damarans

[Content by Gemini 2.5]

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.xlsx becomes budget2024-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:
  1. Indiscriminate phishing e-mails with ISO, ZIP, or RAR attachments (malicious LNK or HTA launcher).
  2. 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.
  3. Brute-forcing open or poorly secured Remote Desktop services (TCP 3389 with NLA off) followed by lateral movement via PSExec.
  4. SMBv1/EternalBlue exploit on legacy Windows 7/2008 R2 endpoints not patched for MS17-010.
  5. 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 as sptsvc.sys in System32\drivers\.

2. Removal (Infection Cleanup)

  1. Disconnect the affected machine from all networks (wireless, wired, VPN tunnels).
  2. Boot into Safe Mode w/ Networking or use an offline boot disk (e.g., Microsoft Defender Offline).
  3. Kill the malware service and remove persistence:
    a. Stop Sxperfa service (sc stop sepsyc, rename sepsyc.exe).
    b. Delete HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Run\Sxperfa entry.
    c. Remove the scheduled task that invokes PowerShell from %ProgramData%\Local\<GUID>\.
  4. Individually delete:
    %ProgramData%\WinThld\ → encryption DLL psufx.dll.
    – Registry remnants: HKLM\SYSTEM\CurrentControlSet\Services\Sxperfa.
  5. Linux chattr equivalent on NAS or Samba shares: identify and purge .damarans droppers.
  6. 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.log is 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.