X-Force Threat Intelligence Index 2023 - IBM Security

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X-Force Threat Intelligence Index 2023 - IBM Security
X-Force Threat
Intelligence Index
2023

IBM Security
X-Force Threat Intelligence Index 2023 - IBM Security
Table of contents   01 →                         07 →                           12 →
                    Executive summary            Cyber-related developments     Recommendations
                                                 of Russia’s war in Ukraine
                    02 →                                                        13 →
                    Report highlights            08 →                           About us
                                                 The malware landscape
                    03 →                                                        14 →
                    Key stats                    09 →                           Contributors
                                                 Threats to OT and industrial
                    04 →                         control systems                15 →
                    Top initial access vectors                                  Appendix
                                                 10 →
                    05 →                         Geographic trends
                    Top actions on objectives
                                                 11 →
                    06 →                         Industry trends
                    Top impacts
X-Force Threat Intelligence Index 2023 - IBM Security
01

Executive summary

                    The year 2022 was another tumultuous           includes billions of datapoints ranging from
                    one for cybersecurity. While there was no      network and endpoint devices, incident
                    shortage of contributing events, among the     response (IR) engagements, vulnerability
                    most significant were the continuing effects   and exploit databases and more. This
                    of the pandemic and the eruption of the        report is a comprehensive collection of
                    military conflict in Ukraine. Disruption       our research data from January to
                    made 2022 a year of economic, geopolitical     December 2022.
                    and human upheaval and cost—creating
                    exactly the kind of chaos in which             We provide these findings as a resource
                    cybercriminals thrive.                         to IBM clients, cybersecurity researchers,
                                                                   policymakers, the media and the
                    And thrive they did.                           larger community of security industry
                                                                   professionals and industry leaders. Today’s
                    IBM Security® X-Force® witnessed               volatile landscape, with its increasingly
                    opportunistic threat actors who capitalize     sophisticated and malicious threats,
                    on disorder, using the landscape to their      requires a collaborative effort to protect
                    advantage to infiltrate governments and        business and citizens. More than ever, you
                    organizations across the globe.                need to be armed with threat intelligence
                                                                   and security insights to stay ahead of
                    The IBM Security X-Force Threat                attackers and fortify your critical assets.
                    Intelligence Index 2023 tracks new and
                    existing trends and attack patterns and        So you too can thrive.

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X-Force Threat Intelligence Index 2023 - IBM Security
01   Executive summary

     How our data analysis changed
     for 2022

     In 2022, we modified how we examined           – Exploits and zero day compromises:
     portions of our data. The changes allow          Extrapolating from our robust
     us to offer more insightful analysis and         vulnerability database—which includes
     align more closely to industry standard          nearly 30 years of data—helps lend
     frameworks. That, in turn, enables you to        context to our analysis and identify the
     make more informed security decisions            actual threat posed by vulnerabilities.
     and better protect your organization             This process also lends context to the
     from threats.                                    diminishing proportion of weaponizable
                                                      exploits and impactful zero days.
     Changes to our analysis in 2022 included:
                                                    – Threat actor methods and their impact:
     – Initial access vectors: Adopting the           Uncoupling the steps threat actors take
       MITRE ATT&CK framework to track                during an attack from the actual impact
       initial access vectors more closely aligns     of an incident allowed us to identify
       our research findings with the broader         critical stages of an incident. This
       cybersecurity industry and allows us           process, in turn, uncovered areas that
       to identify important trends at the            responders should be prepared to handle
       technique level.                               in the aftermath of an incident.

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X-Force Threat Intelligence Index 2023 - IBM Security
02

Report highlights

                    Top actions on objectives observed:          extortion, as cybercriminals continued the     modern warfare. Although the direst
                    In almost one-quarter of all incidents       trend of exploiting a strained industry.       cyberspace predictions haven’t come to
                    remediated in 2022, the deployment of                                                       fruition as of this publication, there was
                    backdoors at 21% was the top action on       Phishing was the top initial access vector:    a notable resurgence of hacktivism and
                    objective. Notably, an early year spike      Phishing remains the leading infection         destructive malware. X-Force also observed
                    in Emotet, a multipurpose malware,           vector, identified in 41% of incidents,        unprecedented shifts in the cybercriminal
                    contributed significantly to the jump in     followed by exploitation of public-facing      world with increased cooperation between
                    backdoor activity observed year over year.   applications in 26%. Infections by             cybercriminal groups, and Trickbot gangs
                    Despite this spike in backdoor activity,     malicious macros have fallen out of favor,     targeting Ukrainian organizations.
                    ransomware, which held the top spot since    likely due to Microsoft’s decision to block
                    at least 2020, constituted a large share     macros by default. Malicious ISO and LNK
                    of the incidents at 17%, reinforcing the     files use escalated as the primary tactic to
                    enduring threat this malware poses.          deliver malware through spam in 2022.

                    Extortion was the most common attack         Increase in hacktivism and destructive
                    impact on organizations: At 27%, extortion   malware: Russia’s war in Ukraine
                    was the clear impact of choice by threat     opened the door to what many in the
                    actors. Victims in manufacturing accounted   cybersecurity community expected to
                    for 30% of incidents that resulted in        be a showcase of how cyber enables

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X-Force Threat Intelligence Index 2023 - IBM Security
03
            27%
                  Percentage of attacks with extortion

                  Threat actors sought to extort money from victims in more than one-
Key stats         quarter of all incidents to which X-Force responded in 2022. The
                  tactics they use have evolved in the last decade, a trend expected to
                  continue as threat actors more aggressively seek profits.

            21%
                  Share of incidents that saw
                  backdoors deployed
                  Deployment of backdoors was the top action on objective last year,
                  occurring in more than one in five reported incidents worldwide.
                  Successful intervention by defenders likely prevented threat actors
                  from fulfilling further objectives that may have included ransomware.

            17%
                  Ransomware’s share of attacks
                  Even amid a chaotic year for some of the most prolific ransomware
                  syndicates, ransomware was the second most common action on
                  objective, following closely behind backdoor deployments and
                  continuing to disrupt organizations’ operations. Ransomware’s share
                  of incidents declined from 21% in 2021 to 17% in 2022.

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X-Force Threat Intelligence Index 2023 - IBM Security
03   Key stats

     41%                                           100%                                           52%
     Percentage of incidents involving phishing    Increase in the number of thread               Drop in reported phishing kits seeking
     for initial access                            hijacking attempts per month                   credit card data
     Phishing operations continued to be the top   There were twice as many thread hijacking      Almost every phishing kit analyzed in the
     pathway to compromise in 2022, with 41%       attempts per month in 2022, compared to        data sought to gather names at 98% and
     of incidents remediated by X-Force using      2021 data. Spam email leading to Emotet,       email addresses at 73%, followed by home
     this technique to gain initial access.        Qakbot and IcedID made heavy use of            addresses at 66% and passwords at 58%.
                                                   thread hijacking.                              Credit card information, targeted 61%
                                                                                                  of the time in 2021, fell out of favor for
                                                                                                  threat actors—data shows it was sought
                                                                                                  in only 29% of phishing kits in 2022,
                                                                                                  a 52% decline.

     62%                                           26%                                            31%
     Percentage of phishing attacks using          Share of 2022 vulnerabilities with             Share of global attacks that targeted the
     spear phishing attachments                    known exploits                                 Asia-Pacific region
     Attackers preferred weaponized                Twenty-six percent of 2022’s vulnerabilities   Asia-Pacific retained the top spot as the
     attachments, deployed by themselves or        had known exploits. According to data that     most-attacked region in 2022, accounting
     in combination with links or spear phishing   X-Force has tracked since the early 1990s,     for 31% of all incidents. This statistic
     via service.                                  that proportion has been dropping in recent    represents a five percentage point increase
                                                   years, showcasing the benefit of a well-       from the total share of attacks to which
                                                   maintained patch management process.           X-Force responded in the region in 2021.

