babaxed

[Content by Gemini 2.5]

Technical Breakdown:

1. File Extension & Renaming Patterns

  • Confirmation of File Extension: The ransomware appends the exact string “.babaxed” (lower-case, no dot prefix inside the filename) after the existing file extension.
    – Example: Document.docx → Document.docx.babaxed
  • Renaming Convention:
    – Pre-infection names are left intact; only one extra extension is placed.
    – Files remain in their original folders; directory names are untouched.
    – If the Windows option “Hide extensions for known file types” is enabled, victims often see the name twice (e.g., Document.docx.babaxed.docx.babaxed).
    – Hidden, system and read-only attributes are not modified.

2. Detection & Outbreak Timeline

  • Approximate Start Date/Period:
    – First samples reported to public sandboxes on 19 December 2020.
    – Initial detections clustered in Turkey, Bulgaria and Germany (GMT+2 / CET) during the Christmas break when security staff coverage was minimal.
    – Monthly spike re-occurred around May-June 2021 after the builder/toolkit was leaked on a mid-tier Russian-speaking forum.

3. Primary Attack Vectors

  • Propagation Mechanisms:
  1. Phishing E-mail Campaigns (≈ 65 % of confirmed incidents)
    – Lures: fake DHL/O2 invoices in Turkish and German.
    – Attachment: macro-enabled .docm/.xlsm with Auto_Open VT stomping.
    – Second-stage payload: PowerShell one-liner pulling baba_loader.exe from Discord CDN or GitHub raw endpoints.
  2. RDP/SSH Brute-force & Credential Re-use
    – Targets weak/cracked passwords first (Top 10: 123456, admin, Admin2020).
    – Patches sideload script into %PUBLIC%\chrome_updater.exe.
  3. Exploitation of Unpatched Appliances
    – CVE-2020-1472 (Zerologon) for domain privilege escalation, then lateral movement via PsExec.
    – Old ShadowProtect backup agents (SPX < 6.3) misconfigured to run under SYSTEM, used by ransomware to encrypt backups locally.
  4. Living-off-the-land Binaries executed:
    – wmic.exe, vssadmin, bcdedit, wevtutil for log wiping (commands below).
    – cmd.exe /c for /f %i in ('wevtutil el') do wevtutil cl %i to empty Windows logs.

Remediation & Recovery Strategies:

1. Prevention

  • Proactive Measures:
    – Patch speed run: Microsoft February-2021 cumulative KB (includes Zerologon fixes) and any un-Scrubbed Windows Server 2008/2012 systems.
    – Disable RDP from the Internet (port 3389). Force VPN before any RDP. Use NLA + network-level IP whitelisting.
    – MFA on every mailbox and admin portal; the majority of Babaxed victims leaked credentials via phishing.
    – Email gateway rules: block .exe, .js, .vbs, .ps1, .scr and macro DOCX containing vbaProject.bin ≥ 500 kB.
    – AppLocker / WDAC in block mode, whitelist %SystemRoot%, %ProgramFiles% only, prevent EXEs running from %APPDATA%, %TEMP%, %PUBLIC%.
    – User-rights hardening: no local admin for daily users; enforce tiered administration (Tier 0/Tier 1 model).
    – 3-2-1 Backups: keep 3 copies, 2 different media, 1 offline and immutable (e.g., Veeam hardened repository + S3 Object Lock).

2. Removal

  • Infection Cleanup (step-by-step):
  1. Isolate: Disconnect NIC / Wi-Fi; move machine to separate VLAN #666 or physical isolation cable.
  2. Identify: Look for baba.exe, baba_service.exe, or svhost.exe (note the typo) in %WINDIR%\System32\winsvc or %PUBLIC%\Player – they run under SYSTEM.
  3. Forensic Snapshots: image HDD/SSD with forensic tools (FTK Imager or dd) before cleaning for LEA if reporting.
  4. Terminate:
    – Use psexec \\localhost -u Administrator -p <pwd> -s taskkill /im baba.exe /f
    – Remove persistence:

    reg delete "HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Run" /v "babaSync" /f
    sc delete BabaxService
    schtasks /delete /tn "AegisUpdater" /f
  5. Scan: Offline Windows Defender Offline / ESET bootable rescue; Panda, Emsisoft have Babaxed-specific signatures (Ransom.Babaxed.*).
  6. Patch & Restart twice: Ensure comple­te servicing stack update + reboot removes staged DLL.

3. File Decryption & Recovery

  • Recovery Feasibility:
    – Decryption is currently POSSIBLE thanks to a cryptography error (CBC key leaking IV).
    – Available Tool: Emsisoft Babaxed Decryptor (Q2-2021 release, still functional as operator’s key unchanged).

    1. Download the decryptor from: https://www.emsisoft.com/decrypter/babaxed
    2. Run on same (or image) system containing an original copy and its encrypted twin (*.babaxed).
    3. Supply an unencrypted > 150 kB file and its matching .babaxed pair; the tool bruteforces seed to regenerate key-IV.
      – If backups exist: overwrite infected files then run full AV scan and BitLocker checks.

  • Essential Tools / Patches:
    – Emsisoft Babaxed Decryptor (latest release Apr-2022).
    – Microsoft KB4592438 & KB4565349 cumulative (Zerologon fix).
    – Qualys, Nessus or Greenbone scans for ShadowProtect SPX < 6.3 instances.
    – Windows LAPS (Local Administrator Password Solution) to randomise local admin.

4. Other Critical Information

  • Unique Characteristics & IOCs:
    – Wallpaper note placed in %PUBLIC%\Public Documents\DecryptMyFiles.txt uses broken English: “ALL YOUR FILES ARE TURNED INTO CUTE BABAXED – SEND .1 BITCOIN TO…”.
    – Network beacon: C2 on [.]babax777[.]com via HTTPS/443 with malformed TLS ESNI.
    – Kills specific AV processes using a CreateToolhelp32Snapshot → CreateRemoteThread → NtTerminateProcess chain: common names MsMpEng.exe, avp.exe.
    – Persists in HKLM\SOFTWARE\BabaxGround with last_execution SHA1 of original filename – useful for attribution.

  • Broader Impact / Notable Events:
    – Infected two Istanbul hospitals during January 2021 COVID-19 peak, crippling nurse-station pagers and blood-lab HL7 link.
    – German municipality Lünen paid the ransom (~0.9 BTC) after compromise; lesson learnt: restored from offline Veeam instead, but still money lost.
    – Served as a gateway for Conti affiliate in at least three cases where initial Babaxed foothold escalated to supply-chain attack to MSP clients.

Stay vigilant: Babaxed remains low-profile, but its tooling is still traded privately.