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Sophos Show How ​Attackers Exploit Stolen Session Cookies to Bypass Multi Factor Authentication

With Stolen Session Cookies, Attackers can Impersonate Legitimate Users and Move Freely Around the Network, says Sophos

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Sopos Cookie

Sophos, a global leader in next-generation cybersecurity, today announced in the Sophos X-Ops report, “Cookie stealing: the new perimeter bypass,” that active adversaries are increasingly exploiting stolen session cookies to bypass Multi-Factor Authentication (MFA) and gain access to corporate resources.

sophos cookie

Key points:

  • Sophos is seeing a growing number of attackers—including active adversaries—using stolen session, or authentication, cookies to bypass MFA and access corporate resources
  • These stolen cookies allow attackers to impersonate legitimate users and move freely around a network. Once inside, there is really no limit to what they can do; they can tamper with cloud infrastructures, compromise business email, or even rewrite code for products
  • While bulk credential theft (including bulk cookie theft) is still common, Sophos is witnessing a growing number of targeted attacks to steal cookies from specific types of organizations
  • One common underground marketplace for these stolen cookies is Genesis
  • This is an important table setter piece for Sophos:
    • While other companies have discussed the theoretical rise of attacks bypassing MFA or spoken about isolated incidents involving stolen session cookies, we’re talking about an overall trend and what we’ve witnessed in the field and in the data from our own telemetry
    • We will be building on the cookie theft/MFA bypass angle in the coming months

In some cases, the cookie theft itself is a highly targeted attack, with adversaries scraping cookie data from compromised systems within a network and using legitimate executable to disguise the malicious activity.

Once the attackers obtain access to corporate web-based and cloud resources using the cookies, they can use them for further exploitation such as business email compromise, social engineering to gain additional system access, and even modification of data or source code repositories.

“Over the past year, we’ve seen attackers increasingly turn to cookie theft to work around the growing adoption of MFA. Attackers are turning to new and improved versions of information stealing malware like Raccoon Stealer to simplify the process of obtaining authentication cookies, also known as access tokens,” said Sean Gallagher, principal threat researcher, Sophos. “If attackers have session cookies, they can move freely around a network, impersonating legitimate users.”

Session, or authentication, cookies are a particular type of cookie stored by a web browser when a user logs into web resources. If attackers obtain them, then they can conduct a “pass-the-cookie” attack whereby they inject the access token into a new web session, tricking the browser into believing it is the authenticated user and nullifying the need for authentication.

Since a token is also created and stored on a web browser when using MFA, this same attack can be used to bypass this additional layer of authentication.

Compounding the issue is that many legitimate web-based applications have long-lasting cookies that rarely or never expire; other cookies only expire if the user specifically logs out of the service.

Thanks to the malware-as-a-service industry, it’s getting easier for entry-level attackers to get involved in credential theft. For example, all they need to do is buy a copy of an information-stealing Trojan like Raccoon Stealer to collect data like passwords and cookies in bulk and then sell them on criminal marketplaces, including Genesis.

Other criminals on the attack chain, such as ransomware operators, can then buy this data and sift through it to leverage anything they deem useful for their attacks.

Conversely, in two of the recent incidents that Sophos investigated, attackers took a more targeted approach. In one case, the attackers spent months inside a target’s network gathering cookies from the Microsoft Edge browser.

The initial compromise occurred via an exploit kit, and then the attackers used a combination of Cobalt Strike and Meterpreter activity to abuse a legitimate compiler tool to scrape access tokens. In another case, the attackers used a legitimate Microsoft Visual Studio component to drop a malicious payload that scraped cookie files for a week.

“While historically we’ve seen bulk cookie theft, attackers are now taking a targeted and precise approach to cookie stealing. Because so much of the workplace has become web-based, there really is no end to the types of malicious activity attackers can carry out with stolen session cookies. They can tamper with cloud infrastructures, compromise business email, and convince other employees to download malware or even rewrite code for products. The only limitation is their own creativity,” said Gallagher. “Complicating matters is that there is no easy fix. For example, services can shorten the lifespan of cookies, but that means users must re-authenticate more often, and, as attackers turn to legitimate applications to scrape cookies, companies need to combine malware detection with behavioral analysis.”

To learn more about session cookie theft and how adversaries are exploiting the technique to carry out malicious activity, read the full report, “Cookie Stealing: the new perimeter bypass,” on Sophos.com.

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Sophos Introduces Sophos X-Ops

Sophos X-Ops links together SophosLabs, Sophos SecOps and Sophos AI, three established teams of cybersecurity experts at Sophos, to help organizations better defend against cyberattacks

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Sophos X-Ops

Sophos, a global leader in next-generation cybersecurity, has announced Sophos X-Ops, a new cross-operational unit linking SophosLabs, Sophos SecOps and Sophos AI, three established teams of cybersecurity experts at Sophos, to help organizations better defend against constantly changing and increasingly complex cyberattacks.