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X-Force Threat Intelligence Index 2023 - IBM Security
04

Top initial access vectors
                                                     Top initial
                                                     Top initial access
                                                                 access vectors
                                                                        vectors 2022
                                                Top initial access vectors 2022

In 2022, X-Force moved from tracking            Exploit public-facing application
                                                                                                                                                26%
initial access vectors as broader categories,
such as phishing and stolen credentials, to     Phishing - Spear phishing attachment
the initial access techniques listed within                                                                                                    25%
the MITRE ATT&CK Matrix for Enterprise
                                                Phishing - Spear phishing link
framework. This shift allows X-Force to                                                                                                  14%
track important trends more granularly at
the technique level. It also provides more      External remote services
                                                                                                                                   12%
readily consumable and cross-comparable
data and aligns with the broader industry’s     Valid accounts - Local
standardization efforts.                                                                                           7%

                                                Valid accounts - Domain
                                                                                                             5%

                                                Hardware additions
                                                                                                       3%

                                                Valid accounts - Default
                                                                                                    2%

                                                Phishing - Spear phishing via service
                                                                                                    2%

                                                Valid accounts - Cloud
                                                                                                    2%

                                                Figure 1: Top initial access vectors X-Force observed in 2022. Source: X-Force

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X-Force Threat Intelligence Index 2023 - IBM Security
04                                               Top initial access vectors

                                                 Phishing

                                                 Phishing (T1566), whether through            Across 2022’s penetration tests for clients,   This correlates to what past Threat
      Phishing type seen as % of total           attachment, link or as a service, remains    X-Force Red found that approximately 54%       Intelligence Index reports referred to as
      phishing cases                             the lead infection vector, which comprised   of tests revealed improper authentication      “vulnerability exploitation” and marks a
                                                 41% of all incidents remediated by X-Force   or handling of credentials. The X-Force        drop from 34% in 2021.
                                                 in 2022. This percentage holds steady from   Red Adversary Simulation team regularly
                       5%                        2021 after having increased from 33% in      performed spear phishing with QR codes         In third place, abuse of valid accounts
                                                 2020. Looking at all phishing incidents,     targeting multifactor authentication (MFA)     (T1078) was identified in 16% of the
                                                 spear phishing attachments (T1566.001)       tokens. Many organizations lacked visibility   observed incidents. These are cases
            33%                                  were used in 62% of those attacks, spear     into applications and endpoints exposed        where adversaries obtained and abused
                                     62%
                                                 phishing links (T1566.002) in 33% and        through identity access management and         credentials of existing accounts as a means
                                                 spear phishing as a service (T1566.003) in   single sign-on (SSO) portals, such as Okta.    of gaining access. These incidents included
                                                 5%. X-Force also witnessed threat actors                                                    cloud accounts (T1078.004) and default
                                                 use attachments alongside phishing as a      In second place, exploitation of public-       accounts (T1078.001) at 2% each, domain
                                                 service or links in some instances.          facing applications (T1190)—defined            accounts (T1078.002) at 5%, and local
                                                                                              as adversaries taking advantage of a           accounts (T1078.003) at 7%.
        Phishing      Link    Attachment         IBM X-Force Red data from 2022 further       weakness in an internet-facing computer
        via service
                                                 highlights the value of phishing and         or program—was identified in 26% of
                                                 mishandled credentials to threat actors.     incidents to which X-Force responded.

Figure 2: Types of phishing subtechniques as a
percentage of total phishing cases observed by
X-Force in 2022. Source: X-Force

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X-Force Threat Intelligence Index 2023 - IBM Security
04                           Top initial access vectors

                             Phishing kits lasting longer, targeting
                             PII over credit card data

Credit card information      IBM Security analyzed thousands of            – Approximately half of all reported kits     – Credit card information dropped
                             phishing kits from around the world for the     impacted 93 users, whereas in 2021,           significantly from being targeted 61%
dropped significantly from
                             second year in a row and discovered kit         each deployment on average had no             of the time in 2021 to 29% of phishing
being targeted 61% of the    deployments are operational longer and          greater than 75 potential victims.            kits in 2022.
time in 2021 to 29% of       reaching more users. The data indicates
                             that the lifespan of phishing kits observed   – The maximum total victims of one            – Lower instances of phishing kits seeking
phishing kits in 2022.       has more than doubled year over year,           reported phishing attack was just over        credit card data indicate that phishers
                             while the median deployment across              4,000, although this was an outlier.          are prioritizing personally identifiable
                             the data set remained relatively low at                                                       information (PII), which allows them
                             3.7 days.                                     – Almost every reported phishing kit            broader and more nefarious options.
                                                                             analyzed sought to gather names at 98%.       PII can either be gathered and sold
                             Overall, the shortest deployment lasted         This was followed by email addresses          on the dark web or other forums or
                             minutes and the longest, discovered in          at 73%, home addresses at 66% and             used to conduct further operations
                             2022, ran longer than three years. Our          passwords at 58%.                             against targets.
                             investigation found the following:

                             – One-third of deployed kits lasted
                               approximately 2.3 days last year, more
                               than double the length of the year prior
                               when the same proportion lasted no
                               longer than one day.

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04                                            Top initial access vectors

Top spoofed brands

The top brands observed being spoofed         Stolen credentials for such services are        Top spoofed brands year over year
are made up mostly of the biggest names       valuable. Gaining access to accounts that
in tech. X-Force believes this shift from     victims use to manage entire portions of
                                                                                                       2022           2021
2021’s somewhat more diverse list is          their online presence can open the door for
due to improved ability to identify the       access to other accounts. Attackers’ focus
                                                                                              1        Microsoft      Microsoft
brands that a kit is configured to spoof,     on this form of initial access is highlighted
not just the one it’s targeting by default.   in the 2022 Cloud Threat Landscape
                                                                                              2        Google         Apple
Many phishing kits are multipurpose, and      Report, which found a more than threefold
the brand being spoofed can be changed        increase at 200% of the number of cloud
                                                                                              3        Yahoo          Google
by altering a simple parameter. For           accounts being advertised for sale on the
example, a kit can spoof Gmail by default,    dark web over what was observed in 2021.
                                                                                              4        Facebook       BMO Harris Bank
but a one-line update changes it into an
attack spoofing Microsoft.
                                                                                              5        Outlook        Chase

                                                                                              6        Apple          Amazon

                                                                                              7        Adobe          Dropbox                Figure 3: This chart identifies the
                                                                                                                                             top spoofed brands in 2021 and
                                                                                              8        AOL            DHL                    2022, demonstrating that threat
                                                                                                                                             actors are increasingly focusing
                                                                                                                                             on large technology brands.
                                                                                              9        PayPal         CNN                    Source: IBM phishing kit data

                                                                                              10       Office365      Hotmail

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04                                         Top initial access vectors

