{"id":22134,"date":"2023-05-31T16:10:23","date_gmt":"2023-06-01T00:10:23","guid":{"rendered":"http:\/\/www.palada.net\/index.php\/2023\/05\/31\/news-15864\/"},"modified":"2023-05-31T16:10:23","modified_gmt":"2023-06-01T00:10:23","slug":"news-15864","status":"publish","type":"post","link":"http:\/\/www.palada.net\/index.php\/2023\/05\/31\/news-15864\/","title":{"rendered":"CISA issues warning to US businesses: Beware of China&#8217;s state-sponsored cyber actor"},"content":{"rendered":"<p>The US Cybersecurity and Infrastructure Security Agency (CISA) has an urgent message for US businesses: watch out for Volt Typhoon, a threat actor sponsored by the People&rsquo;s Republic of China (PRC).<\/p>\n<p>The agency&#8217;s joint <a href=\"https:\/\/www.cisa.gov\/news-events\/cybersecurity-advisories\/aa23-144a\">Cybersecurity Advisory (CSA) published last week <\/a>highlights a cluster of tactics, techniques, and procedures (TTPs) associated with the cyber actor&mdash;including their use of <a href=\"https:\/\/www.malwarebytes.com\/blog\/business\/2023\/04\/living-off-the-land-lotl-attacks-detecting-ransomware-gangs-hiding-in-plain-sight\">living off the land (LOTL) techniques<\/a>.<\/p>\n<p>In this blog, we&#8217;ll review Volt Typhoon, dig into how they evade detection, discuss CISA&#8217;s protective recommendations, and see how Malwarebytes EDR can help eliminate such threats.<\/p>\n<h2>Who is Volt Typhoon?<\/h2>\n<p>Given their ties to the Chinese government, it&rsquo;s fair to&nbsp;label Volt Typhoon&nbsp;as an&nbsp;<a href=\"https:\/\/www.malwarebytes.com\/blog\/business\/2023\/05\/apt-attacks-exploring-advanced-persistent-threats-and-their-evasive-techniques\">Advanced Persistent Threat (APT) group<\/a>.<\/p>\n<p>Well-funded and made up of an elite squadron of hackers, APT groups target high-value entities like governments, large corporations, or critical infrastructure. They often deploy multi-stage, multi-vector approaches with a high degree of obfuscation and persistence.<\/p>\n<p>Volt Typhoon is no exception.<\/p>\n<p>Since their arrival on the scene in mid-2021, Volt Typhoon has targeted several critical infrastructure organizations in Guam and elsewhere in the United States. Their victims come from a wide-range of industries, including communications, government, information technology (IT), education, and more.<\/p>\n<p>Observed behavior suggests that the aim of Volt Typhoon is, like most APT groups, not a quick hit but a long-term presence within a system, allowing them to gather as much information as possible while remaining undetected.<\/p>\n<p>Now that we know the basics of who Volt Typhoon is and what they&rsquo;re after, let&#8217;s dive into the specifics of their tools, techniques, and procedures (TTPs).<\/p>\n<h2>How Volt Typhoon evades detection<\/h2>\n<p>At the heart of Volt Typhoon&rsquo;s espionage campaigns are their use of living off the land (LOTL) attacks,&nbsp;which are instances when attackers leverage legitimate tools to evade detection.<\/p>\n<p>The fact that so much of the CISA advisory revolves around Volt Typhoon&rsquo;s use of LOTL techniques emphasizes that these types of threats are a serious concern. By mimicking normal system behavior, LOTL attacks make it extremely difficult for IT teams and security solutions to detect any signs of malicious activities.<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.malwarebytes.com\/blog\/business\/2023\/05\/easset_upload_file2336_267684_e.jpg\" alt=\"\" width=\"1380\" height=\"932\" style=\"display: block; margin-left: auto; margin-right: auto;\" \/><em>Script Block Logging records all blocks of code as they&rsquo;re executed by PowerShell, which could you point to suspicious activity. <a href=\"http:\/\/robwillis.info\/2019\/10\/everything-you-need-to-know-to-get-started-logging-powershell\/\">Source<\/a>.<\/em><\/p>\n<p>Some of the built-in tools Volt Typhoon uses are wmic, ntdsutil, netsh, and PowerShell.<\/p>\n<p>Let&rsquo;s look at two examples of how Volt Typhoon uses LOTL attacks at different stages in the attack chain.<\/p>\n<h3>LOTL Example #1: Reconnaissance<\/h3>\n<p>Volt Typhoon gathers information about local drives using the wmic command, which is a part of the legitimate Windows Management Instrumentation (WMI) toolset.<\/p>\n<p>This command line tool lets them gather details like drive letter, filesystem type, free space, and volume name without needing administrative privileges.