At Least 30,000 US Organizations Newly Hacked Via Holes In Microsoft’s Email Software

An anonymous reader quotes a report from Krebs On Security: At least 30,000 organizations across the United States — including a significant number of small businesses, towns, cities and local governments — have over the past few days been hacked by an unusually aggressive Chinese cyber espionage unit that’s focused on stealing email from victim organizations, multiple sources tell KrebsOnSecurity. The espionage group is exploiting four newly-discovered flaws in Microsoft Exchange Server email software, and has seeded hundreds of thousands of victim organizations worldwide with tools that give the attackers total, remote control over affected systems.

In each incident, the intruders have left behind a “web shell,” an easy-to-use, password-protected hacking tool that can be accessed over the Internet from any browser that gives the attackers administrative access to the victim’s computer servers. Speaking on condition of anonymity, two cybersecurity experts who’ve briefed U.S. national security advisors on the attack told KrebsOnSecurity the Chinese hacking group thought to be responsible has seized control over “hundreds of thousands” of Microsoft Exchange Servers worldwide — with each victim system representing approximately one organization that uses Exchange to process email. Microsoft said the Exchange flaws are being targeted by a previously unidentified Chinese hacking crew it dubbed “Hafnium,” and said the group had been conducting targeted attacks on email systems used by a range of industry sectors, including infectious disease researchers, law firms, higher education institutions, defense contractors, policy think tanks, and NGOs.

Microsoft’s initial advisory about the Exchange flaws credited Reston, Va. based Volexity for reporting the vulnerabilities. “We’ve worked on dozens of cases so far where web shells were put on the victim system back on Feb. 28 [before Microsoft announced its patches], all the way up to today,” Volexity President Steven Adair said. “Even if you patched the same day Microsoft published its patches, there’s still a high chance there is a web shell on your server. The truth is, if you’re running Exchange and you haven’t patched this yet, there’s a very high chance that your organization is already compromised.”

A Microsoft spokesperson said in a statement: “The best protection is to apply updates as soon as possible across all impacted systems. We continue to help customers by providing additional investigation and mitigation guidance. Impacted customers should contact our support teams for additional help and resources.”