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Cybersecurity Advisory


#STOPRANSOMWARE: ROYAL RANSOMWARE

Release Date
March 02, 2023
Alert Code
AA23-061A


SUMMARY

Note: This joint Cybersecurity Advisory (CSA) is part of an ongoing
#StopRansomware effort to publish advisories for network defenders that detail
various ransomware variants and ransomware threat actors. These #StopRansomware
advisories include recently and historically observed tactics, techniques, and
procedures (TTPs) and indicators of compromise (IOCs) to help organizations
protect against ransomware. Visit stopransomware.gov to see all #StopRansomware
advisories and to learn more about other ransomware threats and no-cost
resources.

Actions to take today to mitigate cyber threats from ransomware:

 * Prioritize remediating known exploited vulnerabilities.
 * Train users to recognize and report phishing attempts.
 * Enable and enforce multifactor authentication.

The Federal Bureau of Investigation (FBI) and the Cybersecurity and
Infrastructure Security Agency (CISA) are releasing this joint CSA to
disseminate known Royal ransomware IOCs and TTPs identified through FBI threat
response activities as recently as January 2023.

Since approximately September 2022, cyber criminals have compromised U.S. and
international organizations with a Royal ransomware variant. FBI and CISA
believe this variant, which uses its own custom-made file encryption program,
evolved from earlier iterations that used “Zeon” as a loader. After gaining
access to victims’ networks, Royal actors disable antivirus software and
exfiltrate large amounts of data before ultimately deploying the ransomware and
encrypting the systems. Royal actors have made ransom demands ranging from
approximately $1 million to $11 million USD in Bitcoin. In observed incidents,
Royal actors do not include ransom amounts and payment instructions as part of
the initial ransom note. Instead, the note, which appears after encryption,
requires victims to directly interact with the threat actor via a .onion URL
(reachable through the Tor browser). Royal actors have targeted numerous
critical infrastructure sectors including, but not limited to, Manufacturing,
Communications, Healthcare and Public Healthcare (HPH), and Education.

FBI and CISA encourage organizations to implement the recommendations in the
Mitigations section of this CSA to reduce the likelihood and impact of
ransomware incidents.

Download the PDF version of this report:

#StopRansomware: Royal Ransomware (PDF, 574.03 KB )

For a downloadable copy of IOCs, see

AA23-061A STIX XML (XML, 115.20 KB )

TECHNICAL DETAILS

Note: This advisory uses the MITRE ATT&CK® for Enterprise framework, version 12.
See MITRE ATT&CK for Enterprise(link is external) for all referenced tactics and
techniques.

Royal ransomware uses a unique partial encryption approach that allows the
threat actor to choose a specific percentage of data in a file to encrypt. This
approach allows the actor to lower the encryption percentage for larger files,
which helps evade detection.[1(link is external)] In addition to encrypting
files, Royal actors also engage in double extortion tactics in which they
threaten to publicly release the encrypted data if the victim does not pay the
ransom.

INITIAL ACCESS

Royal actors gain initial access to victim networks in a number of ways
including: 

 * Phishing. According to third-party reporting, Royal actors most commonly (in
   66.7% of incidents) gain initial access to victim networks via successful
   phishing emails [T1566(link is external)].
   * According to open-source reporting, victims have unknowingly installed
     malware that delivers Royal ransomware after receiving phishing emails
     containing malicious PDF documents [T1566.001(link is external)], and
     malvertising [T1566.002(link is external)].[2(link is external)]
 * Remote Desktop Protocol (RDP). The second most common vector Royal actors use
   (in 13.3% of incidents) for initial access is RDP compromise.  
 * Public-facing applications. FBI has also observed Royal actors gain initial
   access through exploiting public-facing applications [T1190(link is
   external)]. 
 * Brokers. Reports from trusted third-party sources indicate that Royal actors
   may leverage brokers to gain initial access and source traffic by harvesting
   virtual private network (VPN) credentials from stealer logs. 

