Cybercriminals made a lot of noise in 2017 with ransomware attacks like WannaCry and NotPetya, using an in-your-face approach to cyberattacks that netted them millions of dollars from victims. But new research from IBM X-Force, the threat intelligence, research and incident response arm of IBM Security, revealed that 2018 saw a rapid decline in ransomware attacks as cybercrime gangs shifted tactics to remain under the radar.

Ransomware attacks declined by 45 percent between Q1 2018 and Q4 2018, according to the research. That doesn’t mean cybercrime is on the decline, however. Instead, cybercriminals employed cryptojacking, the stealthy theft of computing power to generate cryptocurrency, at a much higher rate. Cryptojacking surged by 450 percent over the course of 2018, according to the newly released “IBM X-Force Threat Intelligence Index 2019.”

Wendi Whitmore, global lead of the IBM X-Force Incident Response and Intelligence Services (IRIS) team, said in an interview that ransomware was highly successful for several years, but the payoff was starting to decline.

“It appears, for a variety of reasons, cybercriminals are getting less money from ransomware attacks and potentially getting a better return on their investment and their time from cryptojacking,” Whitmore said.

IBM X-Force observed a 45 percent decline in ransomware attacks and a 450 percent increase in cryptojacking over the course of 2018, as shown by the trend lines in this chart.

Cryptojacking and Other Stealth Attacks

The term cryptojacking refers to the illicit use of computing resources to generate cryptocurrency such as bitcoin, which peaked in value at nearly $20,000 in late 2017, and Monero, which has generated millions of dollars for cybercriminals over the past decade.

Cryptojacking involves infecting a victim’s computer with malware or through browser-based injection attacks. The malware uses the processing power of the hijacked computer to mine (generate) cryptocurrency. The spike in central processing unit (CPU) usage may cause systems to slow, and enterprises may be affected by the presence of the malware on their network servers and employee devices.

While less destructive than ransomware, the presence of cryptomining malware in enterprise environments is concerning because it indicates a vulnerability that may be exploited in other attacks.

“The victim doesn’t usually know their computer has been taken over for that purpose,” Whitmore said.

Yet an even stealthier form of attack doesn’t use malware at all. More than half of cyberattacks (57 percent) seen by X-Force IRIS in 2018 did not leverage malware, and many involved the use of nonmalicious tools, including PowerShell, PsExec and other legitimate administrative solutions, allowing attackers to “live off the land” and potentially remain in IT environments longer. These attacks could allow cybercriminals to harvest credentials, run queries, search databases, access user directories and connect to systems of interest.

Attacks that don’t use malware are much more challenging for defense teams to detect, Whitmore said, because they are leveraging tools built into the environment and can’t be identified through signatures or typical malware detection techniques. Instead, defense teams need to detect malicious commands, communications and other actions that might look like legitimate business processes.

“Attackers are identifying that it’s a lot easier to stay in an organization longer-term if they don’t install anything funny that might get detected by a wide variety of technologies, or by really smart defenders who are constantly looking in the environment to identify something that’s new or different,” Whitmore said.

Attackers are infiltrating IT environments with stealthy techniques that target misconfigurations and other system vulnerabilities, Whitmore said, and using tried-and-true methods that are still very difficult to prevent at a wide scale, such as phishing. Publicly disclosed security incidents involving misconfiguration increased by 20 percent between 2017 and 2018, according to X-Force research. Meanwhile, IBM X-Force Red, an autonomous team of veteran hackers within IBM Security who conduct various types of hardware and software vulnerability testing, finds an average 1,440 unique vulnerabilities per organization.

Still, humans represent one of the largest security weaknesses, with 29 percent of attacks analyzed by IBM X-Force involving compromises via phishing emails. Nearly half (45 percent) of those phishing attempts were business email compromise (BEC) scams, also known as CEO fraud or whaling attacks.

These highly targeted attacks are aimed at individuals responsible for making payments from business accounts, claiming to come from someone inside the organization such as the CEO or chief financial officer (CFO). The FBI reported that between October 2013 and May 2018, BEC fraud had cost organizations $12.5 billion.

