Summary:
The United States, Australia, and the United Kingdom have jointly sanctioned Zservers, a Russia-based bulletproof hosting provider, for facilitating ransomware attacks by supplying critical infrastructure to the LockBit gang. Zservers leased IP addresses and provided hosting services that enabled LockBit affiliates to operate command-and-control servers, chat platforms, and other cybercrime-related infrastructure. The sanctions also targeted Zservers' UK-based front company, XHOST Internet Solutions LP, and six Russian nationals involved in the operation: Alexander Igorevich Mishin, Aleksandr Sergeyevich Bolshakov, Ilya Sidorov, Dmitriy Bolshakov, Igor Odintsov, and Vladimir Ananev.

Mishin and Bolshakov were identified as key administrators responsible for handling LockBit’s virtual currency transactions and supporting its cyberattacks. Canadian authorities linked Zservers to LockBit’s operations when they discovered a laptop running a virtual machine associated with a Zservers IP address and operating a LockBit malware control panel during a 2022 raid on a known LockBit affiliate. In another instance, a Russian hacker acquired IP addresses from Zservers in 2022 to coordinate LockBit’s ransomware activities, while in 2023, Zservers provided infrastructure including a Russian IP address to a LockBit affiliate.


Security Officer Comments:
The U.S. Treasury, the Australian Federal Police, and the UK government emphasized that bulletproof hosting services like Zservers play a critical role in enabling cybercriminal operations by masking identities, locations, and activities. As a result of the sanctions, individuals and entities in the three countries are prohibited from conducting transactions with the designated persons and companies, and their assets will be frozen. Financial institutions and foreign entities engaging in transactions with them could also face penalties.

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Suggested Corrections:
Backup your data, system images, and configurations, regularly test them, and keep the backups offline: Ensure that backups are regularly tested and that they are not connected to the business network, as many ransomware variants try to find and encrypt or delete accessible backups. Maintaining current backups offline is critical because if your network data is encrypted with ransomware, your organization can restore systems.


Update and patch systems promptly: This includes maintaining the security of operating systems, applications, and firmware in a timely manner. Consider using a centralized patch management system; use a risk-based assessment strategy to drive your patch management program.


Test your incident response plan: There's nothing that shows the gaps in plans more than testing them. Run through some core questions and use those to build an incident response plan: Are you able to sustain business operations without access to certain systems? For how long? Would you turn off your manufacturing operations if business systems such as billing were offline?


Check Your Security Team's Work: Use a 3rd party pen tester to test the security of your systems and your ability to defend against a sophisticated attack. Many ransomware criminals are aggressive and sophisticated and will find the equivalent of unlocked doors.


Segment your networks: There's been a recent shift in ransomware attacks – from stealing data to disrupting operations. It's critically important that your corporate business functions and manufacturing/production operations are separated and that you carefully filter and limit internet access to operational networks, identify links between these networks, and develop workarounds or manual controls to ensure ICS networks can be isolated and continue operating if your corporate network is compromised. Regularly test contingency plans such as manual controls so that safety-critical functions can be maintained during a cyber incident.


Train employees: Email remains the most vulnerable attack vector for organizations. Users should be trained on how to avoid and spot phishing emails. Multi-factor authentication can help prevent malicious access to sensitive services.


Link(s):
https://www.infosecurity-magazine.com/news/us-uk-australia-sanction-russia/