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Cloud and Threat Report: Top Adversary Tactics and Techniques

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This edition of the Netskope Cloud and Threat Report focuses on the tactics and techniques that were most commonly used against Netskope customers during the first nine months of 2023, with Wizard Spider targeting more organizations than any other group.
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17 min read

Report Highlights link link

  • Spearphishing links and attachments are the top initial access techniques tracked by Netskope Threat Labs this year, with adversaries successfully tricking victims into opening the links and attachments via email, voice, text, social media, and search engines.
  • User execution is the top execution technique, with adversaries having the highest rate of success in tricking their victims into downloading Trojans when they host them using popular cloud apps.
  • For command and control and data exfiltration, adversaries are heavily favoring the use of HTTP and HTTPS to fly under the radar and blend in with benign traffic.
  • The majority of adversary activity on the Netskope Security Cloud platform comes from criminal adversaries, with the most activity attributable to Wizard Spider, a Russian group responsible for creating the TrickBot malware.
  • The financial services and healthcare industry verticals have the highest percentage of activity attributable to geopolitical adversary groups on the Netskope Security Cloud platform.

 

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Executive Summary link link

Cybersecurity is a battle between two opponents: Defenders who seek to protect their users, their data, and their systems, and adversaries, who seek to harm and exploit them. The defender’s most valuable tool is their knowledge of the adversary. As defenders, we seek to understand the adversary’s motivations and objectives, as well as the tactics and techniques they use to achieve those objectives. We then design our systems to be resilient to those tactics and techniques and implement controls to detect adversary activity.

This edition of the Netskope Cloud and Threat Report focuses on the tactics and techniques that were most commonly used against Netskope customers during the first nine months of 2023. To facilitate more efficient communication and understanding, we present this report in terms of the MITRE ATT&CK framework. The framework provides comprehensive categorization of adversary tactics and techniques as well as grouping and naming of adversaries.

Globally, Netskope customers were most commonly targeted by criminal adversaries, with Wizard Spider targeting more organizations than any other group. Information stealers and ransomware remained popular tools employed by financially motivated adversaries. Less-common were geopolitically motivated adversaries, whose most popular tools were remote access Trojans that create backdoors into the organizations they target.

Geography and industry are significant factors in determining which adversaries are likely to target an organization. Geopolitical adversaries tend to target specific regions and industries for their intellectual property, while financially motivated adversaries tend to develop playbooks optimized for targeting similar organizations, where they can recycle tactics and techniques with minimal customization. We round out this report by exploring which are the most active adversaries in multiple industry verticals and geographic regions.

 

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Top Techniques link link

This section explores the most common tactics and techniques used by adversaries to gain access to their targets’ systems, execute malicious code, and communicate with compromised systems. We highlight four tactics where the Netskope Security Cloud platform provides visibility, and highlight the six most commonly observed techniques within those tactics:

  • Initial Access The techniques adversaries use to get into their targets’ systems.
  • Execution The techniques adversaries use to run malicious code.
  • Command and Control The techniques adversaries use to communicate with compromised systems.
  • Exfiltration The techniques adversaries use to steal information from their victims.

 

Initial Access: Spearphishing

When remote access to a system is locked down and the system is patched against known security vulnerabilities, the easiest way for an adversary to access that system is often through its users. For that reason, social engineering techniques have continued to be a mainstay of the adversary playbook. For example, initial access during the September 2023 MGM hack was achieved through vishing (voice phishing) by calling the victim’s helpdesk. Among the various Phishing techniques, Spearphishing Links and Spearphishing Attachments are two of the most popular on the Netskope Security Cloud Platform in 2023.

Analyzing the phishing links victims clicked on can provide insights into where adversaries are having the most success targeting their victims. By a large margin, users most frequently clicked phishing links targeted cloud apps, with one-third of those phishing links targeting Microsoft products. This is not surprising, as Microsoft OneDrive is the single most popular cloud app in the enterprise by a large margin, alongside other Microsoft products including SharePoint, Outlook, and Teams.

Top Phishing Targets by Links Clicked

Top Cloud Phishing Targets by Links Clicked

How are adversaries tricking their victims into clicking on phishing links? While email continues to be a very common channel, the success rate there is fairly low for multiple reasons. First, organizations tend to employ sophisticated anti-phishing filters to block phishing emails from ever reaching their victims. Second, organizations typically train their users to be able to recognize phishing emails. In response, attackers are using a variety of other tactics to reach their victims:

Search engine optimization (SEO) – Adversaries create web pages that employ SEO techniques to ensure they are listed on popular search engines, including Bing and Google. The pages are typically crafted around data voids–specific sets of keywords that don’t have many results–and are targeted toward specific demographics.

Social media and messaging apps – Adversaries abuse popular social media apps (like Facebook) and messaging apps (like WhatsApp) to reach their victims using a variety of different baits.

Voice and text messages – Mobile devices often lack the security controls present on more traditional devices like laptops, making them a popular target for phishing attacks. Calling or texting victims are becoming increasingly popular methods to spread phishing links.

Personal email accounts – Personal email accounts tend to have less strict anti-phishing controls, so more phishing emails are able to reach their victims. Because personal email accounts are often used on the same systems the victims use for work, phishing for access to sensitive organization-managed assets via personal email accounts can be a highly successful strategy for adversaries.

