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An analysis of incidents at Brazilian educational institutions

Introduction

Because of the amount of data that can be obtained and the high impact that successful attacks may have, educational institutions are frequent targets of cybercriminals. Both public and private schools and universities rely on software for managing personally identifiable information (PII) that is often insecure or insufficiently tested against known vulnerabilities. In addition, machines used by multiple people without accountability can be vulnerable to insider threats.

The complexity of academic environments amplifies this risk. Unlike corporate networks, educational institutions have to provide a network that supports students, professors, researchers, administrative staff, third-party contractors, and visitors. Each of these groups has different security requirements and access control levels, making it difficult to enforce consistent security policies. A security breach can have severe consequences since it may expose vast amounts of sensitive information, such as social security numbers (CPF in Brazil), addresses, phone numbers, and even parents’ names. Armed with this information, attackers can attempt phishing attacks and impersonate the victims in SIM swapping attacks, a common practice in Brazil.

In this article, we provide details about attacks on educational institutions in Brazil observed by our Global Emergency Response Team (GERT) since 2025. We share general statistics, common threats, initial access vectors, and the impact of such violations. Additionally, we present some interesting cases encountered by our team and the identified TTPs. Finally, we offer recommendations to help institutions protect themselves against future attacks.

Key findings and statistics

Our dataset encompasses incident response cases from January 2025 to June 2026. As the chart below shows, the majority of attacks targeted institutions in São Paulo state, Brazil’s most populous state and a significant center of economic and financial activity. We also had cases in Rio de Janeiro and Pernambuco.

Geographical distribution of incident response requests at educational institutions (download)

Of the customers who requested incident response, 60% were private institutions and 40% were public institutions.

Private and public institutions (download)

The most frequent reasons for requesting IR services were related to suspicious endpoint activities, encrypted files, and the presence of suspicious files.

Incident response request reasons (download)

High-severity incidents accounted for 40% of the total cases, while the remaining 60% were medium severity.

Distribution of incidents by severity (download)

The high-severity incidents were mainly related to ransomware attacks. Interestingly, private institutions were the most targeted by ransomware, while incidents in public institutions were mostly related to suspicious endpoint activity and privilege escalation attempts. The most common ransomware families found in our dataset were DragonForce and LockBit 3, whose builder was leaked back in 2022. By using the leaked LockBit builder with a valid privileged account, attackers can build variants capable of disabling defenses and erasing logs.

The most common initial access vectors included the use of valid accounts, exploitation of public-facing applications, and insiders.

Initial access vectors (download)

For privilege escalation, the attackers often relied on Potato variants (GodPotato, SweetPotato, and BadPotato).

We also observed attackers using tools like AnyDesk for remote access, PsExec for lateral movement within compromised infrastructures, and AV-killer malware to terminate the system’s defenses. The latter was mainly used in ransomware-related incidents.

These data reveal an interesting pattern in the threat landscape affecting educational institutions in the region. Many incidents were not caused by highly sophisticated techniques but rather by the abuse of common weaknesses such as valid accounts, exposed applications, and inadequate patch management, as well as the use of publicly available tools that are well-known to the adversaries. The prevalence of ransomware in private institutions suggests a stronger financial motivation, likely because attackers assume these organizations are more capable of paying for data recovery than public schools and universities.

Most attacks were discovered promptly and lasted from a few minutes to a couple of hours. However, technical incident response activities averaged 9.6 hours. This indicates that the impact caused by an incident often extends beyond the timeframe of the active attack, requiring extensive triage and analysis by the forensic investigators to fully restore operations.

One interesting fact is that we are still observing the use of Windows 10 in the infrastructures of educational institutions, even after Microsoft’s official end-of-support date of October 2025. In addition, we found that some customer organizations were using Windows Server 2016 without security patches and fixes. Using outdated and unsupported operating systems increases the attack surface of an infrastructure because attackers can exploit publicly available vulnerabilities to access vulnerable systems and expand their presence in the network. In addition, legacy operating systems may be incompatible with modern evidence collection tools, necessitating extra time and alternative procedures for forensic acquisition.

