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8 min read


WHEN COIN MINERS EVOLVE, PART 1: EXPOSING LEMONDUCK AND LEMONCAT, MODERN MINING
MALWARE INFRASTRUCTURE

 * By Microsoft Threat Intelligence

July 22, 2021
 * 
 * 
 * 

 * Vulnerabilities and exploits
 * Credential theft
 * Cross-platform threats
 * Linux

more

[Note: In this two-part blog series, we expose a modern malware infrastructure
and provide guidance for protecting against the wide range of threats it
enables. Part 1 covers the evolution of the threat, how it spreads, and how it
impacts organizations. Part 2 is a deep dive on the attacker behavior and will
provide investigation guidance.]

Combating and preventing today’s threats to enterprises require comprehensive
protection focused on addressing the full scope and impact of attacks. Anything
that can gain access to machines—even so-called commodity malware—can bring in
more dangerous threats. We’ve seen this in banking Trojans serving as entry
point for ransomware and hands-on-keyboard attacks. LemonDuck, an actively
updated and robust malware that’s primarily known for its botnet and
cryptocurrency mining objectives, followed the same trajectory when it adopted
more sophisticated behavior and escalated its operations. Today, beyond using
resources for its traditional bot and mining activities, LemonDuck steals
credentials, removes security controls, spreads via emails, moves laterally, and
ultimately drops more tools for human-operated activity.

LemonDuck’s threat to enterprises is also in the fact that it’s a cross-platform
threat. It’s one of a few documented bot malware families that targets Linux
systems as well as Windows devices. It uses a wide range of spreading
mechanisms—phishing emails, exploits, USB devices, brute force, among others—and
it has shown that it can quickly take advantage of news, events, or the release
of new exploits to run effective campaigns. For example, in 2020, it was
observed using COVID-19-themed lures in email attacks. In 2021, it exploited
newly patched Exchange Server vulnerabilities to gain access to outdated
systems.

This threat, however, does not just limit itself to new or popular
vulnerabilities. It continues to use older vulnerabilities, which benefit the
attackers at times when focus shifts to patching a popular vulnerability rather
than investigating compromise. Notably, LemonDuck removes other attackers from a
compromised device by getting rid of competing malware and preventing any new
infections by patching the same vulnerabilities it used to gain access.

In the early years, LemonDuck targeted China heavily, but its operations have
since expanded to include many other countries, focusing on the manufacturing
and IoT sectors. Today, LemonDuck impacts a very large geographic range, with
the United States, Russia, China, Germany, the United Kingdom, India, Korea,
Canada, France, and Vietnam seeing the most encounters.



Figure 1. Global distribution of LemonDuck botnet activity

In 2021, LemonDuck campaigns started using more diversified command and control
(C2) infrastructure and tools. This update supported the marked increase in
hands-on-keyboard actions post-breach, which varied depending on the perceived
value of compromised devices to the attackers. Despite all these upgrades,
however, LemonDuck still utilizes C2s, functions, script structures, and
variable names for far longer than the average malware. This is likely due to
its use of bulletproof hosting providers such as Epik Holdings, which are
unlikely to take any part of the LemonDuck infrastructure offline even when
reported for malicious actions, allowing LemonDuck to persist and continue to be
a threat.

In-depth research into malware infrastructures of various sizes and operations
provides invaluable insight into the breadth of threats that organizations face
today. In the case of LemonDuck, the threat is cross-platform, persistent, and
constantly evolving. Research like this emphasizes the importance of having
comprehensive visibility into the wide range of threats, as well as the ability
to correlate simple, disparate activity such as coin mining to more dangerous
adversarial attacks.


LEMONDUCK AND LEMONCAT INFRASTRUCTURE

The earliest documentation of LemonDuck was from its cryptocurrency campaigns in
May 2019. These campaigns included PowerShell scripts that employed additional
scripts kicked off by a scheduled task. The task was used to bring in the
PCASTLE tool to achieve a couple of goals: abuse the EternalBlue SMB exploit, as
well as use brute force or pass-the-hash to move laterally and begin the
operation again. Many of these behaviors are still observed in LemondDuck
campaigns today.