                                           Vulnerabilities

                                           Vulnerability exploitation—captured for      Adversary Simulation Services pursued          Almost 30 years ago and predating the
     Share of incidents resulting from     2022 as exploitation of public-facing        to keep simulating advanced threats.           advent of the Common Vulnerabilities
     vulnerability exploitation over the   applications (T1190)—placed second           The team increased its focus on                and Exposures (CVE) system, X-Force
     last four years                       among top infection vectors and has been     vulnerability research for exploitation of     began building a robust vulnerability
                                           a preferred method of compromise by          operating systems (OS) and applications        database. This database is now one of the
                                           attackers since 2019. Vulnerabilities were   to expand access and perform privilege         most comprehensive in the cybersecurity
     2022
                        26%                exploited in 26% of attacks that X-Force     escalation. This focus was largely due to      industry. While vulnerabilities are a major
                                           remediated in 2022, 34% in 2021, 35% in      past exercises with long-standing clients      risk to security, there are far more reported
     2021                                  2020 and 30% in 2019.                        who have hardened traditional Active           vulnerabilities than there are known
                              34%
                                                                                        Directory attack paths and the need to         weaponized exploits. Further, despite
     2020                                  Not every vulnerability exploited by         pursue new attack paths.                       public attention on zero days, the actual
                              35%          threat actors results in a cyber incident.                                                  number of known zero days is dwarfed by
                                           The number of incidents resulting            While vulnerabilities are a common initial     the total number of known vulnerabilities.
     2019
                           30%             from vulnerability exploitation in 2022      access vector, and the industry responds
                                           decreased 19% from 2021, after rising        to several major ones in any given year,
                                           34% from 2020. X-Force assessed that         not every vulnerability is the same. It’s
                                           this swing was driven by the widespread      important for decision makers to take a
                                           Log4J vulnerability at the end of 2021.      full view of the vulnerability landscape and
                                                                                        ensure they’re equipped with the necessary
                                           Exploitation for access is a key area of     context to understand the real threat a
                                           research that the team at X-Force Red        given vulnerability poses to their networks.

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04                                                                Top initial access vectors

                                                                                               Every year sees a new record number          decline. First, the establishment of formal
      Total X-Force database of vulnerabilities versus exploits                                of vulnerabilities discovered. The total     bug bounty programs has incentivized
                                                                                               number of vulnerabilities tracked in 2022    the proactive discovery of vulnerabilities
                                                                                               was 23,964 compared to 21,518 in 2021.       within applications. Additionally, a handful
      30,000                                                                                   The trend of year-to-year vulnerability      of widely popular and well-established
                                                                             23,964            increases has persisted over the last        vulnerabilities exist that already serve as a
      25,000                                                    21,518
                                                   19,391
                                                                                               decade. To the benefit of defenders,         means of system exploitation for attackers,
                      17,923        18,115
      20,000                                                                                   analysis of our vulnerability database       reducing the need for threat actors to
                                                                                               showed the proportion of known, viable       develop new exploits. The drop is likely due
      15,000
                                                                                               exploits to reported vulnerabilities         to a combination of multiple factors but
      10,000
                      6,505
                                                                                               decreasing in recent years—36% in 2018,      doesn’t point to vulnerability exploitation
                                     6,090          5,479        5,716       6,290
                                                                                               34% in 2019, 28% in 2020, 27% in 2021        becoming less of a threat.
       5,000
                                                                                               and 26% in 2022.
           0                                                                                                                                While the proportion of exploits to
                       2018           2019           2020         2021        2022             These numbers can shift with the exposure    vulnerabilities drops, the severity of those
                                                                                               of zero days and exploits being developed    exploits X-Force tracks has increased
        Sum of total exploits    Sum of total vulnerabilities                                  for older vulnerabilities—sometimes years    in the last five years. In 2018, 58% of
                                                                                               after they’re identified—and there are       vulnerabilities had a Common Vulnerability
                                                                                               several potential explanations behind this   Scoring System (CVSS) score of medium,
Figure 4: X-Force vulnerability database view showing
vulnerabilities and exploits over the past five years.
Source: X-Force

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04                                                                          Top initial access vectors

                                                                                                                                 4.0-6.9 out of 10, compared to just under       how exploitation is accomplished or if an
      CVSS scores of vulnerabilities in X-Force database                                                                         36% high, 7.0-9.9. The spread between           exploit even exists. However, the scores
                                                                                                                                 those two inverted in 2021, and high            do help defenders compare vulnerabilities
                                                                                                                                 severity vulnerabilities now account for five   and prioritize how quickly to address them.
                     58%
                                              55%
                                                                                                                                 percentage points more than those that          The Figure 6 graphic on the following page
                                                                      49%               49%                                      scored medium.                                  helps to put into perspective the true
                                                                47%                           46%               47%
                                                                                                                      42%                                                        nature of the vulnerability problem facing
               36%                      38%                                                                                      Still, of all the vulnerabilities X-Force has   the cybersecurity industry.
                                                                                                                                 tracked since 1988, 38% of them rank high,
                                                                                                                                 with only 1% coming in at the critical score
                                                                                                                                 of 10. Half of tracked vulnerabilities rank
                           6%                       6%
                                                                            4%                      4%                      4%   medium with the remaining 11% coming in
        0.4%                     0.4%                    0.4%                    0.5%                    0.6%                    at low, 3.9 and below. These scores alone
               2018                      2019                    2020                    2021                    2022            don’t correlate to the real-world severity of
                                                                                                                                 any one CVE, since it doesn’t account for
        Critical      High      Medium        Low

Figure 5: X-Force vulnerability database showing
severity of vulnerabilities tracked in our system.
Source: X-Force

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04                                         Top initial access vectors

Operational technology (OT)
vulnerabilities                            The vulnerability problem

                                           300,000
Industrial control systems (ICS)                                                                                                                                                                     2021
                                           280,000
                                                                                                                                                                                     2017            Log4J 
vulnerabilities discovered in 2022                                  Cumlative vulnerabilities, exploits and                                                                          EternalBlue     Wreck Sudo
                                           260,000                  zero days since 1988
decreased for the first time in two
                                                                                                                                                                                     2018
years—457 in 2022 compared to 715 in       240,000                  Category                Number      %                                                            2013            Spectre
                                                                                                                                                                                                     2022
                                                                                                                                                                                                     Follina
2021 and 472 in 2020. One explanation      220,000                  Total vulnerabilities   228,167     N/A
                                                                                                                                                                     Breach          Meltdown        Proxy
for this may be found in ICS lifecycles                                                                                                   2003
                                           200,000                                                                                                                   2014                             NotShell 
                                                                    Total exploited         78,156      34%                               Metasploit created                         2019
and how they’re generally managed and                               vulnerabilities                                                                                  Heartbleed                       Spring4Shell
                                           180,000                                                                                                                                   BlueKeep         SynLapse
patched. Attackers know that with                                                                                                         2004                       Poodle
                                           160,000                  Total unexploited       150,011     66%                                                          Shellshock
demand for minimal downtime,                                                                                                              Exploit DB created                         2020
                                                                    vulnerabilities
                                                                                                                                                                                     Sunburst 
long equipment lifecycles and older,       140,000
                                                                    Total zero days         7,327       3%                                2008                       2015            Supernova
less-supported software, many ICS          120,000                                                                 1993                   Conficker                  Freak           Zerologon
                                                                    Critical                2,746       1%         XFDB precursor
components and OT networks are still       100,000
                                                                    High                    86,595      38%                               2011                       2016
at risk of older vulnerabilities.           80,000                                                                 1997                   Beast                      Sweet32
Infrastructure is usually in place for                              Medium                  114,480     50%        XFDB (ISS) founded
                                            60,000
many years longer than standard office                              Low                     24,274      11%                               2012
                                            40,000                                                                 1999                   Crime
workstations, which extends the lifespan                                                                           CVE founded
of ICS-specific vulnerabilities beyond      20,000

those that can exploit IT.                       0
                                                                            0
                                                            8
                                                                 98
                                                                    9      9         91 992 993 994 995 996 997 998 999 000 001 002 003 004 005      06 007 008       09 010 011 012 013 014 015 016 017 018 019 020 021 022
                                                     1   98     1       19       1 9    1   1   1   1   1   1   1   1   2   2   2   2   2   2     2 0   2   2     2 0    2   2   2   2   2   2   2   2   2   2   2   2   2