Obsolete systems in organizations (download)

Interesting cases

Case 01 – Leaked LockBit builder

In one case, we identified the use of a custom version of LockBit that was generated using the leaked builder. The ransomware was delivered to the organization’s infrastructure via a valid account that had been leaked. It encrypted the organization’s internal systems, including file servers and databases that stored student profiles and other data. There was no evidence of data exfiltration from the affected machines.

During our analysis of the LockBit sample, we were able to extract its configuration. Interestingly, it was configured without the impersonation and spreading options. This meant the attacker had to perform manual lateral movement to deploy the malware across the network.

"config": {
    "settings": {
      "impersonation": false,
      "local_disks": true,
      "network_shares": true,
      "kill_processes": true,
      "kill_services": true,
      "set_wallpaper": true,
      "self_destruct": true,
      "kill_defender": true,
      "wipe_freespace": true,
      "psexec_netspread": false,
      "gpo_netspread": false,
…

Further analysis revealed that the attacker used PsExec for lateral movement. By analyzing the Update Sequence Number (USN) Journal, we were able to identify .KEY files associated with PsExec that showed us the previously compromised machines used by the attacker.

After gaining access to the target machines, the adversaries deployed a batch script to disable the system’s defenses. Our analysis of this artifact showed that they had the administrative credentials to disable the EDR in place. In addition, the script enabled RDP, which gave the attackers remote access to the target. The listing below shows an excerpt of the script:

reg add "HKLM\SYSTEM\CurrentControlSet\Control\Terminal Server" /v fDenyTSConnections /t REG_DWORD /d 0 /f
netsh advfirewall firewall add rule name="allow RemoteDesktop" dir=in protocol=TCP localport=3389 action=allow
reg add "HKLM\SOFTWARE\Policies\Microsoft\Windows Defender" /v DisableRealtimeMonitoring /t REG_DWORD /d 1 /f
reg add "HKLM\SOFTWARE\Policies\Microsoft\Windows Defender\Real-Time Protection" /v DisableBehaviorMonitoring /t REG_DWORD /d 1 /f
reg add "HKLM\SOFTWARE\Policies\Microsoft\Windows Defender\Real-Time Protection" /v DisableOnRealTimeProtection /t REG_DWORD /d 1 /f
reg add "HKLM\SOFTWARE\Policies\Microsoft\Windows Defender\Real-Time Protection" /v DisableIOAVProtection /t REG_DWORD /d 1 /f
reg add "HKLM\SOFTWARE\Policies\Microsoft\Windows Defender\Real-Time Protection" /v DisableScriptScanning /t REG_DWORD /d 1 /f
reg add "HKLM\SOFTWARE\Policies\Microsoft\Windows Defender\Spynet" /v SpyNetReporting /t REG_DWORD /d 0 /f
reg add "HKLM\SOFTWARE\Policies\Microsoft\Windows Defender\Spynet" /v SubmitSamplesConsent /t REG_DWORD /d 2 /f
reg add "HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Run" /v "SecurityHealth" /t REG_SZ /d "" /f
reg delete "HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Explorer\MyComputer\NameSpace\{UUID}" /f
reg add "HKLM\SOFTWARE\Policies\Microsoft\Windows Defender" /v ServiceKeepAlive /t REG_DWORD /d 0 /f
sc stop WinDefend
sc config WinDefend start= disabled

Finally, by cross-checking the Prefetch files, we were able to identify the precise dates of PsExecSvc.exe and LBB.exe (LockBit) execution. This revealed that the attacker established the initial connection to the analyzed machine around 5:30am UTC and ran LBB.exe for the last time at 10am UTC on the same day, resulting in an activity window of approximately four hours and thirty minutes. We were able to identify the extent of the compromise and the additional machines that required network isolation for further forensic analysis, containment, and remediation.

Case 02 – DragonForce deployed via AnyDesk

In another incident, we identified a compromised user account that the adversaries used to install the AnyDesk software to enable remote access. Although the attacker erased the system logs after encrypting the victim’s files, we were able to identify the ransomware execution event via the Prefetch and Amcache.hve files, which provided us with the SHA-1 hash of the sample.

