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Scattered Spider Arrests Slow Group as Copycats Exploit VMware Hypervisors

Authorities warn that other hackers are adopting Scattered Spider’s VMware hypervisor tactics after arrests paused the group’s latest ransomware surge

Scattered Spider
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Scattered Spider Launching Ransomware on Hijacked VMware Systems, Google
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Overview

  • Recent UK arrests of alleged UNC3944 members have led to a measurable drop in Scattered Spider’s direct intrusions, according to Mandiant Consulting
  • A joint advisory from the FBI, CISA and international partners highlights the group’s refined social engineering and new malware tools, including Teleport, AnyDesk, RattyRAT and DragonForce ransomware
  • Attackers leverage phone-based help desk impersonation to reset privileged Active Directory credentials, reboot vCenter servers into single-user mode and gain covert ESXi shell access for data theft and ransomware deployment
  • Security experts report that rival threat actors such as UNC6040 have rapidly adopted Scattered Spider’s hypervisor-level playbook, maintaining pressure on retail, insurance, airline and transportation sectors
  • Defensive measures urged by authorities include disabling direct ESXi shell access, encrypting virtual machine data, isolating backups, enforcing phishing-resistant multi-factor authentication and re-architecting VMware environments before vSphere 7 reaches end-of-life