BlackCat Ransomware Group Implodes After Apparent $22M Payment by Change Healthcare

There are indications that U.S. healthcare giant Change Healthcare has made a $22 million extortion payment to the infamous BlackCat ransomware group (a.k.a. “ALPHV“) as the company struggles to bring services back online amid a cyberattack that has disrupted prescription drug services nationwide for weeks. However, the cybercriminal who claims to have given BlackCat access to Change’s network says the crime gang cheated them out of their share of the ransom, and that they still have the sensitive data Change reportedly paid the group to destroy. Meanwhile, the affiliate’s disclosure appears to have prompted BlackCat to cease operations entirely.

In the third week of February, a cyber intrusion at Change Healthcare began shutting down important healthcare services as company systems were taken offline. It soon emerged that BlackCat was behind the attack, which has disrupted the delivery of prescription drugs for hospitals and pharmacies nationwide for nearly two weeks.

On March 1, a cryptocurrency address that security researchers had already mapped to BlackCat received a single transaction worth approximately $22 million. On March 3, a BlackCat affiliate posted a complaint to the exclusive Russian-language ransomware forum Ramp saying that Change Healthcare had paid a $22 million ransom for a decryption key, and to prevent four terabytes of stolen data from being published online.

The affiliate claimed BlackCat/ALPHV took the $22 million payment but never paid him his percentage of the ransom. BlackCat is known as a “ransomware-as-service” collective, meaning they rely on freelancers or affiliates to infect new networks with their ransomware. And those affiliates in turn earn commissions ranging from 60 to 90 percent of any ransom amount paid.

“But after receiving the payment ALPHV team decide to suspend our account and keep lying and delaying when we contacted ALPHV admin,” the affiliate “Notchy” wrote. “Sadly for Change Healthcare, their data [is] still with us.”

Change Healthcare has neither confirmed nor denied paying, and has responded to multiple media outlets with a similar non-denial statement — that the company is focused on its investigation and on restoring services.

Assuming Change Healthcare did pay to keep their data from being published, that strategy seems to have gone awry: Notchy said the list of affected Change Healthcare partners they’d stolen sensitive data from included Medicare and a host of other major insurance and pharmacy networks.

On the bright side, Notchy’s complaint seems to have been the final nail in the coffin for the BlackCat ransomware group, which was infiltrated by the FBI and foreign law enforcement partners in late December 2023. As part of that action, the government seized the BlackCat website and released a decryption tool to help victims recover their systems.

BlackCat responded by re-forming, and increasing affiliate commissions to as much as 90 percent. The ransomware group also declared it was formally removing any restrictions or discouragement against targeting hospitals and healthcare providers.

However, instead of responding that they would compensate and placate Notchy, a representative for BlackCat said today the group was shutting down and that it had already found a buyer for its ransomware source code.

“There’s no sense in making excuses,” wrote the RAMP member “Ransom.” “Yes, we knew about the problem, and we were trying to solve it. We told the affiliate to wait. We could send you our private chat logs where we are shocked by everything that’s happening and are trying to solve the issue with the transactions by using a higher fee, but there’s no sense in doing that because we decided to fully close the project. We can officially state that we got screwed by the feds.”

BlackCat’s website now features a seizure notice from the FBI, but several researchers noted that this image seems to have been merely cut and pasted from the notice the FBI left in its December raid of BlackCat’s network. The FBI has not responded to requests for comment.

Fabian Wosar, head of ransomware research at the security firm Emsisoft, said it appears BlackCat leaders are trying to pull an “exit scam” on affiliates by withholding many ransomware payment commissions at once and shutting down the service.

“ALPHV/BlackCat did not get seized,” Wosar wrote on Twitter/X today. “They are exit scamming their affiliates. It is blatantly obvious when you check the source code of their new takedown notice.”

Dmitry Smilyanets, a researcher for the security firm Recorded Future, said BlackCat’s exit scam was especially dangerous because the affiliate still has all the stolen data, and could still demand additional payment or leak the information on his own.

“The affiliates still have this data, and they’re mad they didn’t receive this money, Smilyanets told Wired.com. “It’s a good lesson for everyone. You cannot trust criminals; their word is worth nothing.”

BlackCat’s apparent demise comes closely on the heels of the implosion of another major ransomware group — LockBit, a ransomware gang estimated to have extorted over $120 million in payments from more than 2,000 victims worldwide. On Feb. 20, LockBit’s website was seized by the FBI and the U.K.’s National Crime Agency (NCA) following a months-long infiltration of the group.