Read the complete X-Force Threat Intelligence Index Report

Transportation in the Crosshairs

Among the more surprising findings in this year’s X-Force Threat Intelligence Index report is the level of attacks on the transportation industry, which was the second-most attacked industry in 2018, behind only financial services. In 2017, transportation was the 10th most targeted industry, but in 2018 it was targeted in 13 percent of attacks, behind financial services, which was targeted in 19 percent of attacks.

“That was a pretty surprising finding for us,” Whitmore said. “To see the transportation industry emerge as the second-most impacted industry really means that we’re seeing a lot more activity overall in that industry.”

A few factors changed the game this year, Whitmore noted, including the industry’s growing reliance on data, website applications and mobile apps, and the increasing amount of information consumers are sharing. Transportation companies hold valuable customer data such as payment card information, personally identifiable information (PII) and loyalty rewards accounts. Cybercriminals are interested in targeting that information to monetize it.

Additionally, Whitmore said, there’s “a widespread attack surface in the transportation industry, leveraging things like third-party providers with legacy systems and a lot of communications systems that are out of their direct management.”

Proactive Defenses and Agile Response

There are signs that organizations are increasing their security hygiene by applying best practices such as access controls, patching vulnerabilities in software and hardware, and training employees to spot phishing attempts, Whitmore said.

Yet cybersecurity is a daily fight, and the security skills gap means security teams have to be agile and collaborative while augmenting their capabilities with supporting security technologies and services.

The IBM X-Force Threat Intelligence report offers recommendations for organizations to increase preparedness through preventive measures such as threat hunting — proactively searching networks and endpoints for advanced threats that evade prevention and detection tools.

Additionally, risk management models need to consider likely threat actors, infection methods and potential impact to critical business processes. Organizations need to be aware of risks arising from third parties, such as cloud service providers, suppliers and acquisitions.

Finally, the IBM X-Force Threat Intelligence Index emphasizes remediation and incident response. Even organizations with a mature security posture may not know how to respond to a security incident. Effective incident response is not only a technical matter; leadership and crisis communications are key to rapid response and quickly resuming business operations.

Read the complete X-Force Threat Intelligence Index Report

More from Advanced Threats

Black Hat 2022 Sneak Peek: How to Build a Threat Hunting Program

4 min read - You may recall my previous blog post about how our X-Force veteran threat hunter Neil Wyler (a.k.a “Grifter”) discovered nation-state attackers exfiltrating unencrypted, personally identifiable information (PII) from a company’s network, unbeknownst to the security team. The post highlighted why threat hunting should be a baseline activity in any environment. Before you can embark on a threat hunting exercise, however, it’s important to understand how to build, implement and mature a repeatable, internal threat hunting program. What are the components…

4 min read

Top-Ranking Banking Trojan Ramnit Out to Steal Payment Card Data

4 min read - Shopping online is an increasingly popular endeavor, and it has accelerated since the COVID-19 pandemic. Online sales during the 2021 holiday season rose nearly 9% to a record $204.5 billion. Mastercard says that shopping jumped 8.5% this year compared to 2020 and 61.4% compared to pre-pandemic levels. Cyber criminals are not missing this trend. The Ramnit Trojan, in particular, is out for a shopping spree that’s designed to take over people’s online accounts and steal their payment card data. IBM…

4 min read

Detections That Can Help You Identify Ransomware

12 min read - One of the benefits of being part of a global research-driven incident response firm like X-Force Incidence Response (IR) is that the team has the ability to take a step back and analyze incidents, identifying trends and commonalities that span geographies, industries and affiliations. Leveraging that access and knowledge against the ransomware threat has revealed tools, techniques and procedures that can often be detected through the default Windows event logs (WELs). In particular, the X-Force IR team has identified several…

12 min read

How to Report Scam Calls and Phishing Attacks

5 min read - With incidents such as the Colonial Pipeline infection and the Kaseya supply chain attack making so many headlines these days, it can be easy to forget that malicious actors are still preying on individual users. They're not using ransomware to do that so much anymore, though. Not since the rise of big game hunting, anyway. This term marks ransomware actors' shift away from attacks against individual users and towards operations targeting large enterprises, noted CNBC. But attacks like phishing and…

5 min read