WEBVTT

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JACK: Hey, before we get started, check out the episode right before this one.

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It’s called Shadow Brokers.

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It kind of sets you up for this one.

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[MUSIC] This is the story of NotPetya and it took place in the spring of 2017.

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There was some weird tension between the US and Russia during that time.

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Donald Trump was President of the US and it’s widely-known that the Russians used the internet

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to meddle with the election.

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I mean, the FBI has indicted twelve hackers who were working with the Russian government

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that have allegedly hacked the DNC and Clinton’s e-mail servers which had a critical role in

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the 2016 election.

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The relationship between Trump and Putin is weird and mysterious; a ton of allegations

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are floating around that a lot of back channel support is given to Trump from Russia.

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But what is clear is that Russia likes to quarrel with Ukraine.

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They’ve been fighting over things for a long time but in the last eight years, things

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have really heated up.

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Russia decided to take a territory of land from Ukraine called Crimea and besides that,

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Russia has been deploying troops into Ukraine, pretty much occupying the area.

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The stuff going on in the Donbass region is just crazy.

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This made tensions between Russia and Ukraine even more elevated.

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Now, for the last six years, Russian troops are still occupying places of Ukraine.

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This was the most blatant land-grab in Europe since World War II and it all happened in

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the last half decade.

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But taking over a large region of Ukraine and occupying them with troops was not the

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extent of what Russia did to Ukraine.

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There’s so much more terrifying and scary stuff that Russia has done to Ukraine over

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the internet.

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In fact, in this rare case, I’ll even go so far as to say this is a cyber-war.

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JACK (INTRO): [INTRO MUSIC] These are true stories from the dark side of the internet.

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I’m Jack Rhysider.

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This is Darknet Diaries.

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[INTRO MUSIC ENDS]

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JACK: I recently read the book Sandworm.

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It just came out.

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It’s so good; so good that I wanted to have the author come on the show.

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ANDY: Yeah, I’m Andy Greenberg and I’m a senior writer for Wired Magazine and I’m

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the author of this book, Sandworm.

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JACK: A few years back, Wired asked Andy to investigate whether or not there’s been

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a hack so devastating that it would be considered a cyber-war.

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Andy found some very interesting stuff going on in Ukraine at that time and decided to

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look there.

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He got to work researching this and was finding the story was just getting deeper and bigger

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than he expected.

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He found so much stuff that he decided to not just write a magazine article about it,

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but instead a whole book.

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ANDY: I’ve been working on this book Sandworm since about late 2016.

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It tells the unfolding story of this cyber-war in Ukraine.

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In the midst of that, NotPetya happens, this biggest cyber-attack in history.

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I was kind of primed to investigate that and then I spent probably nine months of the book

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research time digging into NotPetya specifically, trying to find really everyone who was willing

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to talk about the experience of witnessing NotPetya unfold, being a victim of this global

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cyber-attack, experts who pulled apart the code, forensic analysts who tied it back to

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known hacker crews.

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This is really the story at the heart of the book that I’ve been working on for about

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three years.

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JACK: Let’s get into what Andy found in his years of research which led him to NotPetya,

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the biggest cyber-attack in history.

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Now, I’m pretty sure the goal of this was to create a devasting worm.

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A worm is a virus that will self-replicate and spread among many other computers in the

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network, infecting them, too.

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Then, after it spread, they wanted to take that computer offline permanently, basically

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destroying it and everything on it.

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To accomplish this, they needed a few hacker tools.

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Now, these hackers had a plan for how to get their worm onto computers initially, and we’ll

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get into that later.

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But now let’s think; once you get your worm onto just one computer [00:05:00] in a network,

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how can you get it to spread to many others?

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Whatever method you use, you want it to work very well, meaning you don’t want it to

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be stopped by someone who’s just patched their computer or has Antivirus on.

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No, this worm has to cut through all of that, so the hackers used a tool called Mimikatz.

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[MUSIC] Mimikatz is crazy and amazing and one of the most frustrating things I’ve

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ever seen.

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I could talk about Mimikatz for hours.

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It’s nuts.

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But the skinny of it is this; on Windows computers is a program called lsass.exe.

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This process is one that’s responsible for enforcing security on Windows computers.

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Yeah, well, get this; when someone logs into a Windows computer, LSASS stores your username

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and password in clear text in the memory.

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Now, this is so LSASS can authenticate that person to other things like shared drives,

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e-mail, SharePoint, etc, without having to ask the user for their password again and

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again.

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This is all fine and good until a French researcher named Benjamin Delpy, or the gentilkiwi, took

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a look in the memory.

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He used a tool to examine what LSASS put in the memory and was amazed to see it storing

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usernames and passwords in clear text, not encrypted at all.

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He built a tool to extract this username and password to display it to anyone who wants

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to see it.

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That tool he made is called Mimikatz and he made it open-source for anyone to use it.

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He kept building on it, teaching it how to trick Windows and authenticating in so many

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other ways like passing hashes and tokens.

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It’s incredibly powerful and insanely successful because get this; suppose you break into a

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computer or sit down at someone else’s computer.

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If you download and run Mimikatz, you can suddenly see every single user who’s logged

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into that computer since it was rebooted.

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Not just their username, but you can see their full password, too.

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On a shared computer like a central jump server, you can potentially get the passwords to a

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huge number of employees and possibly an admin account, too.

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The thing that frustrates me the most about Mimikatz is that for years, Microsoft refused

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to fix this problem.

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They just didn’t acknowledge it or understand it.

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In recent versions of Windows, they have fixed some of it, but Mimikatz continues to evolve,

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getting around whatever fix Microsoft comes up with.

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Even today, on a brand-new Windows computer, it’s not secure against Mimikatz by default.

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This is why it’s such a powerful exploit.

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Now, once the worm infects a computer and spreads, the last thing it needs to do is

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destroy that computer.

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The goal of this attack was to permanently destroy as many computers as possible.

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The best way to do that remotely is to encrypt everything on it, make it useless unless you

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have the decryption key.

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This is typically known as ransomware but I don’t think these hackers had any intension

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on making money off this.

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Their goal was to destroy computers and ransomware was just the perfect tool to do that.

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The name of the ransomware they decided to use was a modified version of Petya.

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It’ll infect the system at the master boot record, instruct the machine to reboot, and

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upon rebooting it’ll encrypt that file system, preventing it from working at all anymore.

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It’ll then show this screen saying your files have been encrypted and you need to

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pay to get it unencrypted.

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Now you combine these two tools into a worm and instruct it to spread through the network.

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It’s very effective just this by itself.

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Computers that are fully-patched and updated can get their passwords taken from memory

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and use that to spread to other computers quite easily.

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The more systems it gets into, the more usernames and passwords it collects, and it just becomes

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unstoppable at some point.

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It could potentially encrypt all hard drives in a network but even though that’s a powerful

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one-two combo, it might not be a knockout blow.

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What if those computers it initially infects didn’t have any extra passwords to steal

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or something?

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Hm, so another tool was added to this worm, something called EternalBlue.

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ANDY: [MUSIC] EternalBlue was probably the most powerful of all of the hacking tools

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dumped onto the internet by this very mysterious group called the Shadow Brokers.

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The Shadow Brokers appeared in the summer of 2016 and just started periodically leaking

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NSA hacking tools onto the internet.

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These are full, working, zero-day exploits in some cases.

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JACK: Yeah, in the previous episode we heard all about what the Shadow Brokers did, but

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it was their last dump where they handed the world a devastating hacker tool.

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ANDY: It included this hacking tool called EternalBlue which exploited a vulnerability

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in a Windows function called Server Message Block that allows machines to essentially

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share information between themselves.

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By exploiting that SMB vulnerability, EternalBlue could basically run code remotely on any Windows

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machine that was vulnerable anywhere in the world.

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It turned out that the NSA had actually worked with Microsoft to try to warn everyone about

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this zero-day when the Shadow Brokers first appeared.

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There was a patch for this SMB vulnerability but of course, as with [00:10:00] all patches,

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it was kind of an epidemiological problem trying to get people all around the world

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to implement this patch.

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When EternalBlue went public, there were still countless thousands, or hundreds of thousands

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of machines, really, that were still vulnerable.

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JACK: With EternalBlue in the hands of every hacker, the world was about to be sucker-punched

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in ways it never imagined.

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EternalBlue is an exploit to get into Windows computers.

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It just bypasses the username and password altogether and lets the hacker right in.

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From there, they can look at files, upload things, issue commands, do whatever they want.

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Yeah, while Windows had a patch for this, not everyone was applying their patches, so

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the chances of this working – they’re still high, probably twenty to fifty percent,

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and that just might be enough to get that worm through some difficult places that Mimikatz

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couldn’t get into.

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Here’s the combo for this hack; [MUSIC] first, if the worm could get onto a system

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somehow and then run Mimikatz to get all the usernames and passwords that have logged into

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that computer, then it could take those usernames and passwords and try to log into all its

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neighbors’ computers to see maybe it can get into those too, and collect more usernames

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and passwords along the way.

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By golly, with a list of usernames and passwords to try, it would be able to successfully get

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into a lot of computers to infect them, too.

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But if it couldn’t login like that, it would then try to use EternalBlue to see if that

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system was unpatched and exploit it that way.

