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APT & Targeted Attacks


EARTH SIMNAVAZ (AKA APT34) LEVIES ADVANCED CYBERATTACKS AGAINST UAE AND GULF
REGIONS

Trend Micro's investigation into the recent activity of Earth Simnavaz provides
new insights into the APT group’s evolving tactics and the immediate threat it
poses to critical sectors in the UAE.

By: Mohamed Fahmy, Bahaa Yamany, Ahmed Kamal, Nick Dai October 11, 2024 Read
time: 9 min (2383 words)

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

SUMMARY

 * Trend Micro researchers have been monitoring a cyber espionage group known as
   Earth Simnavaz, also referred to as APT34 and OilRig, which has been actively
   targeting governmental entities in the UAE and the broader Gulf region.
 * The group utilizes sophisticated tactics that include deploying a backdoor
   that leverages Microsoft Exchange servers for credentials theft, and
   exploiting vulnerabilities like CVE-2024-30088 for privilege escalation.
 * Earth Simnavaz uses a combination of customized .NET tools, PowerShell
   scripts, and IIS-based malware to allow their malicious activity to blend in
   with normal network traffic and avoid traditional detection methods.
 * Their recent activity suggests that Earth Simnavaz is focused on abusing
   vulnerabilities in key infrastructure of geopolitically sensitive regions.
   They also seek to establish a persistent foothold in compromised entities, so
   these can be weaponized to launch attacks on additional targets.


Recently, Trend Micro has been tracking Earth Simnavaz (also known as APT34 and
OilRig), a cyber espionage group believed to be linked to Iranian interests.
This group primarily targets organizations in the energy sector, particularly
those involved in oil and gas, as well as other critical infrastructure. It is
known for using sophisticated tactics, techniques, and procedures (TTPs) to gain
unauthorized access to networks and exfiltrate sensitive information.

In recent months, there has been a notable rise in cyberattacks attributed to
this APT group specifically targeting government sectors in the United Arab
Emirates (UAE) and the broader Gulf region. This escalation in activity
underscores the group's ongoing commitment to exploiting vulnerabilities within
critical infrastructure and governmental frameworks in these geopolitically
sensitive areas.

Our latest research has identified  Earth Simnavaz’s deployment of a
sophisticated new backdoor, which bears striking similarities to malware related
to this APT group, as documented in our previous research. This new backdoor
facilitates the exfiltration of sensitive credentials, including accounts and
passwords, through on-premises Microsoft Exchange servers. Such tactics not only
reflect the group's evolving methodologies but also highlight the persistent
threat posed to organizations reliant on these platforms.

Moreover, Earth Simnavaz has been observed using the same technique of abusing
the dropped password filter policy as detailed in our earlier findings. This
technique enables attackers to extract clean-text passwords, further
compromising the integrity of targeted systems.

In addition to these methods, the group has leveraged a remote monitoring and
management (RMM) tool known as ngrok in their operations. This tool allows for
the seamless tunneling of traffic, providing attackers with an effective means
to maintain persistence and control over compromised environments.

The threat actors have also recently added CVE-2024-30088 to their toolset,
exploiting this vulnerability for privilege escalation in targeted systems.
Integrating this into their toolkit highlights Earth Simnavaz’s continuous
adaptation by exploiting newer vulnerabilities to make their attacks stealthier
and more effective.

Earth Simnavaz’s activities highlight the ongoing threat posed by
state-sponsored cyber actors, particularly in sectors vital to national security
and economic stability. As the threat landscape continues to evolve,
understanding the tactics these groups use is crucial for developing effective
defense strategies against such sophisticated adversaries.

ATTACK CHAIN

The initial point of entry for these attacks has been traced back to a web shell
uploaded to a vulnerable web server (Figure 1). This web shell not only allows
the execution of PowerShell code but also enables attackers to download and
upload files from and to the server, thereby expanding their foothold within the
targeted networks.

Once inside the network, the APT group leveraged this access to download the
ngrok remote management tool, facilitating lateral movement and enabling them to
reach the Domain Controller. During their operations, the group exploited
CVE-2024-30088 – the Windows Kernel Elevation of Privilege vulnerability – as a
means of privilege escalation, utilizing an exploit binary that was loaded into
memory via the open-source tool RunPE-In-Memory.

This allowed them to register a password filter DLL, which subsequently dropped
a backdoor responsible for exfiltrating sensitive data through the Exchange
server. The exfiltrated data was relayed to a mail address controlled by the
threat actor, effectively completing the infection chain and ensuring the
attackers maintained control over the compromised environment.