Once we obtained the SHA-1 of the malicious artifact (named by the attacker as 1.EXE), we were able to confirm that it was a DragonForce variant. Even though the lack of evidence made the analysis more difficult, this case shows that forensic investigators must be prepared to identify information that the attackers missed or left untouched.

Case 03 – Python keylogger used by an insider

The third incident illustrates how a series of bad practices enabled an insider to collect passwords from other users inside the infrastructure. First, the customer contacted us stating that a machine was exhibiting strange behavior: files containing passwords were being created. We started with triage collection on one of the affected machines.

Evidence from the Program Compatibility Assistant (PCA) showed the execution of two suspicious files, Windows Host Widgets.exe and Windows Host Widgets_.exe, both located in the C:\Users\<user>\.vscode\dlo directory, where <user> represents a user account shared by everyone who uses the machine. The same artifacts were identified within the Amcache.hve file, and multiple executions were also confirmed by analyzing the Prefetch files. Another interesting source of evidence, UserAssist, confirmed that the threat actor also executed both EXE files by double-clicking on them.

MFT analysis showed that multiple log files named cacheX.txt were created in the previously mentioned directory, where X was a number that increased with each malware execution. We then analyzed the EXE files to confirm their behavior. Luckily, both proved to be the same Python script, which we could easily decompile.

As shown in the listing below, the script contains methods and strings with Portuguese names. It is capable of hiding the log files from view in Explorer. The developer also set a procedure to identify when the Caps Lock key was pressed, in order to record the correct passwords.

def get_base_path():
    ...

def encontrar_proximo_nome(base='cache'):
    ...

def set_file_hidden(filepath):
    ...
    ctypes.windll.kernel32.SetFileAttributesW(str(filepath), FILE_ATTRIBUTE_HIDDEN)
    ...

with open(log_file, 'a', encoding='utf-8') as f:
    f.write(f'\n\n--- Registro iniciado em {datetime.datetime.now()} ---\n')
set_file_hidden(log_file)
...

def is_capslock_on():
    return bool(ctypes.windll.user32.GetKeyState(20) & 1)

...

def on_press(key):
    ...

def on_release(key):
    ...

def main():
    with keyboard.Listener(on_press=on_press, on_release=on_release) as listener:
        listener.join()

if __name__ == '__main__':
    main()

This simple script did not implement any persistence or automated data exfiltration mechanisms. Therefore, the insider likely had to manually retrieve the generated log files containing the text typed by the victims. By revisiting the previously collected evidence, we identified USB connections around the same time as the script’s executions. This suggests that removable media was probably used to collect the generated keylogging logs from the environment. As a result of the investigation, the customer changed the passwords of all affected accounts. However, without additional evidence or footage, it was not possible to conclusively attribute the activities to a specific individual and take the appropriate disciplinary and legal measures.

Conclusions and recommendations

The incidents highlighted in this article demonstrate that Brazilian educational institutions face a diverse set of threats, ranging from ransomware operations to insider activity. In many cases, the attackers relied on valid credentials, exposed services, remote access tools, poor patch management, and insufficient endpoint hardening rather than advanced malware or new techniques. Based on these findings, educational institutions should prioritize controls that reduce the likelihood of account compromise and the impact of ransomware deployment. They should also improve forensic visibility after an incident.

Institutions should enforce the use of multi-factor authentication (MFA) for all publicly accessible services, especially VPNs, remote access portals, and email accounts. Since valid accounts were one of the most common initial access vectors observed in our dataset, MFA can significantly reduce the likelihood that stolen or reused credentials alone will compromise the entire environment. We also recommend periodically reviewing privileged accounts, removing unnecessary administrative permissions, and avoiding shared accounts, especially on machines accessed by multiple users, since this makes accountability extremely difficult.

Each user should have their own account, following the principle of least privilege to prevent unauthorized software execution. Additionally, it is advisable to restrict and monitor the use of remote access tools such as AnyDesk or TeamViewer. Unexpected installations or executions of these tools should be treated as high-priority alerts.

