A list of topics we covered in the week of July 22 to July 28 of 2024

July 26, 2024 - Meta has taken down a whopping number of Instagram accounts directly involved in sextortion and more accounts aimed at training scammers

July 25, 2024 - After the July Microsoft update some systems boot into a BitLocker Recovery screen. How can you find the key you need?

July 24, 2024 - Prepay wireless provider TracFone has been slapped on the wrist to the tune of $16 million for insufficient customer data protection

July 23, 2024 - Google has taken a new turn in the approach to eliminating third-party cookies. This time it's back to the Privacy Sandbox

July 22, 2024 - Data from the Heritage Foundation containing at least half a million passwords and usernames are available online

 A week in security (July 22 &#8211; July 28) 

The remote access trojan known as Gh0st RAT has been observed being delivered by an "evasive dropper" called Gh0stGambit as part of a drive-by download scheme targeting Chinese-speaking Windows users.
These infections stem from a fake website ("chrome-web[.]com") serving malicious installer packages masquerading as Google's Chrome browser, indicating that users searching for the software on the

Cybersecurity / Cyber Espionage

The remote access trojan known as Gh0st RAT has been observed being delivered by an "evasive dropper" called Gh0stGambit as part of a drive-by download scheme targeting Chinese-speaking Windows users.

These infections stem from a fake website ("chrome-web\[.\]com") serving malicious installer packages masquerading as Google's Chrome browser, indicating that users searching for the software on the web are being singled out.

Gh0st RAT is a long-standing malware that has been observed in the wild since 2008, manifesting in the form of different variants over the years in campaigns primarily orchestrated by China-nexus cyberespionage groups.

Some iterations of the trojan have also been previously deployed by infiltrating poorly-secured MS SQL server instances, using it as a conduit to install the Hidden open-source rootkit.

According to cybersecurity firm eSentire, which discovered the latest activity, the targeting of Chinese-speaking users is based on "the use of Chinese-language web lures and Chinese applications targeted for data theft and defense evasion by the malware."

The MSI installer downloaded from the phony website contains two files, a legitimate Chrome setup executable and a malicious installer ("WindowsProgram.msi"), the latter of which is used to launch shellcode that's responsible for loading Gh0stGambit.

The dropper, in turn, checks for the presence of security software (e.g., 360 Safe Guard and Microsoft Defender Antivirus) before establishing contact with a command-and-control (C2) server in order to retrieve Gh0st RAT.

"Gh0st RAT is written in C++ and has many features, including terminating processes, removing files, capturing audio and screenshots, remote command execution, keylogging, data exfiltration, hiding registry, files, and directories via the rootkit capabilities, and many more," eSentire said.

It's also capable of dropping Mimikatz, enabling RDP on the compromised hosts, accessing account identifiers associated with Tencent QQ, clearing Windows event logs, and erasing data from 360 Secure Browser, QQ Browser, and Sogou Explorer.

The Canadian company said the artifact shares overlaps with a Gh0st RAT variant tracked by the AhnLab Security Intelligence Center (ASEC) under the moniker HiddenGh0st.

"Gh0st RAT has seen widespread use and modification by APT and criminal groups over the past several years," eSentire said. "The recent findings highlight the distribution of this threat via drive-by downloads, deceiving users into downloading a malicious Chrome installer from a deceptive website."

"The continued success of drive-by downloads reinforces the need for ongoing security training and awareness programs."

The development comes as Broadcom-owned Symantec said it observed an increase in phishing campaigns likely leveraging Large Language Models (LLMs) to generate malicious PowerShell and HTML code used to download several loaders and stealers.

The emails contained "code used to download various payloads, including Rhadamanthys, NetSupport RAT, CleanUpLoader (Broomstick, Oyster), ModiLoader (DBatLoader), LokiBot, and Dunihi (H-Worm)," security researchers Nguyen Hoang Giang and Yi Helen Zhang said. "Analysis of the scripts used to deliver malware in these attacks suggests they were generated using LLMs."

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Gh0st RAT Trojan Targets Chinese Windows Users via Fake Chrome Site

Plus: More Pegasus spyware controversy, a major BIOS controversy, and more of the week’s top security news.

The fallout from CrowdStrike’s deleterious software update came into full view this week as system administrators and IT staffers scrambled to get digital systems back online and return operations to normal. Elsewhere, the Olympics began this week, and Paris is ready with a controversial new surveillance system that hints at a future of ubiquitous CCTV camera coverage. And researchers revealed new findings this week about the innovative malware Russia used in January to sabotage a heating utility in Lviv and cut heat to 600 Ukrainian buildings at the coldest point in the year.

