What is Ransomware-as-a-Service (RaaS)?

What is Ransomware-as-a-Service (RaaS)?

Ransomware-as-a-Service is a model for cybercrime in which ransomware creators sell or license their software for use by accomplices, who usually launch ransomware attacks. Even with very little or no technical know-how, individuals can hence become active participants in a highly sophisticated ransomware attack.

RaaS runs just the same as any other Software-as-a-Service, offering user-friendly interfaces, tutorials, customer support, and profit-sharing options at different levels for users interested in selling encryption software for potential profits.

How does it work?

RaaS works in the same way as any SaaS platform but helps a cybercriminal use pre-developed RaaS tools without high-level coding or cybersecurity knowledge. Hence, it really helped in the broad increase of ransomware attacks since it lowered the entry level for perpetrators to begin this type of crime. 

Development of the Ransomware

At the core of RaaS is a talented development team that creates highly functional ransomware variants that are capable of encrypting files, avoiding security defenses, and requesting ransom payments.

They constantly update the malware, ensuring it doesn’t get caught in the eyes of antivirus programs and cybersecurity solutions.

One of the noteworthy qualities embraced by ransomware built for RaaS platforms includes, but is not limited to, strong encryption algorithms, evasion techniques used throughout to bypass security software.

In some cases, automated deployment options; the latter gives affiliates the benefit of distributing ransomware effortlessly while complicating the restoration of affected files by the victim, with restoration to only be realized after paying the demanded ransom.

Selling via Dark Web Marketplaces

After being developed and properly packed, it gets sold or leased through the dark web forums and underground marketplaces.

This functions along the same lines as what is known in the e-commerce world: availability of a detailed product description, pricing options, user reviews, and, in some cases, customer support to assist with any questions a potential buyer may have.

Several options are used to entice new affiliates: most offer a kind of subscription, where criminals pay every month, while RaaS, in less common cases, is sold for a one-time fee.

In many cases, RaaS uses a profit-sharing model whereby affiliates use the RaaS product free of charge but must share a specific percentage of the ransom payments.

Recruitment of Affiliates

RaaS operators recruit individuals or groups interested in breaking into a system and conducting an attack based on an affiliate program using the provided Ransomware. These affiliates may range from complete novices to experienced hackers.

The RaaS operators often provide step-by-step guides, user dashboards, and even technical support to help affiliates launch their attacks successfully. Affiliates act to find targets and launch ransomware attacks using several different means.

Some RaaS empires govern the affiliates and prohibit them from attacking specific sectors, like healthcare or regions. Many affiliates are unconcerned. Nonetheless, RaaS-based cyber attacks occur everywhere.

Deployment of Ransomware

Having expunged RaRansomwarerom the massive PDF version and folded the second trouser leg over, affiliates would use varied ways to deploy the malware and infect victims’ systems.

One of the most common attack vectors is phishing emails, wherein cybercriminals tend to trick the victims into downloading ransomware, malicious attachments or links.

Others include using outdated software vulnerabilities, compromised credentials through RDP to access the systems involved, and ads placed on legitimate websites that themselves are malicious.

Because of this, most variants of Ransomware are also spread through drive-by downloads, meaning that the user is infected simply by visiting a compromised website, thereby downloading trojans and virulent malware.

Ransom Demand and Payment

Once the ransomware successfully encrypts files on the victim’s computer, a ransom note pops up on their screen, demanding that they pay a specified amount in cryptocurrency like Bitcoin or Monero in exchange for a decryption key.

Depending on who the targets are, the ransom amount could be lower for individuals and really high for businesses. Many RaaS groups also adopt double extortion tactics, where, in addition to encrypting the files, sensitive data is also stolen before the encryption occurs.

If the victim refuses to pay, the attackers threaten to publish the stolen information, adding extra reassurance to their demands.

Some groups, however, also indulge in triple extortion, demanding additional ransom amounts from third parties affected by the data breach, such as clients or business partners of the victim.

Notable Ransomware-as-a-Service Variants

Ransomware as a Service model that made it easy for people with little knowledge or technical ability to participate in cybercrime has been a real game changer indeed, since a lot of neophytes now have access to building their Ransomware or easily buy a kit or subscription that allows them to execute attacks without themselves building the malware.

