X-Force Threat Intelligence Index 2023 - IBM Security
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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
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. Next chapter 3
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. Next chapter 4
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 Previous chapter Next chapter 5
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. Previous chapter Next chapter 6
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. Previous chapter Next chapter 7
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 Previous chapter Next chapter 8
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 Previous chapter Next chapter 9
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. Previous chapter Next chapter 10
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 Previous chapter Next chapter 11
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. Previous chapter Next chapter 12
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 Previous chapter Next chapter 13
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 Previous chapter Next chapter 14
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 Previous chapter Next chapter 15
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 Previous chapter Next chapter 16
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 Previous chapter Next chapter 17
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 Previous chapter Next chapter 33
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 Previous chapter Next chapter 35
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 Previous chapter Next chapter 36
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