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The worm would try two very powerful and dangerous ways to get into every computer on the network.

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Once the virus tried to spread as far as it could, it would then infect it with ransomware,

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encrypting the whole thing, making it useless, and then rebooting the machine so it’s unusable.

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This would be an extremely powerful combo that certainly could be a knockout blow.

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Now, the target of this attack was Ukraine and the goal was to take out as many computers

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as possible in Ukraine; businesses, government agencies, doesn’t matter.

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Everything.

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Take down all of Ukraine’s network.

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But how can you target an entire country?

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This is both a wide-scale attack but it’s also limited in size.

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They didn’t want it to spread through the whole world, just Ukraine.

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Hm, this is a very interesting question and something I bet the hackers thought a long

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time about.

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They ultimately chose to target a small company called Linkos Group.

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ANDY: Linkos Group is a pretty small family-run software business based in a building in western

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Kiev, the capital of Ukraine, in this nondescript building in a kind of dingy neighborhood on

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the edges of Podil, a kind of hipster neighborhood in Kiev.

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In the third floor of that building is a server room full of these pizza box-sized servers

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stacked up.

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One of them was responsible for sending updates to MeDoc, this accounting software that Linkos

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Group sold, their flagship product.

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It’s really like the QuickBooks or TurboTax of Ukraine.

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Anyone who files taxes in Ukraine or really who wants to do business in Ukraine uses this

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software, MeDoc.

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JACK: Hm, you see where this is going?

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MeDoc is like TurboTax but for Ukraine.

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People who need to file their taxes in Ukraine use this software, so if the hackers could

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infect MeDoc with this worm, a spreading, replicating virus, then the attack would only

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hit people who have to do taxes in Ukraine.

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ANDY: In June of 2017, a group of hackers took over that update server and they hijacked

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MeDoc’s update mechanism to push out their own malware.

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Everyone everywhere in the world who had MeDoc installed suddenly has NotPetya, this worm,

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installed as well.

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JACK: We don’t know how, but they got into that MeDoc update server; maybe a phishing

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e-mail or something.

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But it didn’t matter.

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The stage was set and the biggest cyber-attack in history was about to be launched.

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[MUSIC] On Tuesday, June 27th, 2017, the virus was placed on the MeDoc update server and

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an update was sent to thousands of computers in Ukraine.

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Each and every one of those computers were infected by this virus.

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The seed was planted and was instantly spreading.

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As soon as someone got the update, they were infected, and immediately the worm spread

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to another machine, and another machine, and another, grabbing usernames and trying to

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log into its neighbor, and then using those passwords it would get along the way to spread

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to as many computers as it could in the network, as well as using EternalBlue to get into computers

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it didn’t have the password for.

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As soon as it was infecting a computer, it was rebooting it and encrypting it, rendering

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it useless.

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In a matter of minutes, entire organizations were seeing their networks just go down, like

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a shadow being cast on all the computers.

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Now, all this happened on the day before Ukraine’s [00:15:00] constitution day which is the day

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Ukraine celebrates their independence from Russia.

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What was typically supposed to be a slow day leading up to a holiday was a day that some

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people will never forget.

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ANDY: Oleksiy Yasinskiy, this forensic analyst and incident responder for a company in Ukraine

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called Information System Security Partners, described the experience of going to one of

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their clients early that morning, one of the very first victims of NotPetya, Oschadbank,

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this former national bank of Ukraine.

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As he went in, he described entering a building where everyone seemed to be in a kind of state

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of shock because all of their systems had been shut down simultaneously.

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[MUSIC] Around ninety percent of all of the computers in Oschadbank had been hit with

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this mysterious ransomware worm.

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It looked at first like a normal piece of ransomware which encrypts all of your files.

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In fact, in this case, encrypts the entire operating system of the computer.

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There was a message on the screens of Oschadbank’s PCs demanding $300 in Bitcoin as a ransom

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before the attackers would unlock the computers.

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But Oleksiy Yasinskiy says that he pretty quickly, as he was doing incident response

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for Oschadbank, could tell that this was something unusual, at least in the sense that it was

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extremely virulent.

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The worm had essentially rampaged through Oschadbank’s network until it got access

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to an administrator’s credentials.

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Then it had used those credentials to jump out to every machine that that administrator

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had access to, very quickly just saturating the entire network and shutting it down.

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JACK: That day the bank could not do business.

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The people came to work but their terminals were all encrypted and frozen.

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Customers and employees were both very upset that systems were down.

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ANDY: Every one of these computers that had been hit was completely locked and showing

00:16:04.960 --> 00:16:09.920
this ransomware screen demanding $300 in Bitcoin before the hackers would decrypt it and give

00:16:09.920 --> 00:16:15.200
Oschadbank’s staff back access to that machine.

00:16:15.200 --> 00:16:24.069
But Oleksiy Yasinskiy and ISSP, over the next hours, would very quickly come to the conclusion

00:16:24.069 --> 00:16:25.990
that this was not really ransomware.

00:16:25.990 --> 00:16:30.180
It was a destructive worm posing as ransomware.

00:16:30.180 --> 00:16:33.779
Even if you paid that $300 in Bitcoin, you were not going to get your files back.

00:16:33.779 --> 00:16:38.420
That was just a kind of thin ruse hiding an act of cyber-war.

00:16:38.420 --> 00:16:43.340
JACK: As incident responders investigated this, they found that the ransomware was similar

00:16:43.340 --> 00:16:45.329
to the Petya ransomware.

00:16:45.329 --> 00:16:49.870
It was originally thought to be Petya but some additional research went into it and

00:16:49.870 --> 00:16:52.740
found this is a new strain.

00:16:52.740 --> 00:16:54.769
It was not Petya.

00:16:54.769 --> 00:16:59.870
Since there was so many people saying that it was not Petya, that’s the name that stuck

00:16:59.870 --> 00:17:01.500
for this virus.

00:17:01.500 --> 00:17:05.350
This would become known as the NotPetya attack on Ukraine.

00:17:05.350 --> 00:17:09.970
After the break, we’ll hear just how destructive NotPetya became.

00:17:09.970 --> 00:17:14.360
NotPetya was not just hitting this one bank; it was initially infecting networks through

00:17:14.360 --> 00:17:18.579
the MeDoc software update and then spreading into hundreds of networks, hitting thousands

00:17:18.579 --> 00:17:20.860
of computers through the whole country of Ukraine.

00:17:20.860 --> 00:17:25.730
ANDY: At the same time as Oschadbank was being taken down by NotPetya, it in fact was spreading

00:17:25.730 --> 00:17:27.750
across the entire country of Ukraine.

00:17:27.750 --> 00:17:33.360
JACK: [MUSIC] In just a short time, in a matter of hours, a massive amount of networks and

00:17:33.360 --> 00:17:37.170
computers were permanently down, infected by NotPetya.

00:17:37.170 --> 00:17:41.230
One researcher claimed that over three hundred companies were brought down in Ukraine over

00:17:41.230 --> 00:17:42.230
this attack.

00:17:42.230 --> 00:17:46.480
Pretty much the whole country was infected by this in some way; either you personally

00:17:46.480 --> 00:17:50.610
were down, or your supplier was down, or your neighbor was down, or your client was down.

00:17:50.610 --> 00:17:52.049
It was a catastrophe.

00:17:52.049 --> 00:17:56.740
ANDY: But NotPetya didn’t stop spreading at the borders of Ukraine.

00:17:56.740 --> 00:18:02.059
I mean, no cyber-attack cares about borders, obviously.

00:18:02.059 --> 00:18:08.429
Really, any multinational company that had MeDoc installed was also instantly infected

00:18:08.429 --> 00:18:09.570
with NotPetya.

00:18:09.570 --> 00:18:15.539
That included FedEx, Maersk, the world’s largest [00:20:00] shipping firm, Merck, the

00:18:15.539 --> 00:18:21.470
New Jersey-based pharmaceutical company, Saint-Gobain, the French construction firm, Reckitt Benckiser,

00:18:21.470 --> 00:18:28.539
this UK manufacturing firm, Mondelez, the food company that owns Nabisco and Cadbury,

00:18:28.539 --> 00:18:29.600
and countless others.

00:18:29.600 --> 00:18:33.850
We just knew that initial list that I just named because they were the ones who were

00:18:33.850 --> 00:18:37.340
public companies that had to declare their damages to shareholders.

00:18:37.340 --> 00:18:42.400
But we may never know the full extent of all of the companies that were hit by NotPetya.

00:18:42.400 --> 00:18:47.049
JACK: Of course, if these companies either had MeDoc or were connected to networks of

00:18:47.049 --> 00:18:52.500
companies in Ukraine, or were sharing computers with infected companies, they were also getting

00:18:52.500 --> 00:18:54.780
infected with NotPetya, too.

00:18:54.780 --> 00:18:59.159
ANDY: Counterintuitively, NotPetya also spread into Russia and did really serious damage

00:18:59.159 --> 00:19:06.570
there to the state oil company Rosneft, to the steel maker EVRAZ, to the medical technology

00:19:06.570 --> 00:19:08.190
firm In Vitro.

00:19:08.190 --> 00:19:13.340
Really, everyone who touched Ukraine in any way which of course includes Russia, suffered

00:19:13.340 --> 00:19:14.429
damages from this.

