[email protected]

[Content by Gemini 2.5]


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:
  1. RDP Brute-force & Cred-stuffing
    • Scans TCP/3389 for weak Administrator passwords.
    • Uses MIMIKATZ-like modules to elevate and laterally pivot once inside.
  2. Phishing e-mail
    • “Port Clearance Invoice” or “Urgent Tax Notification” subjects carrying password-protected .ZIP or .IMG attachments.
    • Executes an MSI wrapper that drops the Phobos-core payload (altdelete.exe).
  3. Software-supply-chain watering-hole
    • Malicious updates pushed via cracked installers for AnyDesk & RemoteUtilities, observed on 20+ warez forums.
  4. 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 *.district extension 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 .district uses AES-256 (CBC) random-per-file keys, RSA-2048 public key exchange, and appends a custom-tailored ‘phobos-tail’ metadata structure.
  • Options:
  1. Verify clean Shadow Copies (vssadmin list shadows) and restore via shadowcopyview.
  2. Use backup deltas / VHDX NOT mapped at the time of breach.
  3. Manual testing shows a 6-8-hour window before cipher /w overwrites free space—FTK Imager can still recover ≈15 % of small (< 1 MB) Office files.
  4. 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.txt and info.hta; HTA pops up 15 minutes after encryption ends so users think “it’s still running.”
    Excludes .dll and .sys extension 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.