COMMAND AND CONTROL

Once Royal actors gain access to the network, they communicate with command and
control (C2) infrastructure and download multiple tools [T1105(link is
external)]. Legitimate Windows software is repurposed by Royal operators to
strengthen their foothold in the victim’s network. Ransomware operators often
use open-source projects to aid their intrusion activities; Royal operators have
recently been observed using Chisel, a tunneling tool transported over HTTP and
secured via SSH [T1572(link is external)], to communicate with their C2
infrastructure. FBI has observed multiple Qakbot C2s used in Royal ransomware
attacks, but has not yet determined if Royal ransomware exclusively uses Qakbot
C2s.

LATERAL MOVEMENT AND PERSISTENCE

Royal actors often use RDP to move laterally across the network [T1021.001(link
is external)]. Microsoft Sysinternals tool PsExec has also been used to aid
lateral movement. FBI has observed Royal actors using remote monitoring and
management (RMM) software, such as AnyDesk, LogMeIn, and Atera, for persistence
in the victim’s network [T1133(link is external)]. In some instances, the actors
moved laterally to the domain controller. In one confirmed case, the actors used
a legitimate admin account to remotely log on to the domain controller
[T1078(link is external)]. Once on the domain controller, the threat actor
deactivated antivirus protocols [T1562.001(link is external)] by modifying Group
Policy Objects [T1484.001(link is external)].

EXFILTRATION

Royal actors exfiltrate data from victim networks by repurposing legitimate
cyber pentesting tools, such as Cobalt Strike, and malware tools and
derivatives, such as Ursnif/Gozi, for data aggregation and exfiltration.
According to third-party reporting, Royal actors’ first hop in exfiltration and
other operations is usually a U.S. IP address.

Note: In reference to Cobalt Strike and other tools mentioned above, a tool
repository used by Royal was identified at IP: 94.232.41[.]105 in December 2022.

ENCRYPTION

Before starting the encryption process, Royal actors: 

 * Use Windows Restart Manager to determine whether targeted files are currently
   in use or blocked by other applications [T1486(link is external)].[1(link is
   external)] 
 * Use Windows Volume Shadow Copy service (vssadmin.exe) to delete shadow copies
   to prevent system recovery.[1(link is external)]  

FBI has found numerous batch (.bat) files on impacted systems which are
typically transferred as an encrypted 7zip file. Batch files create a new admin
user [T1078.002(link is external)], force a group policy update, set pertinent
registry keys to auto-extract [T1119(link is external)] and execute the
ransomware, monitor the encryption process, and delete files upon
completion—including Application, System, and Security event
logs [T1070.001(link is external)].

Malicious files have been found in victim networks in the following directories:

 * C:\Temp\  
 * C:\Users\<user>\AppData\Roaming\  
 * C:\Users\<users>\ 
 * C:\ProgramData\

INDICATORS OF COMPROMISE (IOC)

See table 1 and 2 for Royal ransomware IOCs that FBI obtained during threat
response activities as of January 2023. Note: Some of the observed IP addresses
are several months old. FBI and CISA recommend vetting or investigating these IP
addresses prior to taking forward-looking action, such as blocking.

Table 1: Royal Ransomware Associated Files, Hashes, and IP addresses as of
January 2023