00:19:14.429 --> 00:19:19.260
JACK: Companies all over were scrambling to figure out what happened.

00:19:19.260 --> 00:19:20.260
How do we fix this?

00:19:20.260 --> 00:19:24.179
Is there a way to recover or undo this?

00:19:24.179 --> 00:19:25.909
How do we get stuff working again?

00:19:25.909 --> 00:19:30.850
ANDY: All across Ukraine, essentially, people were figuring out that it was better just

00:19:30.850 --> 00:19:37.830
to shut down your entire network, turn everything off, than watch it be devoured by NotPetya.

00:19:37.830 --> 00:19:42.309
Really, every government agency; the postal service, all of these companies, they were,

00:19:42.309 --> 00:19:46.080
in many cases, shutting down their own networks but usually it was too late.

00:19:46.080 --> 00:19:49.929
NotPetya had often infected the majority of their systems before they could even pull

00:19:49.929 --> 00:19:50.929
the plug.

00:19:50.929 --> 00:19:55.670
JACK: With so many computers down all over the city and country, the feeling must have

00:19:55.670 --> 00:19:56.670
been surreal.

00:19:56.670 --> 00:20:02.510
ANDY: The personal experience of being in the middle of this; I heard it best from this

00:20:02.510 --> 00:20:07.690
guy Pavlo Bondarenko who was an IT administrator at the Ukrainian Health Ministry.

00:20:07.690 --> 00:20:13.169
He had, very early in the day, figured out that they needed to pull the ministry’s

00:20:13.169 --> 00:20:14.169
network offline.

00:20:14.169 --> 00:20:19.190
That probably spared the Health Ministry from some terrible damage but nonetheless, he spent

00:20:19.190 --> 00:20:24.299
the whole day fighting off NotPetya and then at the end of the day, he left the office

00:20:24.299 --> 00:20:32.620
to go home, tried to get on the subway [BEEPING], found that NotPetya had actually destroyed

00:20:32.620 --> 00:20:37.860
the contactless payment system that he usually used to swipe in to get onto the Kiev metro.

00:20:37.860 --> 00:20:42.980
[MUSIC] He had to go out to find an ATM where he could get cash to buy a token.

00:20:42.980 --> 00:20:48.030
All of the ATMs that he tried were also paralyzed by NotPetya, one after another.

00:20:48.030 --> 00:20:55.030
[BEEPING] Until he found one ATM that was still working but had a very small cash limit

00:20:55.030 --> 00:20:57.350
and this long line of people trying to get cash.

00:20:57.350 --> 00:21:02.530
He waited in line, got the cash, bought the token, got onto the subway, went to his neighborhood,

00:21:02.530 --> 00:21:05.620
got out, and tried to go grocery shopping.

00:21:05.620 --> 00:21:09.260
[BEEPING] Found that the payment system at the grocery store was down.

00:21:09.260 --> 00:21:15.170
He had to get more cash ‘cause he had run out, so he had to find another ATM among all

00:21:15.170 --> 00:21:18.809
of the paralyzed ATMs where he could take cash out again.

00:21:18.809 --> 00:21:25.480
Pavlo described that experience as not just being kind of annoying but being disorienting.

00:21:25.480 --> 00:21:30.510
He had found himself in a world where everything was suddenly broken.

00:21:30.510 --> 00:21:38.060
[BEEPING] He described it as a natural disaster except that it was entirely man-made and that

00:21:38.060 --> 00:21:43.220
things had gone very quickly from just seeing what was new on Facebook to asking questions

00:21:43.220 --> 00:21:47.549
like, did he have enough money to buy food for the next week?

00:21:47.549 --> 00:21:51.580
People were asking did they have the medicines that they needed?

00:21:51.580 --> 00:21:54.870
Would they be able to get to work and back?

00:21:54.870 --> 00:22:02.419
It was a kind of fundamental cyber-attack against the basic infrastructure of people’s

00:22:02.419 --> 00:22:05.210
lives that we had really never seen before.

00:22:05.210 --> 00:22:09.960
JACK: This really scares me.

00:22:09.960 --> 00:22:15.960
This is a major disaster unlike anything any country has ever seen.

00:22:15.960 --> 00:22:19.090
For so much of the country’s infrastructure to be down like this?

00:22:19.090 --> 00:22:20.330
It’s chaos.

00:22:20.330 --> 00:22:25.250
I am not prepared for something like this to happen where I live; to suddenly and without

00:22:25.250 --> 00:22:29.630
notice to not be able to get gas, food, or money?

00:22:29.630 --> 00:22:32.950
To have hospitals turning away people because their network is down?

00:22:32.950 --> 00:22:36.460
In disasters, there isn’t enough emergency crews to help everyone.

00:22:36.460 --> 00:22:40.750
You’re on your own or you’re at the whim or someone else willing to help you.

00:22:40.750 --> 00:22:46.659
I just think of how connected our whole world is now and to see it so fragile like this

00:22:46.659 --> 00:22:54.299
where one well-crafted, well-timed, well-executed virus can do such an enormous amount of destruction?

00:22:54.299 --> 00:22:55.570
I’m shaken.

00:22:55.570 --> 00:23:01.480
ANDY: I would say that the cyber-war began in Ukraine much earlier.

00:23:01.480 --> 00:23:08.700
[MUSIC] As soon as Ukraine came under repeated, sustained, disruptive cyber-attacks starting

00:23:08.700 --> 00:23:14.799
in the fall of 2015, culminating in two blackouts in late 2015 [00:25:00] and then late 2016,

00:23:14.799 --> 00:23:22.179
that was cyber-war but this was kind of a new stage of the cyber-war, a kind of carpet

00:23:22.179 --> 00:23:24.930
bombing of the whole country’s digital systems.

00:23:24.930 --> 00:23:31.190
In terms of what is cyber war, I would say that Richard Clarke got it right in his book

00:23:31.190 --> 00:23:37.429
in 2009, I think it was, his book Cyber War where he basically defined it as an act by

00:23:37.429 --> 00:23:45.789
a nation state’s hackers designed to disrupt an adversary’s systems.

00:23:45.789 --> 00:23:50.740
I think that that’s at least the most basic definition for cyber-war.

00:23:50.740 --> 00:23:58.289
I think other things that make something a cyber-war are that it affects critical infrastructure,

00:23:58.289 --> 00:24:06.710
that it is massive in scale, that it takes place in the midst of a physical war.

00:24:06.710 --> 00:24:11.340
All of those things are true of – in fact, the entire campaign of cyber-attacks carried

00:24:11.340 --> 00:24:17.410
out against Ukraine but especially NotPetya, this kind of climax of that whole series of

00:24:17.410 --> 00:24:18.410
attacks.

00:24:18.410 --> 00:24:20.460
JACK: Okay, alright.

00:24:20.460 --> 00:24:22.740
I’m back now.

00:24:22.740 --> 00:24:28.340
I had to pause there for a second and go build my 72-hour kit because this is freaking me

00:24:28.340 --> 00:24:29.340
out.

00:24:29.340 --> 00:24:30.340
I don’t know what to think of this.

00:24:30.340 --> 00:24:32.120
I guess I’m just lucky this didn’t hit the US.

00:24:32.120 --> 00:24:36.610
ANDY: Yeah, I mean, I think a lot of people see what happened to Ukraine and they think

00:24:36.610 --> 00:24:39.059
phew, that could have been us.

00:24:39.059 --> 00:24:40.059
That’s scary.

00:24:40.059 --> 00:24:44.929
But in fact, what I keep trying to emphasize is that NotPetya did hit us, too.

00:24:44.929 --> 00:24:49.529
It didn’t hit us at the same national scale as Ukraine but it hit American companies.

00:24:49.529 --> 00:24:56.980
It hit western companies; FedEx, I’m talking about FedEx and Merck in New Jersey, and Maersk’s

00:24:56.980 --> 00:24:59.530
Terminal also in New Jersey.

00:24:59.530 --> 00:25:02.010
Somehow New Jersey got a lot of damage here.

00:25:02.010 --> 00:25:04.760
But this was not a Ukrainian attack.

00:25:04.760 --> 00:25:08.970
This was an attack that spilled out from Ukraine to the entire world and immediately included

00:25:08.970 --> 00:25:09.970
us, too.

00:25:09.970 --> 00:25:11.380
JACK: Okay, so let’s talk about Maersk.

00:25:11.380 --> 00:25:14.440
Maersk is not a Ukrainian company; it’s a Danish company.

00:25:14.440 --> 00:25:18.360
They’ve been the largest shipping company in the world for the last three decades.

00:25:18.360 --> 00:25:22.899
Picture those huge container ships at sea carrying tons of those big metal container

00:25:22.899 --> 00:25:24.679
boxes full of goods.

00:25:24.679 --> 00:25:29.140
They’re headquartered in Copenhagen in Denmark, but they were impacted by this, too.

00:25:29.140 --> 00:25:34.300
ANDY: Maersk had one office in Odessa on the Black Sea coast on the south of Ukraine.

00:25:34.300 --> 00:25:38.970
In that office they had one computer, that I know about at least, that had MeDoc installed.

