The impact of LockBit and insights from Water Selkie
Our investigation into the intrusion set behind LockBit, which we track as Water Selkie, reveals the effectiveness and impact of the tactics we have discussed. The key takeaways are the following:
- The malware’s performance is a strong selling point. The malware’s speed and capabilities are widely known because the group uses them as selling points. The threat group’s efforts to publicize their malware’s capabilities have established it as the ransomware with one of the fastest and most efficient encryption methods.
- It considers external pressures and issues faced by its potential targets. Water Selkie’s operators have indicated a preference for victims in Europe who fear breaching EU’s General Data Protection Regulation (GDPR). They continue to also consider the US to have lucrative targets, but see that data privacy laws can affect their chances of getting a successful payout. In general, they are attuned to geopolitical issues that they can use to their advantage.
- Banks on the strength of its affiliate program. As mentioned earlier, a contributing factor in LockBit’s success is how well it recruits trustworthy and capable affiliates. Evidence also suggests that several of its affiliates are involved in multiple RaaS operations, which helps Water Selkie innovate and keep up with its competition. In return, Water Selkie prides itself on its professional operation that can be trusted by affiliates.
- It has more in store for the future. Water Selkie clearly ramped up operations in the second half of 2021. We see that the intrusion set will either maintain or increase their level of activity in the first half of 2022. Organizations should also expect more supply chain attacks in the future according to an interview conducted with one of LockBit’s operators.
With LockBit affiliates being likely involved in other RaaS operations, its tactics slipping into those of other ransomware groups isn’t a far-fetched notion. Organizations would therefore benefit from recognizing LockBit’s tactics, techniques, and procedures (TTPs) laid out in the next sections.
Top affected industries and countries
Targeted regions and sectors according to LockBit leak site
Infection chain and techniques
- LockBit operators mostly gain access via compromised servers or RDP accounts that are usually bought or obtained from affiliates.
- In some instances, it arrived via spam email or by brute forcing insecure RDP or VPN credentials.
- It can also arrive via exploiting Fortinet VPN’s CVE-2018-13379 vulnerability.
- LockBit is usually executed via command line as it accepts parameters of file path or directories if desired to only encrypt specific paths.
- It may also be executed via created scheduled tasks. This is usually the case if it is propagated in other machines.
- There are also reports of it being executed using PowerShell Empire, a pure PowerShell post-exploitation agent.
- Aside from using credentials obtained from affiliates. LockBit attacks were also observed using Mimikatz to further gather credentials.
- Some infections were observed to have GMER, PC Hunter, and/or Process Hacker. These are tools that are usually used to disable security products.
- In some observed attacks, a Group Policy was created to disable Windows Defender.
- Network Scanner, Advanced Port Scanner, and AdFind were also used to enumerate connected machines in the network. Probably to locate the Domain Controller or Active Directory server as these are usually the best targets for deploying ransomware with network encryption or propagation.
- LockBit can self-propagate via SMB connection using obtained credentials.
- Some samples can self-propagate and execute via Group Policy.
- In some instances, PsExec or Cobalt Strike were used to move laterally within the network.
- Uploads stolen files via cloud storage tools like MEGA or FreeFileSync.
- Sometimes, the StealBit malware (also sold by the threat actors) was used instead to exfiltrate stolen files.
- The ransomware payload will proceed with encryption routine upon execution. Encryption includes both local and network encryption.
- It encrypts files using AES and encrypts AES key with RSA encryption. The AES Key is generated using BCryptGenRandom.
- For faster encryption, it only encrypts the first 4KB of a file and appends it to “.lockbit.”
- It will also replace the desktop wallpaper with a note that includes a statement where it tries to recruit insiders or affiliates within companies.
Figure 12. Sample wallpaper used by LockBit
- LockBit also sends a WoL packet to ensure that network drives are active for its network encryption; this behavior was first observed on the Ryuk ransomware.