RaaS has alternatively hugely boosted the number of these ransom attacks all around the globe. Here are some noteworthy RaaS variants that have invaded both companies and individuals worldwide:

REvil (Sodinokibi)

REvil or Sodinokibi was founded in 2019, quickly establishing itself as one of the most infamous RaaS operations to date, most likely due to its development from the GandCrab ransomware family.

The group is known for conjuring up multi-million-dollar ransom demands for firms they had targeted since Sodinokibi is known for its double extortion, or encrypting all files and threatening to publicly release stolen data should demands not be made.

Several attacks that have been linked to REvil include those that were made against JBS Foods and Kaseya.

DarkSide

DarkSide gained worldwide notoriety after its attack on the Colonial Pipeline in 2021, a major U.S. fuel supplier. Such an attack brought fuel supply chains along the East Coast of the United States to a standstill, affecting supplies and spawning tremendous panic.

The RaaS model offered ransomware to affiliates, taking a cut of the ransom proceeds. The group claimed never to attack hospitals, non-profit organizations, and governments, though their attacks indeed reduced the efficiency of critical infrastructure.

Although it ceased to exist in service after the Colonial Pipeline incident, DarkSide was effectively followed by other ransomware groups that leveraged its code and operational model. 

LockBit

LockBit is a highly advanced RaaS operation that has been operational since 2019. It is characterized by speed in encrypting documents, automation features, and the ability to bypass security protocols.

The LockBit group follows the model of an affiliate, in which attackers use their ransomware in exchange for a cut of the ransom they collect.

Also Read: LockBit Ransomware Gang Breached — Secrets Spilled in Major Takedown

The group constantly adds new features to its malware for LockBit to make it more effective than before, unlike other ransomware groups.

The group has also developed LockBit 2.0 and LockBit 3.0 to further improve the methods for delivering attacks and mechanisms for encryption.

LockBit’s attacks have been linked with multiple attacks across the globe, positioning it among the most persistent and dangerous RaaS operations.

Conti

Conti was a ransomware group engaged in highly organized cybercrime that resembled the operation of a general corporate entity.

Conti has been responsible for some of the most high-profile attacks against hospitals, emergency services, law enforcement agencies, and big corporations, regularly demanding, in some cases, more than a million-dollar ransom.

A dramatic leak of Conti’s internal communications and source code in 2022 exposed a lot about how the group operated. It was made public that Conti actually ran like a business with development crews, negotiators, and affiliate managers.

Conti was involved in the attack on the Costa Rican government in 2022, during which the group attempted to disrupt several different government agencies, demanding a ransom of $20 million.

This attack caused considerable disruption, during which time the Costa Rican government declared a national emergency.

Though Conti officially went dark, several of its former affiliates and members joined other ransomware groups. Therefore, its methods continued to be employed in cyberattacks after its demise.

BlackMatter

BlackMatter emerged in 2021 as a successor to DarkSide, merging advanced encryption with evasion techniques. The group targeted large enterprises while claiming to avoid attacks on critical infrastructure.

BlackMatter attacked a number of sizable organizations, including agricultural companies and supply chain firms. One of the major attacks executed by BlackMatter targeted New Cooperative, a U.S. agricultural firm.

The ransomware group demanded a ransom of $5.9 million and threatened to leak stolen data if no ransom was provided.

BlackMatter eventually went dark in late 2021 after intense scrutiny from cybersecurity firms and law enforcement. Many of its members very likely joined other ransomware operations.

Maze

In the case of this ransomware, it was the one that first pioneered the double extortion tactic, which means that what they did was not only encrypt the data but also steal that sensitive information and thereby threaten to leak it if the ransom was not paid.

This one was active between 2019 and 2020, targeting businesses, government agencies, and healthcare organizations. It was responsible for some of the most serious attacks on Cognizant, one of the big IT services providers, leading to disruptions in business operations and millions of dollars in damage.

More importantly, Maze was responsible for leaking the stolen data of several different victims after they refused to pay the ransom.

This group said it would shut down in late 2020, but its techniques became the basis for operations by other groups such as Egregor and Sekhmet, thus carrying its legacy in another form into the world of cybercrime.