00:25:38.970 --> 00:25:43.110
That was all that it took for Maersk’s entire global network to be infected.

00:25:43.110 --> 00:25:49.480
[MUSIC] At Maersk’s global headquarters in Copenhagen, this beautiful, blue-windowed

00:25:49.480 --> 00:25:57.049
building on the Copenhagen harbor’s promenade, staff just noticed all of a sudden on the

00:25:57.049 --> 00:26:03.520
afternoon of June 27th, that screens around the whole building were just turning black.

00:26:03.520 --> 00:26:08.890
One staffer described seeing a wave of screens turning black all around him; black, black,

00:26:08.890 --> 00:26:09.890
black.

00:26:09.890 --> 00:26:13.279
Some staffers started to crowd around the Help Desk in the basement of the building

00:26:13.279 --> 00:26:18.419
but very soon it was clear that this was much larger than that, that every computer in the

00:26:18.419 --> 00:26:19.899
building was being infected.

00:26:19.899 --> 00:26:25.740
IT administrators were soon running down hallways, unplugging computers, running into meeting

00:26:25.740 --> 00:26:30.470
rooms to unplug computers in the middle of meetings, jumping over turnstiles because

00:26:30.470 --> 00:26:34.690
even the turnstiles that control the physical security of the building had been paralyzed

00:26:34.690 --> 00:26:37.010
by this attack.

00:26:37.010 --> 00:26:41.169
They were rushing to really turn off all of the systems because they knew that every second

00:26:41.169 --> 00:26:45.990
meant hundreds or even thousands of more machines that would be compromised.

00:26:45.990 --> 00:26:52.539
But that was really just the digital part of the attack on Maersk.

00:26:52.539 --> 00:26:59.970
Maersk runs this massive global shipping machine with these container ships the size of the

00:26:59.970 --> 00:27:03.720
Empire State Building with another Empire State Building’s worth of cargo on top of

00:27:03.720 --> 00:27:04.720
them.

00:27:04.720 --> 00:27:09.419
All around the world, those ships were starting to arrive at Maersk-owned terminals everywhere

00:27:09.419 --> 00:27:14.580
in the world, and their systems had been shut down so that nobody even knew what was on

00:27:14.580 --> 00:27:16.070
these gargantuan ships.

00:27:16.070 --> 00:27:19.510
They couldn’t even figure out how to unload them.

00:27:19.510 --> 00:27:25.500
Meanwhile, the real choke point’s at seventeen terminals that were shut down by this.

00:27:25.500 --> 00:27:31.120
Seventeen ports, essentially, all around the world were the gates outside where the trucks

00:27:31.120 --> 00:27:36.020
lined up at the Elizabeth New Jersey APM Terminal owned by Maersk.

00:27:36.020 --> 00:27:42.480
It’s a full square mile-size patch of land in the harbor.

00:27:42.480 --> 00:27:48.529
These massive ships pull up but so do thousands of trucks every day, and they come to this

00:27:48.529 --> 00:27:55.960
checkpoint outside the terminal where they’re told over this voiceover IP system where to

00:27:55.960 --> 00:28:03.330
go, what to pick up or drop off, and all of that on June 27th instantly shut down.

00:28:03.330 --> 00:28:09.640
[MUSIC] Trucks were arriving at that gate outside the terminal and nobody was talking

00:28:09.640 --> 00:28:10.640
to them.

00:28:10.640 --> 00:28:11.640
They were locked out.

00:28:11.640 --> 00:28:13.130
They had no idea what was going on.

00:28:13.130 --> 00:28:16.400
Maersk couldn’t [00:30:00] even send them an e-mail to explain.

00:28:16.400 --> 00:28:21.320
The trucking companies were entirely in the dark, people were getting furious, the port

00:28:21.320 --> 00:28:25.669
police started to tell them you need to turn your truck around and leave, but they had

00:28:25.669 --> 00:28:31.750
stuff that they had to ship somehow for just-in-time manufacturing processes and perishable goods

00:28:31.750 --> 00:28:33.000
that had to be refrigerated.

00:28:33.000 --> 00:28:41.110
It was just a fiasco and soon, tens of thousands of trucks were lining up at seventeen of Maersk’s

00:28:41.110 --> 00:28:45.250
terminals all around the world from Los Angeles to New Jersey.

00:28:45.250 --> 00:28:46.250
JACK: Tens of thousands?

00:28:46.250 --> 00:28:48.490
ANDY: Tens of thousands of trucks in total, yeah, certainly.

00:28:48.490 --> 00:28:54.299
Each one of these terminals had lines of trucks that were miles long.

00:28:54.299 --> 00:29:00.929
From Los Angeles to New Jersey to Algeciras in Spain to the Rotterdam in the Netherlands

00:29:00.929 --> 00:29:08.850
to Mumbai in India; this was a significant chunk of the entire physical operation of

00:29:08.850 --> 00:29:12.680
the world’s largest shipping conglomerate just shut down in an instant.

00:29:12.680 --> 00:29:14.750
JACK: That’s so frightening.

00:29:14.750 --> 00:29:21.710
ANDY: Yeah, I mean, it’s hard to get your head around the scale of this in physical

00:29:21.710 --> 00:29:22.710
terms.

00:29:22.710 --> 00:29:26.260
It’s interesting in part because we’ve always been scared, or I’ve always been

00:29:26.260 --> 00:29:31.570
scared of these attacks that directly interact with physical infrastructure like Stuxnet.

00:29:31.570 --> 00:29:35.049
Some of the Ukraine attacks were like that too, the ones that turned off the power and

00:29:35.049 --> 00:29:39.690
utilities, causing the first-ever blackouts caused by hackers.

00:29:39.690 --> 00:29:45.860
But it turns out that if you just destroy tens and tens of thousands of computers, just

00:29:45.860 --> 00:29:51.370
the computers around the world, you can maybe do more physical disruption just by taking

00:29:51.370 --> 00:29:54.270
out all of that digital equipment.

00:29:54.270 --> 00:30:00.039
The data alone, just paralyzing the brains of a corporation like Maersk can do more physical

00:30:00.039 --> 00:30:02.590
disruption than directly attacking the physical equipment.

00:30:02.590 --> 00:30:06.169
I don’t know if that’s an idea you really care about, but it’s…

00:30:06.169 --> 00:30:09.330
JACK: Yeah, it puts me in deep thought, this whole thing.

00:30:09.330 --> 00:30:14.090
Everything is on those shipping things, everywhere from diapers to food to medical supplies.

00:30:14.090 --> 00:30:15.159
ANDY: Yeah, yeah.

00:30:15.159 --> 00:30:16.310
What did their ships contain?

00:30:16.310 --> 00:30:21.570
It was just absolutely everything that the modern economy runs on, from manufacturing

00:30:21.570 --> 00:30:27.880
components to food, consumer goods that are part of a just-in-time supply chain.

00:30:27.880 --> 00:30:33.820
I mean, Maersk is really at the heart of the global economy and its operations just kind

00:30:33.820 --> 00:30:37.399
of instantaneously winked out of existence.

00:30:37.399 --> 00:30:42.350
JACK: Hearing this just reminds me about where we were in 2008.

00:30:42.350 --> 00:30:45.769
Certain banks were facing financial crisis in the US and they were deemed too big to

00:30:45.769 --> 00:30:48.980
fail because they were so integrated into our lives.

00:30:48.980 --> 00:30:52.929
The US government bailed them out, giving them billions of dollars to re-stabilize the

00:30:52.929 --> 00:30:53.929
nation.

00:30:53.929 --> 00:30:59.240
I’m starting to think that Maersk is also so interconnected into the US that they might

00:30:59.240 --> 00:31:00.740
also be too big to fail.

00:31:00.740 --> 00:31:06.710
Each ship has one million items on it, crucial items that we need in order to live, but as

00:31:06.710 --> 00:31:11.200
far as I know, the US government or any government did not help Maersk.

00:31:11.200 --> 00:31:16.260
Yeah, the FBI called them to investigate the case but that’s about it.

00:31:16.260 --> 00:31:20.419
Maersk could not solve this problem by themselves and the citizens of the US would suffer until

00:31:20.419 --> 00:31:22.760
Maersk could get back on their feet.

00:31:22.760 --> 00:31:27.130
Because not just the US; the whole world relies on deliveries from Maersk.

00:31:27.130 --> 00:31:29.710
They have shipping yards all over the planet.

00:31:29.710 --> 00:31:33.760
NotPetya had a clear global impact.

00:31:33.760 --> 00:31:35.580
Maersk absolutely needed help.

00:31:35.580 --> 00:31:41.309
Something like 49,000 of their computers were down worldwide which was 100% of the Windows

00:31:41.309 --> 00:31:43.370
computers they had in their network.

00:31:43.370 --> 00:31:45.210
100% of them.

00:31:45.210 --> 00:31:49.360
The only computers that weren’t encrypted were either Linux or Unix systems, or the

00:31:49.360 --> 00:31:53.870
ones that were down before this attack or were offline for this attack.

00:31:53.870 --> 00:31:58.380
Because their network would periodically sync to backups, all their backups and disaster

00:31:58.380 --> 00:32:00.679
recovery centers were wiped, too.

00:32:00.679 --> 00:32:02.370
Their e-mails were down, phones were down.

