On the eve of Christmas, a suspected Black Basta affiliate conducted a ‘quick and dirty’ attack on a global client, lending insight into the opportunistic targeting of victims during holiday downtime periods.

The Significance of Dates

The holidays are a time for rest and rejuvenation for most. But for attackers, the holidays present a timely opportunity to exploit weakened security postures for a higher likelihood of successful intrusion. Attackers have been consistently observed to exploit the predictable patterns of organisations’ limited cyber preparedness during holiday seasons, largely driven by the shortage of personnel and lack appropriate response preparation measures, to achieve a ‘quick and dirty’ infiltration. Beyond opportunistic exploitation of weakened defences during the holidays, attackers are observed to conduct targeted attacks on dates of significance (e.g., political, religious, historical, legal dates of importance) as a means of taking a stance on a divisive topic or sending a clear message. In certain incidents, the date of intrusion attempts can provide a valuable indicator into the motivations and intentions of the threat actor behind the attack.

PwC’s Dark Lab have continuously observed the trend of increased incidents surrounding major holidays and dates of significance (e.g., Christmas, Chinese New Year, etc.), including our recent incident featuring the Qakbot banking trojan and attributed to the Black Basta ransomware-as-a-service (RaaS) group.

Initial Access: Conversation Hijacked

The incident was initiated by a phishing email disguised as a customer request to deliver the Qakbot banking trojan malware. Notably, the threat actor leveraged an old email thread dating back to January 2020 to the victim’s shared mailbox, as a means of leveraging an existing conversation with established trust to exhibit legitimacy.

We purposely do not disclose the email in this blog as the original mail sender is legitimate and was likely compromised. It was discovered via open source intelligence (OSINT) that the legitimate sender emails leveraged by the affiliate were potentially harvested during the 2021 ProxyLogon-related compromises that targeted vulnerable Microsoft Exchange Servers to perform thread hijacking, whereby attackers harvest legitimate emails to launch targeted phishing campaigns against previously uncompromised organisations. [1] The following key indicators were observed, validating our hypothesis that thread hijacking was conducted;

(1) Phishing emails were likely sent from a spoofed sender address, as evidenced by the SoftFail Sender Policy Framework (SPF) record indicating that the IP address may or may not be authorised to send from the domains. An SPF record facilitates spoofed email prevention and anti-spam control and acts as a filter to assess the authenticity of an email. A SPF soft fail occurs when an unauthorised sender email is received and quarantined in the victim’s spam folder, flagging the email as potentially suspicious. [2]
(2) The spear phishing link directed to the domain osiwa[.]org, which has been flagged by the community twice in 2023 to be malicious and associated with Qakbot. [3] As at the time of the incident, the phishing link displayed a HTTP status code 404, though we observed osiwa[.]org was scanned up to eight times between 1 December 2022 and 2 March 2023, potentially indicating that a number of other organisations had received a similar malicious link directing them to download the Qakbot malware.
(3) The affiliate performed partial scrubbing of the email header information during construction of their malicious email to remove content that does not align with their malicious content.
(4) Prior to the malicious email in Q4 2022, the last email in the thread was observed from 2020, indicating that the email was likely harvested as a result of the 2021 ProxyLogon mass exploitation for the purpose of thread hijacking.

Our analysis into the known-bad IP addresses reveal that six (6) of them – 24.69.84[.]237, 50.67.17[.]92, 70.51.136[.]204, 149.74.159[.]67, 38.166.221[.]92, and 173.76.49[.]61 – have been flagged by the community as associated with Qakbot campaigns in the past.

In addition, a seventh IP address observed in the incident – 108.62.118[.]131 – has been reported to direct to a Cobalt Strike C2 Server. This IP has further been flagged on social media in multiple occasions to resolve to various malicious URLs registered via Namecheap. [4],[5] This, along with the fact that the ASN 30633 was LEASEWEB, are suspicious indicators suggesting it was a throwaway infrastructure potentially being deployed for malicious use.

Upon clicking on the phishing link, the malicious ZIP file was downloaded, and the victim unsuspectingly opened the file, initiating the execution phase. Post-infiltration, the victim’s endpoint detection alerted a potentially suspicious connection associated with FIN7’s (also known as Carbanak) C2 infrastructure. This observation enabled PwC’s Dark Lab analysts to discover that custom toolkits exclusively utilized by the Black Basta ransomware group have overlapping technical characteristics with FIN7, with further evidence to suggest that the custom tools leveraged by Black Basta may have potentially been developed by FIN7’s malware developers. [6] Further, given that Black Basta is widely recognized to leverage Qakbot for initial access in their campaigns, we posit with high confidence that the attack was conducted by a Black Basta affiliate.

Ransomware-as-a-Service Group Behind the Attack: Black Basta

Black Basta is a Russian-speaking ransomware group that operates as a Ransomware-as-a-Service (RaaS) affiliate network. First observed in early 2022, Black Basta is an evolution of the Conti ransomware, offering both Windows and Linux ransomware variants and known to perform double extortion – data encryption and listing stolen data on their leak site unless ransom demands are met. [7] To date, the group have been observed to compromise at least 193 victims across geographies and industries, as listed on their data leak site. Observations of Black Basta’s targeting history indicates no specific targeting against industries, reinforcing the group’s opportunistic nature financially driven motives.

Escalating Privileges

Post-infiltration via Qakbot, the suspected Black Basta affiliate established a call back connection to their C2 server and subsequently performed credential dumping to successfully obtain administrator access on the victim’s Domain Controller server.

Establishing Persistence and Lateral Movement

The affiliate proceeded to implant multiple backdoors to and leveraged domain administrator privileges to perform remote desktop protocol (RDP) via a PowerShell payload execution to establish persistence, gain remote control of the compromised hosts and laterally move across environments. Notably, we observed that the affiliate was capable of performing a cross-domain attack, compromising victims across geographical regions.