Ryuk

Ryuk ransomware first came into public awareness in 2018 and, throughout 2018-2020, mainly targeted high-profile organizational victims, governments, and healthcare institutions.

Unlike other groups that turn to RaaS systems, this was highly likely to be used by a single cybercriminal group carrying the name Wizard Spider.

Ryuk has always been one of the most prominent ransomware types to go after high-value victims, with very high ransom demands to follow.

For systems that have their security disabled, Ryuk efficiently encrypts data among all others, making restoration on the part of the victims extremely tough.

In fact, it was largely responsible for many attacks against hospitals during the COVID-19 pandemic, which substantially disrupted healthcare services.

Ryuk eventually gave birth to another strain of ransomware, Conti, which thereby helped ensure this ransomware’s lifetime.

How to Prevent RaaS Attacks?

RaaS attacks claim a growing number of victims each day; thus, both organizations and individuals are expected to be more proactive in their defense against ransomware.

Below are some tips for better prevention:

Implement Strong Cybersecurity

Develop strong and to-the-point security policies to hinder ransomware risks. Sample policies include:

1. Consistent updates of security protocols and risk assessments.
2. Implementation of role-based access to limit access to sensitive data.
3. Multi-factor authentication is applied to all accounts.
4. Employees should be educated about the best practices in cybersecurity and opposing threats.

Keeping Software and Systems

Many cybercriminals exploit outdated software and OS vulnerabilities. Therefore, to bypass these agents, one should:

• Always update/patch all software, applications, and OS.
• Enable automatic updates for security patches.
• Use endpoint protection software to detect and block malware threats.

Escalating Email Security Measures

With phishing emails being among the popular attack vectors ransomware relies on, organizations should take these measures:

• Email filtering for the detection and blocking of malicious mail.

• Use the domain-based message authentication method (DMARC) to avoid email spoofing.

• Train personnel to detect phishing attempts so they don’t click on suspicious links or attachments.

Implementing Network Segmentation

By segmenting a network, ransomware will be unable to travel far and cause fatal damage. Best practices include:

4. Dividing the network segments that do not allow access to critical data.
5. Implementing firewalls and access controls to check traffic between segments.
6. Limiting administrative privileges to essential personnel only.

Regular Data Backups:

Regular backups help to minimize the extent of damage caused by a ransomware attack. Other effective backup strategies include:

• Offline backups are placed beyond the reach of the main network.
• Using a 3-2-1 backup strategy: 3 copies of the data, two on different media, and one offsite.
• Regular testing of backup restoration procedures so that all data can be recovered.

Deploy Knowledgeable Threat Detection Systems

Putting in place smart security technologies assists in identifying a ransomware threat in its incipient stages.

• The use of technologies should monitor network activity on the EDR Core.
• Block the suspicious traffic on an Intrusion Detection and Prevention System (IDPS).
• Use AI solutions for real-time threat analyses.

Restrict Access to RDP

Cybercriminals with access to the RDP operating system often exploit its vulnerabilities in the network. Certain steps to help RDP:

• Disable this if it isn’t needed.
• When access is remote, verification by VPN should be compulsory.
• Strong RDP passwords, preferably with MFA, should be used, while any kind of suspicious attempts by RDP should at least be monitored.

Conduct Security Awareness Training

The major cause of ransomware infections lies in human error. Security awareness training aims at:

• Alerting employees on how to recognize social engineering attacks;
• Conduct simulated phishing assessment responses, employees should have; encourage them to report suspicious emails and activities.

Embark on a Zero-trust Architecture

With zero trust security, a user or device is never trusted. Zero trust means confirming access requests before permissions are offered.

• This includes least-privileged access management and
• Constantly checking for abnormal behavior in the network traffic.

Build an Incident Response Plan:

A well-crafted incident response plan is beneficial to mitigate the consequences of ransomware attacks. Its components contain:

• A clear designation for a dedicated incident-response team, with clear-cut assignments amongst the team members for the actions to be taken in case of ransomware; drills for a regular incident-response.
• Coordinate with authorities and cybersecurity personnel in case of an attack.

Conclusion

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