Expert Speak
Threat Assessment: Royal Ransomware
Written by Doel Santos, Daniel Bunce, and Anthony Galiette
Unit 42 has published a blog post detailing the Royal ransomware group, which has been recently involved in high-profile attacks leveraging multi-extortion tactics against critical infrastructure including healthcare and manufacturing. Unlike other major ransomware groups (e.g., LockBit 3.0) that operate on a RaaS model by hiring affiliates to promote their services, this group operates behind closed doors – and comprises former members of the notorious Conti ransomware group.
It is important to note that Royal ransomware extends beyond financial losses to small businesses and corporations. Since 2022, Unit 42 has observed this group impacting local government entities in the US and Europe, most recently the group attacked the city of Dallas. In the last 9 months, Unit 42 incident responders have responded to over a dozen cases involving Royal ransomware.
Below are some additional facts about the group from Unit 42’s findings:
- Since 2022, Royal ransomware has claimed responsibility for impacting 157 organizations on their leak site.
- They have impacted 14 organizations in the education sector, including school districts and universities. In the first few days of May 2023, the group has already impacted four educational institutions.
Royal ransomware has been involved in high-profile attacks against critical infrastructure, especially healthcare, since it was first observed in September 2022. Bucking the popular trend of hiring affiliates to promote their threat as a service, Royal ransomware operates as a private group made up of former members of Conti.
The Unit 42 team has observed this group compromising victims through a BATLOADER infection, which threat actors usually spread through search engine optimization (SEO) poisoning. This infection involves dropping a Cobalt Strike Beacon as a precursor to the ransomware execution. Unit 42 incident responders have participated in 15 cases involving Royal ransomware in the last 9 months.
Royal ransomware also expanded its arsenal by developing an ELF variant to impact Linux and ESXi environments. The ELF variant is quite similar to the Windows variant, and the sample does not contain any obfuscation. All strings, including the RSA public key and the ransom note, are stored as plain text.
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Positive Technologies Study Reveals Successful Cyberattacks Nett 5X Profits
Positive Technologies has released a study on the dark web market, analysing prices for illegal cybersecurity services and products, as well as the costs incurred by cybercriminals to carry out attacks. The most expensive type of malware is ransomware, with a median cost of $7,500. Zero-day exploits are particularly valuable, often being sold for millions of dollars. However, the net profit from a successful cyberattack can be five times the cost of organizing it.
Experts estimate that performing a popular phishing attack involving ransomware costs novice cybercriminals at least $20,000. First, hackers rent dedicated servers, subscribe to VPN services, and acquire other tools to build a secure and anonymous IT infrastructure to manage the attack. Attackers also need to acquire the source code of malicious software or subscribe to ready-to-use malware, as well as tools for infiltrating the victim’s system and evading detection by security measures. Moreover, cybercriminals can consult with seasoned experts, purchase access to targeted infrastructures and company data, and escalate privileges within a compromised system. Products and tools are readily available for purchase on the dark web, catering to beginners. The darknet also offers leaked malware along with detailed instructions, making it easier for novice cybercriminals to carry out attacks.
Malware is one of the primary tools in a hacker’s arsenal, with 53% of malware-related ads focused on sales. In 19% of all posts, infostealers designed to steal data are offered. Crypters and code obfuscation tools, used to help attackers hide malware from security tools, are featured in 17% of cases. Additionally, loaders are mentioned in 16% of ads. The median cost of these types of malware stands at $400, $70, and $500, respectively. The most expensive malware is ransomware: its median cost is $7,500, with some offers reaching up to $320,000. Ransomware is primarily distributed through affiliate programs, known as Ransomware-as-a-Service (RaaS), where participants in an attack typically receive 70–90% of the ransom. To become a partner, a criminal must make a contribution of 0.05 Bitcoin (approximately $5,000) and have a solid reputation on the dark web.
Another popular attack tool is exploits: 69% of exploit-related ads focus on sales, with zero-day vulnerability posts accounting for 32% of them. In 31% of cases, the cost of exploits exceeds $20,000 and can reach several million dollars. Access to corporate networks is relatively inexpensive, with 72% of such ads focused on sales, and 62% of them priced at under a thousand dollars. Among cybercriminal services, hacks are the most popular option, accounting for 49% of reports. For example, the price for compromising a personal email account starts at $100, while the cost for a corporate account begins at $200.
Dmitry Streltsov, Threat Analyst at Positive Technologies, says, “On dark web marketplaces, prices are typically determined in one of two ways: either sellers set a fixed price, or auctions are held. Auctions are often used for exclusive items, such as zero-day exploits. The platforms facilitating these deals also generate revenue, often through their own escrow services, which hold the buyer’s funds temporarily until the product or service is confirmed as delivered. On many platforms, these escrow services are managed by either administrators or trusted users with strong reputations. In return, they earn at least 4% of the transaction amount, with the forums setting the rates.”
Considering the cost of tools and services on the dark web, along with the median ransom amount, cybercriminals can achieve a net profit of $100,000–$130,000 from a successful attack—five times the cost of their preparation. For a company, such an incident can result not only in ransom costs but also in massive financial losses due to disrupted business processes. For example, in 2024, due to a ransomware attack, servers of CDK Global were down for two weeks. The company paid cybercriminals $25 million, while the financial losses of dealers due to system downtime exceeded $600 million.
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