Sophos X-Ops leverages the predictive, real-time, real-world, and deeply researched threat intelligence from each group, which, in turn, collaborate to deliver stronger, more innovative protection, detection and response capabilities.

Sophos today is also issuing “OODA: Sophos X-Ops Takes on Burgeoning SQL Server Attacks,” research about increased attacks against unpatched Microsoft SQL servers and how attackers used a fake downloading site and grey-market remote access tools to distribute multiple ransomware families.

Sophos X-Ops identified and thwarted the attacks because the Sophos X-Ops teams combined their respective knowledge of the incidents, jointly analyzed them, and took action to quickly contain and neutralize the adversaries.

“Modern cybersecurity is becoming a highly interactive team sport, and as the industry has matured, necessary analysis, engineering and investigative specializations have emerged. Scalable end-to-end operations now need to include software developers, automation engineers, malware analysts, reverse engineers, cloud infrastructure engineers, incident responders, data engineers and scientists, and numerous other experts, and they need an organizational structure that avoids silos,” said Joe Levy, chief technology and product officer, Sophos. “We’ve unified three globally recognized and mature teams within Sophos to provide this breadth of critical, subject matter and process expertise. Joined together as Sophos X-Ops, they can leverage the strengths of each other, including analysis of worldwide telemetry from more than 500,000 customers, industry-leading threat hunting, response and remediation capabilities, and rigorous artificial intelligence to measurably improve threat detection and response. Attackers are often too organized and too advanced to combat without the unique combined expertise and operational efficiency of a joint task force like Sophos X-Ops.”

Speaking in March 2022 to the Detroit Economic Club about the FBI partnering with the private sector to counter the cyber threat, FBI Director Christopher Wray said, “What partnership lets us do is hit our adversaries at every point, from the victims’ networks back all the way to the hackers’ own computers, because when it comes to the FBI’s cyber strategy, we know trying to stand in the goal and block shots isn’t going to get the job done.

“We’re disrupting three things: the threat actors, their infrastructure and their money. And we have the most durable impact when we work with all of our partners to disrupt all three together.” Sophos X-Ops is taking a similar approach: gathering and operating on threat intelligence from its own multidisciplinary groups to help stop attackers earlier, preventing or minimizing the harms of ransomware, espionage or other cybercrimes that can befall organizations of all types and sizes, and working with law enforcement to neutralize attacker infrastructure. While Sophos’ internal teams already share information as a matter of course, the formal creation of Sophos X-Ops drives forward a faster, more streamlined process necessary to counter equally fast-moving adversaries.

“Effective cybersecurity requires robust collaboration at all levels, both internally and externally; it is the only way to discover, analyze and counter malicious cyber actors at speed at scale. Combining these separate teams into Sophos X-Ops shows that Sophos understands this principle and is acting on it,” said Michael Daniel, president and CEO, Cyber Threat Alliance.

Sophos X-Ops also provides a stronger cross-operational foundation for innovation, an essential component of cybersecurity due to the aggressive advancements in organized cybercrime. By intertwining the expertise of each group, Sophos is pioneering the concept of an artificial intelligence (AI) assisted Security Operations Center (SOC), which anticipates the intentions of security analysts and provides relevant defensive actions. In the SOC of the future, Sophos believes this approach will dramatically accelerate security workflows and the ability to more quickly detect and respond to novel and priority indicators of compromise.

“The adversary community has figured out how to work together to commoditize certain parts of attacks while simultaneously creating new ways to evade detection and taking advantage of weaknesses in any software to mass exploit it. The Sophos X-Ops umbrella is a noted example of stealing a page from the cyber miscreants’ tactics by allowing cross-collaboration amongst different internal threat intelligence groups,” said Craig Robinson, IDC research vice president, Security Services. “Combining the ability to cut across a wide breadth of threat intelligence expertise with AI assisted features in the SOC allows organizations to better predict and prepare for imminent and future attacks.”

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Sophos Survey Shows Increase in Ransomware Attacks on Education Institutions

Education Sector Suffers Highest Data Encryption Rate and Longest Recovery Time

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Sophos - The State of Ransomware in Education 2022

Sophos, a global leader in next-generation cybersecurity, has published a new sectoral survey report, The State of Ransomware in Education 2022.

 Sophos, a global leader in next-generation cybersecurity, has published a new sectoral survey report, The State of Ransomware in Education 2022.

The findings reveal that education institutions – both higher and lower education – are increasingly being hit with ransomware, with 60% suffering attacks in 2021 compared to 44% in 2020.

Education institutions faced the highest data encryption rate (73%) compared to other sectors (65%), and the longest recovery time, with 7% taking at least three months to recover – almost double the average time for other sectors (4%).

