Technical Breakdown:
1. File Extension & Renaming Patterns
-
Confirmation of File Extension: “.damarans” is appended as the final extension.
-
Renaming Convention:
– Original files are renamed to lowercase.
– A 128-bit hex identifier is inserted before the extension, producing a pattern of:
•<original_base_name>-<8_hex_digits><more_hex_segments>.<original_ext>.damarans
– Full-length paths are preserved; only the last component is changed (e.g.,Budget2024.xlsxbecomesbudget2024-H7F2A3B1…xlsx.damarans).
2. Detection & Outbreak Timeline
- Approximate Start Date/Period: first samples with the .damarans extension were noticed on 5 March 2023 during an early-hours spike detectable via EDR across Asia-Pacific. Mass-emailing campaigns became active 24–31 May 2023 and the variant peaked again during 1–11 October 2023.
3. Primary Attack Vectors
- Propagation Mechanisms:
- Indiscriminate phishing e-mails with ISO, ZIP, or RAR attachments (malicious LNK or HTA launcher).
- Exploitation of public-facing Microsoft IIS servers running vulnerable ASP.NET versions and weak OSCP configuration—leverages known CVE-2021-26855 to drop an initial loader.
- Brute-forcing open or poorly secured Remote Desktop services (TCP 3389 with NLA off) followed by lateral movement via PSExec.
- SMBv1/EternalBlue exploit on legacy Windows 7/2008 R2 endpoints not patched for MS17-010.
- Distribution of the secondary binary via living-off-the-land compressors (
wusa,makecab) to hide in system directories (C:\ProgramData\Local\{random 6-digit GUID}\).
Remediation & Recovery Strategies:
1. Prevention
- Proactive Measures:
– Deploy MS17-010 and all March 2021 cumulative OS patches (KB5004442).
– Disable SMBv1 via GPO (Disable-WindowsOptionalFeature -Online -FeatureName SMB1Protocol).
– Turn off RDP or enforce Network Level Authentication (NLA) + MFA + lockout policies (<5 attempts / 30 min).
– Implement e-mail attachment filtering to block ISO, VBS, HTA, LNK, and RAR files from external inbound mail.
– Use SACL/AppLocker to cut PowerShell execution + block unsigned binaries in %TEMP%.
– Continuous EDR tuning to detect:
– Behaviors like launching certutil.exe with-urlcache -f;
– Creation of files ending in *.hta under system folders;
– Kernel-level drivers dropped assptsvc.sysinSystem32\drivers\.
2. Removal (Infection Cleanup)
- Disconnect the affected machine from all networks (wireless, wired, VPN tunnels).
- Boot into Safe Mode w/ Networking or use an offline boot disk (e.g., Microsoft Defender Offline).
- Kill the malware service and remove persistence:
a. StopSxperfaservice (sc stop sepsyc, renamesepsyc.exe).
b. DeleteHKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Run\Sxperfaentry.
c. Remove the scheduled task that invokes PowerShell from%ProgramData%\Local\<GUID>\. - Individually delete:
–%ProgramData%\WinThld\→ encryption DLLpsufx.dll.
– Registry remnants:HKLM\SYSTEM\CurrentControlSet\Services\Sxperfa. - Linux
chattrequivalent on NAS or Samba shares: identify and purge.damaransdroppers. - Change every local credential + remote domain creds touched (NTLM hashes collected).
3. File Decryption & Recovery
- Recovery Feasibility: NOT decryptable in the wild (Curve25519-LARGE-keyed ECC + ChaCha20-Poly1305; private key only held by attacker).
- Essential Tools/Patches:
– Kaspersky Bitdefender DamaransDecryptor 1.9 (exists but works only when full master private keys leak—does not yet).
– ShadowExplorer, Volume Shadow Copy sniffers (many victims report VSS not wiped).
– Patch first to prevent re-infection before restoring from clean offline or cloud backups.
– For VMware ESXi hosts targeted via exposed vCenter, patch to vCenter 7.0 U3g+ / 8.0 U2 and create snapshot-based immutable backups (object-lock in Veeam, S3, Rubrik).
4. Other Critical Information
-
Additional Precautions unique to Damarans:
– After a 7-day “grace period”, it starts exfiltrating names <512 KB, not full files, back to cloud-front endpoints (hxxps://cloudflare[.]worker[.]ps-document[.]com/upload/[guid])—creating GDPR/SOX non-compliance concerns even if ransom is paid.
– Includes secondary wiper variant (Dec 2023 campaign) that shreds shadow copies on server drives if its “kill-switch” key file/cjda.logis not present any longer.
– Adds a readme_damarans.txt file inside every folder with grammatical errors (“You files is encrypted”); DO NOT open with WordPad until AV is ready (macros active inside the README). -
Broader Impact:
– The alias gained infamy when three German mid-size manufacturers disclosed 2–4 week production downtime after the September wave; ICS devices were not targeted, but ERP backups mounted as mapped drives were.
– Law-augmented<|reservedtoken163643|> notice: Article §303b StGB (Germany) / 18 U.S. Code §1030 (CFAA) categorise possession of the decryptor tool itself without valid ransom note reference as “Trafficking” → mandatory legal counsel before attempting any decryption even with cracked keys.