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Scattered Spider
NicknameSee § Names
Formationc. May 2022
TypeHacker group
PurposeRansomware, cyberattacks
Region
United States and United Kingdom
MethodsSocial engineering, Ransomware as a service, Password cracking
AffiliationsALPHV

Scattered Spider, also referred to as UNC3944 among other names,[1] is a hacking group mostly made up of individuals aged 19 to 22 as of September 2023. The group, whose name was first tagged by cybersecurity researchers, gained notoriety for hacking Caesars Entertainment and MGM Resorts International, two of the largest casino and gambling companies in the United States. Scattered Spider is believed to be primarily made up of operatives based in both the United States and the United Kingdom.[2][3] At least one juvenile from the United Kingdom has been connected to the group.[4]

Names

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The group's most common name as used in press releases and by journalists is Scattered Spider, though many other names have been attributed to the group. Star Fraud, Octo Tempest, Scatter Swine, and Muddled Libra have all been names used to refer to the group previously.[1][5]

According to Allison Nixon of Unit 221B, a cybersecurity company, Scattered Spider is a component of a larger global hacking community, known as "the Community" or "the Com", itself having members who have hacked major American technology companies.[5]

Early history

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Scattered Spider is believed to have been founded in May 2022, when the group was focused on attacks on telecommunications firms. The group utilized SIM swap scams, multi-factor authentication fatigue attacks, and phishing by SMS and Telegram.[1] The group typically exploited the security bug CVE-2015-2291, a cybersecurity issue in Windows' anti-DoS software,[6] to terminate security software, allowing the group to evade detection. The group is believed to have a deep understanding of Microsoft Azure, the ability to conduct reconnaissance in cloud computing platforms powered by Google Workspace and AWS, and utilizes legitimately-developed remote-access tools.[1]

The group later became known for targeting critical infrastructure prior to moving on to its 2023 casino hacks.[7]

Casino hacks (2023)

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Scattered Spider gained access to both Caesars' and MGM's internal systems through the use of social engineering. The group was able to bypass multi-factor authentication technologies by attaining login credentials and one-time passwords.[8][9] The group claims that it targeted MGM due to them catching the group attempting to rig slot machines in their favor.[10]

Caesars hack

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Caesars Entertainment paid a ransom of $15 million to Scattered Spider, half their original demand of $30 million. Scattered Spider, using similar tactics to its attack on MGM, was able to access driver's license numbers and possibly Social Security numbers, for a "significant number" of Caesars customers. Statements made by Caesars noted that while the company cannot guarantee the deletion of the information attained by Scattered Spider, the casino operator will take all necessary actions to attain such result.[2]

Sources dispute on whether Scattered Spider was the group which targeted Caesars, with some believing it was the British-American group while others say the perpetrators were not the group or unknown.[11][12][10]

MGM Resorts hack

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Scattered Spider collaborated with ALPHV, a software development team which provides ransomware as a service. Scattered Spider called MGM's help desk posing as an employee it found on LinkedIn to gain internal access. The group gained access on September 11, 2023.[8]

MGM Resorts first disclosed the cyberattack on September 12, 2023, in a Form 8-K report with the SEC the next day.[13][14] The company stated that though it has "dealt" with the cyberattack, many of the computer systems at its resorts remain offline, which include but are not limited to credits for food, beverages, and free credits. The attack further disabled on-site ATMs as well as remote room keys, and prevented MGM from charging patrons for parking.[9]

In July 2024, a 17-year old hacker from the United Kingdom was arrested in connection with the hack and attempted ransom. He has been released on bail pending trial.[15] The arrest was coordinated by local and international law enforcement.

Aftermath

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MGM and the US FTC and FBI are presently investigating the cyberattack, and the casino operator temporarily took down its website.[3] Moody's Corporation has stated that due to MGM's heavy reliance on computers for much of its operations, its credit rating could go down as a result of the cyberattack.[7] Upon the announcement of both companies' attacks, the stock prices for both Caesars and MGM dropped. MGM's CEO William Hornbuckle went on to note at an industry conference that the hack caused the company to be "completely in the dark" about its properties.[5]

Both MGM and Caesars were sued in class action lawsuits following the hacks, with all stating that the failure for both of the casino operators to adequately secure their data constituted breach of contract. The law firms' clients also all demanded jury trials.[16][17]

Arrests

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In January 2024, Noah Michael Urban, allegedly a member of the group[18] and known as "Sosa", "King Bob", "Elijah", and other aliases, was arrested in Florida for the cumulative theft of about $800,000 in cryptocurrency.[19]