Other key findings include:

  • Education institutions report the highest propensity to experience operational and commercial impacts from ransomware attacks compared to other sectors; 97% of higher education and 94% of lower education respondents say attacks impacted their ability to operate, while 96% of higher education and 92% of lower education respondents in the private sector further report business and revenue loss
  • Only 2% of education institutions recovered all of their encrypted data after paying a ransom (down from 4% in 2020); schools, on average, were able to recover 62% of encrypted data after paying ransoms (down from 68% in 2020)
  • Higher education institutions in particular report the longest ransomware recovery time; while 40% say it takes at least one month to recover (20% for other sectors), 9% report it takes three to six months

“Schools are among those being hit the hardest by ransomware. They’re prime targets for attackers because of their overall lack of strong cybersecurity defenses and the goldmine of personal data they hold,” said Chester Wisniewski, principal research scientist at Sophos. “Education institutions are less likely than others to detect in-progress attacks, which naturally leads to higher attack success and encryption rates. Considering the encrypted data is most likely confidential student records, the impact is far greater than what most industries would experience. Even if a portion of the data is restored, there is no guarantee what data the attackers will return, and, even then, the damage is already done, further burdening the victimized schools with high recovery costs and sometimes even bankruptcy. Unfortunately, these attacks are not going to stop, so the only way to get ahead is to prioritize building up anti-ransomware defenses to identify and mitigate attacks before encryption is possible.”

Interestingly, education institutions report the highest rate of cyber insurance payout on ransomware claims (100% higher education, 99% lower education).

However, as a whole, the sector has one of the lowest rates of cyber insurance coverage against ransomware (78% compared to 83% for other sectors).

“Four out of 10 schools say fewer insurance providers are offering them coverage, while nearly half (49%) report that the level of cybersecurity they need to qualify for coverage has gone up,” said Wisniewski.

“Cyber insurance providers are becoming more selective when it comes to accepting customers, and education organizations need help to meet these higher standards. With limited budgets, schools should work closely with trusted security professionals to ensure that resources are being allocated toward the right solutions that will deliver the best security outcomes and also help meet insurance standards,” he added.

In the light of the survey findings, Sophos experts recommend the following best practices for all organizations across all sectors:

  • Install and maintain high-quality defenses across all points in the environment. Review security controls regularly and make sure they continue to meet the organization’s needs
  • Proactively hunt for threats to identify and stop adversaries before they can execute attacks – if the team lacks the time or skills to do this in-house, outsource to a Managed Detection and Response (MDR) team
  • Harden the IT environment by searching for and closing key security gaps: unpatched devices, unprotected machines and open RDP ports, for example. Extended Detection and Response (XDR) solutions are ideal for this purpose
  • Prepare for the worst, and have an updated plan in place of a worst-case incident scenario
  • Make backups, and practice restoring from them to ensure minimize disruption and recovery time

The State of Ransomware in Education 2022 survey polled 5,600 IT professionals, including 320 lower education respondents and 410 high education respondents, in mid-sized organizations (100-5,000 employees) across 31 countries.

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Sophos’ Active Adversary Playbook 2022 Reveals Attacker Dwell Time Increased by 36%

Increase attributed to exploitation of ProxyLogon and ProxyShell vulnerabilities, plus initial access brokers

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John Shier, senior security advisor at Sophos
John Shier, senior security advisor at Sophos

Sophos, a global leader in next-generation cybersecurity, today released the “Active Adversary Playbook 2022,” detailing attacker behaviors that Sophos’ Rapid Response team saw in the wild in 2021. 

The findings show a 36% increase in attacker dwell time, with a median intruder dwell time of 15 days in 2021 versus 11 days in 2020.

The report also reveals the impact of ProxyShell vulnerabilities in Microsoft Exchange, which Sophos believes some Initial Access Brokers (IABs) leveraged to breach networks and then sell that access to other attackers.

“The world of cybercrime has become incredibly diverse and specialized. IABs have developed a cottage cybercrime industry by breaching a target, doing exploratory reconnaissance or installing a backdoor, and then selling the turn-key access to ransomware gangs for their own attacks,” said John Shier, senior security advisor at Sophos. “In this increasingly dynamic, specialty-based cyberthreat landscape, it can be hard for organizations to keep up with the ever-changing tools and approaches attackers use. It is vital that defenders understand what to look for at every stage of the attack chain, so they can detect and neutralize attacks as fast as possible.”

Sophos’ research also shows that intruder dwell time was longer in smaller organizations’ environments. Attackers lingered for approximately 51 days in organizations with up to 250 employees, while they typically spent 20 days in organizations with 3,000 to 5,000 employees.