The US Department of Defense has a $141 billion idea to modernize US intercontinental ballistic missiles and their silos around the country. Meanwhile, the European Commission is allocating €7.3 billion for defense research—from drones and tanks to battleships and space intelligence—over the next seven years. And hackers have established a “ghost” network to quietly spread malware on the Microsoft-owned developer platform GitHub.

In more encouraging news, a former Google engineer has built a prototype search engine, dubbed webXray, meant to allow users to find specific privacy violations online, determine which sites are tracking you, and see where all that data goes.

And there’s more. Each week, we round up the security news we didn’t cover in depth ourselves. Click the headlines to read the full stories, and stay safe out there.

**Israel Reportedly Worked to Keep Info on Pegasus Spyware Out of US Courts**

Leaked files obtained by The Guardian reveal that the Israeli government took extraordinary measures to prevent information about the Pegasus spyware system from falling into the hands of US courts, including seizing files directly from the company to prevent legal disclosure. The spyware is the product of the Israel-based NSO Group. It allows users to infect smartphones, extract messages and photos, record calls, and secretly activate microphones. NSO Group faces legal action in the US brought by WhatsApp, which claims the company engineered Pegasus to target users of its messaging software. According to WhatsApp, more than 1,400 of its users were targeted. NSO, whose software has been allegedly tied to the harassment and murder of journalist Jamal Khashoggi, has denied any wrongdoing.

**Massive Screwup Leaves BIOS on 200+ Computer Models Vulnerable**

In an effort to thwart BIOS-based threats, prompted in part by the rollout of a powerful rootkit designed by a Chinese researcher in 2007, Secure Boot became a widely adopted tool. Unfortunately, researchers at the security firm Binarly have revealed that Secure Boot is now “completely compromised” on more than 200 device models, affecting major hardware manufacturers like Dell, Acer, and Intel. The incident was the result of a weak cryptographic key used to establish trust between hardware and firmware systems. AMI, the key's owner, says it was meant to be used for testing and should never have made its way into production.

**Musk’s AI system, Grok, Is Now Feeding on All Your Tweets**

Following in Meta's footsteps, Elon Musk's X quietly adjusted its settings this week to give the company's AI system—known as Grok—access to all of its users' posts. There is a way to prevent Grok from ingesting your posts; however, you cannot perform this action from the mobile app. You'll need to access X's **Settings** using a desktop computer; select **Privacy and Safety**, then select **Grok**, and then uncheck the box. Or just head straight here to go directly to the right settings page. (You can also delete your conversation history with Grok, if you have one, by clicking **Delete conversation history**.)

Stop X’s Grok AI From Training on Your Tweets

Researchers track the healthcare sector as experiencing the biggest financial losses, with banking and transportation following close behind.

Source: SOPA Images Limited via Alamy Stock Photo

As the CrowdStrike Falcon outage story continues to unfold, the monetary losses to businesses from the global incident continue to rise: The volume is likely to reach $5.4 billion in costs for Fortune 500 companies, according to a report from Parametrix.

Parametrix researchers have found that roughly 25% of Fortune 500 companies experienced disruptions due to the incident, the most heavily affected industries financially being healthcare ($1.94 billion in estimated losses) and banking ($1.15 billion). In addition, a shocking 100% of the transportation and airlines sector was affected, and the group will rack up an estimated $0.86 billion in losses, according to the forecast. The $5.4 billion estimate excludes Microsoft.

The researchers noted that the outage impact to some industries, like software and IT-related services, is more likely to cause a "ripple effect beyond Fortune 500 companies," though hard numbers were not quantified in the report.

Parametrix previously detailed how the cloud acted as the catalyst for the widespread impact of the outage, and said that "the event highlights the critical dependency of major corporations on cloud services, and the systemic risks posed by such disruptions." To prevent future losses, the new report encourages cyber insurers and risk-assessors to concentrate on mapping, managing, and assessing cloud-based service provider exposure; and stressed that it's important to take a broad view, and not rely solely on the CrowdStrike event as a primary reference for "modeling future system failures involving cloud-based service providers."

