What is Ransomware as a Service (RaaS)?

Ransomware as a Service (RaaS) is escalating the risk and complexity of ransomware attacks globally as it brings the efficiency and adaptability of the gig economy to an old criminal practice. Ransomware as a Service has allowed the increase in financial demands: in 2023, ransomware payments skyrocketed, exceeding for the first time ever the $1 billion mark. The Cl0p's exploitation of the MOVEit zero-day vulnerability led to over $100 million in ransom payments and accounted for a significant portion of the total ransomware revenue in 2023.

Such meticulous and adaptive campaigns are indicative of the broader trends within RaaS, where cybercriminals exploit systemic vulnerabilities and network weaknesses. Law enforcement efforts, such as the FBI's infiltration into the Hive ransomware operation, which averted an estimated $130 million in ransom payments, highlight the tangible impact of strategic counter-ransomware operations. However, despite these successes, the sheer volume of new variants and the clever exploitation of vulnerabilities continue to pose serious challenges for cybersecurity defenses.

RaaS platforms have facilitated an increase in both double and multiple extortion attacks. Double extortion involves the encryption of a victim's data coupled with threats to release the information publicly if the ransom is not paid. Meanwhile, multiple extortion adds further pressure by introducing additional forms of attack, mostly Distributed Denial of Service (DDoS), to coerce victims into paying more promptly. The emergence of “pure extortion” tactics, where attackers threaten to leak stolen data without employing encryption, is another evolution of ransomware strategies within the RaaS ecosystem, as this approach represents a shift from traditional ransomware methods.

RaaS has made sophisticated tools more accessible, but this is not the only contributing factor to the growth in ransomware revenues. The surge can also be linked to the anonymity and security provided by cryptocurrency transactions, which offer cybercriminals a safer and untraceable method of receiving payments. Additionally, the fight against ransomware is often compromised by human-related vulnerabilities. Shortcomings in staff training, inadequate process oversight, and lapses in standard security practices provide fertile ground for RaaS exploits.

The layered structure of RaaS – with the developers, distributors, and end-users of ransomware often being distinct parties - complicates the process of investigating and prosecuting these crimes. Developers of ransomware might lease their products to affiliates in another country, who might target victims in yet another, which creates a tangled web of jurisdictional issues.

The Computer Fraud and Abuse Act is one legal framework under which RaaS actors can be prosecuted in the United States, but to address these crimes effectively often involves international cooperation. Law enforcement agencies such as the Interpol, FBI, or Europol may be hindered by borders, legal systems, and international relations, which can slow down the pace of investigation and prosecution.

RaaS attacks have evolved from the straightforward malware campaigns of the past into complex operations that exploit every available vulnerability. Below is a blueprint of how RaaS attacks are currently planned and executed. (Source)

·       Initial Access: RaaS attacks still rely on phishing emails, unpatched vulnerabilities, or compromised credentials to access remote desktop protocols (RDP). Automated scalable attacks usually target smaller companies, while larger entities often face spear-phishing campaigns personalized to exploit system vulnerabilities.

·       Staging: After a successful infiltration, attackers prepare the environment for the attack by escalating privileges and establishing persistent access. They might use specialized tools for setting the stage for extensive network compromise.

·       Expansion: This phase involves reconnaissance and lateral movement across the network. Attackers use legitimate administrative tools and commands - a technique known as “Living off the Land” - to avoid detection while they map out the network and identify key assets.

·       Extortion:  With the groundwork laid, attackers focus on maximizing impact to pressure victims into paying the ransom. This might involve double or triple extortion tactics, where data is not just encrypted but also exfiltrated for potential public release, combined with other pressure tactics like DDoS attacks or harassment. Before deploying the ransomware payload, attackers often locate and destroy backups to weaken the victim’s position further.

RaaS attackers gain access to networks and systems through the most common vectors that should be taken into consideration when deciding on the best defense strategy.

·       Phishing Emails: Still a popular method, attackers use sophisticated social engineering methods to earn trust from the staff.

·       Exploited Vulnerabilities: Unpatched software or insecurely configured services offer an easy access point for attackers.

·       Malicious Downloads and URLs: Compromised or malicious websites can also serve as launchpads for ransomware.

·       Infected Media:  USB drives or other external devices can introduce ransomware into secure networks.

Early detection of a ransomware attack can stop it, or at least help minimize its impact. There are several red flags signaling the possible presence of a criminal operation within your network, including:

Direct Indicators

·       Changes in File Access: The sudden inability to access files or the discovery of encrypted files with ransom notes are among the most direct indicators of a ransomware attack.

·       Altered File Extensions: Discovery of multiple files with strange extensions is often a clear sign of confirmed illegal encryption. For example, Locky ransomware was known for using extensions such as “.locky”, “.zzzzz”, and “.odin”.

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Indirect Indicators

·       Unusual Network and Disk Activity: High network traffic or odd connections might indicate data exfiltration, while increased disk activity without clear cause, particularly if it results in system slowdowns, can signal ongoing file encryption by ransomware.