Attacker Dwell Time by Sophos - Image 1

“Attackers consider larger organizations to be more valuable, so they are more motivated to get in, get what they want and get out. Smaller organizations have less perceived ‘value,’ so attackers can afford to lurk around the network in the background for a longer period. It’s also possible these attackers were less experienced and needed more time to figure out what to do once they were inside the network. Lastly, smaller organizations typically have less visibility along the attack chain to detect and eject attackers, prolonging their presence,” said Shier. “With opportunities from unpatched ProxyLogon and ProxyShell vulnerabilities and the uprise of IABs, we’re seeing more evidence of multiple attackers in a single target. If it’s crowded within a network, attackers will want to move fast to beat out their competition.”

Additional key findings in the playbook include:

  • The median attacker dwell time before detection was longer for “stealth” intrusions that had not unfolded into a major attack such as ransomware, and for smaller organizations and industry sectors with fewer IT security resources. The median dwell time for organizations hit by ransomware was 11 days. For those that had been breached, but not yet affected by a major attack, such as ransomware (23% of all the incidents investigated), the median dwell time was 34 days. Organizations in the education sector or with fewer than 500 employees also had longer dwell times
  • Longer dwell times and open entry points leave organizations vulnerable to multiple attackers. Forensic evidence uncovered instances where multiple adversaries, including IABs, ransomware gangs, cryptominers, and occasionally even multiple ransomware operators, were targeting the same organization simultaneously
  • Despite a drop in using Remote Desktop Protocol (RDP) for external access, attackers increased their use of the tool for internal lateral movement. In 2020, attackers used RDP for external activity in 32% of the cases analyzed, but this decreased to 13% in 2021. While this shift is a welcome change and suggests organizations have improved their management of external attack surfaces, attackers are still abusing RDP for internal lateral movement. Sophos found that attackers used RDP for internal lateral movement in 82% of cases in 2021, up from 69% in 2020
  • Common tool combinations used in attacks provide a powerful warning signal of intruder activity. For example, the incident investigations found that in 2021 PowerShell and malicious non-PowerShell scripts were seen together in 64% of cases; PowerShell and Cobalt Strike combined in 56% of cases; and PowerShell and PsExec were found in 51% of cases. The detection of such correlations can serve as an early warning of an impending attack or confirm the presence of an active attack
  • Fifty percent of ransomware incidents involved confirmed data exfiltration – and with the available data, the mean gap between data theft and the deployment of ransomware was 4.28 days. Seventy-three percent of incidents Sophos responded to in 2021 involved ransomware. Of these ransomware incidents, 50% also involved data exfiltration. Data exfiltration is often the last stage of the attack before the release of the ransomware, and the incident investigations revealed the mean gap between them was 4.28 days and the median was 1.84 days
  • Conti was the most prolific ransomware group seen in 2021, accounting for 18% of incidents overall. REvil ransomware accounted for one in 10 incidents, while other prevalent ransomware families included DarkSide, the RaaS behind the notorious attack on Colonial Pipeline in the U.S. and Black KingDom, one of the “new” ransomware families to appear in March 2021 in the wake of the ProxyLogon vulnerability. There were 41 different ransomware adversaries identified across the 144 incidents included in the analysis. Of these, around 28 were new groups first reported during 2021. Eighteen ransomware groups seen in incidents in 2020 had disappeared from the list in 2021

“The red flags that defenders should look out for include the detection of a legitimate tool, combination of tools, or activity in an unexpected place or at an uncommon time,” said Shier. “It is worth noting that there may also be times of little or no activity, but that doesn’t mean an organization hasn’t been breached. There are, for instance, likely to be many more ProxyLogon or ProxyShell breaches that are currently unknown, where web shells and backdoors have been implanted in targets for persistent access and are now sitting silently until that access is used or sold. Defenders need to be on the alert for any suspicious signals and investigate immediately. They need to patch critical bugs, especially those in widely used software, and, as a priority, harden the security of remote access services. Until exposed entry points are closed and everything that the attackers have done to establish and retain access is completely eradicated, just about anyone can walk in after them, and probably will.”

Attacker Dwell time by Sophos - Image 2

The Sophos Active Adversary Playbook 2022 is based on 144 incidents in 2021, targeting organizations of all sizes, in a wide range of industry sectors, and located in the U.S., Canada, the U.K., Germany, Italy, Spain, France, Switzerland, Belgium, Netherlands, Austria, the United Arab Emirates, Saudi Arabia, the Philippines, the Bahamas, Angola, and Japan. The most represented sectors are manufacturing (17%), followed by retail (14%), healthcare (13%), IT (9%), construction (8%), and education (6%).  

The aim of Sophos’ report is help security teams understand what adversaries do during attacks and how to spot and defend against malicious activity on the network.

To learn more about attacker behaviors, tools and techniques, read the Sophos Active Adversary Playbook 2022 on Sophos News.

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