LockBit also tried to restore its reputation on the cybercrime forums by resurrecting itself at a new darknet website, and by threatening to release data from a number of major companies that were hacked by the group in the weeks and days prior to the FBI takedown.

But LockBit appears to have since lost any credibility the group may have once had. After a much-promoted attack on the government of Fulton County, Ga., for example, LockBit threatened to release Fulton County’s data unless paid a ransom by Feb. 29. But when Feb. 29 rolled around, LockBit simply deleted the entry for Fulton County from its site, along with those of several financial organizations that had previously been extorted by the group.

Fulton County held a press conference to say that it had not paid a ransom to LockBit, nor had anyone done so on their behalf, and that they were just as mystified as everyone else as to why LockBit never followed through on its threat to publish the county’s data. Experts told KrebsOnSecurity LockBit likely balked because it was bluffing, and that the FBI likely relieved them of that data in their raid.

Smilyanets’ comments are driven home in revelations first published last month by Recorded Future, which quoted an NCA official as saying LockBit never deleted the data after being paid a ransom, even though that is the only reason many of its victims paid.

“If we do not give you decrypters, or we do not delete your data after payment, then nobody will pay us in the future,” LockBit’s extortion notes typically read.

Hopefully, more companies are starting to get the memo that paying cybercrooks to delete stolen data is a losing proposition all around.

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A shocking number of organizations — including banks and healthcare providers — are leaking private and sensitive information from their public Salesforce Community websites, KrebsOnSecurity has learned. The data exposures all stem from a misconfiguration in Salesforce Community that allows an unauthenticated user to access records that should only be available after logging in.

Salesforce Community is a widely-used cloud-based software product that makes it easy for organizations to quickly create websites. Customers can access a Salesforce Community website in two ways: Authenticated access (requiring login), and guest user access (no login required). The guest access feature allows unauthenticated users to view specific content and resources without needing to log in.

However, sometimes Salesforce administrators mistakenly grant guest users access to internal resources, which can cause unauthorized users to access an organization’s private information and lead to potential data leaks.

Until being contacted by this reporter on Monday, the state of Vermont had at least five separate Salesforce Community sites that allowed guest access to sensitive data, including a Pandemic Unemployment Assistance program that exposed the applicant’s full name, Social Security number, address, phone number, email, and bank account number.

Vermont’s Chief Information Security Officer Scott Carbee said his security teams have been conducting a full review of their Salesforce Community sites, and already found one additional Salesforce site operated by the state that was also misconfigured to allow guest access to sensitive information.

“My team is frustrated by the permissive nature of the platform,” Carbee said.

Carbee said the vulnerable sites were all created rapidly in response to the Coronavirus pandemic, and were not subjected to their normal security review process.

“During the pandemic, we were largely standing up tons of applications, and let’s just say a lot of them didn’t have the full benefit of our dev/ops process,” Carbee said. “In our case, we didn’t have any native Salesforce developers when we had to suddenly stand up all these sites.”

Earlier this week, KrebsOnSecurity notified Columbus, Ohio-based Huntington Bank that its recently acquired TCF Bank had a Salesforce Community website that was leaking documents related to commercial loans. The data fields in those loan applications included name, address, full Social Security number, title, federal ID, IP address, average monthly payroll, and loan amount.

Huntington Bank has disabled the leaky TCF Bank Salesforce website. Matthew Jennings, deputy chief information security officer at Huntington, said the company was still investigating how the misconfiguration occurred, how long it lasted, and how many records may have been exposed.

KrebsOnSecurity learned of the leaks from security researcher Charan Akiri, who said he wrote a program that identified hundreds of other organizations running misconfigured Salesforce pages. But Akiri said he’s been wary of probing too far, and has had difficulty getting responses from most of the organizations he has notified to date.

“In January and February 2023, I contacted government organizations and several companies, but I did not receive any response from these organizations,” Akiri said. “To address the issue further, I reached out to several CISOs on LinkedIn and Twitter. As a result, five companies eventually fixed the problem. Unfortunately, I did not receive any responses from government organizations.”

The problem Akiri has been trying to raise awareness about came to the fore in August 2021, when security researcher Aaron Costello published a blog post explaining how misconfigurations in Salesforce Community sites could be exploited to reveal sensitive data (Costello subsequently published a follow-up post detailing how to lock down Salesforce Community sites).

On Monday, KrebsOnSecurity used Akiri’s findings to notify Washington D.C. city administrators that at least five different public DC Health websites were leaking sensitive information. One DC Health Salesforce Community website designed for health professionals seeking to renew licenses with the city leaked documents that included the applicant’s full name, address, Social Security number, date of birth, license number and expiration, and more.

