Royal Ransomware: The Financial Impact Of Custom-Made Encryption Malware

The emergence of custom-made encryption malware, known as Royal ransomware, has had profound financial implications, resulting in the perpetrators amassing up to $11 million in cryptocurrency. This ransomware utilizes a double extortion technique, whereby it first disables antivirus software and exfiltrates sensitive data before deploying the ransomware itself. The demanded ransoms range from $1 million to $11 million, and negotiations with victims are conducted through a .onion URL. Notably, the Royal ransomware specifically targets critical infrastructure sectors, including manufacturing, communications, healthcare, and education. Initial access is gained through various means, such as phishing, Remote Desktop Protocol (RDP), public-facing applications, and brokers, utilizing legitimate Windows software to evade detection. The ransomware communicates with a command and control infrastructure via the Chisel tool, and there are suspicions of the involvement of the Qakbot infrastructure. The threat actors behind the Royal ransomware navigate through networks using RDP or remote management tools, employing penetration testing and malware tools for data exfiltration. To combat this malicious ransomware, the FBI and the Cybersecurity and Infrastructure Security Agency (CISA) have collaborated to produce a Cybersecurity Advisory, urging organizations to fortify their defenses against this threat.

Key Takeaways

• Royal ransomware has made up to $11 million USD through the use of custom-made encryption malware.
• The ransom demands of Royal ransomware range from $1 million to $11 million USD, depending on the size of the organization and the sensitivity of the stolen data.
• The FBI and CISA have collaborated to create and distribute a Cybersecurity Advisory (CSA) that provides information on the Royal ransomware threat, including indicators of compromise (IOCs) and tactics, techniques, and procedures (TTPs).
• Royal ransomware poses a significant threat to critical infrastructure sectors such as manufacturing, communications, healthcare, and education, highlighting the need for organizations to protect themselves against this malicious threat.

Action Flow

The action flow of Royal ransomware involves disabling antivirus software, exfiltrating data before deploying the ransomware, and issuing ransom demands ranging from $1 million to $11 million USD, with negotiations taking place through a .onion URL and payment details not initially provided in ransom notes. This action flow highlights the significant impact on victims‘ data security. By disabling antivirus software, the ransomware can operate undetected, allowing the attackers to exfiltrate sensitive data before encrypting it. The ransom demands, which vary based on the size and sensitivity of the stolen data, put victims under immense financial pressure. To mitigate the risk of Royal ransomware attacks, organizations should implement robust cybersecurity measures, such as regularly updating antivirus software, implementing strong network security protocols, conducting regular security audits, and training employees to recognize and avoid phishing attempts.

Critical Infrastructure Sectors Targeted

Targeted sectors for the Royal ransomware include manufacturing, communications, healthcare, and education. The impact on these critical infrastructure sectors is significant, with potential implications for their operations and sensitive data. Manufacturing industries may experience disruptions in production, leading to financial losses and reputational damage. Communication networks can be compromised, resulting in service outages and potential breaches of customer information. In the healthcare sector, patient data may be compromised, leading to privacy concerns and potential disruptions in patient care. Educational institutions may face challenges in accessing critical systems and resources, affecting the learning environment. To mitigate the risks posed by the Royal ransomware, preventive measures for critical infrastructure sectors include implementing robust cybersecurity measures, conducting regular security audits and vulnerability assessments, educating employees about phishing and other social engineering techniques, and establishing incident response plans to address potential ransomware attacks.

Technical Analysis

One of the notable tactics employed by the Royal ransomware is the utilization of valid Windows software to avoid detection. This allows the attackers to blend in with legitimate processes and evade antivirus systems. Additionally, the ransomware employs evolutionary tactics by adapting and evolving its techniques to target a wider range of systems. It gains initial access through various means such as phishing, RDP, public-facing applications, and brokers. Communication methods used by the ransomware include the use of Chisel for communication with the command and control infrastructure. The attackers engage in direct negotiations with victims through a .onion URL, but ransom amounts and payment details are not provided in the initial ransom notes. These technical analysis findings highlight the sophisticated nature of the Royal ransomware and the need for organizations to protect themselves against this malicious threat.

Frequently Asked Questions

How does the Royal ransomware disable antivirus software?

Methods to prevent royal ransomware from disabling antivirus software include keeping antivirus software up to date, using a robust firewall, implementing strong email filtering, and regularly backing up important files. If infected, recovering files encrypted by royal ransomware may require restoring from backups or using decryption tools if available.

What methods does Royal ransomware use to gain initial access to a target’s system?

The Royal ransomware gains initial access to a target’s system by exploiting vulnerabilities in software and through phishing emails containing malicious attachments or links. These methods allow the attackers to gain entry and begin their malicious activities.

How does Royal ransomware use valid Windows software to avoid detection?

To avoid detection, Royal ransomware utilizes valid Windows software for malicious activities. By leveraging these legitimate tools, the ransomware operates without raising suspicion, allowing the attackers to evade detection and carry out their malicious activities undetected.

What communication tool does Royal ransomware use to connect with its command and control infrastructure?

Royal ransomware uses the chat-based communication tool Chisel to connect with its command and control infrastructure. This allows the attackers to maintain communication and control over the compromised network while implementing their encryption techniques.

Which ransomware families are more prevalent than Royal ransomware?

The most prevalent ransomware families, when comparing their financial impact, overshadow the Royal ransomware. These ransomware families have been more successful in generating revenue through their malicious activities than the Royal ransomware.