FireEye have published their Advanced Threat Report for the first half of 2012. The results are based on their knowledge of Advanced Persistent Threats and the rest of the malware market.

Their key findings are:

  • Organizations are seeing a massive increase in advanced malware that is bypassing their traditional security defenses.
  • The patterns of attack volumes vary substantially among different industries, with organizations in healthcare and energy/utilities seeing particularly high growth rates.
  • The dangers posed by email-based attacks are growing ever more severe, with both link and attachment-based malware presenting significant risks.
  • In their efforts to evade traditional security defenses, cybercriminals are increasingly employing limited-use domains in their spear phishing emails.
  • The variety of malicious email attachments is growing more diverse, with an increasing range of files evading traditional security defenses.

Finding 1: Explosion in Advanced Malware Bypassing Traditional Signature-Based Defenses

The malicious advanced malware organizations have to contend with has grown dramatically, not just in terms of volume, but in its effectiveness in bypassing traditional signature-based security mechanisms. On average, organizations are experiencing a staggering 643 Web-based malicious events each week, incidents that effectively penetrate the traditional security infrastructure of organizations and infect targeted systems.

This figure includes file-based threats that are delivered over the web and email. File-based threats can be malicious executables, or files that contain exploit s targeting vulnerabilities in applications. They are downloaded directly by users, via an exploit, or links in emails. The statistic of 643 infections per week does not include callback activities, which largely happen over the Web.

Compared to the second half of 2011, the number of infections per company rose by 225% in the first half of 2012. If you compare the first six months of 2011 with the first six months of 2012, the increase seen is even larger at 392%.

These figures are not the total found in the so-called “wild”, but are the number of Web-based infections that successfully evaded organizations’ existing security defenses, such as next-generation firewalls and AV.

  • Users remain very susceptible to clicking on malicious links, especially when those links exploit social engineering tactics.
  • Embedding malicious code within Hypertext Transfer Protocol (HTTP) traffic is proving effective at bypassing traditional security mechanisms.
  • As a result of these two dynamics, cybercriminals see that their tactics are working, so the number of attacks they launch continues to grow

Explosive Growth in Advanced Malware Infections

  • Growth from 2H 2011 to 1H 2012: 225%
  • Growth from 1H 2011 to 1H 2012: 392%

Finding 2: Patterns of Attacks Vary Substantially by Industry—Attacks on Healthcare up 100%, 60% in Energy/Utilities

When assessing the average number of incidents that evade traditional security defenses, patterns and trends vary substantially across industries. For the most part, each industry experiences peaks in attack volumes at different times.

A couple of industries that are prone to high incidents were excluded from this report. Education was excluded since little, if any, control can be had over student systems and in general students are surfing more and visiting more risky sites. Also government was excluded since it is common for government agencies to receive data from FireEye but not send information back to FireEye.

The figures below illustrate the monthly incidents, including inbound attacks as well as outbound exfiltration and communication attempts. These incidents were identified by the FireEye MPS appliances deployed globally within the networks of customers and technology partners.

Healthcare

Between January 2012 and June 2012, the number of events detected at healthcare organizations has almost doubled. Compared to other industries, however, there has been a more consistent pattern of malicious activity, indicating a persistent and steady threat confronting these organizations.

As healthcare organizations move toward the adoption of electronic health record systems and digitally store and manage Personally Identifiable Information (PII), these sensitive assets seem to be coming under increasing attack by cybercriminals.

Financial Services

Between the second half of 2011 and the first half of 2012, the financial services industry has seen a massive increase in terms of the average number of events per customer for that industry. In May 2012 the industry saw more events than the entire second half of 2011. Compared to healthcare, there have been more dramatic fluctuations in this market. The most dramatic shift discovered was a huge spike in May 2012, followed by a drop-off in June, which was a pattern also seen in May and June of 2011.

Technology

Companies in the technology sector continue to be the most targeted organizations. While total numbers have remained relatively stable on a month-to-month basis, overall numbers remain high compared to other industries.

Energy/Utilities

In the energy/utilities sector, there have also been some significant fluctuations in incidents, however the overall trend indicates a huge increase. In the past six months, energy and utility organizations have seen a 60% increase in incidents.

As the Night Dragon attack dramatically illustrated, critical infrastructures of energy and utility companies are under attack. In this case, criminals went after intellectual property, information on ongoing exploration, and records associated with bids on oil and gas reserves. Due to current geopolitical dynamics, data surrounding the sources of fossil fuel-based energy in particular are some of the most targeted assets.