To minimize the impact of ransomware, educational institutions should improve their backup and recovery strategy. Backups should be isolated from the primary environment (preferably in more than one location) and tested regularly. Centralized logging, extended EDR telemetry retention, and proper time synchronization across hosts can also improve the ability to reconstruct an attack timeline and implement the necessary response measures.

The use of outdated systems increases the attack surface, so we recommend that organizations adopt an effective update and patch management policy. It is also important to raise security awareness, since users must understand the risks associated with credential sharing, unknown executables, and unauthorized software.

From a digital forensics and incident response (DFIR) perspective, the reviewed incidents demonstrate that effective incident response activities require correlating multiple forensic artifacts in order to reconstruct the attacker’s actions. Investigators should be aware of how to find information even when logs are missing. Many other artifacts are preserved and can be used for this purpose, such as Amcache, PCA, Prefetch, UserAssist, MFT, and USN Journal. The attackers may fail to erase all traces of their activity, so taking a broad forensic approach is of the utmost importance for determining the scope of the compromise and supporting containment and remediation actions.

Observed TTPs

The table below shows the observed TTPs in our dataset, including cases not detailed in this post.

Tactic Technique ID
Resource Development Compromise Accounts T1586
Collection Input Capture: Keylogging T1056.001
Execution System Services: Service Execution T1569.002
Execution Hijack Execution Flow: DLL T1574.001
Privilege Escalation Exploitation for Privilege Escalation T1068
Lateral Movement Remote Services: Remote Desktop Protocol T1021.001
Command and Control Remote Access Tools T1219
Exfiltration Exfiltration over Physical Medium: Exfiltration over USB T1052.001
Impact Data Encrypted for Impact T1486

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Apache ActiveMQ Exploit Leads to LockBit Ransomware

Key Takeaways An audio version of this report can be found on Spotify, Apple, YouTube, Audible, & Amazon.  This intrusion began in mid-February 2024 after a threat actor exploited a vulnerability (CVE-2023-46604) on an exposed Apache ActiveMQ server. The threat actor was able to perform remote code execution (RCE) by using a Java Spring class and a custom Java Spring […]

The post Apache ActiveMQ Exploit Leads to LockBit Ransomware appeared first on The DFIR Report.

Ransomware Tool Matrix Project Updates: May 2025

Introduction

This blog is a summary and analysis of recent additions to the Ransomware Tool Matrix (RTM) as well as the Ransomware Vulnerability Matrix (RVM)Feedback from the infosec community about these projects has been overwhelmingly positive and many researchers have contacted me to tell me how helpful they have found these to be. It makes me happy to hear how doing something in my spare time can help stop ransomware attacks and cybercriminals from exploiting our society’s systems. And it is for that reason, I shall continue to maintain these projects as long as ransomware is still around. For anyone new to these projects, please read the descriptions on GitHub or feel free to watch my talk explaining the project at BSides London.

Background on the current ransomware ecosystem as of May 2025

Following the impact of Operation Cronos against LockBit and the exit scam by ALPHV/BlackCat, the ransomware ecosystem has been even more unstable than usual. The exit scams and law enforcement infiltration operations have created a zero trust environment for the cybercriminals participating in the ransomware economy. The days of affiliates putting their faith in one RaaS platform seem to be long gone and many are experimenting and going from one RaaS to the next.

Sources of Threat Intelligence for the RTM

The RTM was updated with OSINT reports shared by cybersecurity researchers at various private service providers or vendors. The thing to remember about these reports is that the tool usage is going to be slightly outdated due to the time it takes incident response teams to wrap up an investigation, compile findings, and publish a report.

From the reports, threat groups such as Qilin, BlackSuit, RansomEXX, Medusa, BianLian, Hunters International and PLAY have been active for over one year or for multiple years. These are established groups. Since RansomHub and LockBit have shut down, it is more likely than not that the affiliates have already shifted to one of the other RaaS platforms, like Qilin, among others.

There has also been a number of ransomware operations suspected to be linked to Chinese cyber-espionage groups, such as RA World (for using PlugX), NailaoLocker (for using ShadowPad and PlugX), and CrazyHunter (for its focus on Taiwan).