                                             Vulnerabilities                   Weaponized exploits    Zero day

                                           Figure 6: Graphic showing the growth of vulnerabilities, exploits and zero days since 1988. Also
                                           included is a timeline of major event involving vulnerabilities since 1993. XFDB stands for X-Force
                                           Database and Exploit DB stands for Exploit Database. Source: X-Force

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05

Top actions on objectives
                                               Top actions on objectives 2022

Previously, the X-Force Threat Intelligence
Index examined the broad category of top
attacks. For 2022, X-Force dissected this
classification into two distinct categories:
the specific actions threat actors took on
victim networks, or adversary action on
objective, and the intended or realized
effect of that action on the victim,
or impact.                                               21%
                                                         Malware -

                                                                                       17%
                                                         Backdoors
According to X-Force Incident Response
data, deployment of backdoors was
the most common action on objective,
occurring in 21% of all reported incidents.
                                                                                       Malware -
                                                                                       Ransomware
                                                                                                                            5%                       5%
                                                                                                                            Server                   Spam
This was followed by ransomware at 17%                                                                                      access                   campaign
and business email compromise (BEC) at
6%. Malicious documents (maldocs),
spam campaigns, remote access tools
and server access were discovered in 5%
of cases each.
                                                                                                       6%                            5%                         5%
                                                                                                       Business email                Tool - Remote              Malware -
                                                                                                       compromise (BEC)              access                     Maldoc

                                               Figure 7: Top actions on objectives observed by X-Force in 2022. Source: X-Force

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05                                                       Top actions on objectives

                                                                                     In cases where a backdoor deployment            establish access themselves may also
      Distribution of Emotet cases across 2022                                       was classified as an action on objective,       seek backdoors.
                                                                                     it’s probable that the threat actor had
                                                                                     additional plans when the backdoor was          Initial access brokers typically attempt to
      70%
                          62%                                                        operationalized. Successful intervention by     auction their accesses, which X-Force has
      60%                                                                            security teams or incident responders likely    seen at USD 5,000-10,000, though final
      50%
                                                                                     prevented the threat actor from fulfilling      prices may be less. Others have reported
                                                                                     further objectives. Such further malicious      accesses selling for USD 2,000-4,000, with
      40%
                                                                                     activity would likely have included             one reaching USD 50,000. These amounts
      30%                                                                            ransomware, as about two-thirds of those        compare to the significantly lower price
                23%                                                                  backdoor cases had the markings of a            for something like a single credit card,
      20%
                                                                                     ransomware attack.                              seen offered for under USD 10.
                                             8%    8%
      10%
                                                                                     Increased backdoor deployment may also          Backdoors led to a notable spike in
        0
                                                                                     be due to the amount of money this kind         Emotet cases in February and March.
                                                                                     of access can generate on the dark web.         That spike inflated the ranking of backdoor
                                                                                     Compromised corporate network access            cases significantly, as those deployed
                                                                                     from an initial access broker typically sells   in this timeframe account for 47% of all
Figure 8: Graph showing spike in Emotet cases in early                               for several thousands of US dollars. This       backdoors identified globally throughout
2022. Source: X-Force
                                                                                     type of access may be sought by malicious       2022. Following Emotet’s hiatus from July
                                                                                     actors looking to make a quick profit by        through November—after which it ramped
                                                                                     avoiding issues with maintaining access         back up for nearly two weeks at much
                                                                                     while moving laterally and exfiltrating high-   lower volume—the number of backdoor
                                                                                     value data. Those malicious actors who          cases dropped significantly.
                                                                                     lack access to the requisite malware to

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05                                        Top actions on objectives

                                          Ransomware                                                                                Ransomware variants

                                          Even amid a chaotic year for some of the   One particularly damaging way ransomware       As ransomware groups and related access
     Ransomware attack average duration   most prolific ransomware syndicates,       operators distribute their payload             brokers come and go, X-Force has seen
                                          ransomware was the second most             across a network is by compromising            regular churn in the top groups active
                                          common action on objective, following      domain controllers. A small percentage,        in this space. X-Force encountered 19
     2019                   2021
                                          closely behind backdoor deployments        approximately 4%, of network penetration       ransomware variants in 2022, compared
     2+ months              3+ days       and continuing to disrupt organizations’   test findings by X-Force Red revealed          to 16 in 2021. LockBit variants comprised
                                          operations. Ransomware’s share of          entities that had misconfigurations in         17% of total ransomware incidents
                                          incidents declined from 21% in 2021        Active Directory that could leave them         observed, up from 7% in 2021. Phobos
                                          to 17% in 2022.                            open to privilege escalation or total domain   tied with WannaCry for second at 11%.
                                                                                     takeover. In 2022, X-Force also observed       The top groups in 2022 displaced 2021’s
                                          An IBM Security X-Force study revealed     more aggressive ransomware attacks on          first place REvil, also known as Sodinokibi,
                                          there was a 94% reduction in the average   underlying infrastructure, such as ESXi        with 37% of cases in 2021, and second
                                          time for the deployment of ransomware      and Hyper-V. The potentially high impact       place Ryuk with 13%, both down to 3%.
                                          attacks. What took attackers over two      of these attack methods underscores the
                                          months in 2019 took just under four days   importance of securing domain controllers      LockBit 3.0 is the latest variant of the
                                          in 2021. With attackers moving faster,     and hypervisors properly.                      LockBit ransomware family that’s part
                                          organizations must take a proactive,                                                      of a ransomware-as-a-service (RaaS)
                                          threat-driven approach to cybersecurity.                                                  operation associated with LockerGoga and
                                                                                                                                    MegaCortex. LockBit has been in operation
                                                                                                                                    since September 2019, and LockBit 3.0
                                                                                                                                    was released in 2022. A significant portion
                                                                                                                                    of the LockBit 3.0 source code appears
                                                                                                                                    to have been borrowed from the
                                                                                                                                    BlackMatter ransomware.

                                                                                        Previous chapter           Next chapter                                                18
05                                                        Top actions on objectives

                                                                                                                                    Business email compromise (BEC)