<\/p>\n<p>Understanding the storage layout and capacity of the host machine in this way can, for example, help them tailor their tools and techniques to the specific system.<\/p>\n<p><code>cmd.exe \/C \"wmic path win32_logicaldisk get caption,filesystem,freespace,size,volumename\"<\/code><\/p>\n<h3>LOTL Example #2: Credential Access<\/h3>\n<p>Volt Typhoon attempts to capture two vital assets from Windows Domain Controllers (DCs): the ntds.dit file and the SYSTEM registry hive. Both of these contain a wealth of data, including user details, group affiliations, and encrypted passwords&mdash;all of which can be goldmines for unauthorized actors.<\/p>\n<p>To access this information, they utilize the built-in Windows service called Volume Shadow Copy Service. This service helps them create clones of the ntds.dit file and the SYSTEM registry hive, both typically locked due to their importance.<\/p>\n<p>These cloned copies allow Volt Typhoon to avoid modifying the original files, thereby maintaining stealth. By acquiring these files, the attackers can work towards decrypting passwords offline without raising alarms.<\/p>\n<p><code>cmd \/c vssadmin create shadow \/for=C: &gt; C:WindowsTemp&lt;filename&gt;.tmp<\/code><\/p>\n<p><code>cmd \/c copy \\?GLOBALROOTDeviceHarddiskVolumeShadowCopy3WindowsNTDSntds.dit<\/code><code>C:WindowsTemp &gt; C:WindowsTemp&lt;filename&gt;.tmp<\/code><\/p>\n<h2>CISA best practices<\/h2>\n<p>Uncovering LOTL attacks such as the type that Volt Typhoon uses&nbsp;requires&nbsp;picking up on subtle anomalies or patterns&nbsp;in system behaviors.<\/p>\n<p>Likewise,&nbsp;CISAs advice to businesses emphasizes the importance of enhancing detection of potential LOTL attacks through robust logging mechanisms,&nbsp;inspecting abnormal account activities, and more:<\/p>\n<table border=\"1\">\n<thead>\n<tr bgcolor=\"#0E3FCC\" style=\"color: white;\">\n<th style=\"padding: 10px; text-align: center;\">CISA Advice<\/th>\n<th style=\"padding: 10px; text-align: center;\">Description<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 10px;\"><strong>Enhance monitoring and logging<\/strong><\/td>\n<td style=\"padding: 10px;\">Use advanced monitoring systems to track unusual IP addresses, abnormal account activity, and suspicious process creations. Enable &#8220;audit process creation,&#8221; &#8220;include command line in process creation events,&#8221; WMI Tracing, and deep PowerShell logging in Windows security logs.<\/td>\n<\/tr>\n<tr bgcolor=\"#EEF5FB\">\n<td style=\"padding: 10px;\"><strong>Harden&nbsp;systems and networks<\/strong><\/td>\n<td style=\"padding: 10px;\">Improve domain controller security and limit port proxy usage. Regularly check firewall configurations and keep a hardened centralized logging server, preferably on a separate network.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px;\"><strong>Maintain regular&nbsp;checks<\/strong><\/td>\n<td style=\"padding: 10px;\">Regularly validate the use of administrator privileges and scrutinize all log clearances (Event ID 1102 entries) for intrusion signs. Enable consistent logging on edge devices and network-level logging to identify potential exploitation and lateral movement.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>Malwarebytes EDR<\/h2>\n<p>Suspicious Activity monitoring&nbsp;with Malwarebytes&nbsp;can detect possible LOTL techniques like the type Volt Typhoon uses. Let&#8217;s take the the LOTL Example #2&mdash;Credential Access&mdash;we explained earlier.<\/p>\n<p>As we described, the actor&nbsp;is trying to exfiltrate the ntds.dit file and the SYSTEM registry hive out of the network to perform password cracking, which is an example of OS<a>&nbsp;<\/a><a>Credential Access<\/a><a>&nbsp;defined as T1003 by MITRE<\/a>.<\/p>\n<p><a href=\"https:\/\/www.malwarebytes.com\/business\/edr\">Using Malwarebytes EDR<\/a>, we can find suspicious activity like this and quickly isolate the endpoint with which it&#8217;s associated.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.malwarebytes.com\/blog\/business\/2023\/05\/easset_upload_file45569_267684_e.png\" alt=\"\" width=\"1505\" height=\"859\" \/><\/p>\n<p>The &#8220;dumping&#8221; occurs when the <code>`ntds.dit file`<\/code> and the SYSTEM registry hive are copied from the original (and typically inaccessible due to being locked) location to the <code>`C:WindowsTemp directory`<\/code>. This process is effectively extracting or &#8220;dumping&#8221; the data into a new, more accessible location.