IoT Reaper Ransomware

New Ransomware on the loose

IoT Reaper Ransomware

New extremely large Botnet is being built – Nicknamed IoTroop or IoT Reaper

Remember Mira? The worm that prayed on unsecure IoT devices. It managed to spread and gain control using quite a simple method to gain entry – reusing the hard-coded or default password for IoT devices which were well-known by then, and the spreading was done via the EthernalBlue SMB exploit.

Now security researchers at CheckPoint and NetLab360 claim there is a new botnet being formed (called IoTroop or Reaper). This time the methods used to gain unauthorized entry are more sophisticated – no more trying to exploit traditional hardcoded and default password or to brute-force easy passwords, the Reaper malware tries to exploit different known vulnerabilities that IoT and home network devices have (more than 12 different popular vendors including Linksys, Netgear, D-Link, AVTECH and GoAhead have numerous vulnerabilities already discovered, list and links in the related articles below). The Reaper code constantly evolves, the guys behind it seems to add new exploits into the code based on new vulnerabilities being published openly on the Internet.

Another key difference between Mirai and Reaper is that as Mirai was extremely aggressive in scanning and trying to hop between network and infect other systems (which makes it easily detectable by security controls), the Reaper is stealthier in its way of spreading and tries to stay under the radar for as long as possible.

The likelihood of a successful exploit is quite high due to the fact that traditional home users do not tend to pay much attention to security and are very likely not to have patched their devices.

All sources claim this new botnet will be much bigger and stronger than Mirai – The NetLab360 researchers are claiming the C2 communication they see confirms more than 20k bots per control server and they have estimated more than 2 million vulnerable devices out there that are ripe for the infection. There is a great possibility the total number of bots can swell quite heavily in the coming weeks.

What is at stake here? How will this botnet be used?

At this stage, it is still very early to predict how this botnet will be used but most likely DDoS attacks are on the roadmap – the previous smaller Mirai successfully managed to do a DDoS with more than 1Tbps of traffic (both to Dyn internet infrastructure giant which brought down many popular web services down and French hosting company OVH).

IoT general security problems

The problems with IoT is the inherited lack of security (saying inherited because manufactures do not take security into account when building the devices) and the ever-growing number of IoT devices being deployed by users who are not savvy in networking or security best-practices (changing of default passwords, patching, lowering the attack surface). These two large issues combined with the large number of devices out there (the trend is more and more IoT devices to be manufactured and connected online) really poses quite a large security threat to the Internet community.

Some good news:

Different efforts to secure IoT devices are on the roadmap, US lawmakers are trying to pass a legislative action into forcing hardware IoT manufactures to start taking security into account and not spill out junky unsecure devices.

Also, some of the creators and botnet administrators of the Mirai, have now been arrested and expecting trial and effective sentences. This clearly shows there will be consequence for all actions related to running a botnet and malicious cyber behavior, this must be a deterrent for any future black-hats out there.

New ransomware on the loose

Remember WannaCry and Nyatya, aka NotPetya (a variant of Petya) ransomwares. There is a new one around the corner (initial spotting is on the 24th Oct), again spread predominately in the East Europe (Ukraine, Poland, Bulgaria) and Russia but also in Japan, Germany, South Korea and the USA. It is a changed version of NotPetya. It uses usually a drive-by download on hacked sites to trick the user to run a fake Flash Player installer. The horizontal spread within the compromised network this time is NOT based on the EthernalBlue SMB exploit, but Bad Rabbit uses an open tool MimiKatz to try to extract any login credentials on the infected machine and reuse them to spread itself via legit Windows management protocols such as WMI and SMB to other devices. It also uses a hard-coded list with most commonly used passwords to try to brute-force credentials access.

Most current antivirus and endpoint protection software will detect Bad Rabbit and there is a known Windows Registry based vaccination that can prevent a machine from getting infected, but Bad Rabbit shows the ransomware trend is still strong and not likely to quiet down anytime soon.

Relevant articles:

https://krebsonsecurity.com/2017/10/reaper-calm-before-the-iot-security-storm/

http://blog.netlab.360.com/iot_reaper-a-rappid-spreading-new-iot-botnet-en/

https://4cornernetworks.com/nyatya-wiper-malware-disguised-ransomware/

https://4cornernetworks.com/wannacry-crypto-virus-outbreak/

https://securelist.com/bad-rabbit-ransomware/82851/

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