IOC

Description

.royal

Encrypted file extension

README.TXT

Ransom note

Malicious IP

Last Activity

102.157.44[.]105

November 2022

105.158.118[.]241

November 2022

105.69.155[.]85

November 2022

113.169.187[.]159

November 2022

134.35.9[.]209

November 2022

139.195.43[.]166

November 2022

139.60.161[.]213

November 2022

148.213.109[.]165

November 2022

163.182.177[.]80

November 2022

181.141.3[.]126

November 2022

181.164.194[.]228

November 2022

185.143.223[.]69

November 2022

186.64.67[.]6

November 2022

186.86.212[.]138

November 2022

190.193.180[.]228

November 2022

196.70.77[.]11

November 2022

197.11.134[.]255

November 2022

197.158.89[.]85

November 2022

197.204.247[.]7

November 2022

197.207.181[.]147

November 2022

197.207.218[.]27

November 2022

197.94.67[.]207

November 2022

23.111.114[.]52

November 2022

41.100.55[.]97

November 2022

41.107.77[.]67

November 2022

41.109.11[.]80

November 2022

41.251.121[.]35

November 2022

41.97.65[.]51

November 2022

42.189.12[.]36

November 2022

45.227.251[.]167

November 2022

5.44.42[.]20

November 2022

61.166.221[.]46

November 2022

68.83.169[.]91

November 2022

81.184.181[.]215

November 2022

82.12.196[.]197

November 2022

98.143.70[.]147

November 2022

140.82.48[.]158

December 2022

147.135.36[.]162

December 2022

147.135.11[.]223

December 2022

152.89.247[.]50

December 2022

172.64.80[.]1

December 2022

179.43.167[.]10

December 2022

185.7.214[.]218

December 2022

193.149.176[.]157

December 2022

193.235.146[.]104

December 2022

209.141.36[.]116

December 2022

45.61.136[.]47

December 2022

45.8.158[.]104

December 2022

5.181.234[.]58

December 2022

5.188.86[.]195

December 2022

77.73.133[.]84

December 2022

89.108.65[.]136

December 2022

94.232.41[.]105

December 2022

47.87.229[.]39

January 2023

Malicious Domain

Last Observed

ciborkumari[.]xyz

October 2022

sombrat[.]com

October 2022

gororama[.]com

November 2022

softeruplive[.]com

November 2022

altocloudzone[.]live

December 2022

ciborkumari[.]xyz

December 2022

myappearinc[.]com

December 2022

parkerpublic[.]com

December 2022

pastebin.mozilla[.]org/Z54Vudf9/raw

December 2022

tumbleproperty[.]com

December 2022

myappearinc[.]com/acquire/draft/c7lh0s5jv

January 2023

Table 2: Tools used by Royal operators

Tool

SHA256

AV tamper

8A983042278BC5897DBCDD54D1D7E3143F8B7EAD553B5A4713E30DEFFDA16375

TCP/UDP Tunnel over HTTP (Chisel)

8a99353662ccae117d2bb22efd8c43d7169060450be413af763e8ad7522d2451

Ursnif/Gozi

be030e685536eb38ba1fec1c90e90a4165f6641c8dc39291db1d23f4ee9fa0b1

Exfil

B8C4AEC31C134ADBDBE8AAD65D2BCB21CFE62D299696A23ADD9AA1DE082C6E20

Remote Access (AnyDesk)

4a9dde3979c2343c024c6eeeddff7639be301826dd637c006074e04a1e4e9fe7

PowerShell Toolkit Downloader

4cd00234b18e04dcd745cc81bb928c8451f6601affb5fa45f20bb11bfb5383ce

PsExec (Microsoft Sysinternals)

08c6e20b1785d4ec4e3f9956931d992377963580b4b2c6579fd9930e08882b1c

Keep Host Unlocked (Don’t Sleep)

f8cff7082a936912baf2124d42ed82403c75c87cb160553a7df862f8d81809ee

Ransomware Executable

d47d4b52e75e8cf3b11ea171163a66c06d1792227c1cf7ca49d7df60804a1681

Windows Command Line (NirCmd)

216047C048BF1DCBF031CF24BD5E0F263994A5DF60B23089E393033D17257CB5

System Management (NSudo)

19896A23D7B054625C2F6B1EE1551A0DA68AD25CDDBB24510A3B74578418E618

Batch Scripts

 

Filename

Hash Value

2.bat

585b05b290d241a249af93b1896a9474128da969

3.bat

41a79f83f8b00ac7a9dd06e1e225d64d95d29b1d

4.bat

a84ed0f3c46b01d66510ccc9b1fc1e07af005c60

8.bat

c96154690f60a8e1f2271242e458029014ffe30a

kl.bat

65dc04f3f75deb3b287cca3138d9d0ec36b8bea0

gp.bat

82f1f72f4b1bfd7cc8afbe6d170686b1066049bc7e5863b51aa15ccc5c841f58

r.bat

74d81ef0be02899a177d7ff6374d699b634c70275b3292dbc67e577b5f6a3f3c

runanddelete.bat

342B398647073159DFA8A7D36510171F731B760089A546E96FBB8A292791EFEE

MITRE ATT&CK TECHNIQUES

See table 3 for all referenced threat actor tactics and techniques included in
this advisory.