                                                                                      Researchers first discovered Phobos           BEC held its rank of third in 2022 with 6%
      2022 ransomware variants and frequency                                          ransomware in early 2019. Based on            of incidents to which X-Force responded.
                                                                                      similarities in code, delivery mechanisms,    This rank is slightly lower than 8% of
           LockBit
                                                                                      exploitation techniques and ransom notes,     attacks in 2021 and 9% for fifth place in
                                                                       17%
          Phobos                                         11%                          Phobos was identified as a fork of the        2020. It displaced 2021’s second place
         WannaCry                                        11%                          previously known ransomware families          attack, which was server access attacks.
           BlackCat                                 9%                                Crysis and Dharma. Phobos has been            This type of attack occurs when an attacker
              Conti                          6%
               Djvu                          6%                                       commonly used for smaller-scale attacks,      gains access to a server for unknown end
              Babuk                          6%                                       which involve lower ransom demands.           goals—which in 2022 was more granularly
               5x2tr            3%                                                    Email phishing campaigns and exploitation     classified by what type of access those
               REvil            3%
                Hive            3%
                                                                                      of vulnerable Remote Desktop Protocol         actors achieved. Spear phishing links
        Vice Society            3%                                                    (RDP) ports are the main distribution         were used in half of BEC cases to which
            DefrayX             3%                                                    methods observed for Phobos.                  X-Force responded. Malicious attachments
              Makop             3%
      MedusaLocker              3%
                                                                                                                                    and abuse of valid accounts were used to
            Venom               3%                                                    WannaCry, first seen in 2017, spreads         enable BEC attempts in 25% of cases each.
              Ryuk              3%                                                    itself by using EternalBlue to exploit
             Cat4er             3%
             Venus
                                                                                      the vulnerability in the Microsoft Server
                                3%
              Lizard            3%                                                    Message Block 1.0 (SMBv1) server (MS17-
                                                                                      010). Several cases of WannaCry or Ryuk
                                                                                      that X-Force saw in 2022 were the result of
                                                                                      infections from three to five years ago and
Figure 9: Ransomware variants and the frequency                                       occurred on old, unpatched equipment,
with which they were observed in X-Force Incident                                     highlighting the importance of proper
Response engagements in 2022. Source: X-Force                                         cleanup after such events.

                                                                                         Previous chapter           Next chapter                                             19
06

Top impacts
                                              Top impacts 2022

X-Force also took a closer look at the
effect of incidents on victim organizations
to better understand the impact that                        21%
threat actors sought to have through the                    Extortion
incidents to which X-Force responded. With
this information, organizations can get a
better understanding of the most common
impacts to plan responses to potential
future incidents more effectively.                                                                  19%
                                                                                                    Data theft

                                                                                                                                11%
The analysis found that more than one
in four incidents aimed to extort victim
organizations—making it the top impact                                                                                          Credential
observed across incidents remediated by                                                                                         harvesting
X-Force. The observed extortion cases
were most frequently achieved through
ransomware or BEC, and often included the
use of remote access tools, cryptominers,
backdoors, downloaders and web shells.
                                                                                                                                                         9%
                                                                                                                                             11%         Brand
                                                                                                                                                         reputation
                                                                                                                                             Data leak
                                              Figure 10: Top impacts X-Force observed in incident
                                              response engagements in 2022. Source: X-Force

                                                                                  Previous chapter               Next chapter                                         20
06                                                    Top impacts

                                                                     Data theft came in second and accounted
     Percentage of extortion cases by industry 2022                  for 19% of all incidents that X-Force
                                                                     remediated. Credential harvesting that
          Manufacturing                                        30%   led to stolen usernames and passwords
                                                                     and required corresponding mitigations
           PBC services                               22%
                                                                     accounted for 11%. Incidents where
                 Energy                      13%                     X-Force could identify targeted information
                                                                     actually leaked after being stolen was less
     Finance & insurance                     13%                     common than the theft of data at 11%.
      Retail & wholesale
                                                                     Impacts to brand reputation, such as
                                       9%
                                                                     disruption to the services clients provide
        Media & telecom        4%                                    to their customers, accounted for 9% of
                                                                     incidents. See Appendix for the full list of
              Education        4%
                                                                     impacts X-Force tracked. Incidents that
          Transportation       4%                                    impacted victims’ brand reputation were
                                                                     mainly distributed denial of service
                                                                     (DDoS) attacks, which are also frequently
                                                                     used to extort victims to pay money to
Figure 11: The percentage of extortion cases by
                                                                     stop the attack.
industry X-Force observed in incident response
engagements in 2022. Numbers do not add to 100%
due to rounding. Source: X-Force

                                                                        Previous chapter            Next chapter    21
06                                                          Top impacts

                                                                          Extortion

                                                                          While extortion is most commonly                 with enhanced or novel downstream victim
     Notable developments in online extortion1-9                          associated with ransomware today,                notification to increase the potential legal
                                                                          extortion campaigns have included a              and reputational costs of an intrusion.
                                                                          variety of methods to apply pressure on
     Year          Event                           Tactic
                                                                          their targets. These include DDoS threats,       Often, both defenders and victims of
                                                                          encrypting data and, more recently, double       cyberattacks focus on the observed
     2013          Cryptolocker—one of the         Data encryption
                                                                          and triple extortion threats combining           impacts to an organization by threat actors.
                   first major ransomware
                                                                          several previously seen elements.                However, it’s important to consider the
                   outbreaks
                                                                                                                           intentions of threat actors, their capabilities
                                                                          Another tactic that at least one                 and how they evolve over time. This
     2014          DDoS 4 Bitcoin,                 Ransom DDoS
                                                                          ransomware group experimented with               approach enables better discernment of
                   Armada Collective
                                                                          starting in 2022 was making the data they        what the next evolution of capabilities
                                                                          had stolen more accessible to downstream         may be. Given the ever-expanding menu
     2015          Chimera ransomware              Double extortion
                                                                          victims. By making it easier for secondhand      of extortion options and ransomware
                   adds threat of leaking
                                                                          victims to identify their data among a           actors’ primary goal of financial gain, the
                   stolen data online
                                                                          data leak, operators seek to increase the        X-Force team assesses that threat actors
                                                                          subsequent pressure on the organization          will continue to evolve and expand their
     2017–18       BitPaymer and SamSam            Big game hunting
                                                                          targeted by the ransomware group or              extortion methodologies to find new ways
                                                                          affiliate in the first place. In 2023, X-Force   to pressure victims into paying.
     2020          Vastaamo ransomware             Triple extortion
                                                                          expects to see threat actors experimenting
                   case

                                                                             Previous chapter             Next chapter                                                 22
07

Cyber-related developments
of Russia’s war in Ukraine
                             Russian state-sponsored cyber activity         cyber operations and related disruptions
                             following Russia’s invasion of Ukraine         in Ukraine and elsewhere. X-Force
                             has not, as of this publication, resulted in   assessed the most significant threats
                             the widespread and high-impact attacks         that have emerged include the return of
                             originally feared by Western government        hacktivism and wiper malware, as well
                             entities. However, Russia has deployed         as significant shifts in the cybercriminal
                             an unprecedented number of wipers              world. Most of these operations victimized
                             against targets in Ukraine, highlighting       entities centered in Ukraine, Russia and
                             its continued investment in destructive        neighboring countries, but some have
                             malware capabilities. Furthermore, the         spread to other areas, as well.
                             invasion has led to the resurgence of
                             hacktivist activity undertaken by groups       Alternatively, defenders are adeptly
                             sympathetic to either side, as well as         employing the strides made in detection,
                             a reordering of the Eastern European           response and information sharing that were
                             cybercriminal landscape.                       developed over the last several years. Many
                                                                            of the early attempted wiper attacks were
                             Considering Russia’s demonstrated              quickly identified, analyzed and publicized.
                             advanced capabilities for cyberattacks         These attacks include at least eight
                             against critical infrastructure since 2015,    identified wipers and the discovery and
                             international cybersecurity agencies           disruption of a planned Russian cyberattack
                             issued a warning in April 2022. The            on Ukraine's electric grid in April 2022.
                             warning mentioned potentially significant

                                Previous chapter             Next chapter                                            23
07                                               Cyber-related developments
                                                 of Russia's war in Ukraine

