November 18, 2024 at 04:27AM
Water Barghest, estimated to control over 20,000 IoT devices by October 2024, exploits vulnerabilities to monetize them as proxies on a marketplace. Utilizing automated scripts and the Ngioweb malware, the process from infection to marketplace availability can be completed in under 10 minutes, highlighting its operational efficiency.
**Meeting Notes Takeaways: Water Barghest and Ngioweb Malware**
1. **Overview of Water Barghest**:
– By October 2024, Water Barghest had over 20,000 compromised IoT devices.
– The group monetizes IoT devices by exploiting vulnerabilities and selling them on residential proxy marketplaces.
2. **Compromise Mechanism**:
– Water Barghest employs automated scripts to locate and infect vulnerable IoT devices using public internet data sources such as Shodan.
– Infections utilize Ngioweb malware, which connects the infected devices to command-and-control (C&C) servers, establishing them as proxies.
3. **Efficiency and Speed**:
– The entire process of infection to marketplace availability can take as little as 10 minutes, indicating a highly efficient operational model.
4. **Motivations for Proxy Botnets**:
– Both espionage and financial motives drive the establishment of proxy botnets, providing anonymity for various malicious activities.
– Historical examples include the VPNFilter and Cyclops Blink botnets associated with APT actors.
5. **Connection to Historical Research**:
– The investigation ties back to prior research on Pawn Storm, revealing their use of compromised Ubiquiti EdgeRouter devices for espionage campaigns since April 2022.
6. **FBI Disruptions**:
– Notable FBI operations have targeted associated botnets, including those linked to Water Zmeu, which was disrupted in September 2024.
7. **Discovery of Ngioweb Malware**:
– Advanced analysis identified traces of Ngioweb malware running in memory on compromised EdgeRouter devices.
– The threat actor’s ability to maintain a low profile for years is attributed to careful operational security and high automation.
8. **Operational Errors**:
– Water Barghest gained renewed attention due to the reckless exploitation of a zero-day vulnerability in Cisco IOS XE devices in October 2023.
9. **Automation Details**:
– Water Barghest automates the entire process from finding exploits to selling compromised devices on residential proxy marketplaces, employing VPS workers for continual scanning and infection.
10. **Ngioweb Malware Evolution**:
– The malware has transitioned from targeting Windows systems to various IoT devices, showcasing adaptability and sophistication in exploit techniques.
11. **Characteristics of Ngioweb**:
– The latest version includes advanced features such as disguising itself as a kernel thread and preventing device reboots.
– It targets a wide range of brands, indicating an expansive focus on vulnerabilities across IoT devices.
12. **Residential Proxy Marketplace**:
– Many exit nodes in proxy marketplaces consist of Ngioweb-infected devices, facilitating quick monetization and anonymity for malicious users.
– Payment is exclusively accepted in cryptocurrency, enhancing operational security for the actors involved.
13. **Future Trends and Recommendations**:
– The demand for residential proxy services is expected to increase, posing challenges for enterprises regarding defense against anonymization layers.
– It is crucial to secure IoT devices by limiting exposure to the open internet and implementing robust security measures.
14. **Threat Intelligence Resources**:
– Trend Micro’s Vision One provides tools and insights for detecting threats and managing risks associated with Water Barghest and similar intrusion sets.
By summarizing these points, stakeholders can better understand the operational dynamics and implications of the Water Barghest intrusion set and the broader context of IoT security challenges.