Spearphishing attachments are a special type of phishing where the adversary uses attachments both to create an air of legitimacy–typically these attachments look like professional invoices–and also to bypass security controls that don’t inspect attachments. While there is some variety in the types of files adversaries use for phishing attachments–Microsoft Excel spreadsheets, ZIP files, etc.–most of these file types are rare. A staggering 90% of phishing attachments are PDFs designed to entice victims into clicking on a phishing link.

Top Phishing Attachment Types

Similar to phishing links, adversaries spread phishing attachments over multiple channels, including personal email. The number of phishing attachments downloaded by victims spiked to more than triple its baseline level in August as adversaries began having more success by sending their baits to their victim’s personal Microsoft Live email accounts. Over the past nine months, there were 16 times as many users who downloaded a phishing attachment from a personal webmail app compared to users downloading phishing attachments from managed organization webmail apps.

Phishing Attachment Download Volume Over Time

 

Execution: User Execution

Social engineering isn’t limited to initial access. Adversaries also depend on users to execute malicious payloads that provide clandestine remote access, steal sensitive information, or deploy ransomware. Convincing a target user to execute a malicious payload often requires the user to click a Malicious Link or otherwise download and execute a Malicious File. Adversaries are constantly trying new ways to trick victims into doing so, and Netskope Threat Labs tracks those changes in our monthly reports. There are two overarching themes that have dominated 2023. First, adversaries are most successful in convincing their victims to download malicious files when those files are delivered via cloud apps. So far this year, an average of 55% of the malware that users attempted to download was delivered via cloud apps.

Malware Delivery, Cloud vs. Web

Second, the apps where the highest number of malware downloads were attempted were also some of the most popular cloud apps in use in the enterprise. Microsoft OneDrive, the most popular cloud app in the enterprise, took the top spot with more than one-quarter of all cloud malware downloads. In total, adversaries were successful in enticing users to download malware for execution from 477 distinct cloud apps so far this year.

Top Apps for Malware Downloads

 

Command and Control and Exfiltration

After an adversary has successfully executed a malicious payload in a victim’s environment, they often need to establish a channel to communicate with the compromised system, which is where command and control comes into play. The most common command and control technique adversaries used in 2023 was Application Layer Protocol: Web Protocols, which was often coupled with Exfiltration over C2 Channel. Adversaries have multiple options for creating command and control channels, including using a C2 framework like CobaltStrike, abusing a popular cloud app, or creating their own custom implementation.

Stealth is an important feature of a command and control channel. Not only does the adversary need to communicate with the compromised system, they also need to avoid detection when doing so. For this reason, adversaries are increasingly using HTTP and HTTPS over ports 80 and 443 as their primary C2 communication channels. HTTP and HTTPS traffic is highly likely to be allowed from an infected system and will blend in with the abundance of HTTP and HTTPS traffic already on the network. Contrast this approach with malware that communicate over rarely used ports or protocols, such as IRC or FTP. Such communication would be comparatively easy to detect and easy to block, even with a layer-3 firewall and especially with a layer-7 firewall. Based on an analysis of tens of thousands of malware samples detected in 2023, HTTP (80) and HTTPS (443) were the favorite C2 and data exfiltration protocols by a large margin, used by more than two-thirds of malware samples. The next most popular protocol was DNS, followed by a variety of other rarely used ports and protocols.

Top Malware Communication Ports

 

Adversary Analysis link link

Netskope Threat Labs tracks adversaries that are actively targeting Netskope customers to better understand their motivations, tactics, and techniques. We then leverage that information to help our customers defend their systems against those adversaries. The adversaries that Netskope Threat Labs tracks generally fall into two categories, based on their motivations.

Criminal
The primary objective of criminal adversary groups is financial gain, and their toolset typically includes information stealers and ransomware. Extortion has been an extremely profitable business for cybercriminals for the past several years, with an estimated $457 million in ransom payments made in 2022. Most criminal adversaries have diversified their operations to use both ransomware and infostealers to increase the odds of a victim paying up. If encrypting their systems with ransomware wasn’t enough to convince them to pay, perhaps the public release of sensitive information stolen from the organization would help. Although we attempt to label each criminal adversary group according to the country in which they operate, many groups work transnationally. Furthermore, many are now operating in an affiliate model, making their operations even more dispersed. As a result, we typically associate a group with the country or region from which its core members are believed to be located.

Geopolitical
Geopolitical adversary groups are motivated by geopolitical issues. They are typically either nation-states or their proxies, and their activities typically mirror broader political, economic, military, or social conflicts. For example, Russian adversary groups launched cyberattacks against Ukraine that coincided with their invasion of that country. Geopolitical groups typically engage in cyber operations against other nation-states, and such operations have become a critical component of modern international relations. The lines between geopolitical and criminal adversaries sometimes blur, with some geopolitical groups also engaging in financially motivated activities. For example, the current North Korean regime funds development of its missile program via cybercrime. The specific cyber-operations undertaken by geopolitical adversaries vary, including cyber-espionage against government and non-government organizations and sabotaging critical infrastructure to destabilize an adversary. Geopolitical adversaries also engage in information warfare, spreading propa