Akiri said he notified the Washington D.C. government in February about his findings, but received no response. Reached by KrebsOnSecurity, interim Chief Information Security Officer Mike Rupert initially said the District had hired a third party to investigate, and that the third party confirmed the District’s IT systems were not vulnerable to data loss from the reported Salesforce configuration issue.

But after being presented with a document including the Social Security number of a health professional in D.C. that was downloaded in real-time from the DC Health public Salesforce website, Rupert acknowledged his team had overlooked some configuration settings.

Washington, D.C. health administrators are still smarting from a data breach earlier this year at the health insurance exchange DC Health Link, which exposed personal information for more than 56,000 users, including many members of Congress.

That data later wound up for sale on a top cybercrime forum. The Associated Press reports that the DC Health Link breach was likewise the result of human error, and said an investigation revealed the cause was a DC Health Link server that was “misconfigured to allow access to the reports on the server without proper authentication.”

Salesforce says the data exposures are not the result of a vulnerability inherent to the Salesforce platform, but they can occur when customers’ access control permissions are misconfigured.

“As previously communicated to all Experience Site and Sites customers, we recommend utilizing the Guest User Access Report Package to assist in reviewing access control permissions for unauthenticated users,” reads a Salesforce advisory from Sept. 2022. “Additionally, we suggest reviewing the following Help article, Best Practices and Considerations When Configuring the Guest User Profile.”

In a written statement, Salesforce said it is actively focused on data security for organizations with guest users, and that it continues to release “robust tools and guidance for our customers,” including:

Guest User Access Report 

Control Which Users Experience Cloud Site Users Can See

Best Practices and Considerations When Configuring the Guest User Profile

“We’ve also continued to update our Guest User security policies, beginning with our Spring ‘21 release with more to come in Summer ‘23,” the statement reads. “Lastly, we continue to proactively communicate with customers to help them understand the capabilities available to them, and how they can best secure their instance of Salesforce to meet their security, contractual, and regulatory obligations.”

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The U.S. Federal Bureau of Investigation (FBI) this week arrested a New York man on suspicion of running BreachForums, a popular English-language cybercrime forum where some of the world biggest hacked databases routinely show up for sale. The forum’s administrator “Pompompurin” has been a thorn in the side of the FBI for years, and BreachForums is widely considered a reincarnation of RaidForums, a remarkably similar crime forum that the FBI infiltrated and dismantled in 2022.

In an affidavit filed with the District Court for the Southern District of New York, FBI Special Agent John Longmire said that at around 4:30 p.m. on March 15, 2023, he led a team of law enforcement agents that made a probable cause arrest of a Conor Brian Fitzpatrick in Peekskill, NY.

“When I arrested the defendant on March 15, 2023, he stated to me in substance and in part that: a) his name was Conor Brian Fitzpatrick; b) he used the alias ‘pompompurin/’ and c) he was the owner and administrator of ‘BreachForums’ the data breach website referenced in the Complaint,” Longmire wrote.

Pompompurin has been something of a nemesis to the FBI for several years. In November 2021, KrebsOnSecurity broke the news that thousands of fake emails about a cybercrime investigation were blasted out from the FBI’s email systems and Internet addresses.

Pompompurin took credit for that stunt, and said he was able to send the FBI email blast by exploiting a flaw in an FBI portal designed to share information with state and local law enforcement authorities. The FBI later acknowledged that a software misconfiguration allowed someone to send the fake emails.

In December, 2022, KrebsOnSecurity broke the news that hackers active on BreachForums had infiltrated the FBI’s InfraGard program, a vetted FBI program designed to build cyber and physical threat information sharing partnerships with experts in the private sector. The hackers impersonated the CEO of a major financial company, applied for InfraGard membership in the CEO’s name, and were granted admission to the community.

From there, the hackers plundered the InfraGard member database, and proceeded to sell contact information on more than 80,000 InfraGard members in an auction on BreachForums. The FBI responded by disabling the portal for some time, before ultimately forcing all InfraGard members to re-apply for membership.

More recently, BreachForums was the sales forum for data stolen from DC Health Link, a health insurance exchange based in Washington, D.C. that suffered a data breach this month. The sales thread initially said the data included the names, Social Security numbers, dates of birth, health plan and enrollee information and more on 170,000 individuals, although the official notice about the breach says 56,415 people were affected.

