Frag Ransomware: A New Threat Exploits Veeam Vulnerability (CVE-2024-40711)

Sophos X-Ops recently uncovered Frag ransomware in a series of cyberattacks exploiting a vulnerability in Veeam backup servers, designated CVE-2024-40711. This newly observed ransomware, deployed by a threat group Sophos tracks as STAC 5881, follows a familiar playbook but introduces some novel tactics. In previous incidents, this threat group had used other ransomware strains, such as Akira and Fog, but Frag marks a unique addition to their arsenal.

Frag ransomware is command-line-driven, with attackers specifying parameters to control the percentage of each file to be encrypted. This flexibility allows selective encryption, possibly to evade detection or prolong the victim’s attempt to recover files. A Sophos X-Ops researcher notes that “Frag is executed on the command line with a number of parameters, with one required: percentage of file encryption.”

The Frag ransomware comes with a help parameter to guide attackers | Image: Sophos

After encryption, files are renamed with a .frag extension. This ransomware, like Akira, also exploits compromised VPN appliances to gain access and leverages Veeam vulnerabilities to create administrator accounts on target systems, such as “point” and, in recent cases, an additional “point2” account.

Sophos reports that Frag’s tactics mirror those seen in Akira ransomware, suggesting a possible link between the groups or shared techniques. Agger Labs has also noted these similarities, indicating that Frag might signal the rise of a new, sophisticated ransomware player. Sophos has responded by updating their CryptoGuard feature to detect and block Frag ransomware attacks proactively. “A detection for the ransomware binary has since been added,” the report confirms.

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