<\/p>\n<p>Luckily, Malwarebytes EDR&nbsp;alerted us to&nbsp;this suspicious process and, after investigation, we were able to remediate the endpoint with which the suspicious activity was associated with.&nbsp;<\/p>\n<h2><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.malwarebytes.com\/blog\/business\/2023\/05\/easset_upload_file25138_267684_e.png\" alt=\"\" width=\"824\" height=\"431\" style=\"display: block; margin-left: auto; margin-right: auto;\" \/>Responding to&nbsp;nation-state sponsored attacks quickly and effectively<\/h2>\n<p>The recent&nbsp;information on&nbsp;Volt Typhoon&#8217;s activities&nbsp;has catapulted them to the top of cybersecurity concerns for&nbsp;businesses and organizations across the United States.<\/p>\n<p>Sponsored by the Chinese state, Volt Typhoon employs a gamut of stealthy techniques that make their activities challenging to detect. Chief among these tactics is the use of Living Off the Land (LOTL) techniques and leveraging built-in tools&mdash;like wmic, ntdsutil, netsh, and PowerShell&mdash;for infiltration and persistence within target networks.<\/p>\n<p>To combat these advanced persistent threats, businesses should pair CISA&#8217;s recommendations with tools like Malwarebytes EDR&nbsp;to identify and isolate the suspicious activities typical of LOTL attacks.<\/p>\n<p>For organizations without the expertise to manage EDR solutions,<a href=\"https:\/\/www.malwarebytes.com\/business\/managed-detection-and-response\">&nbsp;Managed Detection and Response (MDR)<\/a> services are also&nbsp;an attractive option.<\/p>\n<p>MDR services offer access to experienced security analysts who can monitor and respond to threats 24\/7, detect and respond to APT threats like Volt Typhoon quickly and effectively, and provide ongoing tuning and optimization of EDR solutions to ensure maximum protection.<\/p>\n<p style=\"text-align: center;\"><strong><span class=\"blue-cta-bttn\" style=\"color: #ffffff;\"><a href=\"https:\/\/try.malwarebytes.com\/mdr-consultation-new\/\" style=\"color: #ffffff;\">Stop APT attacks today<\/a><\/span><\/strong><\/p>\n<p><a href=\"https:\/\/www.malwarebytes.com\/blog\/business\/2023\/05\/cisa-issues-warning-to-us-businesses-beware-of-chinas-state-sponsored-cyber-actor\" target=\"bwo\" >https:\/\/blog.malwarebytes.com\/feed\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<table cellpadding=\"10\">\n<tr>\n<td valign=\"top\" align=\"left\">\n<p>Categories: <a href=\"https:\/\/www.malwarebytes.com\/blog\/category\/business\" rel=\"category tag\">Business<\/a><\/p>\n<p>US businesses: watch out for Volt Typhoon, a threat actor sponsored by the People\u2019s Republic of China (PRC).<\/p>\n<table width=\"100%\">\n<tr>\n<td align=\"right\">\n<p><b>(<a href=\"https:\/\/www.malwarebytes.com\/blog\/business\/2023\/05\/cisa-issues-warning-to-us-businesses-beware-of-chinas-state-sponsored-cyber-actor\" title=\"CISA issues warning to US businesses: Beware of China's state-sponsored cyber actor\">Read more&#8230;<\/a>)<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<\/table>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/www.malwarebytes.com\/blog\/business\/2023\/05\/cisa-issues-warning-to-us-businesses-beware-of-chinas-state-sponsored-cyber-actor\">CISA issues warning to US businesses: Beware of China&#8217;s state-sponsored cyber actor<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/www.malwarebytes.com\">Malwarebytes Labs<\/a>.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[10488,10378],"tags":[1001],"class_list":["post-22134","post","type-post","status-publish","format-standard","hentry","category-malwarebytes","category-security","tag-business"],"_links":{"self":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/22134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/comments?post=22134"}],"version-history":[{"count":0,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/22134\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/media?parent=22134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/categories?post=22134"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/tags?post=22134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}