·       Account Irregularities: Observing multiple failed login attempts or access requests from unfamiliar locations could indicate compromised credentials, suggesting that attackers are trying to gain or expand access within your network.

·       Security Alert Fatigue: An unusually high number of security alerts can overwhelm system administrators, potentially hiding real indicators of an attack among false positives.

Ransomware as a Service platforms continuously refine their methods and tools. A solid defense strategy must adapt to current threats but also create long-term protection against future challenges. Organizations should take technological, policy, and educational measures, while they cultivate an internal culture of constant security awareness. To avoid being affected by ransomware, organizations of all sizes should have a proactive, and informed strategy, based on some essential defense tactics:

·       Updated Cybersecurity Measures: Make sure that your cybersecurity suite can offer real-time protection against a broad spectrum of threats, including the latest ransomware tactics.

·       Email Vigilance: Given that email is still a prime vector for ransomware delivery, use advanced filtering and anti-spam technologies. Also, educate team members to scrutinize emails, particularly those with links or attachments from unfamiliar sources, to avoid phishing attempts.

·       Robust Backup Strategy: Adopt the 3-2-1 backup rule – that is, maintain at least three copies of your data across two different media, with at least one backup offsite.

·       Strong Endpoint and Network Security: Layered endpoint defenses and network segmentation can drastically limit the ability of ransomware to propagate. Continuous monitoring for unusual network activity can help you detect potential threats before the situation gets out of control.

·       Principle of Least Privilege: Minimize the attack surface by applying the principle of least privilege across your network's access controls, reinforced by multi-factor authentication, if possible.

·       Regular Security Assessments: Continuous security evaluations, through audits, penetration tests, red team/blue team exercises, and vulnerability scans, can uncover risks you weren’t aware of.

·       Ongoing Education and Awareness: A well-informed employee is less likely to become a victim of a phishing email. Awareness programs can significantly reduce the likelihood of successful social engineering attacks.

To counter Ransomware as a Service threat, organizations should deploy a suite of tools and techniques able to preemptively identify and mitigate ransomware attacks. A robust RaaS prevention strategy includes:

·       Advanced Threat Detection Systems: Systems that use heuristics, behavior analysis, and machine learning can proactively detect ransomware and zero-day threats. These systems monitor applications and processes on a continuous basis, identifying and neutralizing threats based on their behavior rather than relying solely on known signatures.

·       Encryption: Strong encryption for sensitive data at rest and in transit can protect against unauthorized access, even if a breach occurs. Encryption acts as a last line of defense, ensuring data confidentiality and integrity.

·       Secure Backup Solutions: In addition to the implementation of the 3-2-1 rule, backups should be encrypted and tested regularly to ensure they are recoverable. Secure, immutable backups prevent ransomware from encrypting or deleting backup data, facilitating recovery without paying a ransom.

·       Regular Security Audits: Audits and vulnerability assessments are useful to identify security gaps in your organization’s network. Regular checks, combined with penetration testing, can simulate ransomware attacks to evaluate the effectiveness of current defenses and incident response protocols.

In the continuous arms race against Ransomware as a Service, Bitdefender can act as a strong ally, offering comprehensive solutions that integrate seamlessly into any cybersecurity strategy. Bitdefender's cybersecurity solutions feature real-time protection and active scanning to thwart ransomware and other cyber threats, using:

•            Anti-ransomware Technology: Specifically designed to counter ransomware, Bitdefender's anti-ransomware technology is a critical layer of defense, offering robust protection mechanisms that prevent encryption attempts.

•            Endpoint and Network Security: For comprehensive endpoint protection and network security, explore Bitdefender's GravityZone Platform. It delivers multi-layered defense strategies, including endpoint detection and response (EDR) capabilities, to effectively limit ransomware propagation and detect abnormal activities.

•            Advanced Business Security Solutions: To ensure maximum protection, Bitdefender's advanced business security solutions are tailored to meet both individual and organizational needs, providing scalable options from SMBs to large enterprises.

•            Security Audits: Identify and address security weaknesses and vulnerabilities in IT infrastructure using specialized Offensive Security Services performed by cybersecurity experts.

Ransomware gangs are facing heightened scrutiny and legal actions, as evidenced by the U.S. Department of Justice's seizure of $6 million from REvil or the recent international law enforcement action that disrupted the operations of the LockBit ransomware group.

Nevertheless, the highly competitive nature of RaaS platforms has made cybercriminal activities more calculated, making full use of technological advances and constantly shifting tactics to exploit vulnerabilities with precision. Opportunistic attacks weaponize zero-day exploits with amazing speed, as ransomware developers use modern programming languages like Rust to create harder-to-analyze code. Another noticeable trend is the growing specialization within ransomware groups, driven by a profit-sharing model.

In this context, staying ahead in cybersecurity is more than about adopting the latest tools, it is also about understanding and anticipating cybercriminal tactics and regulatory responses. Continuous education, policy adaptation, and technological vigilance are paramount in crafting a resilient defense against the sophisticated and evolving threat of RaaS. Bitdefender’s Business Insights blog offers valuable resources and analyses to help organizations stay one step ahead of ransomware and other cyber threats.