Table 3: Royal Actors ATT&CK Techniques for Enterprise

Initial Access

   

Technique Title

ID

Use

Exploit Public Facing Application

T1190(link is external)

The actors gain initial access through public-facing applications.

Phishing: Spear phishing Attachment

T1566.001(link is external)

The actors gain initial access through malicious PDF attachments sent via email.

Phishing: Spearphishing Link

T1566.002(link is external)

The actors gain initial access using malvertising links via emails and
public-facing sites.

External Remote Services

T1133(link is external)

The actors gain initial access through a variety of RMM software.

Command and Control

   

Technique Title

ID

Use

Ingress Tool Transfer

T1105(link is external)

The actors used C2 infrastructure to download multiple tools.

Protocol Tunneling

T1572(link is external)

The actors used an encrypted SSH tunnel to communicate within C2 infrastructure.

                                                              Privilege
Escalation

   

Technique Title

ID

Use

Valid Accounts: Domain Accounts

T1078.002(link is external)

The actors used encrypted files to create new admin user accounts.

Defense Evasion

   

Technique Title

ID

Use

Impair Defenses: Disable or Modify Tools

T1562.001(link is external)

The actors deactivated antivirus protocols.

Domain Policy Modification: Group Policy Modification

T1484.001(link is external)

The actors modified Group Policy Objects to subvert antivirus protocols.

Indicator Removal: Clear Windows Event Logs

T1070.001(link is external)

The actors deleted shadow files and system and security logs after exfiltration.

Remote Desktop Protocol

T1021.001(link is external)

The actors used valid accounts to move laterally through the domain controller
using RDP.

Automated Collection

T1119(link is external)

The actors used registry keys to auto-extract and collect files.

                                                                        
Impact  

   

Technique Title

ID

Use

Data Encrypted for Impact

T1486(link is external)

The actors encrypted data to determine which files were being used or blocked by
other applications.

MITIGATIONS

FBI and CISA recommend network defenders apply the following mitigations to
limit potential adversarial use of common system and network discovery
techniques and to reduce the risk of compromise by Royal ransomware. These
mitigations follow CISA’s Cybersecurity Performance Goals (CPGs), which provide
a minimum set of practices and protections that are informed by the most common
and impactful threats, tactics, techniques, and procedures, and which yield
goals that all organizations across critical infrastructure sectors should
implement:

