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Unmasking the Crypt Ghouls: A Deep Dive into a Series of Attacks Targeting Russia

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In the ever-evolving landscape of cyber threats, the emergence of new hacking groups often signifies the advent of sophisticated attack methods, tools, and motives. One such group making headlines is Crypt Ghouls, a shadowy collective responsible for a series of attacks against Russian businesses and government agencies. These attacks have not only caused substantial financial losses but also raised serious concerns about cybersecurity in critical infrastructures.

The Crypt Ghouls: Overview of Attacks
The Crypt Ghouls first surfaced in late 2023, launching ransomware attacks on various Russian organizations. Their hallmark is the use of ransomware payloads like LockBit 3.0 and Babuk, both notorious for their devastating capabilities. The group’s operations span multiple sectors, including government, finance, and healthcare, crippling vital infrastructure and locking organizations out of their data.

In this article, we examine the Crypt Ghouls’ tactics, techniques, and procedures (TTPs) and investigate the tools they used to breach Russian entities. We also provide actionable steps for organizations to defend against such attacks in the future.

Initial investigations reveal similarities in the group’s tactics with other well-established hacking collectives. Crypt Ghouls, however, distinguished themselves with their selective targeting of Russian entities, an unusual focus given that many ransomware groups avoid attacking organizations in their own geopolitical sphere.

Tactics, Techniques, and Tools
The Crypt Ghouls employ a multi-step attack strategy, utilizing sophisticated tools to gain access, harvest credentials, and maintain persistence within their target environments.

  1. Initial Access: In two observed incidents, attackers leveraged VPN access from contractors to infiltrate networks. The VPN connections originated from Russian hosting providers, and it is suspected that the contractors were compromised via phishing or unpatched vulnerabilities.
  2. Persistence: To maintain their foothold, Crypt Ghouls employed tools such as NSSM (Non-Sucking Service Manager) and Localtonet. NSSM allowed them to run malicious services on compromised hosts, while Localtonet facilitated encrypted communication with external command and control (C2) servers. These tools were downloaded directly from legitimate websites, adding to the difficulty of detection.
  3. Credential Harvesting: The attackers utilized XenAllPasswordPro, a potent tool capable of extracting a wide range of authentication credentials. Command-line scripts showed the tool was hidden under directories like “\allinone2023\”, making it difficult for administrators to detect. In some cases, the group used Mimikatz, another powerful utility, to dump credentials from memory, including Kerberos tickets and passwords stored in browsers.
  4. Network Reconnaissance and Lateral Movement: Crypt Ghouls used PingCastle, a well-known Active Directory security audit tool, to gather intelligence on the network architecture. This was combined with Remote Desktop Protocol (RDP) and Windows Management Instrumentation (WMI) to move laterally across networks, often leveraging tools such as PsExec and Impacket to execute commands remotely.
  5. Final Payload: The ransomware deployed by Crypt Ghouls included LockBit 3.0 and Babuk, both notorious for their ability to encrypt vast amounts of data quickly. LockBit 3.0, in particular, has a reputation for being one of the fastest encryptors on the market, and the group’s use of it demonstrates their commitment to causing widespread disruption.

Notable Campaigns and Overlaps with Other Groups
Further investigation into Crypt Ghouls’ campaigns has revealed overlaps with other ransomware groups that have targeted Russia in recent years. These overlaps are visible in several key areas:

  • Infrastructure Similarities: Crypt Ghouls shared portions of their command-and-control infrastructure with other threat actors, indicating potential collaboration or resource-sharing within the cybercrime ecosystem.
  • TTPs: The group’s use of tools like Mimikatz, PsExec, and Localtonet is not unique, but the combination of these with specific ransomware strains suggests the attackers have adapted techniques from other successful campaigns.

Moreover, the use of the CobInt backdoor loader, a known malicious tool used in several cyber espionage campaigns, signals that Crypt Ghouls may have ties to state-sponsored entities or access to advanced cyber tools used in espionage.

10 Steps to Mitigate the Threat of Crypt Ghouls
To protect against similar attacks from Crypt Ghouls or other ransomware groups, organizations must implement robust security measures. Here are ten practical steps:

  1. Regularly Patch Systems: Ensure all systems and applications are up-to-date with the latest security patches, particularly VPN services and remote access tools.
  2. Enforce Strong Access Controls: Implement multi-factor authentication (MFA) for all remote access points, particularly for contractors and third-party vendors.
  3. Monitor Network Traffic: Use intrusion detection systems (IDS) and traffic monitoring tools to detect unusual behavior, such as external connections via Localtonet.
  4. Limit Privileged Access: Restrict administrative privileges and regularly audit the use of tools like PsExec and WMI across your network.
  5. Segregate Networks: Isolate sensitive areas of your network from general user access, especially in environments where remote access is necessary.
  6. Backup Critical Data: Implement a robust data backup strategy with offsite backups and regularly test your recovery plans.
  7. Conduct Phishing Simulations: Train staff to recognize phishing attempts, which often serve as the entry point for ransomware attacks.
  8. Harden Active Directory: Regularly audit and harden Active Directory environments to prevent lateral movement by attackers using tools like PingCastle.
  9. Implement Endpoint Detection and Response (EDR): Use EDR solutions that can detect malicious activity, such as the use of Mimikatz and other credential harvesting tools.
  10. Review Third-Party Vendor Security: Regularly review the security posture of contractors and third-party vendors, particularly those with access to your network.

Conclusion:
The rise of the Crypt Ghouls group underscores the evolving nature of cybercrime, where sophisticated tools and tactics are increasingly being used to target critical infrastructures. By understanding the techniques employed by this group, cybersecurity professionals can better prepare for future attacks, implementing preventative measures to reduce the risk of ransomware infiltrating their systems. Vigilance, proper cybersecurity hygiene, and proactive defense strategies are essential in the fight against ransomware threats.

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Ouaissou DEMBELE
Ouaissou DEMBELEhttps://cybercory.com
Ouaissou DEMBELE is an accomplished cybersecurity professional and the Editor-In-Chief of cybercory.com. He has over 10 years of experience in the field, with a particular focus on Ethical Hacking, Data Security & GRC. Currently, Ouaissou serves as the Co-founder & Chief Information Security Officer (CISO) at Saintynet, a leading provider of IT solutions and services. In this role, he is responsible for managing the company's cybersecurity strategy, ensuring compliance with relevant regulations, and identifying and mitigating potential threats, as well as helping the company customers for better & long term cybersecurity strategy. Prior to his work at Saintynet, Ouaissou held various positions in the IT industry, including as a consultant. He has also served as a speaker and trainer at industry conferences and events, sharing his expertise and insights with fellow professionals. Ouaissou holds a number of certifications in cybersecurity, including the Cisco Certified Network Professional - Security (CCNP Security) and the Certified Ethical Hacker (CEH), ITIL. With his wealth of experience and knowledge, Ouaissou is a valuable member of the cybercory team and a trusted advisor to clients seeking to enhance their cybersecurity posture.

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