Figure 1. Attack chain

Earth Simnavaz has been known to leverage compromised organizations to conduct
supply chain attacks on other government entities. We expected that the threat
actor could use the stolen accounts to initiate new attacks through phishing
against additional targets.

There is also a documented overlap between Earth Simnavaz and another APT group,
FOX Kitten. In August, an alert from the Cybersecurity and Infrastructure
Security Agency (CISA) highlighted FOX Kitten's role in enabling ransomware
attacks targeting organizations in the US and the Middle East. These threats
should be taken seriously, as the potential impact on compromised entities could
be significant.

OBSERVED TOOLSET AND TECHNIQUES

An initial infection was detected when a web shell was uploaded to a vulnerable
web server. This web shell extracts values from HTTP request headers ("func" and
"command"), as shown in Figure 2. By passing both arguments to other functions,
the web shell allows the threat actor to perform various actions (Table 1):

Command Function Execute PowerShell Command on infected server func=Exe &
Command= PW command to be executed Download specific file from infected server
func=Exe & Command= FilePath Upload File into infected server func=Exe & Command
= content of file to be written on infected server

Table 1. Capabilities provided by the web shell

Figure 2. Values extracted from HTTP request headers

The web shell also decrypts arguments received from the threat actor. It takes a
Base64-encoded, AES-encrypted string, decrypts it using a specified key and
initialization vector (IV), and returns the decrypted plaintext (Figure 3).

Figure 3. Decrypted string

The response sent back to the threat actor is encrypted using a different
function. This response is encrypted with AES using the given key IV. The
resulting encrypted string is Base64-encoded (Figure 4). 

Figure 4. Response sent back to the threat actor

EXPLOITING CVE-2024-30088 FOR PERSISTENCE

After the web shells were implanted on the victim machines, another file called
“r.exe” was dropped and executed. This is a simple loader that takes the first
argument as the input file, decodes it in one-byte-XOR operation, and executes
it. The codes in this loader were reused from an open-source tool (Figure 5).
The payload file was encoded to bypass traditional detection methods.

Figure 5. Decoding routine in r.exe

A payload file called “p.enc” comes with the loader under the same folder. The
decoded payload turns out to be a privilege escalation tool. As its PDB string
represents, this tool exploits CVE-2024-30088:

C:\Users\reymond\Desktop\CVE-2024-30088-main\x64\Release\poc.pdb

This vulnerability, which was patched in June, allows threat actors to run
arbitrary code in the context of SYSTEM and it works on multiple versions of
Windows 10 and 11.

Our analysis showed that the codes were reused from an open-source project
(Figure 6). By using RunPE-In-Memory, combined with CVE-2024-30088, the threat
actor was able to carry out their malicious actions stealthily.

Figure 6. Reused code

This privilege escalation tool is coded to execute another dropped executable
named “t.exe”, a .NET-compiled installer that creates persistence by using the
predefined task definition “e.xml”. The installed schedule task is for executing
the script “u.ps1”. The final “u.ps1” we collected seemed to be replaced with a
useless script, leading us to suspect that the threat actors intentionally
altered the script and disrupted the incident investigation.

Figure 7. Creating persistence using “e.xml”

ABUSING THE DROPPED PASSWORD FILTER POLICY

As mentioned earlier, the threat actor has been observed utilizing a tool
similar to one identified in our previous research on the same entity. This tool
exploits on-premises Exchange servers to exfiltrate credentials to email
accounts under their control.

Additionally, abusing the dropped password filter policy has been detected as a
method for acquiring credentials, which are then exfiltrated via email. Threat
actors can manipulate password filters to intercept or retrieve credentials from
domain users via domain controllers or local accounts on local machines. This
exploitation occurs because the password validation process necessitates the
plaintext password from the Local Security Authority (LSA).

Consequently, deploying and registering a malicious password filter can
facilitate credential harvesting each time a user updates their password. This
technique necessitates elevated privileges (local administrator access) and can
be executed through the following steps:

 1. Password Filter psgfilter.dll be dropped into C:\Windows\System32
 2. Registry key modification to register the Password Filter [DLL
    HKEY_LOCAL_MACHINE\SYSTEM\ControlSet001\Control\Lsa
    Notification Packages = scecli, psgfilter]

By using this technique, the threat actor can capture and harvest every password
from compromised machines, even after they have been modified. The malicious DLL
includes three exported functions (Figure 9) that facilitate the primary
functionality of registering the DLL with the LSA (Figure 8):

 * InitializeChangeNotify: Indicates that a password filter DLL is initialized.
 * PasswordChangeNotify: Indicates that a password has been changed.
 * PasswordFilter: Validates a new password based on password policy.