00:32:02.370 --> 00:32:05.650
You couldn’t even see your contact list on your mobile phone because that relied on

00:32:05.650 --> 00:32:07.309
exchange being up.

00:32:07.309 --> 00:32:08.440
Maersk was in trouble.

00:32:08.440 --> 00:32:12.820
[MUSIC] It wasn’t clear to them at first who was threatening them or what, or why.

00:32:12.820 --> 00:32:16.740
There was so much chaos everywhere, you just didn’t know who all the victims were yet.

00:32:16.740 --> 00:32:21.169
But they called up Microsoft right away and spoke to someone very high up there to discuss

00:32:21.169 --> 00:32:22.340
options.

00:32:22.340 --> 00:32:26.490
Microsoft got busy trying to find solutions to this and they heard lots of complaints

00:32:26.490 --> 00:32:27.779
from other people, too.

00:32:27.779 --> 00:32:33.010
A few days later, they had some news; Microsoft called back Maersk and told them they cracked

00:32:33.010 --> 00:32:38.280
a decryption key to decrypt the ransomware but the bad news was is they only cracked

00:32:38.280 --> 00:32:40.070
the decryption key for one computer.

00:32:40.070 --> 00:32:45.340
The other problem is that it took them 22,000 compute hours to crack that single key for

00:32:45.340 --> 00:32:47.059
one computer.

00:32:47.059 --> 00:32:51.019
Maersk had 49,000 computers so this wouldn’t work.

00:32:51.019 --> 00:32:54.630
There was no choice; Maersk had lost everything, with no help in sight.

00:32:54.630 --> 00:32:57.559
They didn’t seem to have any way to recover.

00:32:57.559 --> 00:33:00.059
Everything was gone, all backups, too.

00:33:00.059 --> 00:33:01.730
Ransomware was holding it all hostage.

00:33:01.730 --> 00:33:06.890
Now, I heard from a few places that Maersk got in contact with the hackers who made this

00:33:06.890 --> 00:33:11.419
ransomware and there was discussion about prices on it and how much it would cost to

00:33:11.419 --> 00:33:13.500
unlock all of Maersk’s computers.

00:33:13.500 --> 00:33:17.460
[00:35:00] This conversation went back and forth between the hackers and Maersk for a

00:33:17.460 --> 00:33:18.640
little while.

00:33:18.640 --> 00:33:22.889
The story goes is that the hackers said themselves that they didn’t expect this to spread so

00:33:22.889 --> 00:33:24.360
far, so quickly.

00:33:24.360 --> 00:33:28.440
It sounds like even the hacker was impressed by how effective it was.

00:33:28.440 --> 00:33:32.400
Ultimately, Maersk decided not to pay for a number of reasons.

00:33:32.400 --> 00:33:37.490
For one, it paints a target on Maersk’s back as someone who pays ransoms but also,

00:33:37.490 --> 00:33:41.299
security researchers were suggesting that this isn’t a ransomware; it’s a wiper

00:33:41.299 --> 00:33:45.390
and that even if you had the decryption keys, you’re not gonna get your data back.

00:33:45.390 --> 00:33:48.049
There was doubt that this could even be recovered this way.

00:33:48.049 --> 00:33:52.610
But more importantly, Maersk knew they needed to rebuild their network anyway.

00:33:52.610 --> 00:33:57.410
Even with decryption keys, they still needed to go through every computer, unlock it, reconfigure

00:33:57.410 --> 00:34:01.909
it, secure it, check it for any tampering or misconfigurations, and get it back to working

00:34:01.909 --> 00:34:02.990
again.

00:34:02.990 --> 00:34:06.930
They opted just to ignore the ransom and start from scratch.

00:34:06.930 --> 00:34:11.149
But still, this meant a lot of work to do.

00:34:11.149 --> 00:34:14.460
Where do you even start to recover a network this big?

00:34:14.460 --> 00:34:20.899
Well, stay with us because after the break, we’ll hear how they got their cargo moving

00:34:20.899 --> 00:34:23.220
again.

00:34:23.220 --> 00:34:27.879
Maersk was screwed without a functioning network so the only option they had was to rebuild

00:34:27.879 --> 00:34:31.970
everything from scratch, their entire network infrastructure.

00:34:31.970 --> 00:34:36.109
They hired Deloitte, a consulting company, to come and help them do incident response.

00:34:36.109 --> 00:34:41.020
ANDY: But they also set up their own emergency recovery center in this building outside of

00:34:41.020 --> 00:34:44.879
London in this town called Maidenhead.

00:34:44.879 --> 00:34:52.099
That building just was swarming with everyone who vaguely worked in IT for Maersk anywhere

00:34:52.099 --> 00:34:59.089
in the world who were all kind of shipped in within days to work 24/7, more or less,

00:34:59.089 --> 00:35:01.300
to rebuild Maersk’s global network.

00:35:01.300 --> 00:35:04.720
JACK: Because everyone’s computers weren’t working and they wanted to get people stood

00:35:04.720 --> 00:35:09.800
up again quickly, they came up with a few different plans to get everyone back online.

00:35:09.800 --> 00:35:15.190
They decided to deploy USB sticks to employees with operating systems installed.

00:35:15.190 --> 00:35:20.270
With this, the IT team could stick a bootable operating system on a USB drive, then hand

00:35:20.270 --> 00:35:24.530
it to an employee, and they could just boot to the USB drive and have a working computer.

00:35:24.530 --> 00:35:27.400
Of course, it doesn’t have all their stuff, but at least it’s something.

00:35:27.400 --> 00:35:31.780
If that computer went down, they could just grab a new USB stick and boot up, and they’re

00:35:31.780 --> 00:35:32.780
online again.

00:35:32.780 --> 00:35:35.620
It’s a quick band-aid to get some systems back up.

00:35:35.620 --> 00:35:40.099
It’s a good idea, so Maersk tried to buy three thousand USB drives.

00:35:40.099 --> 00:35:44.910
But this was a problem because even big-box stores like Staples or Best Buy, they only

00:35:44.910 --> 00:35:48.060
have a couple dozen in stock and they needed thousands.

00:35:48.060 --> 00:35:52.270
They quickly wiped the USB supply of anyone who was willing to sell it to them, and then

00:35:52.270 --> 00:35:56.200
they began buying directly from the manufacturer to get them in bulk.

00:35:56.200 --> 00:35:58.170
How long is that gonna take, right?

00:35:58.170 --> 00:36:00.170
Days? Weeks?

00:36:00.170 --> 00:36:03.580
This was slowly getting individual users back online but they still needed to rebuild the

00:36:03.580 --> 00:36:07.210
entire IT infrastructure, all the servers and stuff.

00:36:07.210 --> 00:36:11.680
ANDY: As Maersk started that recovery process, really throwing everything they had into that

00:36:11.680 --> 00:36:16.580
Maidenhead building where people were trying to rebuild their network from scratch, the

00:36:16.580 --> 00:36:21.360
very first hurdle that they encountered was that they didn’t have a backup copy of their

00:36:21.360 --> 00:36:27.290
domain controllers which are a kind of core backbone of their network.

00:36:27.290 --> 00:36:31.730
[MUSIC] Maersk has more than a hundred domain controllers and each of them is designed to

00:36:31.730 --> 00:36:35.720
kind of backup to each other.

00:36:35.720 --> 00:36:39.190
If one goes down, it’s no big deal because it’s backed up to all the other ones.

00:36:39.190 --> 00:36:44.150
It’s this massive redundancy system but what they hadn’t planned for is a situation

00:36:44.150 --> 00:36:47.450
where every single domain controller is wiped at the same time.

00:36:47.450 --> 00:36:49.520
That is exactly what NotPetya did.

00:36:49.520 --> 00:36:54.050
JACK: All of their domain controllers were ruined, wiped, destroyed.

00:36:54.050 --> 00:36:55.599
It was catastrophic.

00:36:55.599 --> 00:37:00.060
This is the heart of the network, the thing that knows everyone’s profile and logins,

00:37:00.060 --> 00:37:03.190
and passwords, and permissions, and so, so much more.

00:37:03.190 --> 00:37:04.950
[00:40:00] It was totally gone.

00:37:04.950 --> 00:37:10.440
Now, typically, you’re gonna have backups for this and they did have backups and redundancy,

00:37:10.440 --> 00:37:15.840
but this worm infected their backups and redundant domain controllers too, so they were gone.

00:37:15.840 --> 00:37:20.650
Maybe in a company this big, you might want to do some sort of weekly snapshot and then

00:37:20.650 --> 00:37:25.740
take that snapshot to some offsite location so in case something like this does happen,

00:37:25.740 --> 00:37:29.630
you can at least go back a week and get something from there.

00:37:29.630 --> 00:37:34.560
But it didn’t seem like they had any of this and they were stuck with pretty much

00:37:34.560 --> 00:37:35.950
no network.

00:37:35.950 --> 00:37:40.420
ANDY: These frantic IT administrators are calling around to every Maersk facility everywhere

00:37:40.420 --> 00:37:43.720
in the world looking for any backup of the domain controllers.

00:37:43.720 --> 00:37:49.720
They finally found it in one place; it was in a datacenter in Ghana that had experienced

00:37:49.720 --> 00:37:57.589
electrical blackouts, just a normal loss of electricity, but the result was that that

00:37:57.589 --> 00:38:00.250
one domain controller had had its data preserved.

