‘Operation Endgame’ Hits Malware Delivery Platforms

Law enforcement agencies in the United States and Europe today announced Operation Endgame, a coordinated action against some of the most popular cybercrime platforms for delivering ransomware and data-stealing malware. Dubbed “the largest ever operation against botnets,” the international effort is being billed as the opening salvo in an ongoing campaign targeting advanced malware “droppers” or “loaders” like IcedID, Smokeloader and Trickbot.

Operation Endgame targets the cybercrime ecosystem supporting droppers/loaders, slang terms used to describe tiny, custom-made programs designed to surreptitiously install malware onto a target system. Droppers are typically used in the initial stages of a breach, and they allow cybercriminals to bypass security measures and deploy additional harmful programs, including viruses, ransomware, or spyware.

Droppers like IcedID are most often deployed through email attachments, hacked websites, or bundled with legitimate software. For example, cybercriminals have long used paid ads on Google to trick people into installing malware disguised as popular free software, such as Microsoft Teams, Adobe Reader and Discord. In those cases, the dropper is the hidden component bundled with the legitimate software that quietly loads malware onto the user’s system.

Droppers remain such a critical, human-intensive component of nearly all major cybercrime enterprises that the most popular have turned into full-fledged cybercrime services of their own. By targeting the individuals who develop and maintain dropper services and their supporting infrastructure, authorities are hoping to disrupt multiple cybercriminal operations simultaneously.

According to a statement from the European police agency Europol, between May 27 and May 29, 2024 authorities arrested four suspects (one in Armenia and three in Ukraine), and disrupted or took down more than 100 Internet servers in Bulgaria, Canada, Germany, Lithuania, the Netherlands, Romania, Switzerland, the United Kingdom, United States and Ukraine. Authorities say they also seized more than 2,000 domain names that supported dropper infrastructure online.

In addition, Europol released information on eight fugitives suspected of involvement in dropper services and who are wanted by Germany; their names and photos were added to Europol’s “Most Wanted” list on 30 May 2024.

“It has been discovered through the investigations so far that one of the main suspects has earned at least EUR 69 million in cryptocurrency by renting out criminal infrastructure sites to deploy ransomware,” Europol wrote. “The suspect’s transactions are constantly being monitored and legal permission to seize these assets upon future actions has already been obtained.”

There have been numerous such coordinated malware takedown efforts in the past, and yet often the substantial amount of coordination required between law enforcement agencies and cybersecurity firms involved is not sustained after the initial disruption and/or arrests.

But a new website erected to detail today’s action — operation-endgame.com — makes the case that this time is different, and that more takedowns and arrests are coming. “Operation Endgame does not end today,” the site promises. “New actions will be announced on this website.”

Perhaps in recognition that many of today’s top cybercriminals reside in countries that are effectively beyond the reach of international law enforcement, actions like Operation Endgame seem increasingly focused on mind games — i.e., trolling the hackers.

Writing in this month’s issue of Wired, Matt Burgess makes the case that Western law enforcement officials have turned to psychological measures as an added way to slow down Russian hackers and cut to the heart of the sweeping cybercrime ecosystem.

“These nascent psyops include efforts to erode the limited trust the criminals have in each other, driving subtle wedges between fragile hacker egos, and sending offenders personalized messages showing they’re being watched,” Burgess wrote.

When authorities in the U.S. and U.K. announced in February 2024 that they’d infiltrated and seized the infrastructure used by the infamous LockBit ransomware gang, they borrowed the existing design of LockBit’s victim shaming website to link instead to press releases about the takedown, and included a countdown timer that was eventually replaced with the personal details of LockBit’s alleged leader.

The Operation Endgame website also includes a countdown timer, which serves to tease the release of several animated videos that mimic the same sort of flashy, short advertisements that established cybercriminals often produce to promote their services online. At least two of the videos include a substantial amount of text written in Russian.

The coordinated takedown comes on the heels of another law enforcement action this week against what the director of the FBI called “likely the world’s largest botnet ever.” On Wednesday U.S. Department of Justice (DOJ) announced the arrest of YunHe Wang, the alleged operator of the ten-year-old online anonymity service 911 S5. The government also seized 911 S5’s domains and online infrastructure, which allegedly turned computers running various “free VPN” products into Internet traffic relays that facilitated billions of dollars in online fraud and cybercrime.

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3 Tips to Protect Yourself From XLoader Malware

Picture this: you open your MacBook and see an email claiming to be from your favorite online store. In the email, there is an attachment with “important information regarding your recent purchase.” Out of curiosity, you open the attachment without checking the recipient’s email address. The next thing you know, your device is riddled with malware.  

Unfortunately, this story is not far from reality. Contrary to popular belief, Apple computers can get viruses, and XLoader has Mac users in their sights.  

Let’s break down XLoader’s ‘s origins and how this malware works.  

Where Did XLoader Come From? 

XLoader originated from FormBook, which has been active for at least five years and is among the most common types of malware. Designed as a malicious tool to steal credentials from different web browsers, collect screenshots, monitor and log keystrokes, and more, FormBook allowed criminals to spread online misfortune on a budget. Its developer, referred to as ng-Coder, charged $49, a relatively cheap price to use the malware, making it easily accessible to cybercriminals.  

Although ng-Coder stopped selling FormBook in 2018, this did not stop cybercriminals from using it. Those who had bought the malware to host on their own servers continued to use it, and in turn, quickly noticed that FormBook had untapped potential. In February 2020, FormBook rebranded to XLoader. XLoader can now target Windows systems and macOS devices.  

How XLoader Works  

Typically, XLoader is spread via fraudulent emails that trick recipients into downloading a malicious file, such as a Microsoft Office document. Once the malware is on the person’s device, an attacker can eavesdrop on the user’s keystrokes and monitors. Once a criminal has collected enough valuable data, they can make fake accounts in the victim’s name, hack their online profiles, and even access their financial information.  

Minimize Your Risk of macOS Malware Attacks 

According to recent data, Apple sold 20 million Mac and MacBook devices in 2020. With macOS’s growing popularity, it is no surprise that cybercriminals have set their sights on targeting Mac users. Check out these tips to safeguard your devices and online data from XLoader and similar hacks:  

1. Avoid suspicious emails and text messages  

Hackers often use phishing emails or text messages to distribute and disguise their malicious code. Do not open suspicious or irrelevant messages, as this can result in malware infection. If the message claims to be from a business or someone you know, reach out to the source directly instead of responding to the message to confirm the sender’s legitimacy.   

2. Avoid sketchy websites.  

Hackers tend to hide malicious code behind the guise of fake websites. Before clicking on an unfamiliar hyperlink, hover over it with your cursor. This will show a preview of the web address. If something seems off (there are strange characters, misspellings, grammatical errors, etc.) do not click the link.  

3. Recruit the help of a comprehensive security solution 

Use a solution like McAfee Total Protection, which can help protect devices against malware, phishing attacks, and other threats. It also includes McAfee WebAdvisor — a tool that identifies malicious websites.  

Regardless of whether you use a PC or a Mac, it is important to realize that both systems are susceptible to cyberthreats that are constantly changing. Do your research on prevalent threats and software bugs to put you in a great position to protect your online safety.   

 Put Your Mind at Ease With Security Best Practices 

XLoader is just the latest example of how the gap between the prevalence of PC versus macOS malware is steadily closing. To better anticipate what threats could be around the corner and how to best combat them, stay updated on all of the latest online safety trends and practice great security habits. This will not only help protect your devices and online accounts but also bring you greater peace of mind.  

The post 3 Tips to Protect Yourself From XLoader Malware appeared first on McAfee Blogs.