How and why cryptographers attack cities

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Ransomware cryptographers tend to hunt for large-scale commercial loot. However, they also target random victims who are unable to fight off a cyberattack. In this article, we will talk about how malware can harm the life of an entire city.

In early February 2023, the city of Oakland, USA was forced to shut down its IT systems due to a cyber-ransomware attack. The incident did not affect the 911 system, fire and emergency services, but it was necessary to go offline in order to isolate the malware's activity.

As a result of the attack, at least 10 gigabytes of data got into the darknet: identity cards, official documents, passports, home addresses and other confidential information. numerous city employees received notifications that someone was trying to take out a loan in their name — during the attack, fraudsters managed to get the social security numbers of officials. Union officials have begun talking about legal action to provide broader credit protection for thousands of workers whose personal information was stolen last month and posted on the darknet.

Anton Kuznetsov
Leading Information Security Engineer, R-Vision

The tactics used by attackers to gain access to infrastructure have not changed much since 2018, but they are still most often used:
  • exploiting known vulnerabilities;
  • public remote access services (RDP, VPN, SSH, etc.);
  • phishing emails.

Hacking using these tactics is a consequence of outdated IT systems, vulnerabilities in the software, a lack of competencies among employees involved in network administration and information security in the organization, and the lack of modern information security tools due to lack of funding.

Sergey Polunin
Head of the Infrastructure IT Protection Group at Gazinformservis

Over the entire history of the industry, hackers have successfully attacked very large companies that are hard to suspect of having problems with funding or lack of qualified specialists.
Successful attacks occur when the stars converge: attackers must discover a vulnerability that the company's specialists have not yet managed to close, then the vulnerability must be successfully exploited with maximum damage. This doesn't happen as often as it seems.

Hunt for urban IT​

This is far from the first such story in recent years, on the contrary, attacks by cryptographers on municipal infrastructure are only growing. At the end of 2022, Sophos researchers reported that such campaigns are becoming more frequent and more complex (PDF, English). The authors attribute this to the use of automation and artificial intelligence technologies.

Experts conducted a survey among city administrations and found that in 2021, organizations in 58% of respondents suffered from ransomware. In 2020, this figure was 34%. More than half reported the increasing complexity of attacks, and 56% said incidents are having an increasing impact.

The study highlights that the increase in attacks on state and local authorities comes against the background of the opposite trend in other sectors. Other experts also spoke about a decrease in the activity of cryptographers, for example, the authors of the Positive Technologies report on current cyber threats of the third quarter of 2021.:

"Among organizations, state institutions were most often attacked… The main tool of attackers is ransomware, which was used in 46% of attacks using VPO..."

At the same time, the researchers continue, during 2021, the total number of attacks by cryptographers "rapidly" declined. After peaking in April, when 120 attacks were registered, by September the figures had fallen by more than 60%, to 45 attacks. Experts attribute this to "the cessation of the activities of some large groups of ransomware and increased attention... (due to the past high-profile attacks) from the side of law enforcement agencies." This attention has already led to sanctions by the US Treasury Department against crypto exchanges that work with cybercriminals.

Nevertheless, infections of municipal IT infrastructures have been and continue to be a regular problem for cybersecurity professionals. How such an attack goes and what consequences it leads to is clearly seen in the example of the city of Baltimore, USA.

RobbinHood vs. the Baltimore City Administration​

In early May 2019, a newcomer to the then-extortion software arena, RobbinHood, blocked 10 thousand personal computers in the Baltimore city administration. The malware also got to one of the housing and utilities control systems, brought offline the database of parking fines and the local register with 1.5 thousand real estate transactions.

Employees of the municipality lost access to e-mail and were forced to move to work from home. The administration created temporary Gmail addresses for them, which were later automatically blocked on suspicion of unwanted activity. Citizens suddenly lost the ability to pay utility bills, purchase homes, and send emails to the administration. Fortunately, 911 and other emergency services were not affected.

