Kolbe Striping Compromised by Rhysida Ransomware Group

Kolbe Striping has been compromised by the Rhysida ransomware group. The attack reportedly involves miscellaneous documents, including employees’ data, and a ransom of 3 BTC (approximately $190,000), with a deadline of 27 March has been demanded.

Kolbe Stripling (KSI) offers both durable and lasting pavement markings as well as temporary markings designed to suit customers’ needs. Its products include epoxy, preformed tape, preformed thermoplastic, and paint. In addition, its equipment and products also provide for recessed and reflective markings as well as removal of markings as needed for projects.

Rhysida Ransomware: A Growing Threat

Rhysida is a RaaS (Ransomware as a Service) that was first observed in May of 2023 and has become one of the more prevalent threats in the latter half of 2023. Rhysida engages in data exfiltration for double extortion and maintains both a leaks site and a victim support portal on TOR. They are thought to be responsible for attacks against the Chilean military and more recently against Prospect Medical Holdings which impacted services at hundreds of clinics and hospitals across the US.

In Q4-2023, the FBI and CISA released a joint advisory on Rhysida operations. Rhysida has been steadily increasing its attack volume and continuing to expand the targeted industries, but volume is modest compared to leaders. Rhysida deploys its ransomware through various methods, including Cobalt Strike or similar frameworks, as well as phishing campaigns.

Analysis of Rhysida ransomware samples suggests that the group is still in the early stages of development. The ransomware lacks certain standard features in contemporary ransomware, such as VSS removal. However, the group follows the practices of modern multi-extortion groups by threatening to distribute the stolen data publicly.

Upon execution, Rhysida displays a cmd.exe window and scans all files on local drives. Victims are instructed to contact the attackers using the TOR-based portal and their unique identifier provided in the ransom notes. The group only accepts payment in Bitcoin (BTC) and provides victims with instructions on purchasing and using BTC through the victim portal. Victims are also given an additional form on the payment portal to provide authentication and contact details to the attackers.

The Rhysida ransom notes are written as PDF documents and placed in the affected folders on the targeted drives.