Disrupting Cracked Cobalt Strike [The Microsoft Threat Intelligence Podcast]
Jan 1, 2025
auto_awesome
In this enlightening discussion, Richard Boscovich, Assistant General Counsel at Microsoft, Jason Lyons, Principal Investigator, and Bob Erdman, Associate VP at Fortra, dive into the serious issue of cracked Cobalt Strike software, often exploited in ransomware attacks. They reveal innovative uses of DMCA notifications to disrupt cybercrime globally and share insights on the significant decline in active threats due to their collaborative efforts. The conversation also touches on automation's role in detecting threats and enhancing cybersecurity measures.
The collaborative effort between Microsoft and Fortra aims to leverage innovative DMCA strategies to significantly disrupt the illegal use of cracked Cobalt Strike software in ransomware attacks.
Through extensive automation and data aggregation, the initiative has led to a notable reduction in the visibility and accessibility of cracked Cobalt Strike servers globally.
Deep dives
The Rise of Ransomware and the Focus on Cobalt Strike
The conversation highlights the increasing prevalence of ransomware attacks and the use of cracked Cobalt Strike within these cybercriminal activities. Microsoft initiated an effort in 2021 to better understand and mitigate the ransomware ecosystem's impact on global customers. This included a deep dive into the commonalities among various malware groups and their reliance on cracked versions of Cobalt Strike for lateral movement and data exfiltration. By centralizing their investigative approach, Microsoft aimed to disrupt the distribution and effectiveness of ransomware attacks.
Innovative Legal Approaches to Takedowns
The podcast discusses the creative legal strategies employed to combat cracked Cobalt Strike, particularly utilizing the Digital Millennium Copyright Act (DMCA) in novel ways. Traditional DMCA processes were accelerated by securing court orders, allowing for rapid takedowns of infringing content. The legality of applying copyright protections to software APIs was debated, with significant precedents set in earlier cases influencing current actions. By blending civil actions with law enforcement insights, the effort sought to create a more effective framework for dismantling the infrastructure supporting cybercrime.
Collaboration and Automation in Cyber Defense
A key aspect of the initiative was the collaboration between Microsoft and Fortra, which enabled a broader reach in identifying cracked Cobalt Strike instances. Utilizing automation tools, thousands of DMCA notifications could be sent out daily, drastically increasing the efficiency of takedown operations. Various sources of data, including telemetry from security tools and threat intelligence platforms, were combined to paint a comprehensive picture of the threat landscape. This multi-faceted approach not only streamlined workflows but also enhanced overall visibility into ongoing cyber threats.
Impacts and Future Directions
The impact of the takedown operation has been substantial, with significant reductions in active Cobalt Strike servers observed. The concerted efforts have not only decreased the visibility and access to cracked versions of the tool but also reshaped the geography of where these threats are emerging. As cybercriminals adapt and seek new avenues to exploit, ongoing monitoring and strategic shifts will be essential for the cybersecurity landscape. Both Microsoft and Fortra recognize this as a long-term battle that will require continued innovation and collaboration to maintain momentum against evolving cyber threats.
While we are on our winter publishing break, please enjoy an episode of our N2K CyberWire network show, The Microsoft Threat Intelligence Podcast by Microsoft Threat Intelligence. See you in 2025!
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?