                                                 Timeline of select hacktivist events 2022

                                                                                              Mar. 18th
                                                                                              NB65 claims hack                    May. 21th
                                                                                              of Russian space                                                                                             Sep. 6th
In cyberspace, the most widely-felt                                                           agency Roscosmos
                                                                                                                                  Anonymous
                                                                                                                                                                                                           Killnet starts
                                                              Feb. 24th                                                           declares cyberwar
effects of the ongoing war come from self-                    Russia invades                                                      on Killnet
                                                                                                                                                                                                           DDoSing
                                                                                                                                                                                                           Japanese networks
proclaimed hacktivist groups operating in                     Ukraine
support of Ukrainian or Russian national                                                                                                                                     Jul. 6th
                                                                                                             Apr. 29th
interests. While many groups have formed                              Feb. 26th                                                                  May. 31th                   Killnet starts                                                Nov.22th
                                                                                                             Killnet starts
since Russia’s invasion and are operating                             Ukrainian
                                                                                                             DDoSing Romanian                    NB65 threatens
                                                                                                                                                                             DDoSing
                                                                                                                                                                                                                                           Killnet targets
                                                                      government                                                                                             Latvian networks
                                                                                                                                                 Serbian government
against both Russian and Ukrainian                                    announces
                                                                                                             networks                                                                                                                      UK’s Royal
                                                                                                                                                 with hacks                                                                                 Family
networks to make political points, Killnet is                         creation of IT army

one of the most prolific Russia-sympathetic
groups. It has claimed DDoS attacks
against public services, government
                                                    FEB.                 MAR.                     APR.           MAY.                                 JUN.            JUL.          AUG.        SEP.             OCT.          NOV.
ministries, airports, banks and energy
companies based in North Atlantic Treaty                                                                                                  May. 30th
                                                              Feb. 24th
Organization (NATO) member states, allied                     Anonymous                                                                   Killnet threatens
countries in Europe, as well as in Japan and                  announces it's in                                                           attacks on Italy                                  Aug. 11th
                                                              cyberwar against                                                            that last                                         Killnet continues
the United States. Entities that fit Killnet's                Russian government                                                          several days                                      DDoSes against                Oct. 5th
                                                                                      Mar. 17th
targeting profile should consider ensuring                                                                                                                     Jun. 20th                    Latvian Parliament            Killnet starts
                                                                                      Anonymous claims                                                         Killnet starts                                             DDoSing
that DDoS mitigation measures are in place,                                           hack of R&D firm
                                                                                                                           May. 11th
                                                                                                                                                               DDoSing Lithuanian                                         US networks
                                                                                                                           Killnet starts
such as engaging the services of a                                                    associated with
                                                                                                                           targeting
                                                                                                                                                               networks for about
                                                                                      Russian oil pipeline                                                     10 days
third-party DDoS mitigation provider.                                                 giant Transneft                      Italian networks

                                                 Figure 12: Image showing hacktivist events observed to date during the conflict in Ukraine.
                                                 Source: X-Force analysis of open source reporting

                                                                                                                          Previous chapter                    Next chapter                                                                             24
07   Cyber-related developments
     of Russia's war in Ukraine

     Wipers featured in Russia's
     war in Ukraine

     Russia’s war in Ukraine stands out for the     against a limited set of targets. However,
     use of multiple wiper families deployed        the notable exceptions of WannaCry and
     against multiple targets in rapid succession   NotPetya, which spread indiscriminately
     and on a scale not previously seen, as well    after impacting their initial victims, raise
     as the use of malware alongside kinetic        concerns of such wipers either spreading
     military operations.                           more widely or being repurposed for
                                                    malicious operations elsewhere.
     These deployments include at least nine
     new wipers—AcidRain, WhisperGate,              X-Force continues to assess that Russian
     HermeticWiper, IsaacWiper, CaddyWiper,         state-sponsored cyberthreat actors still
     DoubleZero, AwfulShred, OrcShred               pose significant threats to computer
     and SoloShred. These wipers were               networks and critical infrastructure around
     predominantly used against Ukrainian           the world. This judgment is based on
     networks from before the initial invasion      longstanding Russian cyberoperations
     through the early stages of the war, mainly    aimed at Ukrainian, European, NATO
     January through March 2022. While              and US networks and attack operations
     wipers have been used in the past, they        executed by Russian threat groups
     have been mostly stand-alone campaigns         since 2015.

                                                       Previous chapter             Next chapter   25
07   Cyber-related developments
     of Russia's war in Ukraine

     Upheaval among Russian
     cybercrime groups

     2022 was a tumultuous year for ITG23—           Additionally, the group has seemingly         The group also released a new version of
     one of the most prominent Russian               retired two of their most high-profile        their Anchor malware, a stealthy backdoor
     cybercriminal syndicates primarily known        malware families, Trickbot and Bazar,         that the group had traditionally deployed
     for developing the Trickbot banking Trojan      and shut down their Conti ransomware          against high-profile targets. The upgraded
     and Conti ransomware. The group suffered        operation. Various reports have suggested     version discovered by X-Force, and named
     a series of high-profile leaks in early 2022,   that a significant reshuffling of personnel   AnchorMail, has a novel email-based
     after publicly backing Russia’s involvement     may be occurring, with the group splitting    command and control (C2) communication
     in the war. Referred to as the ContiLeaks       into several factions and some members        mechanism. The C2 server uses the
     and TrickLeaks, they resulted in the            moving on entirely.                           Simple Mail Transfer Protocol Secure
     publication of thousands of chat messages                                                     (SMTPS) and Internet Message Access
     and the doxing of numerous group                The shutdown of Trickbot and Bazar, which     Protocol Secure (IMAPS) protocols, and
     members. X-Force uncovered evidence             accounted for a significant number of         the malware communicates with the server
     indicating that ITG23 began systematically      infections in 2021, resulted in a void that   by sending and receiving specially crafted
     attacking in mid-April through at least         has been quickly filled by malware families   email messages.
     mid-June of 2022—an unprecedented               such as Emotet, IcedID, Qakbot and
     shift, as the group had not previously          Bumblebee. Prior to its shutdown, ITG23
     targeted Ukraine.                               was still deploying Conti ransomware
                                                     prolifically, accounting for a third of all
                                                     ransomware engagements to which
                                                     X-Force responded in the first quarter
                                                     of 2022.

                                                        Previous chapter           Next chapter                                            26
08

The malware landscape
                        Increase in USB-spreading worms

                        After X-Force observed Raspberry Robin           The spread of USB-based worms is enabled
                        infection attempts impacting organizations       through social engineering and requires
                        in mid-May 2022, the enigmatic worm              some physical access to a network or
                        began spreading quickly within victims’          endpoint to infect successfully, whether
                        networks from users sharing Universal            by a legitimate user or some other means.
                        Serial Bus (USB) devices. The infections         X-Force advises ensuring your security
                        spiked in early June, and by early August        tools block known USB-based malware,
                        Raspberry Robin peaked at 17% of                 implementing security awareness training
                        infection attempts that X-Force observed.        and disabling autorun features for any
                        This peak was identified in the oil and          removable media. In especially sensitive
                        gas, manufacturing and transportation            environments, such as OT or where air gaps
                        industries. The 17% infection attempt            exist, it’s safest to simply prohibit the use
                        rate in these industries is significant, since   of USB flash drives entirely. If it’s necessary
                        less than 1% of X-Force clients in total         to allow them, strictly control the approved
                        have seen the same strain of malware.            number of portable devices for use in your
                        X-Force also observed more Raspberry             environment in addition to implementing
                        Robin activity from September through            the previous suggestions.
                        November 2022.