Defense Evasion

To evade detection, the threat actor disabled the Wazuh agent, an open-source security monitoring solution commonly leveraged by enterprise users as their Extended Detection and Response (XDR) and Security Information and Event Management (SIEM) logging platform.

Impact

Once defences were impaired, the affiliate proceeded to deploy the Black Basta ransomware on compromised environments by abusing rundll32.exe to stealthily execute the ransomware via proxy execution. In one instance, the actor was observed to utilise Secure File Transfer Protocol (SFTP) to exfiltrate data from the compromised server to a cloud-hosted server on Digital Ocean (142.93.198[.]225), though no compromised victim data was observed to be listed on Black Basta’s leak site.

As with all RaaS leak sites, we are unable to ascertain if the threat actor lists all their victims on their leak site. Though, per our experience, this is unlikely for a variety of reasons. Per our analysis of the Black Basta leak site, we noted that zero and partial (e.g. 30%) of complete publishing of data is possible. While there is no way to effectively prove the disclosed percentage of leakage, this suggests that Black Basta may choose to leak data in phases as part of their double extortion technique.

Meanwhile, anecdotal analysis of the published victims listed on the leak site indicates that previous victims that publicly announced the breach had a lead time of between one to three weeks prior to being listed on Black Basta’s leak site. While we do not have evidence to suggest that certain victims may not be listed, we assess the likelihood of Black Basta leaking data of undisclosed victims beyond the three-week period to be relatively lower, though not impossible given our previous experience with RaaS groups and cybercriminals.

Conclusion

Based on the findings of our investigation, PwC’s Dark Lab posits with high confidence that an affiliate of the Black Basta ransomware cybercriminal group were likely behind the incident. The incident was observed to take place within a short timeframe, with malicious actor(s) infiltrating the victim’s environment and subsequently escalating privileges on day one of the attack, followed by lateral movement, ransomware execution, and data exfiltration on day two. Given the timeliness of the incident, we posit the attacker intentionally targeted the victim during the holiday period under the assumption that the victim had limited capacity to detect and respond to their attack.

Recommendations

As RaaS groups continuously persist and evolve their attack vectors, it is vital that organisations implement robust, layered defence strategies based on the concept of zero trust.

• Develop and maintain a contingency plan for holiday periods with expected limitations of manpower and capacity, ensuring allocated on-call members are regularly briefed on the incident response measures in case of attack
• Implement a zero-trust security architecture to limit the likelihood of successful intrusion and/or containment of potentially impending attacks
• Enhance email security controls (e.g., anti-phishing controls, sandbox analysis, etc.) on email security gateways and network devices (including external firewalls, web proxies)
• Educate your employees, particularly those in roles that regularly interact with unknown senders (e.g., sales, customer service, human resources, finance, etc.) of the potential indicators to identify and report potential email thread hijacking attempts (e.g., spoofed senders, old email threads, partially scrubbed email addresses, malformed replies, repetitive use of the same harvested legitimate email, etc.).
• Maintain “tertiary” offline backups (i.e., tertiary backup) that are encrypted and immutable (i.e., cannot be altered or deleted). This should be atop of your existing secondary data backups that should adopt security best practices, in particular network segmentation with your production and/or primary site
• Perform a review of access management with respect to identity and network access (e.g., removal of legacy and unused accounts, housekeeping of privileges for all accounts, and enforce network segmentation to tighten access to key servers)
• Enforce network segmentation, including identity segmentation in line with zero trust policies to restrict access based on identities, to reduce your attack surface and contain the potential impact of a ransomware attack

MITRE ATT&CK TTPs Leveraged

We include the observed MITRE ATT&CK tactics and techniques elaborated from part one of the blogpost. We will expand this list as we deep-dive into the affiliates’ TTPs as observed from our incident response experience in Q1 2022.

• T1588.001 Obtain Capabilities: Malware
• T1586 Compromise Accounts: Email Accounts
• T1566.002 Phishing: Spear Phishing Link
• T1199 Trusted Relationship
• T1059.001 Command and Scripting Interpreter: PowerShell
• T1204 User Execution
• T1078.002 Valid Accounts: Domain Accounts
• T1562.001 Impair Defenses: Disable or Modify Tools
• T1021.002 Remote Services: SMB/Windows Admin Shares
• T1428 Exploitation of Remote Services
• T1003.006 OS Credential Dumping: DCSync
• T1572 Protocol Tunneling
• T1071 Application Layer Protocol: Cobalt Strike Beacon
• T1041 Exfiltration Over C2 Channel
• T1486 Data Encrypted for Impact

Indicators of Compromise (IoCs)

We include the observed IoCs in our encounter with Qakbot and Black Basta.

Indicator	File Type
37bf163c9a37e27cdbb8c5db31457063​	Malicious Compiled Script (DLL)
142.93.198[.]225​	IP Address – Resolving to Digital Ocean
50.67.17[.]92​	Known-Bad IP – Associated with Qakbot Campaigns
149.74.159[.]67​	Known-Bad IP – Associated with Qakbot Campaigns
24.69.84[.]237​	Known-Bad IP – Associated with Qakbot Campaigns
70.51.136[.]204​	Known-Bad IP – Associated with Qakbot Campaigns
38.166.221[.]92​	Known-Bad IP – Associated with Qakbot Campaigns
108.62.118[.]131​	Known-Bad IP​ – Cobalt Strike C2 Server
173.76.49[.]61​	Known-Bad IP – Associated with Qakbot Campaigns
23.106.223[.]214​	C2 IP

Further information

Feel free to contact us at [darklab dot cti at hk dot pwc dot com] for any further information.