Why the hacker attack on Basel-Stadt is very special and potentially devastating

The population of Basel-Stadt is affected by a serious data theft. IT security expert Marc Ruef classifies the hacker attack and explains why the “BianLian” extortionist gang is rather anomalous.
Daniel Schurter / Jonas Hoskyn

On Wednesday it was announced that about 1.2 terabytes of data from the Basel Department of Education is accessible on the darknet. It is the “prey” of cybercriminals who failed in their blackmail attempt and published the data as a kind of punishment for the victim who was not willing to pay.

Behind the massive data theft is a group that the public knows relatively little about. Swiss IT security expert Marc Ruef, who knows the ransomware gangs inside out, has dealt with “BianLian” and classifies the extraordinary case.

What is special about this group?

The attack on Basel’s education department was made public in late January. It has only been known since this week that the blackmailer gang “BianLian” is behind it.

Security expert Marc Ruef:

“BianLian used to implement a classic ransomware model that encrypted data and extorted money. Recently it became known that they only want to focus on exfiltration, aka data theft.

As a result, the faction has reduced the complexity of their attacks. But also reduced their own influence in the blackmail approach. They speculate that releasing the data will be painful enough to force victims to pay.

Basically, BianLian’s approach is very professional and efficient. The data captured often spans several terabytes and amounts to a complete compromise.”

Since mid-January there is a so-called decryptor, a utility to decrypt files encrypted by BianLian. This free tool from IT security company Avast may also have been the reason why the unknown criminals fundamentally changed their approach.

Ruef explains:

“Simplifying the business model makes it easier for the group to structure its ransomware, making it less prone to error. It is very unusual for a group to abandon the principle of double extortion. But if success proves them right, other ransomware gangs could follow suit.”

It should be noted that the criminal plan in the Basel-Stadt case did not succeed. Those responsible assure that they have not paid anything. Reportedly, no negotiations took place at all.

foreknowledge?
Watson editor Daniel Schurter can also be reached anonymously through the encrypted Swiss messenger app Threema. His “Threema ID” is: ACYMFHZX. Or you write to daniel.schurter [at] protonmail.com. If you register (free) with the Swiss secure mail provider, you can send encrypted e-mails.

What do you know about the origin of the criminals?

When we investigated BianLian, we noticed that unlike other ransomware actors, Russia was never mentioned in previous reports.

Marc Ruef Scip AG

The IT security expert explains:

“BianLian is a relatively young group that first made a name for itself at the end of 2022. Unlike many other ransomware gangs, it does not appear to be a reformation by members of other gangs. Their early behavior was relatively boisterous and was accompanied by “novice mistakes”: poor network access, slow negotiations with victims, and poor accessibility to their Tor site.

Its origin is still a mystery. Certain security firms believe they have identified ties to North Korea. Our own research shows that there is common ground with actors from Russia, China, Germany and Spain. A reliable assignment is currently not possible.

So far, the victims have mainly fallen in North America, Western Europe, Australia and India. South America, Africa and Eurasia are not the focus for now. Whether this is due to geopolitical orientation, language or cultural barriers cannot be said at this time. »

The malware is programmed in “Go”, what’s the point for the criminals?

Marc Ruef says:

«Go is a programming language that is becoming increasingly popular. It is relatively easy to learn, clearly structured and offers a large number of ready-to-use modules, such as encryption.

The long-term advantage of Go is that programs can be easily compiled on different operating systems. So it wouldn’t be surprising if the group also focused on other platforms such as Linux and macOS. However, like most other ransomware gangs, it seems to be focused on Windows at the moment.”

What do we know about the leaked Basel-Stadt data?

Marc Ruef scrutinized the data available on the leak site and highlighted:

“We only analyzed the path structures and performed isolated ‘plausibility checks’. Due to our ethical principles and for privacy reasons, we do not look at personal data.”

The inspection revealed that it concerned “858 ZIP files”, ie compressed data, with “a compromised Windows system per file”.

The security expert explains:

“The attackers each downloaded a dataset from a Windows system. They then packaged this in a ZIP file, making it easy and efficient to exchange the data of individual systems. This approach is not common, as the vulnerabilities are traditionally presented as one large archive.”

However, the unknown cybercriminals apparently have a hard time offering data made accessible to the victim via a functioning server on the dark web.

Ruf confirms:

“BianLian has always been known for its poor infrastructure. Downloading is tedious and nerve-racking. It takes several tries.”

How bad is the data breach?

BianLian claims on his own leak page that “HR, finance, accounting, student and employee data” was stolen in the hacker attack on the education department. “The path structures indicate employees, teachers and students,” explains Ruef. There is also certain contract information and so-called NDAs with external partners, ie non-disclosure agreements.

“Sampling shows that the desktop and file folders were stolen by individuals. So it appears that workstation computers or the network shares where the user data is stored have been hacked.

The locally stored documents can be found there. The amount of data is highly dependent on which user has saved how many documents, images, OneNote notes, etc. The contents of the Windows Recycle Bin are also present. Passwords and form data stored in the browser can also be found.”

Can one conclude from the nearly 860 ZIP files mentioned above that there is a corresponding number of PC users affected by the vulnerability?

The IT security expert:

“Yes, the samples suggest that. These are the directly affected users. But there will also be customer relationships, which will lead to those indirectly affected.
How did the hackers get in?
Schedules, certificates, absences, but also highly sensitive data such as school psychological research reports: it has only been clarified to a certain extent what the large data set that the cybercriminals stole from the Basel Education Department and published after a failed blackmail attempt. But one thing is clear: confidential data is also covered. And: “We assume that a large number of people in the canton of Basel-Stadt will be affected,” education director Conradin Cramer said at a media conference on Wednesday.

The hackers gained access to the “eduBS” network and spread through security vulnerabilities. The network is available to Basel’s teachers and students and is isolated from the canton’s data network. Accordingly, apparently only the education department is affected by the hacker attack.

For example, grades, learning reports and absences could end up on the dark web, says director of education Cramer. Now the IT team will determine who is affected. These people would be contacted directly.

Those responsible currently assume that the perpetrators were able to penetrate the IT system via a PC that was used for both private and business purposes. Such devices are used, for example, by teachers.

It can be assumed that the data was stolen due to both human and technical errors, says Thomas Wenk, head of digitization and IT at ED. The cyber-attack could have been launched with an innocent-looking phishing email.

The actual hacker attack probably started around the Christmas holidays. He was only noticed when the perpetrators reported to the canton at the end of January with the extortion letter. It must be assumed that at that point they had exhausted their options i.e. stolen large amounts of valuable data.

What is the risk of further attacks?

Marc Ruef has a strong warning:

“Historically, the group uses the ‘heavyweights’ of the IT vulnerabilities that have been published. In other words, those that affect very large, well-known and exposed products. These are exactly the vulnerabilities that people in the cybersecurity industry immediately talk about and sometimes even make the daily press.

This clearly shows that the issue of cyber security must be taken seriously and that new vulnerabilities must be addressed as quickly as possible. This is the only way to minimize the time window for successful attacks. If you don’t, you could be a valuable victim of BianLian or another ransomware gang tomorrow.”

Sources

  • ed.bs.ch: Cybercriminals publish Ministry of Education data on the dark web (press release)
  • avast.io: BianLian ransomware

Source: Watson

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Ella

Ella

I'm Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.

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