LemonDuck is named after the variable “Lemon_Duck” in one of the said PowerShell
scripts. The variable is often used as the user agent, in conjunction with
assigned numbers, for infected devices. The format used two sets of alphabetical
characters separated by dashes, for example: “User-Agent:
Lemon-Duck-[A-Z]-[A-Z]”. The term still appears in PowerShell scripts, as well
as in many of the execution scripts, specifically in a function called SIEX,
which is used to assign a unique user-agent during botnet connection in attacks
as recently as June 2021.

LemonDuck frequently utilizes open-source material built off of resources also
used by other botnets, so there are many components of this threat that would
seem familiar. Microsoft researchers are aware of two distinct operating
structures, which both use the LemonDuck malware but are potentially operated by
two different entities for separate goals.

The first, which we call the “Duck” infrastructure, uses historical
infrastructures discussed in this report. It is highly consistent in running
campaigns and performs limited follow-on activities. This infrastructure is
seldom seen in conjunction with edge device compromise as an infection method,
and is more likely to have random display names for its C2 sites, and is always
observed utilizing “Lemon_Duck” explicitly in script.

The second infrastructure, which we call “Cat” infrastructure—for primarily
using two domains with the word “cat” in them (sqlnetcat[.]com,
netcatkit[.]com)—emerged in January 2021. It was used in attacks exploiting
vulnerabilities in Microsoft Exchange Server. Today, the Cat infrastructure is
used in attacks that typically result in backdoor installation, credential and
data theft, and malware delivery. It is often seen delivering the malware
Ramnit.

 

Sample Duck domains Sample Cat domains
 * cdnimages[.]xyz
 * bb3u9[.]com
 * zz3r0[.]com
 * pp6r1[.]com
 * amynx[.]com
 * ackng[.]com
 * hwqloan[.]com
 * js88[.]ag
 * zer9g[.]com
 * b69kq[.]com

 * sqlnetcat[.]com
 * netcatkit[.]com
 * down[.]sqlnetcat[.]com

 

The Duck and Cat infrastructures use similar subdomains, and they use the same
task names, such as “blackball”. Both infrastructures also utilize the same
packaged components hosted on similar or identical sites for their mining,
lateral movement, and competition-removal scripts, as well as many of the same
function calls.

The fact that the Cat infrastructure is used for more dangerous campaigns does
not deprioritize malware infections from the Duck infrastructure. Instead, this
intelligence adds important context for understanding this threat: the same set
of tools, access, and methods can be re-used at dynamic intervals, to greater
impact. Despite common implications that cryptocurrency miners are less
threatening than other malware, its core functionality mirrors non-monetized
software, making any botnet infection worthy of prioritization.



Figure 2. LemonDuck attack chain from the Duck and Cat infrastructures


INITIAL ACCESS

LemonDuck spreads in a variety of ways, but the two main methods are (1)
compromises that are either edge-initiated or facilitated by bot implants moving
laterally within an organization, or (2) bot-initiated email campaigns.

LemonDuck acts as a loader for many other follow-on activities, but one if its
main functions is to spread by compromising other systems. Since its first
appearance, the LemonDuck operators have leveraged scans against both Windows
and Linux devices for open or weakly authenticated SMB, Exchange, SQL, Hadoop,
REDIS, RDP, or other edge devices that might be vulnerable to password spray or
application vulnerabilities like CVE-2017-0144 (EternalBlue), CVE-2017-8464 (LNK
RCE), CVE-2019-0708 (BlueKeep), CVE-2020-0796 (SMBGhost), CVE-2021-26855
(ProxyLogon), CVE-2021-26857 (ProxyLogon), CVE-2021-26858 (ProxyLogon), and
CVE-2021-27065 (ProxyLogon).

Once inside a system with an Outlook mailbox, as part of its normal exploitation
behavior, LemonDuck attempts to run a script that utilizes the credentials
present on the device. The script instructs the mailbox to send copies of a
phishing message with preset messages and attachments to all contacts.

Because of this method of contact messaging, security controls that rely on
determining if an email is sent from a suspicious sender don’t apply. This means
that email security policies that reduce scanning or coverage for internal mail
need to be re-evaluated, as sending emails through contact scraping is very
effective at bypassing email controls.