- LockBit also has the capability to print its ransom note using connected printers using WinSpool APIs, which is probably inspired by Egregor ransomware.
MITRE tactics and techniques
|Initial Access||Execution||Persistence||Privilege Escalation||Defense Evasion||Discovery||Lateral Movement||Exfiltration||Impact|
T1566 - Phishing
T1190 - Exploit public-facing application
T1078 - Valid accounts
T1106 - Execution through API
T1059 - Command and scripting interpreter
T1204 - User execution
T1547 - Boot or logon autostart execution
Creates registry run entries
T1134 - Access token manipulation
Use AdjustTokenPrivilege API to modify token attribute to SE_PRIVILEGE_ENABLED
T1548 - Abuse Elevation Control Mechanism
T1140 - Deobfuscate/Decode Files or Information
T1562 - Impair defenses
T1574 - Hijack execution flow
T1218 - Signed Binary Proxy Execution
T1484 - Domain Policy Modification
T1070 - Indicator Removal on Host
T1083 - File and directory discovery
T1135 - Network Share Discovery
T1018 - Remote system discovery
T1057 - Process discovery
T1570 - Lateral tool transfer
T1567 - Exfiltration over web service
T1041 - Exfiltration Over C2 Channel
T1486 - Data encrypted for impact
T1489 - Service stop
T1491 - Defacement
Summary of malware, tools, and exploits used
Security teams can watch out for the presence of the following malware tools and exploits that are typically used in LockBit attacks:
|Initial Entry||Execution||Discovery||Lateral Movement||Defense Evasion||Exfiltration|
As mentioned earlier, we expect the LockBit to continue its level of activity, if not increase it in the coming months. From our discussion, LockBit also demonstrates both consistent and versatile operations that adapt to current trends that affect the threat landscape. Organizations therefore should also keep abreast of the latest shifts that could influence their own security measures.
To help defend systems against similar threats, organizations can establish security frameworks that can allocate resources systematically for establishing a solid defense against ransomware.
Here are some best practices that can be included in these frameworks:
Audit and inventory
- Take an inventory of assets and data
- Identify authorized and unauthorized devices and software
- Make an audit of event and incident logs
Configure and monitor
- Manage hardware and software configurations
- Grant admin privileges and access only when necessary to an employee’s role
- Monitor network ports, protocols, and services
- Activate security configurations on network infrastructure devices such as firewalls and routers
- Establish a software allow list that only executes legitimate applications
Patch and update
- Conduct regular vulnerability assessments
- Perform patching or virtual patching for operating systems and applications
- Update software and applications to their latest versions
Protect and recover
- Implement data protection, backup, and recovery measures
- Enable multifactor authentication (MFA)
Secure and defend
- Employ sandbox analysis to block malicious emails
- Deploy the latest versions of security solutions to all layers of the system, including email, endpoint, web, and network
- Detect early signs of an attack such as the presence of suspicious tools in the system
- Use advanced detection technologies such as those powered by AI and machine learning
Train and test
- Regularly train and assess employees on security skills
- Conduct red-team exercises and penetration tests
A multilayered approach can help organizations guard the possible entry points into the system (endpoint, email, web, and network). Security solutions can detect malicious components and suspicious behavior could help protect enterprises.
- Trend Micro Vision One™ provides multilayered protection and behavior detection, which helps block questionable behavior and tools early on before the ransomware can do irreversible damage to the system.
- Trend Micro Cloud One™ Workload Security protects systems against both known and unknown threats that exploit vulnerabilities. This protection is made possible through techniques such as virtual patching and machine learning.
- Trend Micro™ Deep Discovery™ Email Inspector employs custom sandboxing and advanced analysis techniques to effectively block malicious emails, including phishing emails that can serve as entry points for ransomware.
- Trend Micro Apex One™ offers next-level automated threat detection and response against advanced concerns such as fileless threats and ransomware, ensuring the protection of endpoints.
Indicators of Compromise (IOCs)
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