LockBit Ransomware: Its History and How It Works

Ransomware has become a common threat in today’s digital environment. This malicious software can encrypt files or block access to the computer system until the victim makes the ransom payment to release data and access. Among all ransomware, application security engineers recognize LockBit for its sophisticated operation and destructive impact on the victim.

This blog covers LockBit ransomware's history, working, associated channels, and infrastructure. It also explores its impact and strategies for safeguarding against ransomware attacks.

Let’s get started!

What is LockBit ransomware?

LockBit ransomware is a type of malicious software that hackers use to lock up files on a computer or network. LockBit ransomware encrypts your files and makes them inaccessible without a unique key. Hackers demand payment, mainly cryptocurrency, to give you access to your essential data.

Hackers often threaten to delete files or leak sensitive information if organizations do not pay the ransom. Ransomware spreads through email attachments, malicious websites, or software vulnerabilities.

As a preventive measure, regularly update software, use antivirus programs, and be cautious with email attachments to prevent infection.

History of LockBit ransomware

Throughout its history, application security engineers and organizations globally have faced significant challenges from ransomware. Here is the history of LockBit ransomware:

1. In September 2019, LockBit ransomware appeared as the ".abcd virus." By January 2020, it rebranded as LockBit. It began operating as Ransomware-as-a-Service (RaaS), allowing affiliates to use it for a share of the ransom, increasing its spread and impact.

2. LockBit ransomware has targeted municipal governments, higher education institutions, and emergency services. Notable attacks targeted Canada (March 2020), the U.S. (January 2020), and New Zealand (March 2021), demonstrating its broad reach and impact on critical sectors.

3. Since its inception, LockBit has undergone several iterations. It evolved with the LockBit 2.0 variant in 2021; the current version, LockBit 3.0, was discovered in June 2022.

How LockBit ransomware Works?

LockBit employs advanced encryption algorithms such as AES (Advanced Encryption Standard) or RSA (Rivest-Shamir-Adleman) to encrypt files on infected systems. In most cases, hackers ensure the victim cannot recover data without paying the ransom. Here are the critical technical aspects of LockBit:

1. It spreads through various distribution methods, including phishing emails, malicious attachments, exploit kits, and illegitimate websites.

2. Attackers often disguise malicious programs as legitimate files or applications to encourage victims to execute them, facilitating the ransomware infection.

3. LockBit ransomware exploits known vulnerabilities in software and network protocols to gain unauthorized access to systems. Common vulnerabilities include SQL injection and XSS (Cross-Site Scripting) attacks.

4. Outdated software apps, unpatched operating systems, and misconfigured network services are easy targets that offer an entry point to launch ransomware attacks.

Stages of LockBit Attacks

LockBit attacks unfold in three distinct stages, as follows:

1. Exploitation: In the first stage, attackers identify and exploit network weaknesses. They breach the system using tactics like phishing, where they impersonate trusted individuals to request access credentials or through brute force attacks on the organization's intranet servers and network systems.

2. Infiltration: Attackers proceed to establish the attack setup if necessary. The LockBit program then operates autonomously, using "post-exploitation" tools to elevate privileges and gain the access needed for the attack. It also explores existing access through lateral movement to assess the target's suitability.

During this stage, LockBit performs any preparatory actions needed before initiating the encryption phase. This may involve disabling security programs and other infrastructure that could stop system recovery.

3. Deployment: This stage involves deploying the encryption payload after readying the network for LockBit's full activation. The ransomware then begins spreading across any reachable machine. LockBit requires minimal resources to carry out this stage, as a single system unit with extensive access can direct other network units to download and execute LockBit.

LockBit ransomware: Communication and Defense Strategies

LockBit ransomware uses secure communication networks, primarily encrypted messaging services, for its channels and infrastructure. These secure channels maintain communication with the command-and-control (C2) servers that the attackers operate.

Attackers use C2 servers as centralized hubs to manage infected systems, execute commands, and negotiate ransom payments with victims. This centralized control allows them to efficiently oversee multiple ransomware operations simultaneously.

To protect themselves, organizations must understand the technical aspects of LockBit ransomware. By knowing how LockBit communicates and controls its operations, security teams can develop targeted strategies to disrupt these communications and mitigate the risks of ransomware attacks. For instance, organizations can monitor network traffic for signs of communication with known C2 servers, implement strict network segmentation, and ensure robust endpoint security measures.

Impact of LockBit ransomware on Organizations

LockBit ransomware causes financial loss, disrupts operations, and triggers legal and regulatory consequences for affected organizations worldwide. Let’s discuss its impact in detail:

1. Financial Losses

LockBit ransomware leads to significant financial losses and potential revenue losses due to disrupted business operations. These disruptions can halt critical processes, delay projects, and erode customer trust, compounding the economic impact. Additionally, recovering from such an attack requires time and resources, adding to the overall burden on the affected businesses.

2. Disrupt Services

Ransomware’s ability to encrypt data can cause downtime, further damaging the organization’s reputation and customer trust. This disruption can lead to a loss of customer confidence and potential financial penalties.

3. Psychological Effects

LockBit ransomware induces stress, anxiety, and fear due to losing access to essential data and concerns about reputational damage. Organizations may also feel helpless and frustrated as they navigate the complexities of dealing with the attack and its aftermath.

4. Legal and Regulatory Implications

Law enforcement agencies can thoroughly investigate non-compliance with data protection regulations, including detailed audits and scrutiny of data handling practices. Additionally, organizations found to be in violation may face significant fines, which can be substantial and have a severe financial impact.

Strategies to Protect Against LockBit Ransomware Attacks

Employing effective response and mitigation strategies will help organizations minimize the impact of these attacks and protect against future incidents. Here are some key strategies you can adopt:

1. Develop A Strict Plan

Application security engineers should prepare a plan for responding to a ransomware attack. This plan should include steps for quickly identifying, containing, and recovering from the attack to minimize damage and downtime.

2. Backup Important Files

Regularly back up important data, update software to fix security loopholes and train employees to recognize phishing emails to minimize the incidents of security breaches in your organization.

3. Install Anti-Ransomware Tools

Use tools like antivirus programs, firewalls, and intrusion detection systems to detect and block ransomware threats. Also, invest in advanced security technologies like endpoint detection and response (EDR) systems to quickly identify and stop ransomware attacks.

4. Collaborate with Cybersecurity Agencies

Report ransomware attacks to law enforcement agencies and cybersecurity organizations. It will allow your organization to investigate the attacks and take legal action against the attackers, ultimately deterring future ransomware incidents.

Final Thoughts

Now that we know how LockBit ransomware works, its impact on organizations, and strategies for responding to and mitigating its effects, application security engineers must act swiftly and proactively to protect organizations from the dangers of LockBit ransomware and similar cyber threats. Waiting until an attack occurs can cause significant damage and loss.

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