How Is Water Barghest Group Exploiting IoT Devices for Proxy Networks?

In an alarming discovery, security firm Trend Micro has uncovered a significant cybercrime campaign attributed to the Water Barghest group, which is believed to be linked to Russian state-sponsored hackers. Since 2020, the group’s activities have involved the rapid infection of 20,000 IoT devices, which are swiftly listed as proxy networks within ten minutes of their initial compromise. This campaign employs highly efficient, automated tools to escalate its scale, making the infected devices available for rent on proxy marketplaces almost immediately after infection.

Rapid Proliferation of the Campaign

Automated Tools and Proxy Networks

Trend Micro attributes the rapid proliferation of this campaign to its use of efficient, automated tools. These tools enable the Water Barghest group to quickly transform compromised IoT devices into proxy networks marketed to cybercriminals and nation-state hackers. The objectives of these proxy networks are multifaceted and range from website scraping, accessing compromised assets, to launching cyberattacks. The primary goal of these activities is to help anonymize them using geo-located IP addresses, thus making it challenging for authorities to trace the actions back to the perpetrators.

The discovery of this cybercrime campaign coincides with the FBI’s takedown of the botnet infrastructure used by Pawn Storm in January, also known as APT28 and Forest Blizzard, linked to the Russian GRU. Following this takedown, Trend Micro proceeded to uncover the Ngioweb botnet operated by Water Barghest. This Ngioweb botnet employs a new version of malware active since 2020, targeting various IoT devices, including EdgeRouter, Cisco, DrayTek, Fritz!Box, and Linksys. The ability to compromise such a broad range of devices is primarily due to exploiting both n-day and zero-day vulnerabilities.

Initial Infection Process

The infection process of IoT devices begins with the exploitation of both n-day and zero-day vulnerabilities. Water Barghest meticulously identifies vulnerable devices by leveraging public databases like Shodan, which catalog exposed devices and their IP addresses. Once identified, the group deploys malware directly into the memory of these devices. Although this infection is quite potent, it is not persistent, meaning that a simple reboot of the device can remove it from the system.

Upon compromising the devices, they connect to command-and-control servers to perform speed and name server tests. Following these tests, the devices are rapidly listed for sale on the proxy marketplace. Despite previous law enforcement actions targeting similar services, such as VPNFilter and the Cyclops Blink botnet, many IoT devices remain susceptible to such attacks. The high demand for anonymizing services from advanced persistent threat (APT) groups and other sophisticated threat actors ensures the continued prevalence of campaigns like those conducted by Water Barghest.

Mitigation Strategies for IoT Devices

Security Measures and Continuous Monitoring

Trend Micro emphasizes that the systematic exploitation of IoT device vulnerabilities by the Water Barghest group presents a serious threat, affecting hundreds of thousands of devices. To mitigate these risks, the security firm advises against exposing IoT devices to unnecessary internet connections. In addition, it is crucial to implement robust security measures and continuously monitor the devices to detect and prevent malicious activities.

One of the key strategies to safeguard IoT devices is the frequent updating and patching of firmware to address known vulnerabilities. Organizations and individuals should also disable any services and features on their IoT devices that are not being actively used. This helps to limit the attack surface available to cybercriminals. Deploying network segmentation can also be effective, isolating IoT devices from critical infrastructure to contain any potential breaches.

Importance of User Awareness

In a worrying development, cybersecurity firm Trend Micro has identified a major cybercrime campaign connected to the Water Barghest group, which is suspected of having ties to Russian state-sponsored hackers. Since 2020, this group has been involved in the rapid infection of around 20,000 Internet of Things (IoT) devices. These compromised devices are taken over and added to proxy networks within just ten minutes of the initial breach. The campaign uses highly efficient, automated tools to scale up its operations quickly, making these infected devices available for rent on proxy marketplaces almost immediately after they are compromised. This swift and efficient process allows the Water Barghest group to expand their reach and capabilities significantly. The campaign’s automation and speed mark a troubling evolution in cybercrime, with serious implications for digital security. The affected IoT devices serve as gateways for further malicious activities, emphasizing the need for increased vigilance and enhanced cybersecurity measures to counteract these sophisticated threats.

Explore more

Robotic Process Automation Software – Review

In an era of digital transformation, businesses are constantly striving to enhance operational efficiency. A staggering amount of time is spent on repetitive tasks that can often distract employees from more strategic work. Enter Robotic Process Automation (RPA), a technology that has revolutionized the way companies handle mundane activities. RPA software automates routine processes, freeing human workers to focus on

RPA Revolutionizes Banking With Efficiency and Cost Reductions

In today’s fast-paced financial world, how can banks maintain both precision and velocity without succumbing to human error? A striking statistic reveals manual errors cost the financial sector billions each year. Daily banking operations—from processing transactions to compliance checks—are riddled with risks of inaccuracies. It is within this context that banks are looking toward a solution that promises not just

Europe’s 5G Deployment: Regional Disparities and Policy Impacts

The landscape of 5G deployment in Europe is marked by notable regional disparities, with Northern and Southern parts of the continent surging ahead while Western and Eastern regions struggle to keep pace. Northern countries like Denmark and Sweden, along with Southern nations such as Greece, are at the forefront, boasting some of the highest 5G coverage percentages. In contrast, Western

Leadership Mindset for Sustainable DevOps Cost Optimization

Introducing Dominic Jainy, a notable expert in IT with a comprehensive background in artificial intelligence, machine learning, and blockchain technologies. Jainy is dedicated to optimizing the utilization of these groundbreaking technologies across various industries, focusing particularly on sustainable DevOps cost optimization and leadership in technology management. In this insightful discussion, Jainy delves into the pivotal leadership strategies and mindset shifts

AI in DevOps – Review

In the fast-paced world of technology, the convergence of artificial intelligence (AI) and DevOps marks a pivotal shift in how software development and IT operations are managed. As enterprises increasingly seek efficiency and agility, AI is emerging as a crucial component in DevOps practices, offering automation and predictive capabilities that drastically alter traditional workflows. This review delves into the transformative