In recent weeks, Microsoft Security teams have been actively tracking a large-scale social engineering and extortion campaign against multiple organizations with some seeing evidence of destructive elements. As this campaign has accelerated, our teams have been focused on detection, customer notifications, threat intelligence briefings, and sharing with our industry collaboration partners to understand the actor’s tactics and targets. Over time, we have improved our ability to track this actor and helped customers minimize the impact of active intrusions and in some cases worked with impacted organizations to stop attacks prior to data theft or destructive actions. Microsoft is committed to providing visibility into the malicious activity we’ve observed and sharing insights and knowledge of actor tactics that might be useful for other organizations to protect themselves. While our investigation into the most recent attacks is still in progress, we will continue to update this blog when we have more to share.
The activity we have observed has been attributed to a threat group that Microsoft tracks as DEV-0537, also known as LAPSUS$. DEV-0537 is known for using a pure extortion and destruction model without deploying ransomware payloads. DEV-0537 started targeting organizations in the United Kingdom and South America but expanded to global targets, including organizations in government, technology, telecom, media, retail, and healthcare sectors. DEV-0537 is also known to take over individual user accounts at cryptocurrency exchanges to drain cryptocurrency holdings.
Unlike most activity groups that stay under the radar, DEV-0537 doesn’t seem to cover its tracks. They go as far as announcing their attacks on social media or advertising their intent to buy credentials from employees of target organizations. DEV-0537 also uses several tactics that are less frequently used by other threat actors tracked by Microsoft. Their tactics include phone-based social engineering; SIM-swapping to facilitate account takeover; accessing personal email accounts of employees at target organizations; paying employees, suppliers, or business partners of target organizations for access to credentials and multifactor authentication (MFA) approval; and intruding in the ongoing crisis-communication calls of their targets.
The social engineering and identity-centric tactics leveraged by DEV-0537 require detection and response processes that are similar to insider risk programs–