                           Previous chapter             Next chapter                                                 27
08   The malware landscape

     Rust rises                                  Vidar InfoStealer

     The Rust Programming Language steadily      X-Force noted a sudden influx of Vidar         This database can then be sold on the
     increased in popularity among malware       InfoStealer malware which began in June        dark web or through the private messaging
     developers during 2022, thanks to its       2022 and continued through early 2023.         app, Telegram. Threat actors may use the
     cross-platform support and low antivirus    First observed in 2018, Vidar is a malicious   information to commit various types of
     detection rates compared to other, more     information-stealer Trojan, distributed as     fraud, such as applying for bank loans or
     common languages. Similar to the Go         malware as a service (MaaS). The Trojan        credit cards, purchasing items online or
     language, it also benefits from a more      is usually executed by users clicking          making fraudulent health insurance claims.
     convoluted compilation process that can     on malicious spam (malspam) links or
     make the malware more time-consuming        attachments. Due to its extensive feature      Threat actors can use compromised login
     to analyze for reverse engineers. Several   set, Vidar can be used to retrieve a wide      credentials to gain entry to corporate
     ransomware developers have released         variety of device information that includes    accounts and remote services. The average
     Rust versions of their malware, including   credit card information, usernames,            cost to use an info stealer is approximately
     BlackCat, Hive, Zeon and most recently      passwords and files, as well as taking         USD 250 per month, and it’s up to the users
     RansomExx. Additionally, X-Force has        screenshots of the user’s desktop. Vidar       to deploy the malware of their choice.
     analyzed an ITG23 crypter written in        can also steal Bitcoin and Ethereum            X-Force regularly sees marketplaces
     Rust, along with the CargoBay family of     cryptocurrency wallets.                        attempting to sell access captured by info
     backdoors and downloaders. The rising                                                      stealer malware for USD 10-75. When
     popularity of Rust highlights a continued   Attacks through an information stealer         access has been obtained, threat actors
     focus across the ransomware ecosystem on    (info stealer) are typically financially       can easily use the hacked account’s
     innovating to evade detection.              motivated. The stolen data is analyzed, and    privileges as a starting point to initiate
                                                 any valuable information is collated and       further malicious activity.
                                                 organized into a database.

                                                    Previous chapter            Next chapter                                             28
08   The malware landscape

     Evolution of malware delivery
     mechanisms

     It has become increasingly commonplace         within Microsoft Excel known as Macro        Office documents, but sophisticated
     for malware to be delivered through            4.0. Malicious Excel documents have been     groups adopted a more intricate and
     malicious Microsoft Office documents,          used for quite some time. However, most      complex infection chain. These newer
     usually attached to phishing emails.           security mechanisms were built around        tactics involve a combination of HTML
     Malware developers created these               VBA macros within an Excel document. For     files that have a binary embedded within
     documents containing malicious macros          a time, Excel Macro 4.0 macros provided a    or a password-protected compressed
     designed to execute malware when the           good means of evading detection. Around      file. Those files also contain an ISO image
     document is opened. The use of macros          this same time, some threat actors began     which may contain a LNK file, CMD file or
     for this purpose became so widespread          sending links within an email to take a      other file types unlikely to be sent to an
     that Microsoft Office products started         victim to a dropper site to download the     email recipient or downloaded from the
     including security warnings when opening       malicious documents rather than sending      internet. Others include remote template
     macro-enabled documents. In July 2022,         them as a mail attachment. As Microsoft      injection or exploitation of vulnerabilities.
     Microsoft began to block macro execution       made changes to allow administrators to      CVE-2021-40444, a remote code execution
     by default in documents received through       disable Macro 4.0 and also block execution   vulnerability in Microsoft HTML (MSHTML),
     email or from the internet.                    of macros downloaded from the internet,      is one example where a software
                                                    threat actors were forced to change          component is used to render web pages in
     As defenders increased their detection and     tactics again.                               Microsoft Windows to execute the malware,
     prevention capabilities, threat actors began                                                rather than relying on macros.
     moving away from Visual Basic Application      After Microsoft’s changes, many malware
     (VBA) to an older existing macro format        authors still use macro-enabled Microsoft

                                                       Previous chapter          Next chapter                                              29
08   The malware landscape

     Spam data highlights ransomware
     threat and further illustrates
     macro trends

     X-Force analyzed trends in phishing and                                                                 X-Force identified a surge of Qakbot
                                                  Malware10-18           Ransomware
     spam email to better understand their                                                                   activity in September 2022 that used
     overall effectiveness and use by threat                                                                 HTML smuggling to compromise victims.
                                                  Trickbot               Conti
     actors. The investigation found that spam                                                               Those infections are linked to extensive
     emails have been used regularly throughout                                                              post-compromise activity, including
                                                  Bazarloader            Conti, Diavol
     the year to deliver malware, such as                                                                    reconnaissance, information gathering
     Emotet, Qakbot, IcedID and Bumblebee,                                                                   and deployment of additional payloads.
                                                  IcedID                 Conti, Quantum
     which often lead to ransomware infections.                                                              Unchecked Qakbot infections throughout
                                                                                                             2022 led to multiple Black Basta infections.
                                                  Bumblebee              Conti, Diavol, Quantum
                                                                                                             X-Force saw ransomware attacks claimed
                                                                                                             on the Black Basta ransomware group's
                                                  Emotet                 Conti, BlackCat, Quantum
                                                                                                             leak site markedly decrease during the
                                                                                                             break in Qakbot's phishing activity in the
                                                  Qakbot                 REvil, Conti, Black Basta
                                                                                                             summer of 2022. X-Force expects the
                                                                                                             resumption of Qakbot activity will similarly
                                                  SocGholish             LockBit
                                                                                                             be correlated with higher numbers of
                                                                                                             ransomware victims.
                                                  The data in this table covers the period from late
                                                  2021 to the publication of this report. Italics indicate
                                                  that the malware or ransomware was seen in 2022,
                                                  but has not been observed by X-Force as of at least
                                                  October 2022.

                                                      Previous chapter                    Next chapter                                                30
08   The malware landscape

     Circumventing macros

     The use of ISO and LNK files has emerged      – Another way of getting around macro              – Encrypted compressed extensions, which
     as an important tactic to infecting victim      restrictions is to include payloads directly       are more difficult for antivirus software
     organizations in response to Microsoft’s        in LNK files that, when clicked, launch            to detect and flag as malicious, were
     macro changes starting in October 2021.         arbitrary commands mostly used to                  discovered more frequently in 2022. The
     This tactic includes both direct delivery       either download or load the next stages.           average number of spam emails with
     of their payloads through those container       Prior to early 2022, there was only one            such attachments delivered per week
     files, as well as obfuscating macro-enabled     campaign in February 2021 that used                increased ninefold in 2022, compared to
     files within them.                              this tactic. X-Force first saw it recurring in     2021 data since April of that year.
                                                     late February-March 2022 and now sees
     – ISO files and compressed files are being      it regularly.                                    – Thread hijacking, in which threat actors
       used to circumvent the mark of the web                                                           insert themselves into existing email
       (MOTW) attribute that Microsoft is using    Additional trends that X-Force detected in           threads, is a longstanding tactic used
       to help targets enable malicious macros.    threat actors’ spam campaigns include the            to increase spam legitimacy and more
       While the ISO or compressed files will      increased use of encrypted compressed                effectively entice victims to engage. This
       look to be downloaded from the internet,    archives as attachments and thread                   tactic saw a marked rise in 2022—when
       the macro-enabled attachment within         hijacking, as explained here.                        compared to the majority of 2021—and
       it will not, allowing threat actors to                                                           tapered off by the spring, a trend that
       continue this attack.                                                                            X-Force assesses is driven in large part
                                                                                                        by Emotet spamming.

