Shutterfly, an American photography, photography products, and image sharing company, has been infected by Conti Ransomware. The Ransomware attack is allegedly encrypting thousands of devices and stealing corporate data.
While many will associate Shutterfly with their website, the company also have a range of service aimed at enterprise and education customers through various brands such as GrooveBook, BorrowLenses, Shutterfly.com, Snapfish, and Lifetouch.
The main website can be used to upload photos to create photo books, personalized stationery, greeting cards, postcards, and more.
It is believed that the original Conti Ransomware attack occurred approximately two weeks ago and that the Conti gang encrypted over 4,000 devices and 120 VMware ESXi servers.
Reporters at BleepingComputer believe that negotiations between Shutterfly and the Conti Ransomware gang are underway and that the gang is demanding millions of dollars as a ransom.
Before ransomware gangs encrypt devices on corporate networks, they commonly lurk inside for days, if not weeks, stealing corporate data and documents. These documents are then used as leverage to force a victim to pay a ransom under the threat that they will be publicly released or sold to other hackers.
The Conti Ransomware gang has created a Shutterfly leak page containing screenshots of files allegedly stolen during the ransomware attack, as part of this ” double-extortion” tactic. The attackers threaten to make this page public if a ransom is not paid.
It is believed these screenshots include legal agreements, bank and merchant account info, login credentials for corporate services, spreadsheets, and what appears to be customer information, including the last four digits of credit cards.
Shutterfly’s statement on the attack states that Shutterfly.com, Snapfish, TinyPrints, or Spoonflower sites were not affected by the attack. However, their corporate network, Lifetouch, BorrowLeneses, and Groovebook had disrupted services. The statement can be read below:
“Shutterfly, LLC recently experienced a ransomware attack on parts of our network. This incident has not impacted our Shutterfly.com, Snapfish, TinyPrints or Spoonflower sites. However, portions of our Lifetouch and BorrowLenses business, Groovebook, manufacturing and some corporate systems have been experiencing interruptions. We engaged third-party cybersecurity experts, informed law enforcement, and have been working around the clock to address the incident.”
“As part of our ongoing investigation, we are also assessing the full scope of any data that may have been affected. We do not store credit card, financial account information or the Social Security numbers of our Shutterfly.com, Snapfish, Lifetouch, TinyPrints, BorrowLenses, or Spoonflower customers, and so none of that information was impacted in this incident. However, understanding the nature of the data that may have been affected is a key priority and that investigation is ongoing. We will continue to provide updates as appropriate.” – Shutterfly.
Conti Ransomware Analysis
Note: The Analysis of Conti Ransomware was carried out by researchers at Vipre Labs.
Conti ransomware encrypts the files of their victims and publishes the data on their website similar to what other strains do. This extortion behavior is visible on their ransom note saying “We’ve downloaded your data and are ready to publish it on our news website”.
When executed, it will start to encrypt files and change the file extension of the encrypted files to .ODMUA. Like other ransomware, it will leave a ransom note that has a filename “readme.txt”.
The Conti ransomware website has an instruction on how to upload the README.txt for the decryption and a contact button at the bottom left of the page. Once you click the contact button, a form will appear where you will provide your contact information and question as shown below.
Conti ransomware will perform a known malware technique called process hollowing. It is where the malware will create a process in a suspended state, unmaps or removes the PE image layout from a given process space using ZwUnmapViewofSection function, write it’s malicious code using WriteProcessMemory, set a new entry point using SetThreadContext, and resume the execution of the suspended process using the ResumeThread function.
Upon research, we found out that the use of -p argument is to encrypt a specific directory with a single thread and the -m argument is to encrypt the files with multiple threads. It means that Conti ransomware has a multi-threading capability. Multi-threading is where main ransomware creates child threads to speed up the encryption.
It will use a string “hsfjuukjzloqu28oajh727190” that was decrypted using the decryption of string routine mentioned above for creating a mutex using CreateMutexA function. Then check if there’s an already running mutex. This was commonly used by ransomware to avoid infecting the system more than once.
It will also delete all the shadow volume copies on the infected system to ensure that the victims won’t be able to recover their encrypted files.
After deleting the shadow copies, Conti ransomware will now start its file encryption by first creating the ransom note which will be first drop in C drive using “CreateFileW” and write the content of its ransom note using “WriteFile”.
As with other ransomware, it will utilize the functions “FindFirstFileW” and “FindNextFileW” to find the files they will encrypt. Conti ransomware has a list of files/file extension and directories which will be excluded for the infection.
When Conti finds the file to be encrypted, it will now generate keys that will be used to encrypt the files. It will used the handle returned by calling the function “CryptAcquireContext” that request a cryptographic context from the Microsoft Enhanced Cryptographic Provider, then the “CryptGenRandom” function to generate cryptographically random bytes, and “CryptEncrypt” function. It leverages AES 256 encryption for their infection.
Then it will open the target file using the “CreateFile” function and retrieve the size of the target file using “GetFileSize”. After this the malware will decrypt different file extensions and check if the file extension of the targeted file is in the list.
Conti ransomware will not just encrypt the files of the infected machine but also spreads and infects the other machine on the same network using SMB protocol.
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