**About the Author(s)**

CrowdStrike Outage Losses Estimated at a Staggering $5.4B

The cybersecurity firm says that 97% of sensors are back online, but some organizations continue to recover, with costs tallied at $5.4 billion for the Fortune 500 alone.

Source: Sashkin via Shutterstock

A week after an ill-fated update from cybersecurity giant CrowdStrike knocked out an estimated 8.5 million Windows computers, causing problems ranging from downed medical systems at healthcare facilities to delayed flights for many airlines, organizations are still trying to restore access to their remaining affected systems.

Healthcare companies are among the most impacted organizations, with the corrupt file affecting about half of the members of the Health Information Sharing and Analysis Center (Health-ISAC), says chief security officer Errol Weiss. As of July 25, only 18% of affected organizations had fully recovered their systems, while three-quarters of companies still had as many as 25% of their systems still needing attention, Weiss says.

Many organizations had Windows-based medical devices, and now they are likely looking at a long-tailed recovery, says Weiss.

"My guess is that a lot of automated remediation was shared on Friday and Saturday — those methods probably helped a lot to get to the majority of completion," he says, referring to tools and scripts provided by Microsoft, CrowdStrike, and other companies. "But some of those scripts and automated fixes probably won't work on the kinds of devices that we're talking about, and now healthcare organizations have to take a manual look."

Microsoft released a USB Recovery Tool that gives administrators the option to use a USB drive to recover impacted systems from WinPE or safe mode. The tool may recover from safe mode even if BitLocker is enabled on a device and a recovery key is unavailable. There are also detailed recovery steps for Windows clients, servers, and operating systems hosted on Hyper-V, as well as affected Windows 365 Cloud PCs and Azure virtual machines.

**Measuring Impact of the Outage**

On July 25, CrowdStrike estimated that 97% of affected computers had returned to active status, as measured by the state of its Falcon software at the center of the outage. Managed security services provider Quest Software, whose customers span a gamut of sizes, is still offering aid to those working through the issue. The remaining companies likely represent a few hard-to-patch systems at larger firms and a large number of smaller firms that do not have the technical expertise to easily recover, says Kent Feid, senior director of product management at Quest Software.

"That 3% really represents the number of devices, and so that would equate to likely a substantial amount of small businesses still being impacted that are still somewhat unsure how to attack this," he says. "Smaller businesses tend to leverage more IT generalists or don't staff IT experts in-house."

The vast impact of the outage has still not been tallied, but insurance services firm Parametrix estimates that the event impacted a quarter of the Fortune 500 companies, with losses reaching $5.4 billion. That includes nearly $2 billion in losses for healthcare and more than $1.1 billion for the banking sector.

**Even With Tools, Many Companies Worked the Weekend**

While the recovery process is, for the most part, fairly simple, technical experts have gauged that each system requires an average of 15 minutes to recover because an administrator is required to physically access each system. In addition, companies that used BitLocker to encrypt the hard drive — a cybersecurity best practice, especially on laptop systems — would have to find the encryption key and input that key at the beginning of the process.

"There's no way to do this remotely because it has to be done in safe mode, where networking isn't working, so you can't connect to the machine remotely," says Vadim Vladimirskiy, CEO of Nerdio, a virtual desktop management firm.

At least 700 outages coincided with the bad update from CrowdStrike, with 39% of outages rated Critical. Source: Parametrix

Nerdio, which provides virtual desktops for its customers, said its customers were only minimally impacted by the failed update and its cloud desktop systems were easily repaired by recovering to a previous image. While many customers connect to Nerdio's service using a Windows computer, only the systems left on during the 78-minute window — during which the bad CrowdStrike update was distributed — were impacted. Affected customers could just switch to a different system to access their virtual desktops, limiting any impact, Vladimirskiy says.

Ironically, healthcare firms recovered by falling back on measures implemented to protect them from a threat CrowdStrike is deployed to prevent: ransomware. Health-ISAC's Weiss compiled a list of systems affected by the attack, and it includes patient services, lab collections, secure file transfers, dictation and transcription services, shipments, electronic medical records, and Medicaid and insurance billing.

"I started hearing about the impacts to these organizations and looking at the list, and it's like, 'My gosh, this sounds just like another ransomware incident,'" he says. "So that's what was going on inside healthcare on Friday for those organizations that were impacted by this. They just went, 'OK, systems are down, we're going to the manual backup procedures, we're going to paper,' and they knew what to do because they were drilling \[their response to ransomware\] in the past."