In April 2022, U.S. Justice Department seized the servers and domains for RaidForums, an extremely popular English-language cybercrime forum that sold access to more than 10 billion consumer records stolen in some of the world’s largest data breaches since 2015. As part of that operation, the feds also charged the alleged administrator, 21-year-old Diogo Santos Coelho of Portugal, with six criminal counts.

Coelho was arrested in the United Kingdom on Jan. 31, 2022. By that time, the new BreachForums had been live for just under a week, but with a familiar look.

BreachForums remains accessible online, and from reviewing the live chat stream on the site’s home page it appears the forum’s active users are only just becoming aware that their administrator — and the site’s database — is likely now in FBI hands:

“Wait if they arrested pom then doesn’t the FBI have all of our details we’ve registered with?” asked one worried BreachForums member.

“But we all have good VPNs I guess, right…right guys?” another denizen offered.

“Like pom would most likely do a plea bargain and cooperate with the feds as much as possible,” replied another.

Fitzpatrick could not be immediately reached for comment. The FBI declined to comment for this story.

There is only one page to the criminal complaint against Fitzpatrick (PDF), which charges him with one count of conspiracy to commit access device fraud. The affidavit on his arrest is available here (PDF).

Update: Corrected spelling of FBI agent’s last name.

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Threat Actors Turn to Sliver as Open Source Alternative to Popular C2 Frameworks

The legitimate command-and-control (C2) framework known as Sliver is gaining more traction from threat actors as it emerges as an open source alternative to Cobalt Strike and Metasploit. The findings come from Cybereason, which detailed its inner workings in an exhaustive analysis last week. Sliver, developed by cybersecurity company BishopFox, is a Golang-based cross-platform post-exploitation

Iranian Government Entities Under Attack by New Wave of BackdoorDiplomacy Attacks

The threat actor known as BackdoorDiplomacy has been linked to a new wave of attacks targeting Iranian government entities between July and late December 2022. Palo Alto Networks Unit 42, which is tracking the activity under its constellation-themed moniker Playful Taurus, said it observed the government domains attempting to connect to malware infrastructure previously identified as associated

Hackers Using CAPTCHA Bypass Tactics in Freejacking Campaign on GitHub

A South Africa-based threat actor known as Automated Libra has been observed employing CAPTCHA bypass techniques to create GitHub accounts in a programmatic fashion as part of a freejacking campaign dubbed PURPLEURCHIN. The group "primarily targets cloud platforms offering limited-time trials of cloud resources in order to perform their crypto mining operations," Palo Alto Networks Unit 42

Russian Hackers Targeted Petroleum Refinery in NATO Country During Ukraine War

The Russia-linked Gamaredon group attempted to unsuccessfully break into a large petroleum refining company within a NATO member state earlier this year amid the ongoing Russo-Ukrainian war. The attack, which took place on August 30, 2022, is just one of multiple intrusions orchestrated by the advanced persistent threat (APT) that's attributed to Russia's Federal Security Service (FSB).

Researchers Detail New Attack Method to Bypass Popular Web Application Firewalls

A new attack method can be used to circumvent web application firewalls (WAFs) of various vendors and infiltrate systems, potentially enabling attackers to gain access to sensitive business and customer information. Web application firewalls are a key line of defense to help filter, monitor, and block HTTP(S) traffic to and from a web application, and safeguard against attacks such as cross-site

Nighthawk Likely to Become Hackers' New Post-Exploitation Tool After Cobalt Strike

A nascent and legitimate penetration testing framework known as Nighthawk is likely to gain threat actors' attention for its Cobalt Strike-like capabilities. Enterprise security firm Proofpoint said it detected the use of the software in mid-September 2022 by a red team with a number of test emails sent using generic subject lines such as "Just checking in" and "Hope this works2." However, there

Google Identifies 34 Cracked Versions of Popular Cobalt Strike Hacking Toolkit in the Wild

Google Cloud last week disclosed that it identified 34 different hacked release versions of the Cobalt Strike tool in the wild, the earliest of which shipped in November 2012. The versions, spanning 1.44 to 4.7, add up to a total of 275 unique JAR files, according to findings from the Google Cloud Threat Intelligence (GCTI) team. The latest version of Cobalt Strike is version 4.7.2. Cobalt

Telehealth Sites Put Addiction Patient Data at Risk

New research found pervasive use of tracking tech on substance-abuse-focused health care websites, potentially endangering users in a post-Roe world.

