On June 2, 2022, CISA (the Cybersecurity and Infrastructure Security Agency), the FBI, the Department of the Treasury and the Financial Crimes Enforcement Network issued a joint Cybersecurity Alert warning companies of the Karakurt Team/Karakurt Lair extortion group, which has “employed a variety of tactics, techniques, and procedures (TTPs), creating significant challenges for defense and mitigation.” According to the Alert, the group does not encrypt data for ransom, but instead steals data, then threatens to auction it off or release it to the public for ransoms ranging from $25,000 to $13,000,000 in Bitcoin.

Not only does Karakurt threaten to auction off the data or release it publicly like many ransomware groups, but it also has contacted victims’ employees, business partners, and clients with harassing emails and phone calls to pressure the victims to cooperate. The emails have contained examples of stolen data, such as social security numbers, payment accounts, and private company emails, as well as sensitive business data belonging to employees or clients. Upon payment of ransoms, Karakurt actors have provided some form of proof of deletion of the files and, occasionally, a brief statement explaining how the initial intrusion occurred.

According to the Alert, as of May 2022, Karakurt’s website “contained several terabytes of data purported to belong to victims across North America and Europe, along with several ‘press releases’ naming victims who had not paid or cooperated, and instructions for participating in victim data ‘auctions.’”

The methods used by Karakurt to obtain access to devices include:

  • Purchasing stolen login credentials
  • Cooperation with other cybercriminals who provide access to compromised company networks
  • Buying access to already compromised data through “third-party intrusion broker networks”

The intrusions exploit software vulnerabilities such as Log4j or outdated versions of software, and phishing and spearphishing campaigns.

The Alert and mitigation steps can be accessed here.

Photo of Linn Foster Freedman Linn Foster Freedman

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She is a member of the Business Litigation Group and the Financial Services Cyber-Compliance Team, and chairs the firm’s Data Privacy and Security and Artificial Intelligence Teams. Linn focuses her…

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She is a member of the Business Litigation Group and the Financial Services Cyber-Compliance Team, and chairs the firm’s Data Privacy and Security and Artificial Intelligence Teams. Linn focuses her practice on compliance with all state and federal privacy and security laws and regulations. She counsels a range of public and private clients from industries such as construction, education, health care, insurance, manufacturing, real estate, utilities and critical infrastructure, marine and charitable organizations, on state and federal data privacy and security investigations, as well as emergency data breach response and mitigation. Linn is an Adjunct Professor of the Practice of Cybersecurity at Brown University and an Adjunct Professor of Law at Roger Williams University School of Law.  Prior to joining the firm, Linn served as assistant attorney general and deputy chief of the Civil Division of the Attorney General’s Office for the State of Rhode Island. She earned her J.D. from Loyola University School of Law and her B.A., with honors, in American Studies from Newcomb College of Tulane University. She is admitted to practice law in Massachusetts and Rhode Island. Read her full rc.com bio here.