00:38:00.250 --> 00:38:03.880
It hadn’t been infected by NotPetya ‘cause it wasn’t online.

00:38:03.880 --> 00:38:08.420
JACK: One domain controller in Ghana is still working.

00:38:08.420 --> 00:38:12.900
This could be the domain controller that could help stand up all of Maersk’s network.

00:38:12.900 --> 00:38:19.270
It became a critical mission to get this domain controller to the disaster recovery center.

00:38:19.270 --> 00:38:23.320
ANDY: They had to get that data from Ghana to Maidenhead.

00:38:23.320 --> 00:38:28.670
They first tried to set up a secure remote connection but the bandwidth of the Ghanaian

00:38:28.670 --> 00:38:34.640
data center wasn’t fast enough so they tried to fly someone from Ghana to London, but the

00:38:34.640 --> 00:38:39.240
Ghanaians didn’t have the right VISAs, so they had to do this kind of crazy relay race

00:38:39.240 --> 00:38:44.030
thing where people flew from London to Nigeria.

00:38:44.030 --> 00:38:48.240
The Ghanaians flew to Nigeria too, and they handed off the data on some sort of physical

00:38:48.240 --> 00:38:52.599
medium and then carried it back to London, drove to Maidenhead, and that was the beginning

00:38:52.599 --> 00:38:57.510
of this weeks and ultimately months-long process of rebuilding Maersk’s network.

00:38:57.510 --> 00:39:04.020
JACK: With this one domain controller, they were able to start restoring the network.

00:39:04.020 --> 00:39:05.480
Phew.

00:39:05.480 --> 00:39:07.470
Maersk needed even more help, though.

00:39:07.470 --> 00:39:11.700
They didn’t have a functioning network so they asked partners and clients if they could

00:39:11.700 --> 00:39:13.190
use their network.

00:39:13.190 --> 00:39:17.900
But of course, nobody wanted Maersk on their network since Maersk had a horrible virus.

00:39:17.900 --> 00:39:23.359
Maersk tried hiring more IT people but they couldn’t find anyone qualified or available,

00:39:23.359 --> 00:39:27.569
so they called up whatever companies that were partners and clients and friends of theirs

00:39:27.569 --> 00:39:30.700
and asked could they just hire their IT staff?

00:39:30.700 --> 00:39:32.550
These companies were like, no.

00:39:32.550 --> 00:39:37.470
But they did loan out a few of the IT staff to Maersk; forty engineers, analysts, and

00:39:37.470 --> 00:39:43.400
IT experts were loaned to Maersk and flown in to help recover the network.

00:39:43.400 --> 00:39:49.119
After about nine days of working on it 24/7, they were able to have a functioning network

00:39:49.119 --> 00:39:50.119
again.

00:39:50.119 --> 00:39:55.220
This ultimately cost Maersk 350 million dollars.

00:39:55.220 --> 00:39:59.050
That’s just the story of how Maersk handled this problem.

00:39:59.050 --> 00:40:03.240
There were over three hundred other organizations that were also hit.

00:40:03.240 --> 00:40:06.550
ANDY: It would hit pretty much every Ukrainian government agency.

00:40:06.550 --> 00:40:13.470
The Minister of Infrastructure, Volodymyr Omelyan, told me that the government was dead

00:40:13.470 --> 00:40:16.050
and it spread to the postal service.

00:40:16.050 --> 00:40:20.460
The entire postal service of Ukraine shut down which includes all of their payment systems

00:40:20.460 --> 00:40:26.240
for sending money, their functions for handing out pensions to people in the country, newspaper

00:40:26.240 --> 00:40:27.240
delivery.

00:40:27.240 --> 00:40:30.080
JACK: But there’s also 74,000 employees at the post office.

00:40:30.080 --> 00:40:33.660
How are those checks going to be issued when all the computers are down?

00:40:33.660 --> 00:40:37.530
Ukraine’s Ministry of Health thought they were going to be infected so they just unplugged

00:40:37.530 --> 00:40:42.470
their entire network, forcing themselves to go down which is unthinkable; to unplug yourself

00:40:42.470 --> 00:40:43.560
on purpose.

00:40:43.560 --> 00:40:50.839
ANDY: Twenty-two banks were shut down by NotPetya, six power companies, two airports, four hospitals

00:40:50.839 --> 00:40:59.300
in Kiev alone, the card payment systems in the metro in Kiev and other cities, all of

00:40:59.300 --> 00:41:00.700
the ATMs across the country.

00:41:00.700 --> 00:41:05.760
This was the kind of, I don’t know what you would call it, a kind of full-spectrum

00:41:05.760 --> 00:41:11.800
cyber-war that had really never been seen anywhere else before and it hit Ukraine at

00:41:11.800 --> 00:41:12.800
a national scale.

00:41:12.800 --> 00:41:18.780
JACK: This was a national disaster, an epidemic that caused panic and chaos everywhere.

00:41:18.780 --> 00:41:27.200
Yeah, this is an intentional man-made disaster, an attack that someone wanted to inflict on

00:41:27.200 --> 00:41:29.369
the country of Ukraine.

00:41:29.369 --> 00:41:36.980
Yeah, I think this is a cyber-war which is the first time I’ve ever admitted to saying

00:41:36.980 --> 00:41:38.730
that myself.

00:41:38.730 --> 00:41:47.470
ANDY: [MUSIC] About a week after NotPetya hit, vans full of these militarized Ukrainian

00:41:47.470 --> 00:41:56.480
police pulled up to the Linkos Group headquarters and poured out into the building, up the stairs

00:41:56.480 --> 00:42:01.589
as if they were raiding the Bin Laden compound, pointing semi-automatic rifles at staff, kicking

00:42:01.589 --> 00:42:02.849
down a door.

00:42:02.849 --> 00:42:08.820
[00:45:00] It was all to grab this one server on the third floor of the building that had

00:42:08.820 --> 00:42:13.730
been, in some ways, the genesis of the NotPetya attack.

00:42:13.730 --> 00:42:18.930
But of course, what’s very ironic about that is that it was not the genesis of the

00:42:18.930 --> 00:42:20.800
attack; it was just an instrument of it.

00:42:20.800 --> 00:42:26.700
The real source of that attack was somewhere far away across the internet, ultimately,

00:42:26.700 --> 00:42:30.770
almost certainly in Moscow, hundreds of miles from Kiev.

00:42:30.770 --> 00:42:35.589
JACK: Ah, yes, now we get into the who would do such a thing part of our story.

00:42:35.589 --> 00:42:40.000
Andy here thinks it’s Moscow but that’s no easy conclusion to get to.

00:42:40.000 --> 00:42:42.369
Just because Russia and Ukraine are enemies isn’t enough.

00:42:42.369 --> 00:42:44.550
You need more evidence than just that.

00:42:44.550 --> 00:42:47.350
I mean, it might have just been a criminal group of hackers.

00:42:47.350 --> 00:42:52.570
An investigation began on trying to find out what the evidence was behind who did this.

00:42:52.570 --> 00:42:56.700
Of course, that Linkos Group server and their network was analyzed to see what the intrusion

00:42:56.700 --> 00:42:57.700
there looked like.

00:42:57.700 --> 00:43:00.090
Were there any clues left behind with that?

00:43:00.090 --> 00:43:01.500
How did they get in?

00:43:01.500 --> 00:43:04.880
The virus was also analyzed to see if any notes were left on there.

00:43:04.880 --> 00:43:08.750
Maybe some comments or variable names or documentation might give us a clue.

00:43:08.750 --> 00:43:13.309
The virus was analyzed over and over and you can also look at compile times.

00:43:13.309 --> 00:43:15.490
At what time of day was the virus made?

00:43:15.490 --> 00:43:19.500
Like, 1:00 p.m. in Moscow is 5:00 a.m. in the US.

00:43:19.500 --> 00:43:22.740
All these things are worth investigation and writing down.

00:43:22.740 --> 00:43:30.329
ANDY: [MUSIC] Within days of NotPetya hitting, the Slovakian cyber-security firm ESET had

00:43:30.329 --> 00:43:35.240
started to pull together forensic evidence that tied NotPetya to the earlier waves of

00:43:35.240 --> 00:43:40.040
attacks against Ukraine that included the data-destructive attacks against Ukrainian

00:43:40.040 --> 00:43:46.020
companies and government agencies and the blackout attacks that had hit in late 2015,

00:43:46.020 --> 00:43:47.020
late 2016.

00:43:47.020 --> 00:43:50.309
Those attacks, in turn, had been tied to this group Sandworm.

00:43:50.309 --> 00:43:55.619
JACK: The security company ESET got ahold of a copy of NotPetya and studied it extensively.

00:43:55.619 --> 00:44:00.839
They published a report showing all of the evidence that ties this to Sandworm.

00:44:00.839 --> 00:44:07.431
ANDY: Sandworm, this little company iSIGHT Partners had found in 2014, had a Russian

00:44:07.431 --> 00:44:12.740
language how-to manual for using their trojan on an open directory of their command and

00:44:12.740 --> 00:44:13.740
control server.