Threat groups such as IMN Crew, QWCrypt (linked to RedCurl), NightSpire, SuperBlack, and Helldown are all rising threat groups that have more recently begun their ransomware campaigns.

These factors have led to seeing a large variety of tool usage in ransomware operations being observed across the landscape. The reliance on tools from sites like GitHub and other free software sites, however, continues to remain a constant theme among all of these ransomware operations.

List of sources used for the May 2025 major update to the RTM:

Group Name

Report Publish Date

URL

Qilin

25 April 2025

10 March 2025


redpiranha.net

picussecurity.com

IMN Crew

24 April 2025


s-rminform.com

CrazyHunter

16 April 2025


trendmicro.com

RansomEXX

8 April 2025


microsoft.com

BlackSuit

31 March 2025


thedfirreport.com

QWCrypt

26 March 2025


bitdefender.com

RansomHub

26 March 2025

20 March 2025


welivesecurity.com

security.com

Medusa

26 March 2025

6 March 2025


welivesecurity.com

security.com

BianLian

26 March 2025


welivesecurity.com

PLAY

26 March 2025


welivesecurity.com

NightSpire

25 March 2025


s-rminform.com

Hunters International

19 March 2025

esentire.com

SuperBlack

13 March 2025


forescout.com

LockBit

24 February 2025


thedfirreport.com

NailaoLocker

20 February 2025

18 February 2025


orangecyberdefense.com

trendmicro.com

RA World

13 February 2025

22 July 2024


security.com

unit42.paloaltonetworks.com

Helldown

7 November 2024


truesec.com

Tools Used by Multiple Groups

  • EDRSandBlast and WKTools are relatively new tools that are being used by multiple groups to deactivate and overcome EDR tools that many victims will have on their networks to prevent ransomware attacks.
  • Typical ransomware tools, such as PsExec, Mimikatz, and Rclone remain effective and still used by multiple ransomware gangs for the foreseeable future.

Tool

Type

Groups Using It

WinSCP

Exfiltration

NightSpire

Hunters International


Mimikatz

Credential Theft

RansomHub

Qilin

Helldown


Impacket

Offensive Security Tool

RansomHub

RA World

NailaoLocker


Rclone

Exfiltration

RansomHub

Hunters International Medusa


NetScan

Discovery

RansomHub

Medusa


WKTools

Discovery

RansomHub

BianLian

PLAY


Advanced IP Scanner

Discovery

Hunters International BianLian


Advanced Port Scanner

Discovery

Hunters International Helldown


AnyDesk

RMM Tool

Medusa

BianLian


EDRSandBlast

Defense Evasion

Medusa

Qilin


New Tools Added to the RTM

  • The most notable new tools added to RTM include several defense evasion tools for deactivating EDRs, discovery for sensitive files, and tunnelling tools to conceal adversary network connections.

Tool

Type

Groups Usage

Bublup

Exfiltration


BlackSuit

WKTools

Discovery


BianLian, PLAY

AmmyyAdmin

RMM Tool


BianLian

CQHashDump

Credential Theft


NailaoLocker

Throttle Stop Driver

Defense Evasion


Medusa

KillAV

Defense Evasion


Medusa

BadRentdrv2

Defense Evasion


RansomHub

Toshiba Power Driver (BYOVD)

Defense Evasion

Qilin

ZammoCide

Defense Evasion


CrazyHunter

FRP

Networking


Medusa

Stowaway

Networking


RansomHub

Navicat

Discovery


Medusa

Everything.exe

Discovery


NighSpire

RoboCopy

Discovery


Medusa

NPS

Networking


RA World

SharpGPOAbuse

Offensive Security Tool


CrazyHunter

Attrib

LOLBAS


BlackSuit

Curl

LOLBAS


QWCrypt (RedCurl)

PCA Utility (pcalua)

LOLBAS


QWCrypt (RedCurl)

Exploits used by Ransomware Gangs added to the RVM

  • As is now usual, multiple ransomware groups have been targeting Fortinet networking devices for initial access into to victim environments.
  • Multiple ransomware groups continue to exploit the Windows Common Log File System (CLFS) for local privilege escalation to run hacking tools and steal credentials.
  • Other exploits involve targeting edge devices, such as Check Point VPNs or PAN Firewalls, or exposed servers, such as Atlassian Confluence Data Center Servers.
  • The targeting of Veeam backup software should come as no surprise as preventing backups or stealing sensitive files, such as Active Directory backups, are key objectives of ransomware gangs to complete their mission.

