Ransomware Infects About a Quarter of a Million PCs

About 200,000 to 250,000 computers have been infected by the Cryptocker ransomware, with the US and UK worst affected, according to a report by Dell SecureWorks.


Ransomware prevents victims from using their computer normally (e.g., by locking the screen) and uses social engineering to convince victims that failing to follow the malware authors' instructions will lead to real-world consequences. These consequences, such as owing a fine or facing arrest and prosecution, are presented as being the result of a fabricated indiscretion like pirating music or downloading illegal pornography.


Victims of these traditional forms of ransomware could ignore the demands and use security software to unlock the system and remove the offending malware. CryptoLocker changes this dynamic by aggressively encrypting files on the victim's system and returning control of the files to the victim only after the ransom is paid.


Dell Secureworks added that the cyber-criminals responsible were now targeting home internet users after initially focusing on professionals.


"Instead of using a custom cryptographic implementation like many other malware families, Cryptolocker uses strong third-party certified cryptography offered by Microsoft's CryptoAPI," said the report.


The earliest CryptoLocker samples appear to have been released on the Internet on September 5, 2013. Details about this initial distribution phase are unclear, but it appears the samples were downloaded from a compromised website located in the United States, either by a version of CryptoLocker that has not been analysed as of this publication, or by a custom downloader created by the same authors.


Early versions of CryptoLocker were distributed through spam emails targeting business professionals (as opposed to home Internet users). The lure was often a "consumer complaint" against the email recipient or their organisation. Attached to these emails was a ZIP archive with a random alphabetical filename containing 13 to 17 characters. Only the first character of the filename is capitalised. The archive contained a single executable with the same filename as the ZIP archive but with an EXE extension.


On October 7, 2013, CTU researchers observed CryptoLocker being distributed by the peer-to-peer (P2P) Gameover Zeus malware in a typical pay-per-installation arrangement. In this case, Gameover Zeus was distributed by the Cutwail spam botnet using lures consistent with previous malware distribution campaigns.


CryptoLocker hides its presence from victims until it has successfully contacted a command and control (C2) server and encrypted the files located on connected drives. Prior to these actions, the malware ensures that it remains running on infected systems and that it persists across reboots.


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