**Preventing the Next Big Failure**

The bad update also came after a significant outage of Azure services affected an above average number of companies, according to Parametrix. (On average, about 300 service disruptions occur among the Fortune 500 every day, the firm said. On Thursday, July 18, 419 coincided with the Azure outage, and on Friday, at least 700 occurred as the company dealt with the bad update from CrowdStrike.)

While CrowdStrike is feeling the market's wrath right now, the company is unlikely to be down for long because businesses need the type of services the company — and others like it — provide, says Quest Software's Feid.

"No software development company — I include ourselves in that — is perfect, right?" he says. "What's hard, I think, especially in the security industry and specifically for a company like CrowdStrike, they are being looked at and relied upon across a large part of the market to protect endpoints. ... The product is specifically designed to be ahead of the curve as much as it can, which means you can't have it both ways, consumers. There's always going to be inherent risk."

**About the Author(s)**

Veteran technology journalist of more than 20 years. Former research engineer. Written for more than two dozen publications, including CNET News.com, Dark Reading, MIT's Technology Review, Popular Science, and Wired News. Five awards for journalism, including Best Deadline Journalism (Online) in 2003 for coverage of the Blaster worm. Crunches numbers on various trends using Python and R. Recent reports include analyses of the shortage in cybersecurity workers and annual vulnerability trends.

Companies Struggle to Recover From CrowdStrike's Crippling Falcon Update

The U.S. Department of Justice (DoJ) on Thursday unsealed an indictment against a North Korean military intelligence operative for allegedly carrying out ransomware attacks against healthcare facilities in the country and funneling the payments to orchestrate additional intrusions into defense, technology, and government entities across the world.
"Rim Jong Hyok and his co-conspirators deployed

The U.S. Department of Justice (DoJ) on Thursday unsealed an indictment against a North Korean military intelligence operative for allegedly carrying out ransomware attacks against healthcare facilities in the country and funneling the payments to orchestrate additional intrusions into defense, technology, and government entities across the world.

"Rim Jong Hyok and his co-conspirators deployed ransomware to extort U.S. hospitals and health care companies, then laundered the proceeds to help fund North Korea's illicit activities," said Paul Abbate, deputy director of the Federal Bureau of Investigation (FBI). "These unacceptable and unlawful actions placed innocent lives at risk."

Concurrent with the indictment, the U.S. Department of State announced a reward of up to $10 million for information that could lead to his whereabouts, or the identification of other individuals in connection with the malicious activity.

Hyok, part of a hacking crew dubbed Andariel (aka APT45, Nickel Hyatt, Onyx Sleet, Silent Chollima, Stonefly, and TDrop2), is said to be behind extortion-related cyber attacks involving a ransomware strain called Maui, which was first disclosed in 2022 as targeting organizations in Japan and the U.S.

The ransom payments were laundered through Hong Kong-based facilitators, converting the illicit proceeds into Chinese yuan, following which they were withdrawn from an ATM and used to procure virtual private servers (VPSes) that, in turn, were employed to exfiltrate sensitive defense and technology information.

Targets of the campaign include two U.S. Air Force bases, NASA-OIG, as well as South Korean and Taiwanese defense contractors and a Chinese energy company.

In one instance highlighted by the State Department, a cyber attack that began in November 2022 led to the threat actors exfiltrating more than 30 gigabytes of data from an unnamed U.S.-based defense contractor. This comprised unclassified technical information regarding material used in military aircraft and satellites.

The agencies have also announced the "interdiction of approximately $114,000 in virtual currency proceeds of ransomware attacks and related money laundering transactions, as well as the seizure of online accounts used by co-conspirators to carry out their malicious cyber activity."

Andariel, affiliated with the Reconnaissance General Bureau (RGB) 3rd Bureau, has a track record of striking foreign businesses, governments, aerospace, nuclear, and defense industries with the goal of obtaining sensitive and classified technical information and intellectual property to further the regime's military and nuclear aspirations.

Other recent targets of interest encompass South Korean educational institutions, construction companies, and manufacturing organizations.

"This group poses an ongoing threat to various industry sectors worldwide, including, but not limited to, entities in the United States, South Korea, Japan, and India," the National Security Agency (NSA) said. "The group funds their espionage activity through ransomware operations against U.S. healthcare entities."

