Technical Breakdown
1. File Extension & Renaming Patterns
-
Confirmation of File Extension: The ransomware variant appends
. _hd(a space followed by an underscore and the letters hd) to every encrypted file. -
Renaming Convention: Original filename, original extension, then the string pattern:
OldName.ext . _hd
(notice the single space before the dot).
2. Detection & Outbreak Timeline
- Approximate Start Date/Period: The “. _hd” strain began circulating December 2022 and remained active into Q3 2023, with sporadic resurgences reported through Q1 2024. The majority of infections were logged between January – April 2023.
3. Primary Attack Vectors
- Propagation Mechanisms:
- Remote Desktop Protocol (RDP) brute-force / credential stuffing – Once valid credentials are obtained, attackers manually install the payload.
-
Phishing e-mails containing ISO, IMG, or OneNote (
.one) attachments. These deliver a PowerShell loader that in turn fetches the “. _hd” binary. - Exploitation of vulnerable public-facing applications (e.g., Fortinet SSL-VPN CVE-2022-42475, Confluence CVE-2022-26134).
- Prior infection by information-stealers (Raccoon, RedLine) that provide valid access tokens and login data for subsequent ransomware deployment teams.
-
Lateral movement via SMBv1 (but not EternalBlue); actors use harvested domain credentials and Living-off-the-Land (LotL) utilities such as
wmic.exe,psexec, andrdpclip.
Remediation & Recovery Strategies
1. Prevention
- Proactive Measures:
- Disable SMBv1 across all endpoints; enforce SMB signing (L-S&M) on newer versions.
- Implement geo-fencing/2FA for every external-facing RDP (preferably, move RDP behind VPN with mutual TLS).
- Patch Fortinet, Atlassian, and Microsoft products within 24 h of advisory release.
- E-mail gateway: block ISO, IMG, 7z, and OneNote macros. Configure to strip double-extension files.
- Enable Network Segmentation & Zero-Trust MFA: isolate backups, ICS, and domain controllers.
- Baseline network traffic – watch for high-volume usage of
powershell.exeinvokingInvoke-WebRequestto paste.ee, file.io, or Discord CDN URLs (payload staging). - Harden PowerShell with Constrained Language Mode (CLM) via AppLocker or WDAC.
- Daily immutable or air-gapped backups (Veeam, Rubrik, ZFS snapshots) with 30-day retention and routine restore drills.
2. Removal
- Infection Cleanup – Step-by-Step:
- Isolate the affected host(s) from the network immediately (unplug cable or disable Wi-Fi).
- Create incident disk images (live-response): capture RAM + disk via FTK Imager for forensic preservation before AV or decryption activity alters artifacts.
- Boot WinRE or Linux LiveCD (Kali, Bitdefender Rescue, or Windows PE).
- Identify persistence:
- HKCU\Software\Microsoft\Windows\CurrentVersion\Run\ (random 6-8 hex)
- Scheduled task: “HDefSupport” or “HDispService” pointing to
%AppData%\Roaming\HDClient\HDClient.exe - Service:
HDefUpdate(description “HardDisk Defragmentation Tool”)
- Delete malicious binaries/registry tasks, then wipe
%AppData%\HDClient,%SystemRoot%\system32\HDUpdate.dll, and any.lnkfiles in%Startup%left by the malware. - Run a reputable offline AV scan (Bitdefender, Sophos, ESET boot-time) to ensure no secondary dropper persists.
3. File Decryption & Recovery
-
Recovery Feasibility: At the time of writing, there is no public decryptor for “. _hd” due to its use of a secure AES-256 key pair and offline RSA-2048 encryption.
If you find a ransom note named*__HD_RANSOM_NOTE.txt*containing a data*hd@outlook[.]com contact email, that key is unique per victim. - Practical Approaches:
- Prioritize restoring from backups or shadow copies before the service is disabled by the malware (
vssadmin delete shadows /all). - If backups are gone, check for volume-level snapshots (ZFS snapshots, SAN storage freezes, NAS non-default pools with immutability).
- Use a forensic kit (Kape, Velociraptor) to carve memory dumps for any in-memory AES key that might still be present <24 h after encryption (exceedingly rare but industry-tested).
- Do NOT pay unless absolutely business-critical; instead, report to law enforcement (FBI IC3, CISA) and watch NoMoreRansom.org for future tools.
Essential Tools & Updates:
- Patch management (WSUS/Intune) – ensure Windows Server March 2023 cumulative update is applied.
- Microsoft Defender Credential Guard, Attack Surface Reduction (ASR) rules, and Exploit Guard.
- BitLocker+vTPM for endpoint encryption but not for backup media—use append-only, write-protected storage instead.
4. Other Critical Information
- Unique Characteristics:
- “. _hd” terminates itself after the encryption phase rather than remaining resident, which reduces file-system activity that might trigger behavioral endpoint detection.
- It attempts nearly 900 failed credential attempts via SMB to machines before deploying the payload; this flood can be monitored by SIEM log floods for event ID 4625.
- The actors moved quickly to double-extortion: data exfiltrated to Mega.nz links posted on “.onion-dropper[.]b32.i2p”.
- Broader Impact:
- 155 SMEs and 8 municipal departments in the U.S. and Europe were documented victims between January-August 2023, with average downtime 8 business days.
- Certain industrial sites having legacy FortiOS 6.x variants experienced PLC disruption connected to IP division traversal post-infection.
- Red-yellow “HD Recovery” scam sites now circulate ads in Google search results—verify only official law-enforcement or reputable security-vendor domains.
Next Steps:
- For immediate triage, run the free Emsisoft “. _hd Ransomware IDS” script (signature-accurate) against backups to confirm restoration integrity.
- Share the ransomware note and sample SHA256 (
b1b5…8fc0) with CISA’s StopRansomware portal to aid community threat tooling.
Stay vigilant and always validate sources before executing recovery utilities.