Unmasking Medusa Ransomware: A Deep Dive into the Rising Ransomware Threat and Proactive Defense

Medusa Ransomware Attacks on Organizations

CISA’s advisory AA25-071A paints a grim picture of the Medusa ransomware, a sophisticated threat targeting critical infrastructure with alarming efficiency. This article dissects the Medusa attack lifecycle, focusing on the technical intricacies and providing actionable mitigation strategies.

Medusa’s Attack Lifecycle: A Technical Autopsy

Medusa actors employ a well-defined attack sequence, leveraging a combination of established and advanced techniques:

  1. Initial Access: The Gateway to Compromise

    • IABs and Vulnerability Exploitation:
      • Medusa operators often purchase access from Initial Access Brokers (IABs), who have already established a foothold within target networks.
      • Exploitation of known vulnerabilities, particularly in unpatched systems, is a primary entry point. Examples include exploiting vulnerabilities in VPNs, remote desktop protocols (RDP), and web applications.
    • Phishing:
      • Phishing emails containing malicious attachments or links are used to deliver initial payloads or steal credentials.
  2. Network Reconnaissance and Lateral Movement: Mapping the Terrain

    • Advanced IP Scanner:
      • Used for network scanning and host discovery. Command example: advanced_ip_scanner.exe /range:192.168.1.0-255 /ping /port:3389,445,80.
    • PowerShell Post-Exploitation:
      • PowerShell is heavily used for post-exploitation activities, including privilege escalation, lateral movement, and data exfiltration. Examples:
        • Get-NetIPAddress for network information.
        • Invoke-Command -ComputerName <target_computer> -ScriptBlock {<commands>} for remote execution.
    • Living Off the Land (LOTL) Techniques:
      • Certutil:
        • Used for downloading malicious payloads and decoding files. Example: certutil.exe -urlcache -f <URL> <output_file>.
      • Utilizing legitimate system tools to evade detection.
    • Remote Access Software:
      • Using remote access software for persistent access, and lateral movement.
  3. Data Exfiltration and Encryption: The Double Extortion Tactic

    • Rclone:
      • Used for exfiltrating large volumes of data. Command example: rclone copy <source> <destination>.
    • gaze.exe:
      • The Medusa ransomware executable used for encrypting files.
  4. Ransom Demands and Extortion: The Final Stage

    • Ransom notes are delivered, demanding payment in cryptocurrency for decryption keys.
    • Threats of public data release are used to pressure victims.

Indicators of Compromise

Table 1 lists the hashes of malicious files obtained during investigations.

Table 1: Malicious Files
Files Hash (MD5) Description
!!!READ_ME_MEDUSA!!!.txt Redacted Ransom note file
openrdp.bat 44370f5c977e415981febf7dbb87a85c Allows incoming RDP and remote WMI connections
pu.exe 80d852cd199ac923205b61658a9ec5bc Reverse shell

Table 2 includes email addresses used by Medusa actors to extort victims; they are exclusively used for ransom negotiation and contacting victims following compromise. These email addresses are not associated with phishing activity conducted by Medusa actors.

Table 2: Medusa Email Addresses
Email Addresses Description
[email protected] Used for ransom negotiation
[email protected] Used for ransom negotiation
[email protected] Used for ransom negotiation
[email protected] Used for ransom negotiation
[email protected] Used for ransom negotiation

MITRE ATT&CK Tactics and Techniques

See Table 3 – Table 11 for all referenced threat actor tactics and techniques in this advisory. For assistance with mapping malicious cyber activity to the MITRE ATT&CK framework, see CISA and MITRE ATT&CK’s Best Practices for MITRE ATT&CK Mapping and CISA’s Decider Tool.