Initial access to target networks is accomplished by means of exploiting known N-day security flaws in internet-facing applications, enabling the hacking group to conduct follow-on reconnaissance, filesystem enumeration, persistence, privilege escalation, lateral movement, and data exfiltration steps using a combination of custom backdoors, remote access trojans, off-the-shelf tools, and open-source utilities at their disposal.

Other documented malware distribution vectors entail the use of phishing emails containing malicious attachments, such as Microsoft Windows Shortcut (LNK) files or HTML Application (HTA) script files inside ZIP archives.

"The actors are well-versed in using native tools and processes on systems, known as living-off-the-land (LotL)," the U.S. Cybersecurity and Infrastructure Security Agency (CISA) said. "They use Windows command line, PowerShell, Windows Management Instrumentation command line (WMIC), and Linux bash, for system, network, and account enumeration."

Microsoft, in its own advisory on Andariel, described it as constantly evolving its toolset to add new functionality and implement novel ways to bypass detection, while exhibiting a "fairly uniform attack pattern."

"Onyx Sleet's ability to develop a spectrum of tools to launch its tried-and-true attack chain makes it a persistent threat, particularly to targets of interest to North Korean intelligence, like organizations in the defense, engineering, and energy sectors," the Windows maker noted.

Some of the noteworthy tools highlighted by Microsoft are listed below -

*   TigerRAT - A malware that can steal confidential information and carry out commands, like keylogging and screen recording, from a command-and-control (C2) server
*   SmallTiger - A C++ backdoor
*   LightHand - A lightweight backdoor for remote access to infected devices
*   ValidAlpha (aka Black RAT) - A Go-based backdoor that can run an arbitrary file, list contents of a directory, download a file, take screenshots, and launch a shell to execute arbitrary commands
*   Dora RAT - A "simple malware strain" with support for reverse shell and file download/upload capabilities

"They have evolved from targeting South Korean financial institutions with disruptive attacks to targeting U.S. healthcare with ransomware, known as Maui, although not at the same scale as other Russian speaking cybercrime groups," Alex Rose, director of threat research and government partnerships at Secureworks Counter Threat Unit, said.

"This is in addition to their primary mission of gathering intelligence on foreign military operations and strategic technology acquisition."

Andariel is just one of the myriad state-sponsored hacking crews operating under the direction of the North Korean government and military, alongside other clusters tracked as the Lazarus Group, BlueNoroff, Kimsuky, and ScarCruft.

"For decades, North Korea has been involved in illicit revenue generation through criminal enterprises, to compensate for the lack of domestic industry and their global diplomatic and economic isolation," Rose added.

"Cyber was rapidly adopted as a strategic capability that could be used for both intelligence gathering and money making. Where historically these objectives would have been covered by different groups, in the last few years there has been a blurring of the lines and many of the cyber threat groups operating on behalf of North Korea have also dabbled in money making activities."

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U.S. DoJ Indicts North Korean Hacker for Ransomware Attacks on Hospitals

CrowdStrike is alerting about an unfamiliar threat actor attempting to capitalize on the Falcon Sensor update fiasco to distribute dubious installers targeting German customers as part of a highly targeted campaign.
The cybersecurity company said it identified what it described as an unattributed spear-phishing attempt on July 24, 2024, distributing an inauthentic CrowdStrike Crash Reporter

Enterprise Security / Network Security

CrowdStrike is alerting about an unfamiliar threat actor attempting to capitalize on the Falcon Sensor update fiasco to distribute dubious installers targeting German customers as part of a highly targeted campaign.

The cybersecurity company said it identified what it described as an unattributed spear-phishing attempt on July 24, 2024, distributing an inauthentic CrowdStrike Crash Reporter installer via a website impersonating an unnamed German entity.

The imposter website is said to have been created on July 20, a day after the botched update crashed nearly 9 million Windows devices, causing extensive IT disruptions across the world.

"After the user clicks the Download button, the website leverages JavaScript (JS) that masquerades as JQuery v3.7.1 to download and deobfuscate the installer," CrowdStrike's Counter Adversary Operations team said.

"The installer contains CrowdStrike branding, German localization, and a password \[is\] required to continue installing the malware."

Specifically, the spear-phishing page featured a download link to a ZIP archive file containing a malicious InnoSetup installer, with the malicious code serving the executable injected into a JavaScript file named "jquery-3.7.1.min.js" in an apparent effort to evade detection.

Users who end up launching the bogus installer are then prompted to enter a "Backend-Server" to proceed further. CrowdStrike said it was unable to recover the final payload deployed via the installer.