                                                      Previous chapter              Next chapter                                                31
08                                                                            The malware landscape

                                                                                                                                          – Emotet returned in November 2021 after       – Spam email leading to Emotet, Qakbot
      Thread hijacking spam email activity April 2021 – December 2022                                                                       the botnet was disrupted in January            and IcedID made heavy use of thread
                                                                                                                                            2021. It continued activity into 2022,         hijacking. Emotet’s return in November
                                                                                                                                            took a nearly four-month break starting        2021 contributed to the unsteady
                                                                                                                                            mid-July, and returned for nearly two          increase through May 2022. The overall
                                                                                      10.3%                                                 weeks in November 2022.                        decline in the latter half of the year
                                                                                                                                                                                           aligns with Emotet’s hiatus from July
                                                                            7.8%               8%                                         – The data showed just about twice as            through October and brief return in
                                                                                                         6.8%          7.2%
                                                                                                    6%
                                                                                                                                            many regular attempts per month in             November 2022.
            5.5%                                              5.5%
                                                       4.7%                                                                   4.7%
                                                                                                                                            2022 compared to available data since
                                                                                                                4.6%
                   3.5%                         3.8%                               4.1%                                                     April 2021. Thread hijacking was on an       – Tracking thread hijacking and accurately
                          2.9% 2.9% 2.8% 2.7%                                                                                        3%     unsteady incline through May 2022, and         distinguishing it from instances of actors
       2%
                                                                     1.2%                                                                   its decline in the latter half of the year     simply adding a reply subject line header
                                                                                                                                            aligns roughly with Emotet’s inactivity.       to a spam email is difficult and likely to
                                                                                                                                                                                           become more so. For example, some
            Q2                 Q3               Q4                   Q1                   Q2             Q3                   Q4                                                           threat actors have started to remove
                                                                                                                                                                                           “Re:” subject line headers, likely because
       2021        2022                                                                                                                                                                    they are aware that these headers can be
                                                                                                                                                                                           used to track their activity.

Figure 13: Figures show percentage by month of total
thread hijacking attempts detected in X-Force data
since April 2021. Source: X-Force

                                                                                                                                             Previous chapter            Next chapter                                             32
09

Threats to OT and industrial
control systems                Threats to operational technology

                               2022 saw the discovery of two new OT-        Alerts indicating probable brute force
                               specific pieces of malware, Industroyer2     attempts were most common among
                               and INCONTROLLER, also known as              Incident Command System (ICS)-specific
                               PIPEDREAM, and the disclosure of many        network attack data, followed closely
                               OT vulnerabilities called OT:ICEFALL. The    by weak encryption alerts. The most
                               OT cyberthreat landscape is expanding        common alerts for weak encryption
                               dramatically, and OT asset owners and        concerned the continued use of Transport
                               operators need to be keenly aware of the     Layer Security (TLS) 1.0, an outdated and
                               shifting landscape.                          insecure encryption method deprecated in
                                                                            March 2021. Though the US government
                               X-Force looked more closely at OT-           recommends reconfiguration to use TLS 1.2
                               specific network attack and IR data to       or 1.3, National Institute of Standards and
                               help derive insights on how threat actors    Technology (NIST) guidelines address in
                               are seeking to compromise clients in OT-     more depth the common reality. This reality
                               related industries. Network attack data      is that older systems may need to continue
                               shows brute force attacks, use of weak and   using weaker versions of encryption to
                               outdated encryption standards and weak       ensure continued functionality. Weak or
                               or default passwords are common alerts in    default password alerts were also notable,
                               these industries’ IT and OT environments.    especially given these are basic

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09   Threats to OT and industrial
     control systems

                                                                                                    Manufacturing continues to be the
                                                                                                    most targeted OT industry

     vulnerabilities that make brute force            The second most common vulnerability,         Looking at the subset of incidents in
     attacks easier for attackers. Widespread         however, dates back to 2016—a filter          OT-related industries, manufacturing was
     and likely indiscriminate internal and           bypass vulnerability in the Trihedral         the most attacked in 2022, according
     external vulnerability scanning was the          VTScada application, CVE-2016-4510,           to the data. The industry was victimized
     most common attack attempt against               that could allow unauthenticated users to     in 58% of incidents X-Force assisted in
     OT-related industries. The data revealed         send HTTP requests to access files. Further   remediating. Deployment of backdoors was
     that old vulnerabilities and threats are still   highlighting the risks of older threats are   the top action on objective, identified in
     relevant today. A group of vulnerabilities       attack types, like WannaCry and Conficker,    28% of cases in the manufacturing sector.
     discovered in 2021 by Cisco Talos in             which continue to pose significant            Ransomware actors in particular find this
     Advantech R-SeeNet monitoring software           threats to OT.                                industry to be an attractive target, likely
     triggered a slim majority of vulnerability                                                     due to these organizations’ low tolerance
     scanning alerts across OT industries in                                                        for downtime.
     2022. These vulnerabilities could allow
     attackers to execute arbitrary code
     or commands.

                                                         Previous chapter           Next chapter                                             34
09                                                            Threats to OT and industrial
                                                              control systems

                                                                                             Looking at initial access vectors across       Another major vulnerability exploited in OT
  OT industries targeted in 2022                                                             cases in OT-related industries, spear          is lack of proper segmentation between
                                                                                             phishing accounted for 38% of cases,           OT and IT networks. The team at X-Force
                                                                                             including use of attachments at 22%,           Red Adversary Simulation Services
       Manufacturing                                                 58%                     use of links at 14% and spear phishing as a    regularly targets weak segmentation to
                                                                                             service at 2%. Exploitation of public-facing   gain access to isolated OT environments.
               Energy                      17%
                                                                                             applications took second place at 24%,         These environments include targeting
                                                                                             following the broader industrywide trend.      jump servers, dual-homed operator
           Oil and gas               10%
                                                                                             Detection of backdoors also led among          workstations and reporting servers, such
                                                                                             these industries’ incidents in 20% of cases,   as data historians that expose web and SQL
       Transportation                10%
                                                                                             followed by ransomware at 19%. Extortion       services from OT to corporate IT networks.
       Heavy and civil                                                                       also remains in first among impacts at         Properly segmenting these portions of
                              2%
         engineering                                                                         29%, with data theft close behind in           your networks and closely monitoring
               Mining
                                                                                             24% of cases.                                  communication across them can keep
                              2%
                                                                                                                                            assets safe.
        Water utilities       1%
                          0        10%     20%    30%   40%   50%   60%    70%

Figure 14: Proportion of IR cases by OT-related
industry to which X-Force responded in 2022.
Source: X-Force

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10

Geographic trends
                                             Incidents by region 2020 – 2022

For the second year in a row, the Asia-
                                             31%                                         31%
Pacific region holds the top spot as the
most-attacked region in 2022, accounting                                  28%
                                                                                                                     27%
for 31% of the incidents to which X-Force           26%
                                                              25%                                     25%
                                                                                 24%
IR responded. Europe followed closely                                                                         23%
behind with 28% of attacks and North
America saw 25% of incidents. Asia-Pacific
and Europe saw higher proportions of
cases, increasing five percentage points
and four percentage points respectively
from 2021 figures, with a significant drop                                                                                                                       14%
                                                                                                                                           13%
in the Middle East from 14% to 4%.                                                                                                  12%

                                                                                                                                                      9%
                                                                                                                                                                          8%

                                                                                                                                                           4%

                                               Asia-Pacific                  Europe                      North America                 Latin America        Middle East

                                               2022            2021          2020

                                             Figure 15: Proportion of IR cases by region to which X-Force responded from 2020-2022. Source: X-Force

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