Locky Ransomware Enters Lockdown Mode

Recently, Locky ransomware has entered an encrypted lockdown mode and it is currently protecting the network communication between victims and the command & control servers with public key encryption.

Locky ransomware was discovered this February and it has already made headlines by encrypting files and shutting down the operations of hospitals and other large organizations. Usually, the ransomware is distributed via emails and it relies on social engineering for its downloader to be opened or activated.

The ransom varies between 200 and 15,000 euro, depending on the company size. Decrypting the files without the key from the Locky developers is not possible.

The changeover gives Locky workings greater secrecy and gives the overlords distributing the ransomware tighter control over their network infrastructure and restricts researchers’ ability to eavesdrop on botnet activities.

The addition of the public key encryption of the network communication throws a wrench in the ability of outsiders to track or even influence Locky activities,” said the malware researcher Moritz Kroll. “You now have to have the RSA private key – the other half of this equation – to tap into the network. And the Locky developers are clearly keeping this to themselves.

Locky Ransomeware has always sent a specific public key to each victim as part of the file encryption process. Currently, it’s also using an RSA public key, which is provided with the sample, to encrypt the keys for C&C communication. The new development has Locky sending out one binary blob with an AES-CTR encrypted connection string as well as one RSA encrypted block with two keys and a HMAC-SHA1 hash.

The private RSA key is needed to extract the request and response keys which then sets off one more decryption of the request message and one hash verification. If you don’t have this RSA key, it is neither possible to understand the request nor to create a response that the Locky Trojan can decrypt and understand,” said Kroll.

The changes mean that a sinkhole can still get IP addresses of victims and geo-locate them, but no longer collect information on infected operating systems, the potential size of the victim, and the ransom demanded.

Considering the lack of a code of honor among thieves, the encryption may be a preemptive step to ensure that the originators remain in control of their enterprise and the Locky brand. Other hackers have already tried to make knock-off versions such as AutoLocky.

It makes you wonder if some other malicious actor was able to sinkhole the Locky C&Cs to distribute their own public keys for encryption with their own ransom text – and this is a way to stop it,” explained Kroll. “The Locky originators could be getting upset: ‘We are doing the real work and someone else is stealing our hard-earned money.”

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