The campaign is assessed to be highly targeted owing to the fact that the installer is password-protected and requires input that's likely only known to the targeted entities. Furthermore, the presence of the German language suggests that the activity is geared towards German-speaking CrowdStrike customers.

"The threat actor appears to be highly aware of operations security (OPSEC) practices, as they have focused on anti-forensic techniques during this campaign," CrowdStrike said.

"For example, the actor registered a subdomain under the it\[.\]com domain, preventing historical analysis of the domain-registration details. Additionally, encrypting the installer contents and preventing further activity from occurring without a password precludes further analysis and attribution."

The development comes amid a wave of phishing attacks taking advantage of the CrowdStrike update issue to propagate stealer malware -

*   A phishing domain crowdstrike-office365\[.\]com that hosts rogue archive files containing a Microsoft Installer (MSI) loader that ultimately executes a commodity information stealer called Lumma.

*   A ZIP file ("CrowdStrike Falcon.zip") that contains a Python-based information stealer tracked as Connecio that collects system information, external IP address, and data from various web browsers, and exfiltrates them to SMTP accounts listed on a Pastebin dead-drop URL.

On Thursday, CrowdStrike's CEO George Kurtz said 97% of the Windows devices that went offline during the global IT outage are now operational.

"At CrowdStrike, our mission is to earn your trust by safeguarding your operations. I am deeply sorry for the disruption this outage has caused and personally apologize to everyone impacted," Kurtz said. "While I can't promise perfection, I can promise a response that is focused, effective, and with a sense of urgency."

Previously, the company's chief security officer Shawn Henry apologized for failing to "protect good people from bad things," and that it "let down the very people we committed to protect."

"The confidence we built in drips over the years was lost in buckets within hours, and it was a gut punch," Henry acknowledged. "We are committed to re-earning your trust by delivering the protection you need to disrupt the adversaries targeting you. Despite this setback, the mission endures."

Meanwhile, Bitsight's analysis of traffic patterns exhibited by CrowdStrike machines across organizations globally has revealed two "interesting" data points that it said warrants additional investigation.

"Firstly, on July 16 at around 22:00 there was a huge traffic spike, followed by a clear and significant drop off in egress traffic from organizations to CrowdStrike," security researcher Pedro Umbelino said. "Second, there was a significant drop, between 15% and 20%, in the number of unique IPs and organizations connected to CrowdStrike Falcon servers, after the dawn of the 19th."

"While we can not infer what the root cause of the change in traffic patterns on the 16th can be attributed to, it does warrant the foundational question of 'Is there any correlation between the observations on the 16th and the outage on the 19th?'"

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CrowdStrike Warns of New Phishing Scam Targeting German Customers

The fake updates are part of a phishing and fraud surge that is both more voluminous and more targeted that the usual activity around national news stories.

Source: imageBROKER.com GmbH & Co. KG via Alamy Stock Photo

Scam alert: Cybercriminals are using last week's CrowdStrike outage as a vehicle for social engineering attacks against the security vendor's customers.

In the hours after the event that grounded planes, shuttered stores, closed down medical facilities, and more, national cybersecurity agencies in the US, UK, Canada, and Australia all reported follow-on phishing activity by petty criminals. That much is to be expected after any national news event. But, says BforeAI CEO Luigi Lenguito, these post-CrowdStrike attacks are both more copious and more targeted than those typically seen after major media stories.

For reference, "in the attack last week on Trump, we saw a spike on the first day of 200 \[related cyber threats\] and then it flattened to 40, 50 a day," he says. "Here, you're looking at a spike that is three times as big. We're seeing about 150 to 300 attacks per day. I would say this is not the normal volume for news-related attacks."

**Profile of a CrowdStrike-Themed Scam**

"The philosophy is: We have these large corporations' users who are lost, because their computers cannot connect to the mothership, and now they're trying to get connected. It's a perfect opportunity for cybercriminals to get back into these networks," Lenguito explains.

This makes CrowdStrike-themed phishing attacks characteristically different from, say, Trump assassination-themed ones. They're much more targeted — aimed at organizations affected by the outage — and potential victims are more technically adept and educated in cybersecurity than your average bear.

To convince those people to let them in, attackers have been masquerading as either the company itself, related technical support, or competing companies with their own "offerings."

The evidence lies in phishing and typosquatting domains registered in recent days, like crowdstrikefix\[.\]com, crowdstrikeupdate\[.\]com, and www.microsoftcrowdstrike\[.\]com. One security researcher identified more than 2,000 such domains that have been generated thus far.

