The Evolving Threat of FreakOut: Unmasking the Logutil Backdoor and Combating Cyber Attacks

In recent times, cybercrime is one of the most significant threats all businesses in the digital age face, with global losses expected to reach $6 trillion annually by 2021, double the figure reported in 2015. Various types of malware and ransomware attacks can leave a devastating impact on businesses, costing millions in revenue, reputational damage, and loss of valuable assets. One of the most prolific and dangerous ransomware groups currently hacking companies globally is the DarkSide ransomware gang. In this article, we will investigate how the DarkSide group disbanded previously and has now resurfaced, rebuilding its infrastructure and recruiting affiliates to carry out new attacks.

The DarkSide ransomware group is rebuilding its infrastructure and recruiting affiliates

Earlier in May 2021, the DarkSide ransomware group announced that it was shutting down following the successful attack on Colonial Pipeline, which caused significant U.S. fuel shortages. The organizational shutdown was believed to be an attempt by the group to dispose of the notoriety that had developed after the Colonial Pipeline attack; however, this retreat was short-lived. Last month, the group was seen resurfacing, announcing that they were back in business and were recruiting new affiliates. Recent reports by cybercrime analysts indicate that the group is now actively building up their infrastructure, suggesting that it is only a matter of time before new attacks are launched.

The healthcare sector is a major target for cybercriminals due to valuable data and intellectual property

The healthcare sector has proven to be a lucrative target for cybercriminals, as it is a vast industry that holds a wealth of valuable data, including personal healthcare information, financial data, and intellectual property. The pandemic has made matters worse, as seeking medical attention has been restricted to telehealth appointments, making it easier for hackers to exploit vulnerabilities in the remote connectivity used by healthcare providers. Recent statistics from a cybersecurity survey indicate that the healthcare industry is the second most targeted industry, following the manufacturing sector.

Data theft and extortion are the primary goals of these campaigns

The primary goal of cybercriminals who target the healthcare sector is to steal valuable data, medical records, and intellectual property for extortion purposes. The black market for stolen healthcare data is fueling the growth of cybercrime. With the information stolen from healthcare providers, hackers can sell the data to criminals who then use it for identity theft, fraud, or blackmail. The stolen data may also be used to create fake insurance policies or prescriptions or to gain access to controlled substances. Data breaches can result in significant financial losses due to costs associated with notifications, regulatory fines, loss of trust, and possible litigation.

Logutil malware has been discovered as a backdoor for network control and data exfiltration

Recently, cybersecurity researchers have uncovered a new type of malware called Logutil, which targets healthcare providers. The Logutil malware is a backdoor that can enable hackers to control the victim’s network, exfiltrate data, and execute commands to gain a foothold in the victim’s system. The malware is known to exploit vulnerabilities in the network structure and take advantage of common locations, appearing genuine to avoid detection within the system.

Malware uses common locations to appear genuine and avoid detection

To remain undetected, the Logutil malware takes advantage of common locations such as %PROGRAM_FILES%, %PROGRAM_FILES_x86%, and C:WindowsSecurityDatabase. These locations make the malware appear genuine and avoid detection.

Logutil maintains persistence through DLL hijacking and takes advantage of the Winmgmt service

The Logutil malware is known to maintain its persistence by using DLL Hijacking and taking advantage of the Winmgmt service. The wmiprvsd.dll file requires the ncobjapi.dll file to function, which is mainly located in the c:windowssystem32 directory. Due to the way the DLL search order works, the %SYSTEM32%wbem folder is checked first, allowing the malicious loader to load.

Logutil’s command and control framework mentions ESXi and Linux, suggesting it has multiple platform capabilities

The Logutil malware comes with a command and control (C2) framework that mentions ESXi and Linux, suggesting that the hackers behind this malware are leveraging the flexibility of the Go programming language to develop a backdoor that can operate on multiple platforms. This feature makes it even more difficult for cybersecurity experts to prevent attacks on their networks.

Packages in Logutil include functions for data collection and staging

The packages found within the Logutil malware include cli, key, main, modules, and utils that implement different functions used for collecting and staging data for further exfiltration. The modules are known to be customized for specific healthcare providers’ structures, which further enhances the malware’s ability to avoid detection.

Remote desktop servers are being exploited with custom RDStealer malware, which utilizes the device redirection feature in Remote Desktop Protocol

Hackers behind the Logutil malware and DarkSide ransomware group are exploiting remote desktop servers using custom RDStealer malware. This malware takes advantage of a feature in the Remote Desktop Protocol called “device redirection,” which can be used to redirect files from the victim’s computer to the hacker’s command and control server.

Cybersecurity threats have become more sophisticated in recent years, and organizations must take proactive steps to stay ahead of the curve. Businesses should ensure they have robust cybersecurity protocols in place to prevent data breaches and ransomware attacks. The healthcare industry must also take measures to secure its systems as cyber attacks are on the rise, and the sensitive nature of the data they hold makes it a prime target for cybercriminals. The insights gained in this article demonstrate the evolving nature of cyber threats and the need for both organizations and individuals to take cybersecurity seriously.

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