Figure 8. Registering the DLL with the LSA
Figure 9. Functions exported by DLL

The malicious actor took great care in working with the plaintext passwords
while implementing the password filter export functions. Similar to the incident
in our previous research, the threat actor also utilized plaintext passwords to
gain access and deploy tools remotely.  The plaintext passwords were first
encrypted before being exfiltrated when sent over networks.

EXFILTRATING DATA THROUGH LEGITIMATE MAIL TRAFFIC

The primary function of the exfiltration tool (identified by Trend Micro as
STEALHOOK) involves retrieving valid domain credentials from a specific
location, which it then uses to access the Exchange Server for data
exfiltration. The key objective of this stage is to capture the stolen passwords
and transmit them to the attackers as email attachments. Additionally, we
observed that the threat actors leverage legitimate accounts with stolen
passwords to route these emails through government Exchange Servers.

The backdoor exhibits significant similarities to one previously attributed to
the same group in our earlier research. The main functionalities of the backdoor
can be categorized as follows:


 * Retrieving User Credentials (Figure 10) – Calls the GetUserPassFromData
   function to retrieve the username and password needed for authentication from
   this file: C:\ProgramData\WindowsUpdateService\UpdateDir\edf 

Figure 10. The backdoor retrieving user credentials
 * Retrieving Email Sending Data (Figure 11) – Calls the GetSendData function to
   retrieve necessary configuration data for sending an email from this file:
   C:\ProgramData\WindowsUpdateService\UpdateDir\edf 
   * Server: The specific Exchange mail server for the targeted government
     entity where the data is leaked through.
   * Target: The email addresses through which the malicious actors receive the
     exfiltrated data.
   * Domain: The internal active directory (AD) domain name related to the
     targeted entity.

Figure 11. The backdoor retrieving email sending data
 * Sending Email (Figure 12) – If the configuration data retrieval is
   successful, the program constructs a message containing the user credentials
   and the configuration data. The email is sent with a specified subject and
   body, and all files in the following directory are attached:
   C:\ProgramData\WindowsUpdateService\UpdateDir
   * Email Subject: "Update Service"
   * Body: "Update Service Is Running..."

Figure 12. The backdoor sending emails

USING RMM TOOLS

The threat actor recently upgraded their toolkit by incorporating RMM tools such
as ngrok in their latest attacks. Ngrok is a legitimate tool used to create
secure tunnels from a local machine to the internet, allowing access to internal
services through public URLs. However, cyber attackers can exploit ngrok to
bypass firewalls and network security controls for malicious purposes. They may
use it to establish command-and-control (C&C) communication, exfiltrate
sensitive data, or deploy payloads by creating undetected tunnels between
compromised machines and their servers, making it harder for security teams to
detect suspicious activity.

The ngrok tool was downloaded onto the server using a PowerShell script (Figure
13), after which a WMI command was utilized to authenticate to a remote server,
copy the file, and execute it remotely.

Figure 13. Downloading ngrok

It appears that the threat actor utilized this tool in the later stages of the
attack, leveraging a valid account and password for authentication. These
credentials were likely obtained during earlier phases of the operation, in
which accounts and passwords were stolen and exfiltrated.

ATTRIBUTION

Multiple data points and indicators attribute this attack to Earth Simnavaz,
with evidence showing that the group remains active, specifically targeting
Middle Eastern countries and government entities. This campaign, like that in
our previously reported research, involved the targeting of Exchange servers and
relaying communications through them. A significant similarity has been observed
at both the code and functionality levels between the Exchange backdoor used in
this attack and the one seen in the earlier campaign.

Additionally, both tools share characteristics with the Karkoff backdoor, which
is also linked to the same threat actors and exploits the Exchange Web Services
(EWS) API for malicious activities. Earth Simnavaz’s tactics also overlap with
that of FOX Kitten, another threat group which likewise has been observed using
the RMM tool ngrok.

CONCLUSION

Iranian APT groups like Earth Simnavaz have become increasingly active,
particularly in targeting the government sector in the Middle East, with a
strong focus on the Gulf region. Based on the group’s toolset and activities,
it’s evident that they aim to establish a persistent presence within compromised
entities, using the affected infrastructure to launch further attacks on
additional targets. Their primary goals appear to be espionage and the theft of
sensitive governmental information.