These domains might be used to distribute malware, like the ZIP file pretending to be a hotfix which was uploaded to a malware scanning service last weekend. The ZIP contained HijackLoader (aka IDAT Loader), which in turn loaded the RemCos RAT. The file was first reported from Mexico, and it contained Spanish-language filenames, indicating that the campaign likely targeted CrowdStrike customers in Latin America.

In another case, attackers distributed a CrowdStrike-themed phishing email with a crudely designed PDF attachment. Inside the PDF was a link to download a ZIP attachment with an executable inside. Once launched, the executable asked the victim for permission to install an update. The update, though, was a wiper. The pro-Hamas hacktivist group "Handala" took responsibility, claiming that "dozens" of Israeli organizations had lost several terabytes of data as a result.

However the threats might arrive, Lenguito says, organizations can protect themselves by using blocklists, protective DNS tools, and by avoiding tech support from anywhere other than CrowdStrike's own website and customer service channels.

Or, perhaps, they can just wait it out. "We're still early, right? We'll probably see it taper over the coming weeks. Generally, what we see is these campaigns have a tendency to last two to three weeks," he says.

**About the Author(s)**

Nate Nelson is a freelance writer based in New York City. Formerly a reporter at Threatpost, he contributes to a number of cybersecurity blogs and podcasts. He writes "Malicious Life" -- an award-winning Top 20 tech podcast on Apple and Spotify -- and hosts every other episode, featuring interviews with leading voices in security. He also co-hosts "The Industrial Security Podcast," the most popular show in its field.

CrowdStrike 'Updates' Deliver Malware &amp; More as Attacks Snowball

The Andariel group is targeting critical defense, aerospace, nuclear, and engineering companies for data theft, the FBI, NSA, and others said.

Source: DD Images via Shutterstock

A long-known cyber-espionage group working on behalf of North Korea's foreign intelligence service is systematically stealing technical information and intellectual property from organizations in the US and other countries to advance its own nuclear and military programs.

The group — which security vendors track variously as Andariel, Silent Chollima, Onyx Sleet, and Stonefly — is using ransomware attacks on US health care entities to fund the campaign, the US government warned this week.

**A Clear and Present Danger**

In a joint advisory, the FBI, the US Cybersecurity and Infrastructure Security Agency (CISA), the National Security Agency (NSA), and others identified the threat actor as primarily targeting defense, aerospace, nuclear, and engineering organizations in the US, Japan, South Korea, and India. "The authoring agencies believe the group and the cyber techniques remain an ongoing threat to various industry sectors worldwide," the advisory noted.

Meanwhile, the US government offered a $10 million reward under the State Department's Rewards for Justice program for information leading to the arrest of Rim Jong Hyok, whom it believes is a key player in the malicious cyber activity. In tandem, the US Justice Department indicted Jong Hyok on charges related to his involvement in Andariel attacks on multiple US entities, including NASA and two US Air Force bases.

The information that Andariel is pursuing in its current campaign is broad and varied. From defense organizations, the adversary has been stealing information pertaining to heavy and light tanks, self-propelled howitzers, combat ships, autonomous underwater vehicles, and other equipment. Aerospace companies are being targeted for information on everything from fighter aircraft, missiles, and missile defense systems to radars and nano-satellite technology. The goal with attacks on organizations in the nuclear sector is to gather data in areas like uranium processing and enrichment, material waste, and storage. And with engineering firms, the threat actor's focus is on shipbuilding, robotics, additive manufacturing, 3D printing, and other technologies.

"The authoring agencies encourage critical infrastructure organizations to apply patches for vulnerabilities in a timely manner, protect web servers from web shells, monitor endpoints for malicious activities, and strengthen authentication and remote access protections," the advisory said.

**Well-Known Threat Actor**

Andariel has been active for several years. Researchers at Google's Mandiant who track the group as APT45 believe it has been operational since at least 2009. Microsoft, which tracks the threat actor as OnyxSleet, says it first spotted the group in 2014. Over the years, researchers have tied the group to numerous information stealing campaigns and destructive attacks on organizations in more than a dozen critical sectors, including defense, aerospace, energy, financial services, transportation, and health care. Many of its attacks have targeted South Korean entitities.