00:44:13.740 --> 00:44:19.650
If you follow that forensic line all the way back to 2014, it’s pretty clear, first of

00:44:19.650 --> 00:44:24.600
all, that who else is gonna be attacking Ukraine for years on end other than the country that

00:44:24.600 --> 00:44:29.230
has also launched a physical invasion into the east of the country and seized Crimea?

00:44:29.230 --> 00:44:35.160
That’s just common sense but also, we know that this group was Russian-speaking because

00:44:35.160 --> 00:44:39.250
of that file found on the open directory.

00:44:39.250 --> 00:44:43.619
Within days of NotPetya, it was pretty clear to me that this was part of the larger Russian

00:44:43.619 --> 00:44:48.410
cyber-war against Ukraine; that this was not a criminal act, that it was in fact the climax

00:44:48.410 --> 00:44:55.680
of a nation state-sponsored, escalating series of cyber-attacks against a military target.

00:44:55.680 --> 00:45:01.660
For almost nine months I was kind of going crazy trying to understand why none of these

00:45:01.660 --> 00:45:06.569
victims were naming Russia; no government had actually named Russia, NATO had not said

00:45:06.569 --> 00:45:07.760
anything.

00:45:07.760 --> 00:45:12.250
It was weird enough that we had watched this Russian cyber-war unfold in Ukraine for years

00:45:12.250 --> 00:45:16.120
but now it had even hit these multinational companies, many of which were based in the

00:45:16.120 --> 00:45:24.440
west, and still nobody was calling out Russia for this worst-ever-in-history cyber-attack.

00:45:24.440 --> 00:45:29.990
Until finally, nine months after NotPetya hit, the White House put out a statement,

00:45:29.990 --> 00:45:34.690
a very, very short statement that just said yes, NotPetya was the worst cyber-attack in

00:45:34.690 --> 00:45:39.740
history and it was deployed by the Russian military against Ukraine and that there will

00:45:39.740 --> 00:45:41.710
be consequences.

00:45:41.710 --> 00:45:46.740
That statement was in turn backed up with similar statements from all the four other

00:45:46.740 --> 00:45:52.540
Five Eyes, English-speaking nations’ intelligence agencies.

00:45:52.540 --> 00:45:56.770
The US, Canada, New Zealand, Australia, and the UK all simultaneously called out Russia

00:45:56.770 --> 00:45:58.950
as the perpetrator of NotPetya.

00:45:58.950 --> 00:46:03.460
There are still people, and in particular Russians, who question whether NotPetya was

00:46:03.460 --> 00:46:10.750
really a Russian state act but I don’t think we’ve ever had all five Five Eyes agree

00:46:10.750 --> 00:46:13.150
publically to call out someone like this before.

00:46:13.150 --> 00:46:16.020
I don’t think there’s really much room for doubt.

00:46:16.020 --> 00:46:20.430
JACK: The FBI also did their own investigation working with some of these international companies

00:46:20.430 --> 00:46:22.680
and Ukrainian companies to learn more.

00:46:22.680 --> 00:46:28.710
But still today, we have no idea what the FBI found in their investigation but for Andy,

00:46:28.710 --> 00:46:34.690
he wanted to learn more about what happened there, so he packed his bags and flew to Ukraine

00:46:34.690 --> 00:46:35.800
to investigate.

00:46:35.800 --> 00:46:43.109
ANDY: [MUSIC] When I was in Ukraine, I talked to the SBU, the Ukrainian equivalent of the

00:46:43.109 --> 00:46:52.400
NSA, and they had told me flat-out that Sandworm was Fancy Bear, APT28, this other Russian

00:46:52.400 --> 00:47:00.030
hacker group that had been named for years as linked to the GRU, Russia’s military

00:47:00.030 --> 00:47:01.819
intelligence agency.

00:47:01.819 --> 00:47:06.790
[00:50:00] I had suspected for a long time, and I’ve heard this from American sources

00:47:06.790 --> 00:47:12.630
too, but it was kind of unsubstantiated that Sandworm was likely the GRU and they were

00:47:12.630 --> 00:47:18.020
the most likely candidate because they’re part of Russia’s military, Russia’s military

00:47:18.020 --> 00:47:22.220
was invading Ukraine, the GRU had been very active in that invasion.

00:47:22.220 --> 00:47:27.330
But when the Five Eyes said that the Russian military had carried out NotPetya, that for

00:47:27.330 --> 00:47:29.440
me was ultimately the confirmation.

00:47:29.440 --> 00:47:35.720
I should give some credit here also to the Washington Post who, in a story before that

00:47:35.720 --> 00:47:39.340
announcement, said simply that NotPetya was carried out by the GRU.

00:47:39.340 --> 00:47:43.060
JACK: The GRU is Russia’s military intelligence agency.

00:47:43.060 --> 00:47:45.750
Within the GRU are hackers.

00:47:45.750 --> 00:47:52.069
In fact, the FBI has indicted twelve GRU hackers from meddling with the 2016 US election for

00:47:52.069 --> 00:47:53.570
hacking into the DNC.

00:47:53.570 --> 00:47:57.750
Robert Mueller is who brought this indictment forward and I read through it; it’s twenty-six

00:47:57.750 --> 00:48:03.470
pages and it explains a lot of details about the GRU and how they hacked the 2016 election.

00:48:03.470 --> 00:48:07.270
It even lists the street address of where these hackers work out of.

00:48:07.270 --> 00:48:11.900
It’s a fascinating read but so far nobody has been indicted for NotPetya and there’s

00:48:11.900 --> 00:48:14.000
been no FBI report for that, either.

00:48:14.000 --> 00:48:21.030
The GRU hackers behind the 2016 election hacking, that hacking group has been called Fancy Bear

00:48:21.030 --> 00:48:25.490
but this group that did NotPetya, something was a little different here.

00:48:25.490 --> 00:48:32.500
It didn’t have the same MO as Fancy Bear so a different name was given to them; Sandworm.

00:48:32.500 --> 00:48:34.240
It might be the same group as Fancy Bear.

00:48:34.240 --> 00:48:35.339
We don’t know.

00:48:35.339 --> 00:48:39.319
My guess is that it’s another hacker team just down the hall from Fancy Bear, or on

00:48:39.319 --> 00:48:42.849
another floor working in the same building as Fancy Bear.

00:48:42.849 --> 00:48:47.589
But what we believe is that both Sandworm and Fancy Bear are hacking groups both working

00:48:47.589 --> 00:48:51.100
for Russia’s GRU in Moscow.

00:48:51.100 --> 00:48:54.980
With the address in hand from the earlier indictment, Andy decided to take a trip to

00:48:54.980 --> 00:48:56.970
Moscow to learn more.

00:48:56.970 --> 00:49:00.830
He went right up to the tower that GRU works out of and looked at it.

00:49:00.830 --> 00:49:08.770
ANDY: When I went to Moscow and stood there in the shadow of the tower, this glass building

00:49:08.770 --> 00:49:17.880
on the Moscow canal in northern Moscow that maybe I believed housed Sandworm, the hackers

00:49:17.880 --> 00:49:24.610
responsible for all of this destruction, I had a feeling of futility; that I was so close

00:49:24.610 --> 00:49:30.839
physically to the perpetrators of these attacks and yet I wasn’t gonna get any closer.

00:49:30.839 --> 00:49:37.691
Just as distance had not been a kind of defense against NotPetya, proximity wasn’t really

00:49:37.691 --> 00:49:40.859
enough to bring me any closer to these attackers.

00:49:40.859 --> 00:49:46.270
They were behind a locked gate with armed security guards.

00:49:46.270 --> 00:49:49.280
I knew that I couldn’t just ask for an interview.

00:49:49.280 --> 00:49:53.320
As close as I was to these hackers, that was kind of the end of the story for me and I

00:49:53.320 --> 00:49:58.579
don’t know if I will ever get any closer.

00:49:58.579 --> 00:50:10.630
JACK: [MUSIC] The estimated damages from this attack totaled ten billion dollars.

00:50:10.630 --> 00:50:13.750
This is why this is the largest cyber-attack in history.

00:50:13.750 --> 00:50:17.170
No attack has come close to this amount of damage ever.

00:50:17.170 --> 00:50:21.470
Ten billion dollars; this was catastrophic, enormous.

00:50:21.470 --> 00:50:25.260
It set new records and was very scary.

00:50:25.260 --> 00:50:29.690
It’s scary that all this was done with hacking tools that anyone had access to.

00:50:29.690 --> 00:50:33.180
There was no super-secret hacking tool used here.

00:50:33.180 --> 00:50:37.910
Mimikatz is open-source for anyone to use and EternalBlue was dumped by the Shadow Brokers

00:50:37.910 --> 00:50:40.170
just six months before.

00:50:40.170 --> 00:50:43.250
You could slap any good ransomware on top of it and there you go.

00:50:43.250 --> 00:50:49.260
But wait a minute, this makes me think if Russia were the ones behind Shadow Brokers

00:50:49.260 --> 00:50:54.540
and Russia’s the one that did NotPetya, then why wouldn’t they just keep EternalBlue

00:50:54.540 --> 00:50:55.710
to themselves?

00:50:55.710 --> 00:51:00.020
I wondered this and asked Jake Williams from the last episode.

