ransomware

Storm-0501 wipes Azure data after ransomware attack

A ransomware group has destroyed data and backups in a Microsoft Azure environment after exfiltrating sensitive information, which experts describe as a significant escalation in cloud-based attacks.

The threat actor, tracked as Storm-0501, gained complete control over a victim’s Azure domain by exploiting privileged accounts.

Microsoft researchers said the group used native Azure tools to copy data before systematically deleting resources to block recovery efforts.

After exfiltration, Storm-0501 used AzCopy to steal storage account contents and erase cloud assets. Immutable resources were encrypted instead.

The group later contacted the victim via Microsoft Teams using a compromised account to issue ransom demands.

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Researchers uncover first-ever AI-powered ransomware ‘Promptlock’

The Slovak software company specialising in cybersecurity has discovered a GenAI-powered ransomware named PromptLock in its latest research report. The researchers describe it as the ‘first known AI-powered ransomware’. Although it has not been observed in an actual attack, it is considered a proof of concept (PoC) or a work in progress.

Researchers also found that this type of ransomware may have the ability to exfiltrate, encrypt, and possibly even destroy data.

They noted: ‘The PromptLock malware uses the gpt-oss-20b model from OpenAI locally via the Ollama API to generate malicious Lua scripts on the fly, which it then executes.’

The report highlights how AI tools have made it easier to create convincing phishing messages and deepfakes, lowering the barrier for less-skilled attackers. As ransomware becomes more widespread, often deployed by advanced persistent threat (APT) groups, AI is expected to increase both the scale and effectiveness of such attacks.

PromptLock demonstrates how AI can automate key ransomware stages, such as reconnaissance and data theft, faster than ever. The emergence of malware capable of adapting its tactics in real time signals a new and more dangerous frontier in cybercrime.

Additionally, the GenAI company Anthropic has published a threat intelligence report revealing that malicious actors have attempted to exploit its AI model, Claude, for cybercriminal activities. The report outlines eight cases, including three major incidents.

One involved a cybercriminal group using Claude to automate data theft and extortion, targeting 17 organisations. Another detailed how North Korean actors used Claude to create fake identities, pass interviews, and secure remote IT jobs to fund the regime. A third case involved a criminal using Claude to create sophisticated ransomware variants with strong encryption and advanced evasion techniques. Most attempts were detected and disrupted before being carried out.

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AI chatbot Claude misused for high-value ransomware

Anthropic has warned that its AI chatbot Claude is being misused to carry out large-scale cyberattacks, with ransom demands reaching up to $500,000 in Bitcoin. Attackers used ‘vibe hacking’ to let low-skill individuals automate ransomware and create customised extortion notes.

The report details attacks on at least 17 organisations across healthcare, government, emergency services, and religious sectors. Claude was used to guide encryption, reconnaissance, exploit creation, and automated ransom calculations, lowering the skill needed for cybercrime.

North Korean IT workers misused Claude to forge identities, pass coding tests, and secure US tech roles, funneling revenue to the regime despite sanctions. Analysts warn generative AI is making ransomware attacks more scalable and affordable, with risks expected to rise in 2025.

Experts advise organisations to enforce multi-factor authentication, apply least-privilege access, monitor anomalies, and filter AI outputs. Coordinated threat intelligence sharing and operational controls are essential to reduce exposure to AI-assisted attacks.

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AI tools underpin a new wave of ransomware

Avast researchers uncovered that the FunkSec ransomware group used generative AI tools to accelerate attack development.

While the malware was not fully AI-generated, AI aided in writing code, crafting phishing templates and enhancing internal tooling.

A subtle encryption flaw in FunkSec’s code became the decryption breakthrough. Avast quietly developed a free tool, bypassing the need for ransom payments and rescuing dozens of affected users in cooperation with law enforcement.

However, this marks one of the earliest recorded instances of AI being used in ransomware, targeting productivity and stealth. It demonstrates how cybercriminals are adopting AI to lower entry barriers and that forensic investigation and technical agility remain crucial defence tools.

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Ransomware attack at DaVita exposes data of 2.7 million patients in the US

A ransomware attack against dialysis provider DaVita has exposed the personal data of 2.7 million people, according to a notice on the US health department’s website.

The company first disclosed the cyber incident in April, saying it had taken steps to restore operations but could not predict the scale of disruption.

DaVita confirmed that hackers gained unauthorised access to its laboratory database, which contained sensitive information belonging to some current and former patients. The firm said it is now contacting those affected and offering free credit monitoring to help protect against identity theft.

Despite the intrusion, DaVita maintained uninterrupted dialysis services across its network of nearly 3,000 outpatient clinics and home treatment programmes. The company described the cyberattack as a temporary disruption but stressed that patient care was never compromised.

Financial disclosures show the incident led to around $13.5 million in charges during the second quarter of 2025. Most of the costs were linked to system restoration and third-party support, with $1 million attributed to higher patient care expenses.

