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Inside Hive – Ep 393 

 February 10, 2023

By  Donna Grindle

It’s a story straight out of a blockbuster movie – an elite team of FBI agents infiltrating an underground network to thwart an international crime syndicate, saving over $130 million in ransom demands. Using their expert skills, the FBI agents were able to infiltrate the Hive network without detection and shut them down… at least for now.

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In this episode:

Inside Hive – Ep 393

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[05:19] Listener question!

From Mary:

Love your Podcast! I am working on an audit of data within the environment for HIPAA data. I noticed that this company in PA has the FMLA forms for employees in a secure but not HIPAA secure drive. I am in a discussion with HR. I believe this contains HIPAA data and needs to be at the top security level and logging turned on for access. Thoughts?

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Inside the Hive Takedown

[13:08] U.S. Department of Justice Disrupts Hive Ransomware Variant | OPA

The big splash news:

FBI Covertly Infiltrated Hive Network, Thwarting Over $130 Million in Ransom Demands

The Justice Department announced today its months-long disruption campaign against the Hive ransomware group that has targeted more than 1,500 victims in over 80 countries around the world, including hospitals, school districts, financial firms, and critical infrastructure.

Since late July 2022, the FBI has penetrated Hive’s computer networks, captured its decryption keys, and offered them to victims worldwide, preventing victims from having to pay $130 million in ransom demanded. Since infiltrating Hive’s network in July 2022, the FBI has provided over 300 decryption keys to Hive victims who were under attack. In addition, the FBI distributed over 1,000 additional decryption keys to previous Hive victims. Finally, the department announced today that, in coordination with German law enforcement (the German Federal Criminal Police and Reutlingen Police Headquarters-CID Esslingen) and the Netherlands National High Tech Crime Unit, it has seized control of the servers and websites that Hive uses to communicate with its members, disrupting Hive’s ability to attack and extort victims.

They infiltrated the networks and hacked the bad guys for a pleasant change in the fight against cyber criminals.

Pretty sneaky plan to break into the network and as they were attacking victims the DOJ and their international partners would get the decryption key and secretly give it to the victims, so they didn’t have to pay. They stopped 300 victims from having to pay $130m in demands. Plus, gave out keys to over 1,000 previous victims.

The story is a very nice one to share for a change.

What’s in the details?

[17:44] Warrant Affidavit

The real juicy stuff is in the details – as always. The unsealed documents include the affidavit of the FBI Special Agent involved in the infiltration of the criminal enterprise. There are 24 pages in the complete document, but the best part starts around page 11.

The following statements were part of that section that we found interesting.

For example, on or about August 14, 2021, Hive actors used the ransomware to encrypt the computers owned by a hospital located in the Midwestern United States. The hospital had to resort to analog methods for treating existing patients (e.g., maintaining paper copies of patient charts) and was unable to accept new patients immediately following the attack. The hospital was only able to recover its critical data after paying a ransom to decrypt the data.

How about a “technology company in New Jersey”

In addition, on or about May 24, 2022, a technology company in New Jersey was encrypted with Hive ransomware. Because this company owned servers used by many of their customers, the victim’s customers, whose data was stolen, were also harmed by the ransomware event. The initial victim, along with one of the other affected entities – a private U.S. company located in the Central District of California – paid a significant ransom. Hive’s most recent victim in the Central District of California was encrypted on or about December 30, 2022.

The operation also confirmed that the operation was consistently hitting victims.

Hive actors encrypt new victims around the world on a daily basis. In its first year of operation, Hive received over $100 million in ransom payments.

If you really want to get into some of the nerdy details it does explain a bit about how they hide their servers on Tor Infrastructure. What is important to note is the number of servers they had operational to manage their RaaS operations.

It was really nice that they had a screenshot of the Login page to show how deeply they were in there. The affiliate dashboard does make it clear they are a full service RaaS operation.

So they have the “Sales Department” for victims to access. Affiliate panels for their partners in crime. The Admin for Hive administrators and then the very public Leak Site.

They were able to seize all the current servers and even found that they leased servers for the network with a US hosting provider. There were a couple of dedicated servers and one VPS in a LA data center. There were other dedicated servers located in the Netherlands as well. Turns out they were redundant servers.

Once they got to the victim database they spent 6 months trying to get keys to victims as soon as possible. They say something within hours of the attack.

But, the real catch in the trap was information about their communications with others, malware file hashes and 250 affiliates along with the victim info.

How did they get in?

[30:14] According CISA’s previous alerts on HIVE they knew that part fairly well:

Hive affiliates have gained initial access to victim networks through a number of methods, including: single factor logins via Remote Desktop Protocol (RDP), virtual private networks (VPNs), and other remote network connection protocols; exploiting FortiToken vulnerabilities; and sending phishing emails with malicious attachments.

This team has been at it a while. HHS HC3 published a brief on them in Oct 2021

Will they be out of production for long? Probably not but this is a good start.

Some good news for a change. It’s great that the FBI was able to shut down the Hive network. The bad news is that they have redundancy, so they likely won’t be out of production for long. Bottom line… PriSec isn’t going away. It’s going to get harder and more important to keep up with all of the threats in the cyber world and to secure our networks against attacks.

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