Storm-0501 deploys Embargo Ransomware in Hybrid Cloud Environment

Storm-0501 deploys Embargo Ransomware in Hybrid Cloud Environment


Security researchers from Microsoft has observed the threat actor tracked as Storm-0501 launching a multi-staged attack where they compromised hybrid cloud environments and performed lateral movement from on-premises to cloud environment, leading to data exfiltration, credential theft, tampering, persistent backdoor access, and ransomware deployment.

Storm-0501 has been active as early as 2021, initially observed deploying the Sabbath(54bb47h) ransomware and later began operating as a ransomware-as-a-service (RaaS) affiliate deploying multiple ransomware payloads developed and maintained by other threat actors over the years, including Hive, BlackCat (ALPHV), Hunters International, LockBit, and most recently, Embargo ransomware.

In this post, Storm-0501’s tactics, techniques, and procedures (TTPs), typical attack methods, and expansion to the cloud will be discussed.

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On-premises compromise

Initial access and reconnaissance

Storm-0501 exploited known vulnerabilities in Zoho ManageEngine (CVE-2022-47966), Citrix NetScaler (CVE-2023-4966), and ColdFusion 2016 application (possibly CVE-2023-29300 or CVE-2023-38203). After gaining initial access and code execution capabilities on the affected device in the network, the threat actor performed extensive discovery to find potential desirable targets. Following initial access and reconnaissance, the threat actor deployed several remote monitoring and management tools (RMMs), such as Level.io, AnyDesk, and NinjaOne to interact with the compromised device and maintain persistence.

Credential access and lateral movement

During the initial access, by compromising the admin privileges and attempted to gain access to more accounts within the network through several methods. The threat actor primarily utilized Impacket’s SecretsDump module, which extracts credentials over the network, and leveraged it across an extensive number of devices to obtain credentials.

Threat actor was observed attempting to gather secrets by reading sensitive files and in some cases gathering KeePass secrets from the compromised devices. The threat actor used EncryptedStore’s Find-KeePassConfig.ps1 PowerShell script to output the database location and keyfile/user master key information and launch the KeePass executable to gather the credentials.

The threat actor observed leveraging Cobalt Strike to move laterally across the network using the compromised credentials and using the tool’s command-and-control (C2) capabilities to directly communicate with the endpoints and send further commands that ended in domain Admin compromise and access to a domain Controller that eventually enabled them to deploy ransomware across the devices in the network.

Data collection and exfiltration

The threat actor used the open-source tool Rclone and renamed it to known Windows binary names or variations of them, such as svhost.exe or scvhost.exe as masquerading means. The threat actor employed the renamed Rclone binaries to transfer data to the cloud, using a dedicated configuration that synchronized files to public cloud storage services such as MegaSync across multiple threads.

Defense evasion

The threat actor attempted to evade detection by tampering with security products in some of the devices they got hands-on-keyboard access to. They employed an open-source tool, resorted to PowerShell cmdlets and existing binaries to evade detection, and in some cases, distributed Group Policy Object (GPO) policies to tamper with security products.

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On-premises to cloud pivot

IN the recent campaign, Storm-0501’s used the credentials, specifically Microsoft Entra ID, that were stolen from earlier in the attack to move laterally from the on-premises to the cloud environment and establish persistent access to the target network through a backdoor.

Storm-0501 was observed using the following attack vectors and pivot points on the on-premises side to gain subsequent control in Microsoft Entra ID

Microsoft Entra Connect Sync account compromise

In the recent Storm-0501 campaign, the threat actor located Microsoft Entra Connect Sync servers and managed to extract the plain text credentials of the Microsoft Entra Connect cloud and on-premises sync accounts and able to achieve by using Impacket to steal credentials and DPAPI encryption keys and tampering with security products.

Following the compromise of the cloud Directory Synchronization Account, the threat actor can authenticate using the clear text credentials and get an access token to Microsoft Graph. The compromise of the Microsoft Entra Connect Sync account presents a high risk to the target, as it can allow the threat actor to set or change Microsoft Entra ID passwords of any hybrid account (on-premises account that is synced to Microsoft Entra ID).

Cloud session hijacking of on-premises user account

To pivot from on-premises to Microsoft Entra ID is to gain control of an on-premises user account that has a respective user account in the cloud. At least one of the Domain Admin accounts that was compromised had a respective account in Microsoft Entra ID, with multifactor authentication (MFA) disabled, and assigned with a Global Administrator role.

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Cloud compromise leading to backdoor

Following a successful pivot from the on-premises environment to the cloud through the compromised Microsoft Entra Connect Sync user account or the cloud admin account compromised through cloud session hijacking, the threat actor was able to connect to Microsoft Entra from any device, using a privileged Microsoft Entra ID account, such as a Global Administrator, and was no longer limited to the compromised devices.

Once Global Administrator access is available for Storm-0501, we observed them creating a persistent backdoor access for later use by creating a new federated domain in the tenant. This backdoor enables an attacker to sign in as any user of the Microsoft Entra ID tenant in hand if the

On-premises compromise leading to ransomware

Once the threat actor achieved sufficient control over the network, successfully extracted sensitive files, and managed to move laterally to the cloud environment, the threat actor then deployed the Embargo ransomware across the organization.

Embargo ransomware is a new strain developed in Rust, known to use advanced encryption methods. Operating under the RaaS model, the ransomware group behind Embargo allows affiliates like Storm-0501 to use its platform to launch attacks in exchange for a share of the ransom. Embargo affiliates employ double extortion tactics, where they first encrypt a victim’s files and threaten to leak stolen sensitive data unless a ransom is paid.

The threat actor leveraged compromised Domain Admin accounts to distribute the Embargo ransomware via a scheduled task named “SysUpdate” that was registered via GPO on the devices in the network. The ransomware binaries names that were used were PostalScanImporter.exe and win.exe. Once the files on the target devices were encrypted, the encrypted files extension changed to .partial.564ba1, and .embargo.

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For more details visit the Microsoft Blog post

Indicators of Compromise

  • efb2f6452d7b0a63f6f2f4d8db49433259249df598391dd79f64df1ee3880a8d
  • a9aeb861817f3e4e74134622cbe298909e28d0fcc1e72f179a32adc637293a40
  • caa21a8f13a0b77ff5808ad7725ff3af9b74ce5b67426c84538b8fa43820a031
  • d37dc37fdcebbe0d265b8afad24198998ae8c3b2c6603a9258200ea8a1bd7b4a
  • 53e2dec3e16a0ff000a8c8c279eeeca8b4437edb8ec8462bfbd9f64ded8072d9
  • 827f7178802b2e92988d7cff349648f334bc86317b0b628f4bb9264285fccf5f
  • ee80f3e3ad43a283cbc83992e235e4c1b03ff3437c880be02ab1d15d92a8348a
  • de09ec092b11a1396613846f6b082e1e1ee16ea270c895ec6e4f553a13716304
  • d065623a7d943c6e5a20ca9667aa3c41e639e153600e26ca0af5d7c643384670
  • c08dd490860b54ae20fa9090274da9ffa1ba163f00d1e462e913cf8c68c11ac1

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