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North Korean hackers switch to ransomware in major cyber campaign

A North Korean hacking unit has launched a ransomware campaign targeting South Korea and other countries, marking a shift from pure espionage. Security firm S2W identified the subgroup, ‘ChinopuNK’, as part of the ScarCruft threat actor.

The operation began in July, utilising phishing emails and a malicious shortcut file within a RAR archive to deploy multiple malware types. These included a keylogger, stealer, ransomware, and a backdoor.

ScarCruft, active since 2016, has targeted defectors, journalists, and government agencies. Researchers say the move to ransomware indicates either a new revenue stream or a more disruptive mission.

The campaign has expanded beyond South Korea to Japan, Vietnam, Russia, Nepal, and the Middle East. Analysts note the group’s technical sophistication has improved in recent years.

Security experts advise monitoring URLs, file hashes, behaviour-based indicators, and ongoing tracking of ScarCruft’s tools and infrastructure, to detect related campaigns from North Korea and other countries early.

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BlackSuit infrastructure dismantled in global raid

US law enforcement, alongside nine other nations, dismantled the BlackSuit ransomware gang’s infrastructure, replacing its leak site with a takedown notice after a coordinated operation. The group, formerly known as Royal, had amassed over $370 million in ransoms since 2022.

More than 450 victims were targeted across critical infrastructure sectors, with ransom demands soaring up to $60 million. Dallas suffered severe disruption in a notable attack, affecting emergency services and courts.

German authorities seized key infrastructure, securing data that is now under analysis to identify further collaborators. The operation also included confiscating servers, domains and digital assets used for extortion and money laundering.

New research indicates that members of BlackSuit may already be shifting to a new ransomware operation called Chaos. US agencies seized $2.4 million in cryptocurrency linked to a Chaos affiliate, marking a significant blow to evolving cybercrime efforts.

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DOJ seizes $2.3 million Bitcoin from Chaos ransomware

The US Department of Justice has moved to seize over $2.3 million in Bitcoin tied to a member of the Chaos ransomware group. The funds, taken from a wallet linked to the individual known as ‘Hors’, are alleged to be proceeds of extortion and money laundering.

Chaos operates as a ransomware-as-a-service group, renting its malware to affiliates targeting Windows, Linux, and NAS systems. The group has been active since early 2025 and is known for encrypting victims’ data while demanding crypto payments under threat of public leaks.

US Federal agents accessed the wallet in April using a recovery seed phrase from an older Electrum platform and transferred the assets to a government-controlled address. The DOJ said the operation demonstrates growing success in disrupting ransomware-related crypto flows.

Despite the seizure, challenges remain as such groups evolve their tactics and benefit from the relative anonymity of decentralised platforms. Authorities stress that continued cross-agency cooperation and advances in blockchain forensics are essential in combating future threats.

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UK proposes mandatory ransomware reporting and seeks to ban payments by public sector

The UK government has unveiled a new proposal to strengthen its response to ransomware threats by requiring victims to report breaches, enabling law enforcement to disrupt cybercriminal operations more effectively.

Published by the Home Office as part of an ongoing policy consultation, the proposal outlines key measures:

  • Mandatory breach reporting to equip law enforcement with actionable intelligence for identifying and disrupting ransomware groups.
  • A ban on ransom payments by public sector and critical infrastructure entities.
  • A notification requirement for other organisations intending to pay a ransom, allowing the government to assess and respond accordingly.

According to the proposal, these steps would help the UK government carry out ‘targeted disruptions’ in response to evolving ransomware threats, while also improving support for victims.

Cybersecurity experts have largely welcomed the initiative. Allan Liska of Recorded Future noted the plan reflects a growing recognition that many ransomware actors are within reach of law enforcement. Arda Büyükkaya of EclecticIQ praised the effort to formalise response protocols, viewing the proposed payment ban and proactive enforcement as meaningful deterrents.

This announcement follows a consultation process that began in January 2025. While the proposals signal a significant policy shift, they have not yet been enacted into law. The potential ban on ransom payments remains particularly contentious, with critics warning that, in some cases—such as hospital systems—paying a ransom may be the only option to restore essential services quickly.

The UK’s proposal follows similar international efforts, including Australia’s recent mandate for victims to disclose ransom payments, though Australia has stopped short of banning them outright.

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Ransomware activity drops 43% in Q2 despite year‑on‑year rise

Ransomware incidents fell sharply in Q2 2025, with public disclosures dropping 43% from Q1 (from 22.9 to 17.5 cases per day). However, attacks remain elevated compared to the same quarter last year, showing a 43% year‑on‑year increase. In total, 1,591 new victims appeared on leak sites, confirming ransomware is still a serious and growing threat.

This decline coincided with law enforcement disruption of major operations such as Alphv/BlackCat and LockBit, alongside seasonal lulls like Easter and Ramadan. Meanwhile, active ransomware groups surged to 71, up from 41 in Q2 2024, indicating a fragmented threat landscape populated by smaller actors.

North America continued to absorb over half of all attacks, with healthcare, industrial manufacturing, and business services among the most affected sectors. Although overall volume dipped, newer threat actors remain agile, and fragmentation may fuel more covert ransomware behaviour, not less.

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