Earth Simnavaz continues to rely on IIS-based malware such as web shells,
customized .NET tools, and PowerShell scripts as core components of their attack
arsenal. Recent campaigns have confirmed this technique remains actively in
use.Geopolitical tensions likely play a significant role in this surge, and
government sectors in the Middle East and Gulf region should take these threats
seriously. Earth Simnavaz’s approach involves blending into normal network
activity and customizing its malware to avoid detection.

Intelligence-driven incident response will be essential in effectively managing
and mitigating these types of attacks. While the group’s techniques haven’t
evolved drastically, implementing a Zero Trust architecture, alongside mature
SOC, EDR, and MDR capabilities, can greatly enhance defensive measures against
threats like that posed by Earth Simnavaz.

INDICATORS OF COMPROMISE (IOCS)

SHA-256 Detection Description
db79c39bc06e55a52741a9170d8007fa93ac712df506632d624a651345d33f91
TrojanSpy.MSIL.STEALHOOK.A  Update.dll
a24303234e0cc6f403fca8943e7170c90b69976015b6a84d64a9667810023ed7
Trojan.Win64.STEALHOOK.A passwin.dll
6e4f237ef084e400b43bc18860d9c781c851012652b558f57527cf61bee1e1ef
Trojan.PS1.DULLDROP.I624 temp.ps1
b3257f0c0ef298363f89c7a61ab27a706e9e308c22f1820dc4f02dfa0f68d897
Trojan.Win64.DULLOAD.I t.exe
abfc8e9b4b02e196af83608d5aaef1771354b32c898852dff532bd8cfd2ce59d
Backdoor.ASP.DULLWSHELL.I624 Defaults.aspx
43c83976d9b6d19c63aef8715f7929557e93102ff0271b3539ccf2ef485a01a7 N/A u.ps1
ca98a24507d62afdb65e7ad7205dfe8cd9ef7d837126a3dfc95a74af873b1dc5
Backdoor.ASP.DULLWSHELL.I624 Defaults.aspx
7ebbeb2a25da1b09a98e1a373c78486ed2c5a7f2a16eec63e576c99efe0c7a49 N/A
Microsoft.Exchange.WebServices.dll
c0189edde8fa030ff4a70492ced24e325847b04dba33821cf637219d0ddff3c9
Backdoor.ASP.DULLWSHELL.I624 Logout.aspx
6d8bdd3e087b266d493074569a85e1173246d1d71ee88eca94266b5802e28112
HackTool.Win64.CVE202430088.I p.enc
27a0e31ae16cbc6129b4321d25515b9435c35cc2fa1fc748c6f109275bee3d6c Contains the
task of “"MicrosoftEdgeUpdateTaskMachineUAE"“ that t.exe source e.xml
54e8fbae0aa7a279aaedb6d8eec0f95971397fea7fcee6c143772c8ee6e6b498
Trojan.Win64.DULLOAD.I r.exe
1169d8fe861054d99b10f7a3c87e3bbbd941e585ce932e9e543a2efd701deac2
HackTool.PS1.DullScan.I p.ps1
af979580849cc4619b815551842f3265b06497972c61369798135145b82f3cd8
Trojan.PS1.DULLDROP.I j.ps1
1d2ff65ac590c8d0dec581f6b6efbf411a2ce5927419da31d50156d8f1e3a4ff
Backdoor.ASP.DULLWSHELL.I624 Defaults.aspx
abfc8e9b4b02e196af83608d5aaef1771354b32c898852dff532bd8cfd2ce59d
Backdoor.ASP.DULLWSHELL.I624 s.inc
98fb12a9625d600535df342551d30b27ed216fed14d9c6f63e8bf677cb730301 Renamed Ngrok
n.exe edfae1a69522f87b12c6dac3225d930e4848832e3c551ee1e7d31736bf4525ef PSEXEC
PsExec64.exe ca98a24507d62afdb65e7ad7205dfe8cd9ef7d837126a3dfc95a74af873b1dc5
Backdoor.ASP.DULLWSHELL.I624 Globals.aspx

Tags
APT & Targeted Attacks | Articles, News, Reports | Research


AUTHORS

 * Mohamed Fahmy
   
   Threat Researcher

 * Bahaa Yamany
   
   Sr. Incident Response Analyst

 * Ahmed Kamal
   
   Sr. Incident Response Analyst

 * Nick Dai
   
   Sr. Threat Researcher

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