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Cyber Security, Cybersecurity, Ransomware


CACTUS RANSOMWARE: WHAT YOU NEED TO KNOW

 * 26 February 2024




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WRITTEN BY HELOISE MONTINI



EDITED BY LAURA POMPEU



APPROVED BY BOGDAN GLUSHKO



Cactus Ransomware is a newly identified and formidable threat targeting large
commercial organizations. This strain has garnered attention due to its advanced
evasion tactics against antivirus measures and its proficiency in exploiting
known vulnerabilities within VPN appliances to gain initial access to networks. 

In this comprehensive article, we will explore the Cactus ransomware variant in
detail, and provide information on the indicators of compromise (IOC) associated
with the group’s activity. 

It’s essential to understand which industries the ransomware targets and have
some insight into how it operates to improve your cybersecurity and ransomware
defense. 


CACTUS RANSOMWARE OVERVIEW

In March 2023 experts get the first signs of Cactus ransomware. The threat
emerged as it targeted high-profile organizations, leaving a trail of encrypted
files and a distinctive “.CTS1” or “.CTS6” extension. Its evolution reflects an
ongoing effort to stay ahead of security measures, making it particularly
challenging to combat.

Cactus is classified as a multifaceted threat, falling into categories such as
Ransomware, Crypto Virus, Files Locker, and engaging in double extortion. The
group strategically targets VPN appliances, exploiting vulnerabilities for
initial access. 

By encrypting files and demanding ransoms, besides the inclusion of double
extortion tactics, involving the theft of sensitive data, the cybercriminals
seek financial gain, with clearly monetary motivation.

Cactus ransomware employs unique and undisclosed encryption techniques. By
encrypting its own code, the malware enhances its ability to elude antivirus and
network monitoring tools. 


HOW TO IDENTIFY CACTUS RANSOMWARE: MAIN IOCS

Indicators of compromise (IOCs) are pieces of forensic data that can help
identify malicious activity or malware associated with a cyber attack. It
includes the encryption extension, file hashes, and IP addresses, among other
details cyber criminals leave as they infect a machine or system. 

Important: Some of these indicators require technical knowledge of the infected
system, so you may need to contact your IT team or a digital forensics service
provider.


CACTUS RANSOMWARE-SPECIFIC IOCS INCLUDE:

File Extensions:

 * .CTS1
 * .CTS6

Ransom Note:

 * Filename: cAcTuS.readme.txt

Detection Names:

 * Avast: Win64:Trojan-gen
 * Emsisoft: Generic.Ransom.Cactus.A.6A6CBCEA (B)
 * Kaspersky: Trojan-Ransom.Win32.Cactus.d
 * Sophos: Mal/Generic-S
 * Microsoft: Ransom:Win32/Cactus.LKV!MTB

If you can’t identify the ransomware strain through its IOCs, you can use Proven
Data’s free ransomware ID tool to check if the Cactus ransomware is the malware
that encrypts your files.


HOW CACTUS RANSOMWARE WORKS

Understanding how Cactus ransomware operates is crucial for implementing
effective preventive measures and developing strategies for mitigating its
impact. In the following step-by-step description, we will delve into the
intricacies of Cactus ransomware, shedding light on its infection vectors,
encryption process, and the implications for affected systems and data. 


1. INITIAL ACCESS

A Virtual Private Network (VPN) is a technology that establishes a secure and
encrypted connection, or “tunnel,” between a user’s device and a remote server.
The primary purpose of a VPN is to ensure the confidentiality and integrity of
data transmitted over the Internet, especially when using public networks. 

Cactus ransomware gains entry into systems by exploiting vulnerabilities in
Virtual Private Network (VPN) appliances.

VPN providers release updates to patch security vulnerabilities and improve
overall performance. Regularly check for updates and apply them promptly.


2. EXPLOITATION

Once inside the network, Cactus ransomware employs lateral movement, spreading
across devices within the network. It takes advantage of weaknesses in network
security, including weak passwords or unpatched software, to gain control over
multiple machines.


3. EXECUTION

Cactus utilizes several tools such as Chisel, Rclone, TotalExec, and Scheduled
Tasks to carry out its malicious activities. These tools help the ransomware
establish persistence on infected systems, ensuring it can continue its
operations even after a system reboot.


4. DATA THEFT

Before initiating the encryption process, Cactus ransomware exfiltrates
sensitive data from compromised systems. This stolen data is later used as
leverage for further extortion or may be sold on underground forums.


