In this enlightening discussion, Richard Boscovich, Assistant General Counsel at Microsoft, Jason Lyons, Principal Investigator at DCU, and Bob Erdman, Associate VP at Fortra, tackle the illegal use of cracked Cobalt Strike in cybercrime. They shed light on innovative DMCA strategies to combat piracy globally and discuss the significant impact of these initiatives on detection engineering. The trio also expresses optimism about extending these methods to other cyber threats, emphasizing the importance of collaboration between the public and private sectors in enhancing cybersecurity.
The collaborative effort between Microsoft and Fortra effectively disrupted the distribution of cracked Cobalt Strike, significantly reducing its prevalence and impact on ransomware attacks.
Utilizing a creative application of the DMCA, the teams established legal precedents to expedite takedowns of sites promoting cracked Cobalt Strike, enhancing their overall cybercrime combating strategy.
Deep dives
Cracked Cobalt Strike Takedown Initiative
A major initiative was launched to dismantle the use of cracked Cobalt Strike in ransomware attacks, initiated in collaboration with Fortra. This effort stemmed from a realization that many ransomware groups were leveraging cracked versions of Cobalt Strike to facilitate their attacks, which employ sophisticated lateral movement techniques to extract data from targets. By understanding the broader ransomware ecosystem, the teams coordinated their resources and strategies to effectively target various malware groups simultaneously. The operation aimed to disrupt the distribution of this tool and gather intelligence on threat actors utilizing it.
Legal Mechanisms and the DMCA
The operation leveraged the Digital Millennium Copyright Act (DMCA) in a creative manner to address malware distribution, including cracked Cobalt Strike. By exploring the legal precedents, notably the Google vs. Oracle case, the team established that APIs are copyrightable, allowing legal action against infringing malware that utilized Microsoft’s APIs. Instead of pursuing the traditional DMCA routes, the team sought court orders, enabling swifter takedowns of infringing sites and domains hosting cracked versions of the software. This approach proved effective, as it reduced the typical delays associated with DMCA notifications and significantly minimized public harm from ransomware.
Data Gathering and Multi-Source Approach
The identification of cracked Cobalt Strike instances involved a comprehensive multi-source approach, combining data from various tools and services. Microsoft utilized internal telemetry from Windows Defender, which recognizes all versions of Cobalt Strike as malware, along with external threat intelligence from companies like RiskIQ and tools like Shodan. By conducting frequency analyses on detected beacons, the teams could discern watermarks from legitimately issued software versus maliciously altered versions. This collaborative effort ensured a robust detection strategy to pinpoint and take down cracked Cobalt Strike versions efficiently.
Significant Reductions in Threats
The initiative has led to a noticeable reduction in the prevalence of cracked Cobalt Strike, significantly impacting active command and control (C2) servers. Initially, there were approximately 1,000 observed Cobalt Strike C2 servers daily, a figure that has since plummeted to around 200, indicating the operation's success. The decline not only reflects on the immediate effectiveness of the takedown strategy but also instills a degree of caution among those distributing or utilizing cracked software. Moving forward, the focus will be on maintaining and building upon these gains, expanding efforts to tackle other prevalent cyber threats within the ecosystem.
On this week's episode of The Microsoft Threat Intelligence Podcast, we discuss the collaborative effort between Microsoft and Fortra to combat the illegal use of cracked Cobalt Strike software, which is commonly employed in ransomware attacks. To break down the situation, our host, Sherrod DeGrippo, is joined by Richard Boscovich, Assistant General Counsel at Microsoft, Jason Lyons, Principal Investigator with the DCU, and Bob Erdman, Associate VP Research and Development at Fortra. The discussion covers the creative use of DMCA notifications tailored by geographic region to combat cybercrime globally. The group express their optimism about applying these successful techniques to other areas, such as phishing kits, and highlight ongoing efforts to make Cobalt Strike harder to abuse.
In this episode you’ll learn:
The impact on detection engineers due to the crackdown on cracked Cobalt Strike
Extensive automation used to detect and dismantle large-scale threats
How the team used the DMCA creatively to combat cybercrime
Some questions we ask:
Do you encounter any pushback when issuing DMCA notifications?
How do you plan to proceed following the success of this operation?
Can you explain the legal mechanisms behind this take-down?