Finding 3: The Intensified Dangers of Email-Based Attacks, Both Via Links and Attachments

While the APT attacks that have been reported on in recent years have exhibited a range of different tactics, it is clear that there is one very common characteristic: email is the primary channel through which the attacks are initiated. Operation Aurora, GhostNet, Night Dragon, the RSA breach, and the majority of the other APTs that have been publicly documented have been initiated at least in part through targeted spear phishing emails. The bottom line is that organizations looking to stop APTs absolutely have to have capabilities for detecting and guarding against these kinds of attacks.

To gain entry into an organization’s network, cybercriminals are launching their attacks through spear phishing emails. These emails either use attachments that exploit zero-day vulnerabilities or malicious and dynamic URLs. Between 1Q 2012 and 2Q 2012, there was a 56% increase in the amount of email-based attacks that successfully penetrated organizations’ traditional security mechanisms.

During the course of 2012, there has been significant fluctuation in the amount of malware delivered via attachments versus links. In January 2012, the number of malicious links represented about 15% of the volume of malicious emails. By May and June however, the volume of malicious links outnumbered malicious attachments.

Moving forward, we expect to see continued fluctuation in the relative numbers of these categories on a monthly basis, but don’t expect that either one will dramatically or permanently overtake the other in the long term. The critical takeaway is that both of these types of threats exist in significant numbers, and that organizations need to guard against both of these threat vectors to effectively strengthen their security posture.

As zero-day application vulnerabilities are patched, file attachments used in attacks wane and cybercriminals return to Web-based vectors. However, as we have seen in the past, a new crop of zero-day application vulnerabilities is always just around the corner, leading cybercriminals to return to file attachment-based attacks.

Finding 4: Increased Prevalence of Limited-Use Domains in Spear Phishing Attacks

In their efforts to bypass organizations’ security mechanisms, cybercriminals have continued to employ increasingly dynamic tactics. The continued explosion of malicious domains used in spear phishing attacks illustrates the unsolvable problem facing technologies that rely on backward-facing signatures, domain reputation analysis, and URL blacklists.

Criminals are increasingly employing malicious URLs for only a brief period of time before they move on to using others. “Throw-away” domains are malicious domain names used only a handful of times, say in 10 or fewer spear phishing emails. These domains are so infrequently used that they fly under the radar of URL blacklists and reputation analysis and remain largely ignored and unknown. As the chart on the next page illustrates, the number of throw-away domains identified increased substantially in the first half of 2012.

Through social engineering, cybercriminals are personalizing emails and then using throw-away domains to bypass the signature and reputation based mechanisms that organizations rely on to filter out malicious emails. It is important to note that these URLs are sometimes randomly generated, and sometimes tailored to a specific tactic. In the second half of 2011, domains that were seen just once comprised 38% of total malicious domains used for spear phishing.

In the first half of 2012, that figure grew to 46%. The graph below shows that the overall volume of spear phishing emails is increasing and our domain analysis also shows the ratio of emails that use limited-use domains is also on the rise.

Finding 5: Increased Dynamism of Email Attachments

As outlined earlier, email-based attacks are used to initiate the bulk of the APT s reported, and guarding against both malicious attachments and URLs distributed via email is a critical mandate for organizations. Email-based attacks are the first tactic cybercriminals employ in order to get through the target’s perimeter defenses and gain a foothold in the network. As security teams seek to guard against malicious email attachments, however, they are encountering a fundamentally evolving dynamic in the makeup of these files. Just like URLs, the use of malicious attachments is growing increasingly dynamic.

Over the past twelve months, the diversity of attachments that led to infections has expanded dramatically. In the second half of 2011, the top 20 malicious attachments accounted for 45% of attachments that evaded organizations’ perimeter defenses. In the first half of 2012, the variety of malicious attachments increased so that the top 20 malicious attachments only accounted f or 26%, nearly half of the figure in the second half of 2011. These numbers make clear that cybercriminals are changing their malware more quickly, employing a longer list of file names, and reproducing malware and morphing it in an automated fashion. In this way, the task of creating signature based defenses to thwart these malicious files grows increasingly difficult.

Between the second half of 2011 and the first half of 2012, the average number of times a given malicious attachment was sent in an email dropped from 2.44 to 1.87.

FireEye’s conclusions on its report

As this report amply illustrates, organizations are under persistent attack, and the attacks being waged continue to grow more dynamic, effective, and damaging. For organizations that continue to rely solely on firewalls, IPS, AV, and other signature, reputation, and basic behavior-based technologies, it is abundantly clear that compromises and infections will continue to grow. To effectively combat these attacks, it is imperative that organizations augment their traditional security defenses with technologies that can detect and thwart today’s advanced, dynamic attacks. This requires capabilities for guarding against attacks being waged on the Web, and those being perpetrated through email, including spear phishing emails that use malicious attachments and URLs.

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