Summary

BlueAlpha is a state-sponsored cyber threat group operating under the directive of the Russian Federal Security Service (FSB) that overlaps with the publicly reported groups Gamaredon, Shuckworm, Hive0051, and UNC530. BlueAlpha has been active since at least 2014 and continues to target Ukrainian organizations through relentless spearphishing campaigns to distribute custom malware. Since at least October 2023 BlueAlpha has delivered the custom VBScript malware GammaLoad, enabling data exfiltration, credential theft, and persistent access to compromised networks.

BlueAlpha Abuses Cloudflare Tunneling Service for GammaDrop Staging Infrastructure

BlueAlpha has recently evolved its malware delivery chain to now leverage Cloudflare Tunnels for staging GammaDrop malware, a tactic popularized by cybercriminal threat groups to deploy malware.

Key Findings:

1. BlueAlpha uses Cloudflare Tunnels to conceal its GammaDrop staging infrastructure, evading traditional network detection mechanisms.
2. The group delivers malware through HTML smuggling, leveraging sophisticated techniques to bypass email security systems.
3. DNS fast-fluxing complicates efforts to track and disrupt command-and-control (C2) communications.

How BlueAlpha Exploits Cloudflare Tunnels

Cloudflare offers the tunneling service for free with the use of the TryCloudflare tool. The tool allows anyone to create a tunnel using a randomly generated subdomain of trycloudflare.com and have all requests to that subdomain proxied through the Cloudflare network to the web server running on that host. BlueAlpha leverages this to conceal staging infrastructure used to deploy GammaDrop.

HTML Smuggling

HTML smuggling enables malware delivery through embedded JavaScript in HTML attachments. BlueAlpha has refined this method with subtle modifications to avoid detection. Recent samples show changes in deobfuscation methods, such as using the onerror HTML event to execute malicious code.

GammaDrop and GammaLoad Malware

BlueAlpha’s malware suite is central to its campaigns:

• GammaDrop: acts as a dropper, writing GammaLoad to disk and ensuring persistence
• GammaLoad: a custom loader capable of beaconing to its C2 and executing additional malware

BlueAlpha uses obfuscation techniques, namely extensive amounts of junk code and random variable names to complicate analysis.

Mitigation Strategies

1. Enhance Email Security: Deploy solutions to inspect and block HTML smuggling techniques. Flag attachments with suspicious HTML events like onerror.
2. Restrict Execution of Malicious Files: Implement application control policies to block malicious use of mshta.exe and untrusted .lnk files.
3. Monitor Network Traffic: Set up rules to flag requests to trycloudflare.com subdomains and unauthorized DNS-over-HTTPS (DoH) connections.
4. Leverage Threat Intelligence: Use Recorded Future’s Malware mitigation solution to analyze suspicious files and stay informed about emerging threats.

Outlook

BlueAlpha’s continued use of legitimate services like Cloudflare demonstrates its commitment to refining evasion techniques. Organizations must stay vigilant and invest in advanced detection and response capabilities to counter these sophisticated threats.

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