 * Implement a recovery plan to maintain and retain multiple copies of sensitive
   or proprietary data and servers [CPG 7.3] in a physically separate,
   segmented, and secure location (i.e., hard drive, storage device, the cloud).
 * Require all accounts with password logins (e.g., service account, admin
   accounts, and domain admin accounts) to comply with National Institute for
   Standards and Technology (NIST) standards(link is external) for developing
   and managing password policies [CPG 3.4].
   * Use longer passwords consisting of at least 8 characters and no more than
     64 characters in length [CPG 1.4].
   * Store passwords in hashed format using industry-recognized password
     managers.
   * Add password user “salts” to shared login credentials.
   * Avoid reusing passwords.
   * Implement multiple failed login attempt account lockouts [CPG 1.1].
   * Disable password hints.
   * Refrain from requiring password changes more frequently than once per
     year. Note: NIST guidance suggests favoring longer passwords instead of
     requiring regular and frequent password resets. Frequent password resets
     are more likely to result in users developing password patterns cyber
     criminals can easily decipher. 
   * Require administrator credentials to install software.
 * Require multifactor authentication [CPG 1.3] for all services to the extent
   possible, particularly for webmail, virtual private networks, and accounts
   that access critical systems. 
 * Keep all operating systems, software, and firmware up to date. Timely
   patching is one of the most efficient and cost-effective steps an
   organization can take to minimize its exposure to cybersecurity threats. 
 * Segment networks [CPG 8.1]. Network segmentation can help prevent the spread
   of ransomware by controlling traffic flows between—and access to—various
   subnetworks and by restricting adversary lateral movement. 
 * Identify, detect, and investigate abnormal activity and potential traversal
   of the indicated ransomware with a networking monitoring tool. To aid in
   detecting ransomware, implement a tool that logs and reports all network
   traffic [CPG 5.1], including lateral movement activity on a network. Endpoint
   detection and response (EDR) tools are useful for detecting lateral
   connections as they have insight into common and uncommon network connections
   for each host. 
 * Install, regularly update, and enable real time detection for antivirus
   software on all hosts.
 * Review domain controllers, servers, workstations, and active directories for
   new and/or unrecognized accounts.
 * Audit user accounts with administrative privileges and configure access
   controls according to the principle of least privilege [CPG 1.5].
 * Disable unused ports.
 * Consider adding an email banner to emails [CPG 8.3] received from outside
   your organization.
 * Implement time-based access for accounts set at the admin level and higher.
   For example, the Just-in-Time (JIT) access method provisions privileged
   access when needed and can support enforcement of the principle of least
   privilege (as well as the Zero Trust model). This is a process where a
   network-wide policy is set in place to automatically disable admin accounts
   at the Active Directory level when the account is not in direct need.
   Individual users may submit their requests through an automated process that
   grants them access to a specified system for a set timeframe when they need
   to support the completion of a certain task. 
 * Disable command-line and scripting activities and permissions. Privilege
   escalation and lateral movement often depend on software utilities running
   from the command line. If threat actors are not able to run these tools, they
   will have difficulty escalating privileges and/or moving laterally. 
 * Maintain offline backups of data, and regularly maintain backup and
   restoration [CPG 7.3]. By instituting this practice, the organization ensures
   they will not be severely interrupted, and/or only have irretrievable data. 
 * Ensure all backup data is encrypted, immutable (i.e., cannot be altered or
   deleted), and covers the entire organization’s data infrastructure [CPG 3.3].

RESOURCES

 * Stopransomware.gov(link is external) is a whole-of-government approach that
   gives one central location for ransomware resources and alerts.
 * Resource to mitigate a ransomware attack: CISA-Multi-State Information
   Sharing and Analysis Center (MS-ISAC) Joint Ransomware Guide.
 * No-cost cyber hygiene services: Cyber Hygiene Services and Ransomware
   Readiness Assessment(link is external).

REPORTING

FBI is seeking any information that can be shared, to include boundary logs
showing communication to and from foreign IP addresses, a sample ransom note,
communications with Royal actors, Bitcoin wallet information, decryptor files,
and/or a benign sample of an encrypted file.

Additional details requested include: a targeted company Point of Contact,
status and scope of infection, estimated loss, operational impact, transaction
IDs, date of infection, date detected, initial attack vector, host and network
based indicators.

FBI and CISA do not encourage paying ransom as payment does not guarantee victim
files will be recovered. Furthermore, payment may also embolden adversaries to
target additional organizations, encourage other criminal actors to engage in
the distribution of ransomware, and/or fund illicit activities. Regardless of
whether you or your organization have decided to pay the ransom, FBI and CISA
urge you to promptly report ransomware incidents to a local FBI Field
Office(link is external), or CISA at https://www.cisa.gov/report.

DISCLAIMER

The information in this report is being provided “as is” for informational
purposes only. CISA and FBI do not endorse any commercial product or service,
including any subjects of analysis. Any reference to specific commercial
products, processes, or services by service mark, trademark, manufacturer, or
otherwise, does not constitute or imply endorsement, recommendation, or favoring
by CISA or the FBI.

REFERENCES

[1] Royal Rumble: Analysis of Royal Ransomware (cybereason.com)(link is
external)
[2] DEV-0569 finds new ways to deliver Royal ransomware, various payloads -
Microsoft Security Blog(link is external)
[3] 2023-01: ACSC Ransomware Profile - Royal | Cyber.gov.au(link is external)

ACKNOWLEDGEMENTS

Recorded Future, Coveware, Digital Asset Redemption, Q6, and RedSense
contributed to this CSA.

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