email appears to come from a legitimate email address and domain name, and raises very few irregularities. The email comes with a demand for money for an arbitrary service, along with a link that purports to be an “overdue invoice.”

Click that link and open the file (which looks like a Word document), and you’ll become the latest victim of ransomware — that is, malware that encrypts your files and locks you out of your computer until you pay a ransom.

Phishing attacks have also helped ransomware move into the enterprise. In 2015 the medical records system at Hollywood Presbyterian Medical Center was attacked. The hospital paid $17,000 in Bitcoin to unlock the sensitive records. In early 2016 the Lincolnshire County Council was snagged by a phishing scheme and held up for 500 dollars.

To prevent your business from attack, make sure the IT department and communication team are in sync, keep your company’s security systems updated, and remind employees to use caution when clicking on email links from unknown addresses.

If you’ve been hacked, the ransomware rescue kit provides a suite of tools designed to help clean particularly pugnacious malware.

Businesses that suffer ransomware attacks face a tough choice. Paying the fee could restore access to mission-critical data, but there’s no guarantee the extortionists will honor the deal. And of course, paying a ransom provides incentive to hackers and validates the attack.

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South Jersey Cyber Crime

The hackers used “ransomware” to lock the hospital out of its own medical records.

Not all kidnappers grab your loved ones.

A growing online threat – ransomware – essentially abducts your computer system, putting data and services off-limits to users and demanding a payment to restore access.

“We are seeing more cases of this – sometimes almost on a daily basis,” said New Jersey State Police Capt. Steve Jones. “And we’re not seeing all of it, because people may be too embarrassed or don’t believe it can be helped.”

Ransomware viruses are a plague. Once infected — installed to your computer by a website you’ve visited, a rogue email attachment or link, or instant message — your computer will lock up. With names like CryptoWall, these types of viruses may create a popup window or Web page warning you that you’ve broken some law and have to pay a fine, anywhere from hundreds to thousands of dollars, according to the FBI.

These scams threaten to encrypt your files forever or destroy them unless a ransom is paid, according to the FBI.

Once paid, your computer is unlocked or a code is sent to unlock the machine, authorities said.

Between April 2014 and June 2015, the FBI received 992 CryptoWall-related complaints with victims reporting a loss of more than $18 million.

The state’s top cybersecurity unit recently launched an online effort to help people guard against ransomware.

“For many organizations, preventing ransomware entirely is nearly impossible,” says the New Jersey Cybersecurity and Communications Integration Cell (NJCCIC), which introduced a Ransomware Threat Profile page at its website in February.

But it notes individuals and companies can take measures to prevent infections and to limit their impact.

Although ransomware can lock up laptops and desktop computers, the risk is particularly great for data-dependent organizations like hospitals and accounting firms, said Jones, the State Police spokesman.

So far, at least three hospitals have been hit nationwide – in California, Kentucky and the Washington, D.C., area. South Jersey hospitals are well aware of the menace.

“It’s a big concern. It’s something that has really spiked,” said Tom Handlon, chief information security officer for Kennedy Health, which operates three acute-care hospitals in South Jersey.

Handlon gave no details, but said Kennedy seeks to protect itself through protective measures inside its computer system and by promoting safe conduct by employees.
“We’re monitoring it constantly and updating as we go along,” he said. “We are really educating the staff and our entire organization that we are a target.”

A similar view came from Tom Rubino, spokesman for Cooper University Healthcare System in Camden.

“We have tracked the recent wave of ransomware attacks that have targeted hospitals across the nation,” Rubino said. He said Cooper’s IT security team “is proactively taking measures to prevent ransomware infection of our computer systems.”

“Additionally, as a critical component for preventing all computer viruses, we are increasing our employee education efforts.”

A key precaution is to back up your computer’s contents on a frequent basis, Jones said. “But you’ve got to keep the backup drives disconnected,” he warned. “Otherwise, the ransomware can migrate to the backups.”

The State Police in March 2015 investigated a hacking incident that disabled much of the computer system for the Swedesboro-Woolwich school system. In that case, a hacker demanded more than $125,000 in the form of a digital currency called bitcoins.

The district, which did not pay the ransom, had to wipe clean its email servers and cafeteria lunch-ordering system to rid itself of ransomware. Only a handful of classroom computers were infected.

Hackers exploited a gap in the district’s computer security system and a vendor’s “weak” passport to take over the computer system, Michael Procopio, Educational Information and Resource Center’s director of technology, said at the time. EIRC experts helped the district restore its system.

The district’s hacker was believed to have struck from abroad – a familiar pattern, according to the State Police.

“Many of these messages and attacks are coming through foreign servers,” Jones said. “The countries that house these servers are not often countries that have a real open relationship with law enforcement.”

Tools have been available to help decrypt older versions of ransomware, said Dave Weinstein, New Jersey’s director of cybersecurity.

“At this point, the strain has morphed to the point where there is no releasing your files,” said Al Della Fave, a spokesman for the Ocean County Prosecutor’s office. “The lock these cybercriminals put on your files is foolproof at this point.”

Unless you’ve backed up your computer prior to the infection, Della Fave said, “The only way you would get your files back is to pay.”

“Ransomware is working” for cyberthieves, said Ben Johnson, chief security strategist at Carbon Black Inc., a  computer security firm in Waltham, Massachusetts. “People are paying.”

In the last few weeks, cybercriminals have come up with some new twists, he said. For instance, one version encrypts files more quickly after someone opens up a malware-filled Microsoft Word document or some other attachment.

Other versions encrypt the computer at its most basic level so it can’t even power on, or use the computer’s own system administration tools to infect itself, he said.

The best course of action is to make sure you don’t get the virus. “You must be super careful what you click on,” Della Fave said.

Here’s what you should do, according to Johnson and the Ocean County prosecutor’s office:

  • Keep your computer’s security software up to date.
  • Keep your network firewall turned on.
  • Do not open spam email messages or links to suspicious websites.
  • Back up your files, such as documents, photos and music, to a secondary storage device.
  • Be careful when you browse the web. Use ad blockers to help protect yourself.

Have questions?

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