Ransomware Group

Exploited CVEs

NightSpire

CVE-2024-55591 (FortiOS)


RansomHub

CVE-2022-24521 (Windows CLFS)
CVE-2023-27532 (Veeam)


LockBit

CVE-2023-22527 (Confluence)


Hunters International

CVE-2024-55591 (FortiProxy)


SuperBlack

CVE-2024-55591 (FortiProxy)


RA World

CVE-2024-0012 (PAN-OS)


NailaoLocker

CVE-2024-24919 (Check Point VPN)


RansomEXX

CVE-2025-29824 (Windows CLFS)


Conclusion

My recommendation for defenders who continue the fight against ransomware is to take some of the findings from this report and begin threat hunting, detection rule writing, and start blocking some of these tools not present in the environments you are protecting.

Here are a few sites to help you get started with:

Confluence Exploit Leads to LockBit Ransomware

Key Takeaways Case Summary The intrusion started with the exploitation of CVE-2023-22527, a critical remote code execution vulnerability in Confluence, against a Windows server. The first indication of threat actor activity was the execution of system discovery commands, including net user and whoami. Shortly after, the threat actor attempted to download AnyDesk via curl, but […]

The post Confluence Exploit Leads to LockBit Ransomware appeared first on The DFIR Report.

Analysis of Counter-Ransomware Activities in 2024

 


The scourge of ransomware continues primarily because of three main reasons: Ransomware-as-a-Service (RaaS), cryptocurrency, and safe havens.

  • RaaS platforms enable aspiring cybercriminals to join a gang and begin launching attacks with a support system that help extract ransom payments from their victims.
  • Cryptocurrency enables cybercriminals to receive funds from victims around the world without the option to freeze or refund them due to the immutable nature of the virtual funds.
  • Safe havens are countries that permit cybercriminals to launch attacks without immediate fear of arrest, enabling them to earn vast fortunes through ransomware campaigns.

With these three challenges in mind, law enforcement and governments have a very difficult job to do when it comes to fighting ransomware but fight it they must. In this blog we shall recall what counter-ransomware activities took place in 2024, analyse their effectiveness, and assess how the landscape shall evolve as a result.

A podcast version of this blog is also available here.

Ransomware Operator Arrests and Sanctions

During 2024, there were significant disruption operations by law enforcement and financial authorities targeting individuals behind ransomware campaigns (see the Table below). The main focus of 2024 for Western law enforcement was squarely on the LockBit RaaS and its affiliates as it was the largest and highest earning ransomware operation to date.

Several key players of the ransomware ecosystem were arrested, including the main developer of LockBit ransomware. Interestingly, Russian law enforcement also decided to arrest ransomware threat actors located in Moscow and Kaliningrad as well.