As the media found out, the ransomware demanded a ransom of 13 BTC (about $70 thousand at the exchange rate at the beginning of May 2019). In return, they promised to remove confidential data from their servers, including IP addresses and encryption keys. "Your privacy is very important to us," the attackers said in a message.

Group-IB Group of Experts

The main motivation of such groups is financial. The structure of criminal groups of cryptographers continues to become more complex and more and more resembles the structure of legal IT startups with their hierarchy, recruitment, training, motivation and vacations. Ransomware developers release new versions and updates of their solutions to exploit new or more complex vulnerabilities.

According to information security experts, the attack was not targeted and the malware operators came across the Baltimore administration while scanning the Internet. The text of the ransom request is almost identical to the notes that were discovered after the RobbinHood attacks.

In the first days after the attack, the FBI forbade disclosing any information about the investigation — the contents of the note became known through a leak to the media. Later, the mayor of the city, Bernard Young, said at a press conference that the attackers got into the infrastructure using the EternalBlue exploit. He also confirmed that the authorities do not plan to pay the ransom, although the administration has not yet made a final decision.

A few years earlier, a vulnerability in the Windows SMB protocol under the code name EternalBlue leaked from the arsenal of the US National Security Agency. Further, it caused the largest epidemics in the history of cybersecurity, including the attack of one of the most famous cryptographers WannaCry.

In 2019, journalists did not fail to mock how American citizens, who had already given the NSA money to create EternalBlue, now pay for the elimination of consequences. More recent research, however, has cast doubt on the use of this vulnerability in the Baltimore story (the NSA denied linking the attack to their exploit from the very beginning).

How can a city protect itself from cryptographers​

Cyber Media talked to information security experts to find out: how to reverse the trend and protect urban residents from cybercriminals.

Do these attacks have a targeted nature, or do urban IT systems come under attack accidentally, after a blind scan?​


Anton Kuznetsov
R-Vision

To find targets, attackers often use services that collect data on available IP addresses and ports on the Internet, including remote access services. Such services are subject to attacks using brute force password selection, and less often using vulnerabilities. In 2023, cases of using such tactics by ransomware Dharma (CrySis) operators were recorded.

Group-IB experts

It may seem that it is not very profitable for attackers to spend their time on such goals, because it is much more promising to attack a commercial structure. Ransomware attacks those who can pay a ransom, and the city council is unlikely to be able to demand tens of millions of dollars. At the same time, there are cases when administrations in the United States paid ransom to cryptographers.
Such attacks cause a public outcry, which draws attention to this RaaS. Partner programs of ransomware actively compete with each other, and such "advertising" is not superfluous for them.

What precautions should IT departments of city administrations take to minimize the possible consequences of an attack by a cryptographer?​


Yanis Zinchenko
Kaspersky Lab Cybersecurity Expert

The methods and tools used by attackers are not significantly different for the public sector, companies, or ordinary people. To protect yourself from ransomware attacks, Kaspersky Lab experts recommend::
  1. Do not open access to remote desktop services (such as RDP) from the Internet, but use corporate VPNs instead. Always use strong passwords for such services.
  2. Quickly install available fixes for commercial VPN solutions that connect remote employees and act as gateways in your network.
  3. Always update the software on all devices used to prevent exploiting vulnerabilities.
  4. Focus your security strategy on detecting horizontal movements and exfiltrating data to the Internet. Pay special attention to outgoing traffic to identify cybercriminal communications. Perform regular data backups. Make sure that you can quickly access the backup in an emergency.
  5. Track up-to-date TTP intruders using Threat Intelligence data.
  6. Train and instruct your employees on how to ensure the security of the corporate environment. Specialized courses can help you do this.

Protecting digital cities​

Many participants in our survey noted that financially motivated attack organizers are unlikely to purposefully monitor municipal infrastructure. At the same time, we can assume that with the development of smart city systems and end-to-end digitalization of transport, housing and public services management systems, this situation may change.

A significant advantage in these conditions will be the fact that today's IT services are created taking into account existing threats. Therefore, hacking a digital municipality will be much more difficult than infecting an outdated computer of a city hall employee.
 
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