00:51:00.020 --> 00:51:05.589
Why would they give away EternalBlue and then use it to hack Ukraine, right?

00:51:05.589 --> 00:51:06.589
You would keep that.

00:51:06.589 --> 00:51:08.349
JAKE: Oh, see, I disagree with that.

00:51:08.349 --> 00:51:11.839
I’ve thought a lot about this as well.

00:51:11.839 --> 00:51:17.720
You know, if you look at the NotPetya attack, I’m not sure that when – a couple things;

00:51:17.720 --> 00:51:23.290
first off, I’m positive that they got better return on investment if it wasn’t information

00:51:23.290 --> 00:51:27.480
operation releasing it and then using it than they would have just using it as an 0-day.

00:51:27.480 --> 00:51:32.710
I think as an 0-day it would have caused absolute panic and honestly the damage from it would

00:51:32.710 --> 00:51:35.609
have been so much more outside of Ukraine.

00:51:35.609 --> 00:51:41.840
I personally don’t believe that the Russians anticipated the level of damage outside of

00:51:41.840 --> 00:51:43.130
Ukraine that actually occurred.

00:51:43.130 --> 00:51:46.880
Honestly, I don’t think the InfoSec community did, either.

00:51:46.880 --> 00:51:51.540
I think that the why did they use it down the road was out there.

00:51:51.540 --> 00:51:54.040
Why give it up in the first place?

00:51:54.040 --> 00:51:58.240
I think a couple things; first off, I have no doubt that they have a similar capability

00:51:58.240 --> 00:52:04.349
or we said at the time, had a similar capability remotely exploited with SMB [00:55:00] vulnerability.

00:52:04.349 --> 00:52:05.349
I think that’s one.

00:52:05.349 --> 00:52:08.631
JACK: Oh, that’s an interesting – I got your theory right away on that, ‘cause if

00:52:08.631 --> 00:52:13.600
they publically post it, then they don’t have to expose their zero-day but they can

00:52:13.600 --> 00:52:15.329
expose NSA’s zero-day.

00:52:15.329 --> 00:52:17.400
JAKE: Exactly, exactly.

00:52:17.400 --> 00:52:23.250
Separately from that, they take out – suppose that in April when they go to release this,

00:52:23.250 --> 00:52:25.480
they don’t know that they’re gonna do NotPetya, right?

00:52:25.480 --> 00:52:29.770
I think that’s actually, I have to tell you, I think that that’s a reasonable assertion

00:52:29.770 --> 00:52:31.890
at that point.

00:52:31.890 --> 00:52:33.349
I think they know they’re gonna do something.

00:52:33.349 --> 00:52:36.590
I don’t think anybody’s got – I know, at that point, I think it’s clear they know

00:52:36.590 --> 00:52:41.080
they’re doing a destructive cyber-attack around MeDoc in Ukraine but I don’t think

00:52:41.080 --> 00:52:42.910
it’s clear they’re gonna worm anything.

00:52:42.910 --> 00:52:47.339
I don’t think that was ever part of the decision calculus for release.

00:52:47.339 --> 00:52:51.980
But taking NotPetya completely out of it for a minute; if you are a nation state operation,

00:52:51.980 --> 00:52:58.069
so roll back to the blog post that I was pushing where I was like hey, it is likely – basically,

00:52:58.069 --> 00:53:03.810
whoever this is, is operating in the interest of Russia where they are effectively shutting

00:53:03.810 --> 00:53:10.750
down or – I say shutting down; they’re effectively taking control of the InfoSec/technology

00:53:10.750 --> 00:53:12.809
news cycle with these releases.

00:53:12.809 --> 00:53:16.970
JACK: Hm, besides that, it throws NSA into chaos, right?

00:53:16.970 --> 00:53:21.740
As soon as Shadow Brokers dumps their stuff, there has to be a mad scramble at NSA to try

00:53:21.740 --> 00:53:25.190
to look around at what got dumped and who did it and why and what.

00:53:25.190 --> 00:53:30.579
At the same time, it makes NSA look bad which gives the GRU some top cover to move into

00:53:30.579 --> 00:53:35.410
position and stage a massive attack while the world was dealing with EternalBlue.

00:53:35.410 --> 00:53:40.000
[MUSIC] Gosh, what a future we have set for ourselves, because I don’t think the world

00:53:40.000 --> 00:53:41.310
has learned from this lesson.

00:53:41.310 --> 00:53:45.960
There are still hundreds of thousands of Windows computers still vulnerable to EternalBlue

00:53:45.960 --> 00:53:47.599
out there right now.

00:53:47.599 --> 00:53:50.250
You can just update this any moment and protect yourself.

00:53:50.250 --> 00:53:54.730
But Microsoft, Microsoft still hasn’t patched Mimikatz.

00:53:54.730 --> 00:53:56.470
I mean, they have, okay?

00:53:56.470 --> 00:54:00.579
They’ve fixed it but more people just find more flaws in the authentication of Windows

00:54:00.579 --> 00:54:02.540
and Mimikatz works again.

00:54:02.540 --> 00:54:05.130
From what I’ve been told, this will never be fixed.

00:54:05.130 --> 00:54:07.960
Not that Microsoft isn’t working hard on it; they are.

00:54:07.960 --> 00:54:09.819
They release fixes all the time.

00:54:09.819 --> 00:54:14.280
They’ve created this tool called the Microsoft Windows Credential Guard which protects against

00:54:14.280 --> 00:54:15.280
this.

00:54:15.280 --> 00:54:17.750
But if that’s the case, then why isn’t that enabled by default?

00:54:17.750 --> 00:54:22.390
Or why can’t the defaults just be secure and then a system admin is the one who has

00:54:22.390 --> 00:54:24.820
to click the button to make it insecure?

00:54:24.820 --> 00:54:27.520
Insecure by default is never a solution.

00:54:27.520 --> 00:54:31.531
The reason why Mimikatz isn’t just fixed once and for all is because there’s something

00:54:31.531 --> 00:54:35.680
inherently flawed with the way Windows authentication works just as a whole.

00:54:35.680 --> 00:54:40.450
It’s like every door or window in your house; these are the weak points by design because

00:54:40.450 --> 00:54:44.180
they’re literally holes in your house that things can go in and out of.

00:54:44.180 --> 00:54:48.950
Mimikatz just makes me really mad because it’s still a problem and it was used in

00:54:48.950 --> 00:54:53.410
this attack that brought down Ukraine and cost the world ten billion dollars.

00:54:53.410 --> 00:54:59.260
I mean, is there a scenario that’s so devastating to the world that somebody finally does something

00:54:59.260 --> 00:55:01.829
about Windows authentication to make it secure?

00:55:01.829 --> 00:55:05.260
I don’t know, and this is what really makes me mad.

00:55:05.260 --> 00:55:07.530
Aah! I will not fear.

00:55:07.530 --> 00:55:09.400
Fear is the mind-killer.

00:55:09.400 --> 00:55:13.510
I will let this pass over me.

00:55:13.510 --> 00:55:19.940
Okay, so while this is the story of NotPetya, it’s just a small part of the story.

00:55:19.940 --> 00:55:24.220
Andy Greenberg, our guest in this episode, just published this book called Sandworm which

00:55:24.220 --> 00:55:26.319
goes into great detail about it.

00:55:26.319 --> 00:55:30.510
I mean, the guy flew to Ukraine and Moscow to get to the bottom of all this.

00:55:30.510 --> 00:55:35.170
This is not the only cyber-attack Russia has done to Ukraine; the book outlines so many

00:55:35.170 --> 00:55:40.460
more attacks that are equally as serious and scary you should be aware of.

00:55:40.460 --> 00:55:45.630
In fact, I want to say that this episode only covered like, a fifth of the book, so go get

00:55:45.630 --> 00:55:51.270
Sandworm in any bookstore right now, or get the audiobook and dive in and enjoy because

00:55:51.270 --> 00:56:31.619
it’s fantastic.

00:56:31.619 --> 00:58:28.420
JACK (OUTRO): [OUTRO MUSIC] A big

00:58:28.420 --> 00:58:30.000
thank you to Andy Greenberg.

00:58:30.000 --> 00:58:33.369
Your book is amazing, the story is amazing, and I appreciate all the research you’ve

00:58:33.369 --> 00:58:41.800
done and coming on the show to tell us this story.

00:58:41.800 --> 00:58:47.540
To learn more about Andy, visit andygreenberg.net or find him on Twitter as @a_greenberg.

00:58:47.540 --> 00:58:52.119
I’ll also have affiliate links to the Sandworm book in the show notes.

00:58:52.119 --> 00:58:54.250
Thanks to Jake Williams once again.

00:58:54.250 --> 00:58:57.190
This show is made by me, harkonen, Jack Rhysider.

00:58:57.190 --> 00:59:02.089
Sound design was done by the dual-eared Andrew Meriwether, editing help this episode by the

00:59:02.089 --> 00:59:07.240
clip-happy Damienne, and our theme music is by the bouncing Breakmaster Cylinder.

00:59:07.240 --> 00:59:11.319
Even though people turn off their phone, yank the battery out, and go sit in that corner

00:59:11.319 --> 00:59:23.490
of their house that gets no WiFi every time I say it, this is Darknet Diaries.