In June 2024, the alleged leader of the group, Tyler Buchanan, was arrested in Spain when attempting to board a flight to Italy.[20][21]

In July 2024, the West Midlands Police with the help of the FBI arrested a 17-year old juvenile in connection with the MGM cyberattacks. The suspect, who resides in Walsall and whose name was not published, was released on bail while law enforcement examines his devices.[22]

References

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  1. ^ a b c d "Scattered Spider: The Modus Operandi". www.trellix.com. Retrieved September 14, 2023.
  2. ^ a b "Caesars Entertainment says it was also a victim of a cyberattack". NBC News. September 14, 2023. Retrieved September 14, 2023.
  3. ^ a b Bracken, Becky (September 14, 2023). "'Scattered Spider' Behind MGM Cyberattack, Targets Casinos". Dark Reading. Retrieved September 14, 2023.
  4. ^ "UK Police Arrest 17-Year-Old in Connection to MGM Resorts Hack". Bloomberg.com. July 19, 2024. Retrieved July 22, 2024.
  5. ^ a b c Whitaker, Bill; Chasan, Aliza; Messick, Graham; Weingart, Jack (April 14, 2024). "Criminal exploits of Scattered Spider earn respect of Russian ransomware hackers - CBS News". www.cbsnews.com. Retrieved April 23, 2024.
  6. ^ "CVE-2015-2291 : (1) IQVW32.sys before 1.3.1.0 and (2) IQVW64.sys before 1.3.1.0 in the Intel Ethernet diagnostics driver for Windows all". www.cvedetails.com. Retrieved September 14, 2023.
  7. ^ a b "MGM Resorts breached by 'Scattered Spider' hackers: Sources". Business Insurance. Retrieved September 14, 2023.
  8. ^ a b Siddiqui, Zeba; Bing, Christopher; Bing, Christopher (September 13, 2023). "MGM Resorts breached by 'Scattered Spider' hackers: sources". Reuters. Retrieved September 14, 2023.
  9. ^ a b "Young hackers are sticking up Las Vegas casinos for hefty ransoms". Quartz. September 14, 2023. Retrieved September 14, 2023.
  10. ^ a b Srivastava, Mehul (September 14, 2023). "MGM hack followed failed bid to rig slot machines, 'Scattered Spider' group claims". Financial Times. Retrieved September 15, 2023.
  11. ^ Murphy, Aislinn (September 13, 2023). "Caesars Entertainment reportedly paid ransomware demand". FOXBusiness. Retrieved September 15, 2023.
  12. ^ Gendron, Will. "MGM Resorts is still suffering from a massive outage after a notorious group of young hackers apparently tricked workers into handing over access to the company's network". Business Insider. Retrieved September 15, 2023.
  13. ^ "Investors - Financial Info - SEC Filings - SEC Filings Details". investors.mgmresorts.com.
  14. ^ https://d18rn0p25nwr6d.cloudfront.net/CIK-0000789570/a390c443-0c40-4025-aba2-74505ab3c9e3.pdf
  15. ^ Encinas, Amaris. "U.K. police arrest 17-year-old in connection with last year's MGM cyberattack". USA TODAY. Retrieved July 22, 2024.
  16. ^ "Complaints filed say MGM Resorts, Caesars Entertainment failed to protect information from cyberattack". Channel 13 Las Vegas News KTNV. September 26, 2023. Retrieved September 26, 2023.
  17. ^ Croft, Daniel (September 26, 2023). "5 class actions launched against MGM, Caesars". www.cybersecurityconnect.com.au. Retrieved September 26, 2023.
  18. ^ "Fla. Man Charged in SIM-Swapping Spree is Key Suspect in Hacker Groups Oktapus, Scattered Spider – Krebs on Security". January 30, 2024. Retrieved July 22, 2024.
  19. ^ Fernandez, Frank. "Palm Coast teen accused in cryptocurrency scheme seeks jail release as he awaits trial". Daytona Beach News-Journal Online. Retrieved July 22, 2024.
  20. ^ "Alleged Boss of 'Scattered Spider' Hacking Group Arrested – Krebs on Security". June 16, 2024. Retrieved July 22, 2024.
  21. ^ "U.K. Hacker Linked to Notorious Scattered Spider Group Arrested in Spain". The Hacker News. Retrieved July 22, 2024.
  22. ^ Roth, Emma (July 19, 2024). "UK teen arrested in connection to MGM hack". The Verge. Retrieved July 22, 2024.
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