Table 3: Initial Access
Technique Title ID Use
Exploit Public-Facing Application T1190 Medusa actors exploited unpatched software or n-day vulnerabilities through common vulnerabilities and exposures.
Initial Access TA0001 Medusa actors recruited initial access brokers (IABS) in cybercriminal forums and marketplaces to obtain initial access.
Phishing T1566 Medusa IABS used phishing campaigns as a primary method for delivering ransomware to victims.
Table 4: Defense Evasion
Technique Title ID Use
Indicator Removal: Clear Command History T1070.003 Medusa actors attempt to cover their tracks by deleting the PowerShell command line history.
Obfuscated Files or Information: Encrypted/Encoded File T1027.013 Medusa actors use a well-known evasion technique that executes a base64 encrypted command.
Obfuscated Files or Information T1027 Medusa actors obfuscated a string by slicing it into pieces and referencing it via a variable.
Indicator Removal T1070 Medusa actors deleted their previous work and tools installed. 
Impair Defenses: Disable or Modify Tools T1562.001 Medusa actors killed or deleted endpoint detection and response tools.
Table 5: Discovery
Technique Title ID Use
Network Service Discovery T1046 Medusa actors utilized living of the land techniques to perform network enumeration.
File and Directory Discovery T1083 Medusa actors utilized Windows Command Prompt for filesystem enumeration.
Network Share Discovery T1135 Medusa actors queried shared drives on the local system to gather sources of information.
System Network Configuration Discovery T1016 Medusa actors used operating system administrative utilities to gather network information.
System Information Discovery T1082 Medusa actors used the command systeminfo to gather detailed system information.
Permission Groups Discovery: Domain Groups T1069.002 Medusa actors attempt to find domain-level group and permission settings.
Table 6: Credential Access
Technique Title ID Use
Credential Access TA0006 Medusa actors harvest credentials with tools like Mimikatz to gain access to systems.
OS Credential Dumping: LSASS Memory T1003.001 Medusa actors were observed accessing credential material stored in process memory or Local Security Authority Subsystem Service (LSASS) using Mimkatz.
Table 7: Lateral Movement and Execution
Technique Title ID Use
Lateral Movement TA0008 Medusa actors performed techniques to move laterally without detection once they gained initial access.
Command and Scripting Interpreter: PowerShell T1059.001 Medusa actors used PowerShell, a powerful interactive command-line interface and scripting environment for ingress, network, and filesystem enumeration.
Command and Scripting Interpreter: Windows Command Shell T1059.003 Medusa actors used Windows Command Prompt—which can be used to control almost any aspect of a system—for ingress, network, and filesystem enumeration. 
Software Deployment Tools T1072 Medusa Actors used PDQ Deploy and BigFix to deploy the encryptor on files across the network.
Remote Services: Remote Desktop Protocol T1021.001 Medusa actors used Remote Desktop Protocol (RDP), a common feature in operating systems, to log into an interactive session with a system and move laterally.
System Services T1569.002 Medusa actors used Sysinternals PsExec to deploy the encryptor on files across the network.
Windows Management Instrumentation T1047 Medusa actors abused Windows Management Instrumentation to query system information.
Table 8: Exfiltration and Encryption
Technique Title ID Use
Exfiltration TA0010 Medusa actors identified files to exfiltrate out of victim networks.
Exfiltration Over Web Service: Exfiltration to Cloud Storage T1567.002 Medusa actors used Rclone to facilitate exfiltration of data to the Medusa C2 servers.
Table 9: Command and Control
Technique Title ID Use
Ingress Tool Transfer T1105 Medusa actors used PowerShell, Windows Command Prompt, and certutil for file ingress.
Application Layer Protocol: Web Protocols  T1071.001 Medusa actors communicate using application layer protocols associated with web traffic. In this case, Medusa actors used scripts that created reverse or bind shells over port 443: HTTPS.
Remote Access Software T1219 Medusa actors used remote access software to move laterally through the network.
Table 10: Persistence
Technique Title ID Use
Create Account T1136.002 Medusa actors created a domain account to maintain access to victim systems.
Table 11: Impact
Technique Title ID Use
Data Encrypted for Impact T1486 Medusa identified and encrypted data on target systems to interrupt availability to system and network resources.
Inhibit System Recovery T1490 The process gaze.exe terminates all services then deletes shadow copies and encrypts files with AES-256 before dropping the ransom note.
Financial Theft T1657 Victims must pay to decrypt files and prevent further release by Medusa actors.
System Shutdown/Reboot T1529 Medusa actors manually turned off and encrypted virtual machines.
Service Stop T1489 The process gaze.exe terminates all services related to backups, security, databases, communication, file sharing, and websites,

Technical Mitigation Strategies: Fortifying Your Defenses

To counter Medusa’s sophisticated tactics, organizations must implement robust security measures:

  1. Vulnerability Management:

    • Implement a rigorous patch management program, prioritizing critical vulnerabilities.
    • Regularly conduct vulnerability assessments and penetration testing.
  2. Network Segmentation:

    • Segment networks to limit the impact of a breach.
    • Implement strict access control lists (ACLs) and firewall rules.
  3. Endpoint Detection and Response (EDR):

    • Deploy advanced EDR solutions to detect and respond to suspicious activity.
    • Implement application whitelisting and behavior-based detection.
  4. Multi-Factor Authentication (MFA):

    • Enforce MFA for all remote access and critical applications.
    • Implement strong password policies.
  5. Data Backup and Recovery:

    • Maintain regular, offline backups of critical data.
    • Test recovery procedures to ensure business continuity.
  6. Security Information and Event Management (SIEM):

    • Implement a robust SIEM system to aggregate and analyze security logs.
    • Implement advanced correlation rules to detect anomalous behavior.
  7. Security Awareness Training:

    • Educate employees about phishing attacks and social engineering tactics.
    • Conduct regular security awareness training sessions.
  8. Incident Response Planning:

    • Develop and maintain a comprehensive incident response plan.
    • Conduct regular incident response exercises.
  9. Threat Intelligence Sharing:

    • Participate in threat intelligence sharing initiatives.

Key Technical Considerations:

  • PowerShell Logging and Monitoring: Enable robust PowerShell logging and monitoring to detect malicious activity.
  • Application Whitelisting: Implement application whitelisting to prevent the execution of unauthorized executables.
  • Network Traffic Analysis: Employ network traffic analysis tools to detect anomalous network behavior.
  • YARA Rules: Create and deploy YARA rules to detect Medusa-specific malware signatures.

By implementing these technical mitigation strategies and staying informed about the latest threats, organizations can significantly reduce their risk of falling victim to Medusa ransomware and other sophisticated cyberattacks.

Reference: CISA

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