Law Enforcement Activity
Month Group(s) Law Enforcement Activity
February 2024 SugarLocker, REvil Russian authorities have identified and arrested three alleged members in Moscow of a ransomware gang called SugarLocker.
February 2024 LockBit The LockBit leak site was seized. Two LockBit affiliates were arrested in Poland and Ukraine. Up to 28 servers belonging to LockBit were taken down.
February 2024 LockBit Two Russian nationals, Ivan Kondratiev and Artur Sungatov, were sanctioned by the US Treasury for being affiliates of LockBit, among other RaaS.
May 2024 LockBit Dmitry Khoroshev, the administrator and developer of LockBit was sanctioned by the US Treasury.
May 2024 IcedID, SystemBC, Pikabot, Smokeloader, Bumblebee, TrickBot European police took down malicious spam botnets that support ransomware campaigns. This resulted in 4 arrests (1 in Armenia and 3 in Ukraine), over 100 servers and 2,000 domains being seized. One of the main suspects earned €69 million by renting out infrastructure sites to deploy ransomware.
June 2024 Conti, LockBit A Ukrainian national was arrested for supporting Conti and LockBit ransomware attacks as a crypter developer.
August 2024 Reveton, RansomCartel Maksim Silnikau, a Belarusian national, was arrested in Spain for running Reveton and RansomCartel.
August 2024 Karakurt, Conti Deniss Zolotarjovs, a Latvian national was arrested and extradited to the US from Georgia for running the Karakurt data extortion gang linked to Conti.
October 2024 Evil Corp, LockBit The UK, alongside the US and Australia, has sanctioned 16 members of Evil Corp, including Aleksandr Ryzhenkov, Viktor Yakubets, and Eduard Benderskiy.
November 2024 Phobos Evgenii Ptitsyn, a Russian national, was arrested and extradited to the US from South Korea for running the Phobos ransomware gang.
December 2024 LockBit Rostislav Panev, a dual Russian and Israeli national, was arrested in Israel for developing LockBit ransomware.
December 2024 LockBit, Babuk, Hive Mikhail “Wazawaka” Matveev was arrested in Russia for violating domestic laws against the creation and use of malware. He was fined and had his cryptocurrency seized and is awaiting trial.

The ransomware ecosystem has fragmented due to the law enforcement disruptions of the largest players, such as ALPHV/BlackCat and LockBit. In the case of ALPHV/BlackCat, the operators staged a law enforcement takedown as they put up a fake seizure notice as part of an exit scam in March 2024 after the attack on UnitedHealth.

Following these disruptions, some affiliates have migrated to less effective strains or launched their own strains. This includes Akira and RansomHub at the top of the list as well as Hunters International and PLAY.

Cryptocurrency Exchanges Disrupted

During 2024, law enforcement seized funds from and sanctioned a number of cryptocurrency exchanges and individuals running payment processors using cryptocurrency (see the Table below).

One of the most interesting disclosures this year came from the UK National Crime Agency (NCA) around Operation Destablise. The NCA linked payments to ransomware gangs to money laundering networks used by Russian oligarchs to covertly purchase property and Russia Today, the state-run media organization, to covertly fund pro-Russia foreign entities.

Another notable investigation in 2024 was when the US Treasury sanctioned more Russian cryptocurrency exchanges, such as PM2BTC and Cryptex, that led to money launderers that facilitate the cashing out of ransom payments being arrested by Russian law enforcement.

Law Enforcement Activity
Month Exchange(s) Law Enforcement Activity
August 2024 Cryptonator The US Justice Department indicted Russian national Roman Pikulev and Cryptonator, which processed a total of $1.4 billion in transactions, of which $8 million were ransom payments. Cryptonator also has ties to other sanctioned entities including Blender, Hydra Market, Bitzlato, and Garantex, among others.
September 2024 PM2BTC, Cryptex, UAPS FinCEN identified PM2BTC as being of “primary money laundering concern” in connection with Russian illicit finance. This was alongside Cryptex and Sergey Sergeevich Ivanov, a Russian national, who is associated with UAPS and PinPays, as well as Genesis Market. Cryptex also facilitated more than $115 million of proceeds from ransomware payments.
September 2024 47 exchanges In Operation Final Exchange, German federal police (BKA) shut down 47 cryptocurrency exchange services that ransomware gangs use that operated without requiring registration or identity verification.
October 2024 Cryptex, UAPS Russian authorities have arrested nearly 100 suspected cybercriminals linked to the anonymous payment system UAPS and the cryptocurrency exchange Cryptex.
November 2024 Smart, TGR Group The NCA uncovered a Russian money-laundering network operated by two companies called Smart and TGR Group as part of Operation Destabilise that involved UK-based cash-to-crypto networks that laundered Ryuk ransom payments as well as the money of Russian oligarchs and Russia Today.

Safe Havens Enabling Ransomware

While ransomware is a global problem, there are only a few countries that are to blame for this rapid expansion of the ransomware ecosystem. The state that is blamed the most for preventing many ransomware operators from facing justice is Russia. There are explicit rules posted to Russian-speaking cybercrime forums that state as long as members avoid targeting Russia and the Commonwealth of Independent States (CIS), they are free to operate.