From mid-2020 to March 2021, LemonDuck’s email subjects and body content have
remained static, as have the attachment names and formats. These attachment
names and formats have changed very little from similar campaigns that occurred
in early 2020.

 

Sample email subjects Sample email body content
 * The Truth of COVID-19
 * COVID-19 nCov Special info WHO
 * HALTH ADVISORY:CORONA VIRUS
 * WTF
 * What the fcuk
 * good bye
 * farewell letter
 * broken file
 * This is your order?

 * Virus actually comes from United States of America
 * very important infomation for Covid-19
 * see attached document for your action and discretion.
 * the outbreak of CORONA VIRUS is cause of concern especially where forign
   personal have recently arrived or will be arriving at various intt in near
   future.
 * what’s wrong with you?are you out of your mind!!!!!
 * are you out of your mind!!!!!what ‘s wrong with you?
 * good bye, keep in touch
 * can you help me to fix the file,i can’t read it
 * file is brokened, i can’t open it

The attachment used for these lures is one of three types: .doc, .js, or a .zip
containing a .js file. Whatever the type, the file is named “readme”.
Occasionally, all three types are present in the same email.



Figure 3. Sample email

While the JavaScript is detected by many security vendors, it might be
classified with generic detection names. It could be valuable for organizations
to sanitize JavaScript or VBScript executing or calling prompts (such as
PowerShell) directly from mail downloads through solutions such as custom
detection rules.

Since LemonDuck began operating, the .zip to .js file execution method is the
most common. The JavaScript has replaced the scheduled task that LemonDuck
previously used to kickstart the PowerShell script. This PowerShell script has
looked very similar throughout 2020 and 2021, with minor changes depending on
the version, indicating continued development. Below is a comparison of changes
from the most recent iterations of the email-delivered downloads and those from
April of 2020.



After the emails are sent, the inbox is cleaned to remove traces of these mails.
This method of self-spreading is attempted on any affected device that has a
mailbox, regardless of whether it is an Exchange server.

Other common methods of infection include movement within the compromised
environment, as well as through USB and connected drives. These processes are
often kicked off automatically and have occurred consistently throughout the
entirety of LemonDuck’s operation.

These methods run as a series of C# scripts that gather available drives for
infection. They also create a running list of drives that are already infected
based on whether it finds the threat already installed. Once checked against the
running list of infected drives, these scripts attempt to create a set of hidden
files in the home directory, including a copy of readme.js. Any device that has
been affected by the LemonDuck implants at any time could have had any number of
drives attached to it that are compromised in this manner. This makes this
behavior a possible entry vector for additional attacks.




COMPREHENSIVE PROTECTION AGAINST A WIDE-RANGING MALWARE OPERATION

The cross-domain visibility and coordinated defense delivered by Microsoft 365
Defender is designed for the wide range and increasing sophistication of threats
that LemonDuck exemplifies. Microsoft 365 Defender has AI-powered
industry-leading protections that can stop multi-component threats like
LemonDuck across domains and across platforms. Microsoft 365 Defender for Office
365 detects the malicious emails sent by the LemonDuck botnet to deliver malware
payloads as well as spread the bot loader. Microsoft Defender for Endpoint
detects and blocks LemonDuck implants, payloads, and malicious activity on Linux
and Windows.

More importantly, Microsoft 365 Defender provides rich investigation tools that
can expose detections of LemonDuck activity, including attempts to compromise
and gain a foothold on the network, so security operations teams can efficiently
and confidently respond to and resolve these attacks. Microsoft 365 Defender
correlates cross-platform, cross-domain signals to paint the end-to-end attack
chain, allowing organizations to see the full impact of an attack. We also
published a threat analytics article on this threat. Microsoft 365 Defender
customers can use this report to get important technical details, guidance for
investigation, consolidated incidents, and steps to mitigate this threat in
particular and modern cyberattacks in general.

In Part 2 of this blog series, we share our in-depth technical analysis of the
malicious actions that follow a LemonDuck infection. These include general,
automatic behavior as well as human-initialized behavior. We will also provide
guidance for investigating LemonDuck attacks, as well as mitigation
recommendations for strengthening defenses against these attacks. READ: When
coin miners evolve, Part 2: Hunting down LemonDuck and LemonCat attacks.

 

Microsoft 365 Defender Threat Intelligence Team


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