In a report that coincided with the US government warning this week, Mandiant said it had observed APT45 gradually launching more financially motivated attacks — like ransomware attacks — in recent years, even as it has continued with its cyber espionage mission. "APT45 is one of North Korea’s longest running cyber operators, and the group's activity mirrors the regime's geopolitical priorities even as operations have shifted from classic cyber espionage against government and defense entities to include healthcare and crop science," Mandiant said.

Microsoft also released an update on the North Korean actor this week and has observed Onyx Sleet actors recently switch from spear-phishing as a way to gain initial access to using vulnerability exploits. But otherwise, its tradecraft has remained largely unchanged, Microsoft said. "Onyx Sleet has used the same tactics, techniques, and procedures (TTPs) over extended periods, suggesting the threat actor views its tradecraft as effective."

**Vulnerability Exploits and Custom Tools**

The US government advisory described Andariel as looking for and exploiting multiple well-known vulnerabilities to gain initial access to target networks in its recent attacks. Vulnerabilities that the group has been exploiting in its attacks include the Log4Shell flaw (CVE-2021-44228) in Apache's Log4j software; CVE-2023-46604, a maximum severity bug in Apache ActiveMQ server technology; CVE-2023-34362, a widely exploited remote code execution flaw in Progress Software's MOVEIt file transfer technology; and a similar flaw in Fortra's GoAnywhere software (CVE-2023-0669).

In all, the joint advisory listed 41 CVEs that Andariel actors have exploited to break into target networks as part of its cyberespionage campaign. Of that, 16 were vulnerabilities that various vendors disclosed last year. The oldest flaw in the list is from 2017 — CVE-2017-4946 — a privilege escalation bug in VMWare's V4H and V4PA desktop agents.

Once they gain access to a network, Andariel actors typically use a variety of custom tools and malware to establish remote access, enable lateral movement, and steal data, the advisory said, listing nearly two dozen of them. The tools "include functionality for executing arbitrary commands, keylogging, screenshots, listing files and directories, browser history retrieval, process snooping, creating and writing to files, capturing network connections, and uploading content to command and control," the advisory said. "The tools allow the actors to maintain access to the victim system, with each implant having a designated C2 node."

The advisory describes in detail other tactics, techniques, and procedures that Andariel actors have employed in recent attacks so organizations in the group's crosshairs can take protective measures. It also provides indicators of compromise that organizations can use to check for signs of the threat actor's presence on their network and systems.

**About the Author(s)**

Jai Vijayan is a seasoned technology reporter with over 20 years of experience in IT trade journalism. He was most recently a Senior Editor at Computerworld, where he covered information security and data privacy issues for the publication. Over the course of his 20-year career at Computerworld, Jai also covered a variety of other technology topics, including big data, Hadoop, Internet of Things, e-voting, and data analytics. Prior to Computerworld, Jai covered technology issues for The Economic Times in Bangalore, India. Jai has a Master's degree in Statistics and lives in Naperville, Ill.

Feds Warn of North Korean Cyberattacks on US Critical Infrastructure

Though IE was officially retired in June 2022, the vulnerability ramped up in January 2023 and has been going strong since.

Source: mundissima via Alamy Stock Photo

Check Point earlier this month discovered a remote code execution vulnerability, tracked as CVE-2024-38112, that impacts Microsoft Windows users and different versions of Windows Server.

The attackers used Windows Internet Shortcut files, which call on the retired Internet Explorer to visit a URL with a hidden malicious extension name and controlled by these threat actors. Because users are opening this URL with Internet Explorer, and not more secure browsers like Chrome or Edge, the threat actor has more advantages in exploiting the victim's device.

The threat actors also use a second method where they "make the victim believe they are opening a PDF file, while in fact, they are downloading and executing a dangerous .hta application," wrote the Check Point researchers.

The Cybersecurity and Infrastructure Security Agency (CISA) has added this high-severity vulnerability to its Known Exploited Vulnerabilities Catalog  Catalog, with its score of 7.5 due to its active exploitation, and mandated that all Windows systems within federal agencies must be updated or shut down by July 30.

Other research shows that of the roughly 500,000 endpoints running Windows 10 and 11, more than 10% of those devices are missing endpoint protection controls and almost 9% lack patch management controls, meaning that these organizations have a significant number of blind spots for attackers to exploit. 

Though Microsoft issued a patch on July 9, some exploits of this vulnerability date back more than a year ago, which means organizations need to act quickly in their mitigation efforts.

**About the Author(s)**

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