5. ENCRYPTION

Cactus ransomware employs unique encryption techniques to encrypt the victim’s
files. The specific encryption algorithm and method used by Cactus remain
undisclosed. Notably, the ransomware encrypts its own code, enhancing its
ability to evade detection by antivirus and network monitoring tools.


6. RANSOM NOTE

After completing the encryption process, Cactus ransomware leaves a ransom note
named “cAcTuS.readme.txt.” This note provides instructions on how victims can
negotiate with the attackers, typically directing them to TOX chat, an encrypted
messaging platform.

Important: Do not pay the ransom. Paying the ransom does not guarantee that you
will get your data back, and it may encourage the attackers to continue their
criminal activities. Check our in-depth article on what happens if you pay the
ransom.


HOW TO HANDLE A CACTUS RANSOMWARE ATTACK

It is important to note that handling a ransomware attack can be complex and
requires expertise. Therefore, it is recommended to seek professional help from
a reputable data recovery service, such as Proven Data to help you recover your
data and remove the ransomware from your system.

You can also report the attack to law enforcement agencies like the FBI and
cybersecurity organizations to help prevent future attacks and catch the
perpetrators.

We strongly recommend contacting cybersecurity services to handle ransomware
attacks. Proven Data technicians not only retrieve ransomware-encrypted data but
also create forensic reports and streamline incident response, minimizing your
business downtime and financial loss.


HOW TO PREVENT RANSOMWARE ATTACKS

Preventing Cactus ransomware attacks is always the best cybersecurity tactic. If
you are a recent victim, you must follow these tips to avoid a new ransomware
attack:


KEEP YOUR SOFTWARE UP TO DATE

Regularly update your operating system and programs to uphold security
standards. Reputable OS providers will consistently check their software for
vulnerabilities and patch their security standards to protect against newly
detected threats.


USE REPUTABLE ANTIVIRUS SOFTWARE

Employ reputable antivirus software to bolster protection against malware
significantly, and regularly check that it is updated. You can also check your
network for vulnerabilities and learn where you need to improve your security
system.


BE CAUTIOUS OF SUSPICIOUS EMAILS

Even though there are no known cases of Cactus using phishing as an attack
method, it’s important to exercise caution when dealing with emails from
unfamiliar or dubious origins. Refrain from opening files or clicking on links
within emails that you are not expecting or seem suspicious.


DO NOT DOWNLOAD CRACKED SOFTWARE

Cracked software is the term used to describe illicitly modified or pirated
versions of commercial software, typically distributed without proper
authorization or licensing. Cybercriminals frequently conceal their ransomware
executables within cracked software distribution websites, leading users to
unwittingly download and execute the malware.


BACKUP YOUR DATA

Regularly back up your data to an external hard drive or cloud storage service
to prevent complete data loss in case of a ransomware attack. A highly
recommended strategy for data loss prevention is the 3-2-1 backup strategy.

The 3-2-1 backup strategy involves creating three total copies of your data: two
on different media and one offsite, ensuring redundancy and protection against
data loss. And at least one copy offsite to prevent loss due to natural
disasters or other local incidents.



EDUCATE YOURSELF AND YOUR TEAMS

Educate yourself and your employees about the risks of ransomware and how to
avoid it, such as avoiding suspicious emails or downloads.


CONSULT CYBERSECURITY PROFESSIONALS

Proven Data offers cyber security services to help you keep your data protected
against threat actors. From vulnerability assessment to ensure your systems and
servers do not have open doors for cyber attacks, to Incident Response (IR)
services for immediate response in case of a successful attack.

We also have the option of managed detection and response (MDR) services that
help organizations improve their security posture, minimize risk, and protect
sensitive data and assets.



HELOISE MONTINI

WRITER



Heloise Montini is a content writer who leverages her journalism background and
interests in PC gaming and creative writing to make complex topics relatable.
Since 2020, she has been researching and writing insightful tech articles on
data recovery, storage, and cybersecurity.

LAURA POMPEU

EDITOR



Laura Pompeu is a content editor and strategy leader at Proven Data, bringing
over 10 years of digital media experience. Leveraging her background in
journalism, SEO, and marketing, Laura shapes cybersecurity and technology
content to be insightful yet accessible.

BOGDAN GLUSHKO

ADMINISTRATOR



As CEO of Proven Data, Bogdan lends 20 years of data recovery expertise as an
editorial advisor. His real-world experience restoring systems for thousands
guides Proven Data’s educational articles with insider insights on ransomware
response, resilient data strategies, and evolving cyber threats.


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