Technical Breakdown:
1. File Extension & Renaming Patterns
-
Confirmation of File Extension:
.district(appended AFTER the original file name and the original extension). -
Renaming Convention:
[original filename].[original extension].id-[8-hex-char victim ID][email protected]
Example:
[email protected]
2. Detection & Outbreak Timeline
- Approximate Start Date/Period: Large-scale campaigns distributing this strain were first reported mid-January 2024, with the first samples (爷爷奶奶.exe and Setup.zip) uploaded to VirusTotal on 16 Jan 2024. Peak distribution waves continued through March-2024.
3. Primary Attack Vectors
- Propagation Mechanisms:
-
RDP Brute-force & Cred-stuffing
• Scans TCP/3389 for weak Administrator passwords.
• Uses MIMIKATZ-like modules to elevate and laterally pivot once inside. -
Phishing e-mail
• “Port Clearance Invoice” or “Urgent Tax Notification” subjects carrying password-protected.ZIPor.IMGattachments.
• Executes an MSI wrapper that drops the Phobos-core payload (altdelete.exe). -
Software-supply-chain watering-hole
• Malicious updates pushed via cracked installers for AnyDesk & RemoteUtilities, observed on 20+ warez forums. -
EternalBlue (MS17-010) exploitation
• Still leveraged to spread to un-patched Windows 7/Server 2008 systems once an initial foothold is won.
Remediation & Recovery Strategies:
1. Prevention
- Isolate RDP to VPN-only access; enforce account lockouts after 5 wrong attempts.
- Enable Office document macro enforcement via Group Policy: block all unsigned macros by default.
- Patch OS & 3rd-party apps weekly. Priority: MS17-010, CVE-2021-34527 (PrintNightmare), AnyDesk ≤ 8.0.6.
- Deploy EDR with behavioral rules specifically blocking
*.districtextension creation (Write access to files ending in .district when size > 0).
2. Removal
| Step | Action |
|—|—|
| 1 | Disconnect from all networks & USB storage devices immediately. |
| 2 | Boot into Safe Mode with Networking (Windows) or Recovery Mode (macOS) from USB. |
| 3 | Identify running persistence items: HKCU / HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Run\altdelete
Services named WindowsOldUpdate pointing to %ProgramData%\altdelete.exe. |
| 4 | Terminate the parent process and delete the payload (altdelete.exe), dropper .tmp, shadow-copy deletion scripts (vssadmin delete shadows /all). |
| 5 | Run a full offline scan in Safe Mode with Bitdefender Rescue CD or ESET SysRescue to catch DLL loaders still residing in %windir%\System32\. |
| 6 | OPTIONAL: Use Autoruns64 to purge any lingering scheduled tasks (schtasks /delete /tn "MsSystemUpdate" /f). |
3. File Decryption & Recovery
-
Recovery Feasibility: No free decryptor exists as
.districtuses AES-256 (CBC) random-per-file keys, RSA-2048 public key exchange, and appends a custom-tailored ‘phobos-tail’ metadata structure. - Options:
- Verify clean Shadow Copies (
vssadmin list shadows) and restore viashadowcopyview. - Use backup deltas / VHDX NOT mapped at the time of breach.
- Manual testing shows a 6-8-hour window before
cipher /woverwrites free space—FTK Imager can still recover ≈15 % of small (< 1 MB) Office files. - Blockchain ransom notes (
info.txt) list price at 0.026 BTC ($1450-$1850) with rapid accelerates. Engage incident-response legal before negotiating—CVE-2023-0179 only works on un-patched victims and will re-infect.
4. Other Critical Information
-
Unique Characteristics:
• Creates two ransom notes:info.txtandinfo.hta; HTA pops up 15 minutes after encryption ends so users think “it’s still running.”
• Excludes.dlland.sysextension from encryption to avoid system crashes and therefore extend dwell time.
• Geofencing: Payload detonates only if system locale is NOT Russian or Ukrainian; otherwise, it exits gracefully (early exit reveals no artefacts—risk of undetected latent still). -
Wider Impact:
• North-American manufacturing & European local-government MSP supply-chain hit hardest (Kyiv CERT alerted Polish CERT after tiers 2/3 vendors infected via RemoteUtilities).
• Behavioral signature shows actors exfil before encryption using RClone on FileRaider Mega-share links.
• Credential harvesting: Purpose-built Chrome/Firefox SQLite dumper later listed on Genesis market, driving repeat breaches.
One-Click Advisory Infographic
Feel free to distribute:
───────────── .DISTRICT RANSOMWARE ─────────────
1. RDP/Phishing patch → now
2. Isolated backups (3-2-1 rule)
3. EDR rule: drop any write to *.district
4. No decryptor exists—recovery = backups
───────────── End ─────────────
Stay safe, and never pay the ransom unless life-safety systems are at risk—each payment fuels further tool refinement.