The Russian ransomware safe haven theory was further proven following sanctions levied against Evil Corp by the UK, US, and Australia. One of the sanctioned men connected to Evil Corp was Eduard Benderskiy, a former Russian federal security service (FSB) official. Benderskiy is reportedly the father-in-law of Maksim Yakubets, the leader of Evil Corp, an organized cybercrime group responsible for multiple ransomware strains including BitPaymer, WastedLocker, Hades, PhoenixLocker, and MacawLocker. In total, Evil Corp has reportedly extorted at least $300 million from victims globally, according to the UK NCA. It is now clear that Evil Corp has protection from a highly connected Russian FSB official who has also been involved in multiple overseas assassinations on behalf of the Kremlin, according to Bellingcat investigators.

While a number of ransomware operators were arrested in 2024 and some were extradited to the US, the work done by law enforcement specializing in cybercrime was put in the spotlight during the August 2024 prisoner swap. Multiple countries decided to release cybercriminals, spies and an assassin as part of a historic prisoner exchange with Russia at an airport in Ankara, Turkey. The US negotiated the release of 16 people from Russia, including five Germans as well as seven Russian citizens who were political prisoners in their own country.

Notably, from a cybercrime intelligence perspective, the Russian nationals released from the West included the infamous cybercriminals Roman Seleznev and Vladislav Klyushin. The latter, Klyushin, was sentenced in 2023 to nine years in US prison after he was caught in a $93 million stock market cheating scheme that involved hacking into US companies for insider knowledge. The other cybercriminal, Seleznev, was sentenced to 27 years in prison in 2017 for stealing and selling millions of credit card numbers from 500 businesses using point-of-sale (POS) malware and causing more than $169 million in damage to small businesses and financial institutions, including those in the US.

In 2024, we saw several more Russian nationals get extradited to the US after being arrested by law enforcement in the country they were residing in. This includes the Phobos operator living in South Korea and the LockBit developer living in Israel. This follows others arrested in previous years such as a TrickBot developer arrested in South Korea as well as the two LockBit affiliates extradited to the US. There is a potential that these Russian nationals involved in ransomware could be used in prisoner exchanges in the future.

Further, another curious trend in 2024 was that some Russians inside Russia, which is firmly considered a safe haven for ransomware gang, did get arrested. This includes the SugarLocker operators arrested in Moscow and the LockBit affiliate Wazawaka who was arrested in Kaliningrad. This is alongside the money launderers arrested around Russia linked to the Cryptex exchange.

The arrests of Russian nationals in Russia for ransomware activities appear to be more symbolic than a true crackdown on this type of activity. This is because there are several dozen Russian-speaking ransomware gangs that continue to operate, as well as a plethora of other types of cybercrime in the Russian-speaking underground.

Outlook

In 2024, there was lots of significant action by law enforcement to shake up the ransomware economy. One of the main successes of the notable Operation Cronos action taken against LockBit was the sowing of distrust and disharmony in the ransomware ecosystem. Despite the admins of LockBit trying to recover, their reputation and army of affiliates have been smashed.

Many of Russian law enforcement activities could all be related to the costs of the Russian invasion of Ukraine. Russian authorities seizing funds of the illicit cryptocurrency exchanges could be to pay for the war in Ukraine and they could be recruiting arresting cybercriminals for offensive cyber operations related to the war in Ukraine. The true motivations of Russian law enforcement arresting these specific ransomware operators but allowing others to operate are unclear. The cybercriminals could also simply have not paid their protection money or lack connections in the FSB like Evil Corp has.

Due to the fall of LockBit and ALPHV/BlackCat in 2024, there has been a rise of other ransomware groups like RansomHub and Akira to fill the vacuum. However, the rate of attacks by these emerging groups is still noticeably lower than when LockBit was operating at full force. This should be perceived as a success for law enforcement operations in 2024 due to the overall number of ransomware attacks lowering, which we should all be thankful for.

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