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Ransomware
A Deep Dive into the Evolution of Ransomware Part 1

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Ransomware


A DEEP DIVE INTO THE EVOLUTION OF RANSOMWARE PART 1

This 3-part blog series takes an in-depth look at the evolution of ransomware
business models, from the early stages to current trends.

By: Trend Micro February 21, 2023 Read time: 4 min (1000 words)

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--------------------------------------------------------------------------------

Ransomware has become a notorious and damaging form of malware, inflicting
financial losses on enterprises, governments, healthcare organizations and core
infrastructure. Ransomware has been a very profitable activity for malicious
actors. However, we want to investigate what would cause changes in this
business model—both in the far future and near future.

Our team conducted comprehensive research to understand the future of
ransomware. We studied various scenarios, from focusing on risk assessment and
avoiding capture by authorities, to exploring more financially advantageous
opportunities cybercriminals may come across in their operations.

It appears that geopolitical events such as Russia's 2022 invasion of Ukraine
can be triggers for this change along with proactive defence strategies employed
by authorities' network hardening tools, arrests against criminal gangs and
cryptocurrency regulations designed to reduce money laundering risks. We believe
these conditions will help create an environment where malicious activity
associated with ransomware is now less attractive to cybercriminals.

The ransomware evolution

Figure 1. Summarized timeline of ransomware changes

Fake virus

Before mapping out what the future brings for ransomware and its implication for
cybersecurity, it’s vital to look back at its evolution over the years.

In the past decade, ransomware attacks have become an increasingly common threat
in the digital world. To understand these malicious tactics better, we can look
to earlier forms of ransom-requesting malware such as “Fake Antivirus” software
and “Locker” malware. Both methods involve hijacking a computer system's data
while attempting to persuade users into paying up with various scare tactics.

However, Fake AV was particularly successful from 2005 - 2010 due to its ability
to convince many people that their computers were infected even when they
weren't. This eventually led it to gain press attention which subsequently
caused its effectiveness (and popularity) among hackers to decline significantly
over time.

Locker malware

By 2010, Locker malware had become a prevalent threat. Rather than usual viruses
that are designed to disrupt computers, this malicious code enabled attackers to
completely lock users out until they paid money in exchange for access and often
posed as a "fine" from fake law enforcement agencies. However, due to its
high-profile coverage and exposure by the media, victims soon became aware of
these ruses.

Encrypting ransomware

Ransomware attacks have become an all-too-common occurrence since 2015,
targeting users' files with a powerful encryption algorithm and demanding
payment to unlock them. This type of attack is particularly effective; once the
computer system has been infected, victims are helplessly entrapped. As such,
ransomware poses a serious threat to individuals and organizations alike.

The wave of ransomware attacks that swept across the world using Bitcoin
payments has allowed attackers to evade law enforcement and receive payment more
easily. Common perpetrators included CryLock and Dharma/Crysis who initially
employed mass-mailed downloads or links attached to email messages as their main
vector for delivering malware - a method often able to bypass anti-spam filters
in its indiscriminate spread.

Modern ransomware

Figure 2 Clop ransomware’s routine changes deployed by different groups

As ransomware continues to evolve, intruders have become increasingly targeted
in their attacks. In 2019, newer versions of this malicious software infiltrated
the network via hacking or other means. After assessing for valuable data, they
moved laterally within it to gain administrative privileges before encrypting
that information and asking for a ransom payment. Among the most well-documented
variants are Conti, Clop & LockBit.

Ransomware attacks have evolved into sophisticated strategies, combining
encryption with additional tactics to persuade victims to pay. Tactics range
from publishing data bit by bit in an attempt to increase pressure on targets
through more aggressive measures, making these threats all the harder for
organisations and individuals alike to protect against.

When it comes to extortion, criminals don't just settle for a basic demand. In
recent years, ransomware attacks have evolved from double-extortion threats of
data disclosure into triple and quadruple extortions using additional pressure
points such as the threat of distributed denial of service (DDoS) attacks on
networks or harassing victims through social media platforms like clients and
suppliers. The ultimate goal remains: financial gain via ransom payments at any
cost.

Key underground services that enable ransomware

Ransomware has become an integral part of a sophisticated criminal ecosystem.
Several actors may play key roles in the ransomware process, from pre- to
post-attack. These phases are critical for successful implementation -
understanding them is essential to protecting yourself against potentially
devastating attacks.

Some underground phases that enable ransomware:

 * Initial access
   Gaining access to a network is frequently done through malicious email
   campaigns which contain backdoors, targeting enterprises with specific social
   engineering techniques and exploiting vulnerabilities in internet-facing
   systems. Additionally, some ransomware actors purchase initial access from
   sellers of specialized services or gain it themselves.
 * Lateral movement and privilege escalation
   In this phase, an attacker tries to penetrate deeper into the victim’s
   network and tries to get elevated privileges with standard or custom hacking
   tools.
 * Sensitive data exfiltration
   When the lateral movement phase is a success, the attacker is likely to get
   their hands on private data and will try to exfiltrate it. In addition, the
   stolen data is analyzed to determine the ransom amount and whether the
   company has cyber insurance.
 * Backup systems’ disruption
   The attacker tries to lower the chances of the victim’s capability to
   potentially restore systems from backups by disrupting the backup processes
   and systems.
 * Ransomware payload deployment
   In this phase, an attacker deploys ransomware that can lead to serious
   problems for the victim: data files are encrypted and IT systems become
   unusable.
 * Extortion
   The attacker extorts the victim. Two ways are particularly harmful: the
   victim gets a decryption key for the encrypted data only after paying a
   ransom, or the threat actor threatens to release stolen data if the victim
   does not pay a ransom.

In part two, we’ll discuss triggers that may cause ransomware actors to shift
business models that could prompt them to start a ransomware revolution.

Tags
Research | Privacy & Risks | Cyber Threats | ICS OT | IoT | Ransomware |
Articles, News, Reports


AUTHORS

 * Trend Micro
   
   Research, News, and Perspectives

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