Medibank Refuses to Pay Ransom After 9.7 Million Customers Exposed in Ransomware Hack

Australian health insurer Medibank today confirmed that personal data belonging to around 9.7 million of its current and former customers were accessed following a ransomware incident. The attack, according to the company, was detected in its IT network on October 12 in a manner that it said was "consistent with the precursors to a ransomware event," prompting it to isolate its systems, but not

Ways You Can See Yourself as a Mentally Stronger Cybersecurity Professional

As we wrapped up October, we also put the final touches on a flurry of activities to celebrate Cyber Security Awareness Month. The tradition of October as National Cybersecurity Awareness Month goes back to 2004 when Congress and the White House tasked the Cybersecurity and Infrastructure Security Agency (CISA) and the National Cybersecurity Alliance (NCA) to join forces to help individuals protect themselves online as threats to technology and confidential data became more commonplace. There is no question that the scale and severity of threats have only increased exponentially in the nearly two decades we have been actively participating in cybersecurity awareness.

This year’s theme was “See Yourself in Cyber” to reinforce the fact that that while cybersecurity is technology-driven, ultimately, it’s really all about people that makes it real. So, this month is all about sharing information across the cybersecurity industry with individuals and companies around the world so we can all be more effective together. That gives me a great opportunity to discuss a related issue that profoundly impacts professionals who work in cybersecurity every single day: mental health.

State of mental health in cybersecurity

Working in cybersecurity can be a stressful endeavor, which is why I’m so proud to be part of this global network of professionals who have dedicated our work lives to this important mission. We must be ever vigilant and on guard against threats and bad actors, both known and unknown. It is this ever-changing world of cybersecurity work that only compounds the stress level. The possibilities of work-related depression and burnout are real and becoming more common. According to this Forbes column, more than half of cybersecurity professionals in the US and Europe are on medication to help improve work-related mental health.

I wrote extensively about ways we can help our colleagues and employees work through mental health issues in this blog last May commemorating the official Mental Health Awareness Month. The key takeaways I closed with are worth repeating.

1. It’s OK not to be OK. We should never treat mental health issues as a stigma because struggling is a human experience that nobody is immune to.
2. Combating cybersecurity threats is an “always-on” task. We must acknowledge this so that we can find ways to load balance responsibilities among different individuals and teams effectively.
3. We MUST be better at taking care of each other. We must pay attention to the cues, sometimes subtle, that colleagues who are struggling send out. Likewise, we must be bold enough to open up and ask for help when we are struggling. Finally, we must learn to disengage from the serious responsibilities of working in cybersecurity and devote dedicated time to time with friends, family, and non-work-related activities.

From a technology point of view, we at Cisco Secure are committed to the goal of helping organizations become more security resilient. We know that unpredictability is the nature of working in cybersecurity.  But by being more resilient I firmly believe that we can help organizations to be able to withstand the ever-changing threat landscape and ultimately emerge stronger.

Naturally, our goal is to extend the benefits of resilience downstream to the cybersecurity pros who are on the frontlines of battling threats and bad actors. To that end, there are a couple of resources I’d like to point to. One, the American Psychological Association offers a few very helpful ways people can develop more resilience with regards to mental health. Two, Cisco offers great resources to help you either enter the cybersecurity field or enhance your career through advanced training education. Additionally, Cisco has made a commitment to the White House as part of the Cyber Workforce and Education Summit to train more than 200,000 students to join the cybersecurity field over the next three years.

Next time…

November 16 happens to be the UN International Day for Tolerance. Like the word resilience, tolerance can take on several different meanings. But I want to take the opportunity to apply it to another critical issue impacting the cybersecurity industry: the need for a more diverse and inclusive workforce. I covered some of these themes in one of the earliest blogs I posted after joining Cisco. I look forward to providing additional perspectives with some of the latest trends and stats we are seeing within Cisco Secure.

Australian Health Insurer Medibank Suffers Breach Exposing 3.9 Million Customers' Data

Australian health insurance firm Medibank on Wednesday disclosed that the personal information of all of its customers had been unauthorizedly accessed following a recent ransomware attack. In an update to its ongoing investigation into the incident, the firm said the attackers had access to "significant amounts of health claims data" as well as personal data belonging to its ahm health

Critical RCE Vulnerability Discovered in Popular Cobalt Strike Hacking Software

HelpSystems, the company behind the Cobalt Strike software platform, has released an out-of-band security update to address a remote code execution vulnerability that could allow an attacker to take control of targeted systems. Cobalt Strike is a commercial red-team framework that's mainly used for adversary simulation, but cracked versions of the software have been actively abused by ransomware