Article
Avaddon Ransomware Hits AXA
Arete Analysis
Combating Ransomware
Endpoint Detection and Response

Summary
Avaddon ransomware allegedly attacked European insurance provider AXA shortly after the company announced that it will stop paying ransoms for its clients. Our analysis provides an in-depth look at Avaddon’s tactics and recommended mitigations.
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From September 2020 to May 2021, Arete responded to nine Avaddon ransomware engagements across varying industry sectors, including professional services, financial services, healthcare, hospitality, public services, and retail.
During the first week of May, Arete received an FBI Liaison Alert System (FLASH) CU-000145-MW from the FBI Cyber Division. The Australian Cyber Security Center (ACSC) also released an alert about an ongoing Avaddon ransomware campaign.
According to reports, at the beginning of May 2021, AXA (one of Europe’s top five insurers) said it will stop reimbursing people in France who pay ransoms after cybercriminals target them with ransomware. It will also stop writing cyber insurance policies that cover customers for extortion payments to ransomware attackers. This decision is said to have come in response to concerns aired by French justice and cybersecurity officials during a recent senate roundtable in Paris about the global ransomware epidemic.
AXA has now found itself a victim of a ransomware breach. Public reports say that the Avaddon ransomware group has impacted AXA Asia Assistance IT operations in Thailand, Malaysia, Hong Kong, and the Philippines. The group claims to have stolen 3 terabytes of data, including ID cards, passport copies, customer claims, reserved agreements, denied reimbursements, payments to customers, contracts and reports, customer IDs, bank account scanned papers, hospital and doctor reserved material (private investigation for fraud), and customer medical reports, including HIV, hepatitis, STD, and other illness reports. According to reports, the ransomware group said AXA had 240 hours to communicate and cooperate or they would start leaking valuable company documents.
While the juxtaposition of the AXA decision to not pay ransoms for French victims or even write ransomware coverage in France could have motivated the attack, Arete has no information or evidence to link these events. In general, and as disclosed in publicly released news reports, attacks against insurance companies are increasing.
In a recent interview, a member of the REvil ransomware gang was asked if they target organizations with cyber insurance. His response:
“Yes, this is one of the tastiest morsels. Especially to hack the insurers first — to get their customer base and work in a targeted way from there. And after you go through the list, then hit the insurer themselves.”
- "Unknown" REvil Ransomware Representative
In its CU-000145-MW FLASH Alert, the FBI notified of activity by cyber actors using Avaddon ransomware-as-a-service (RaaS) to target U.S. and foreign private sector companies, manufacturing organizations, and healthcare agencies. The alert states that the threat actors:
Have compromised victims through remote access login credentials like remote desktop protocol (RDP) and virtual private network (VPN) with single-factor authentication or improperly configured RDP.
Once they gain access to a victim’s network, they map the network and identify backups for deletion and/or encryption. They use malware that escalates privileges, contains anti-analysis protection code, enables persistence on a victim system, and verifies the victim is not located in the Commonwealth of Independent States (CIS). Their ransomware terminates services and processes related to backup and antivirus running in system memory before encrypting victims’ data.
Encrypt and exfiltrate data from the victim network for extortion, threatening its release in their TOR leak site (avaddongun7rngel.onion) if victims don’t pay the ransom.
Will perform a 5% data leak if the ransom is not paid within three to five days and follow with a full leak of the data stolen if the ransom is not paid.
Announced in January 2021 that they would attack victims who do not pay ransoms with distributed denial-of-service (DDoS) attacks.
Have used the following IPs during RDP connections: 185.216.33.0/24, 45.145.67.0/23, 193.27.229.0/23, 217.8.117.63.
The ACSC report includes some of the following tactics, techniques, and procedures (TTPs):
Phishing and malicious email spam (malspam) campaigns to deliver malicious JavaScript files. These are often low in sophistication, containing a threat suggesting the attached file contains a compromising photo of the victim.
Using “double extortion” techniques as coercion and further pressure to pay a ransom, including:
Threatening to publish the victim’s data via the Avaddon Data Leak Site (DLS): avaddongun7rngel.onion.
Threatening the use of DDoS attacks against the victim (first identified in February 2021).
Identify the default geolocation and system language of the user’s device to determine whether the user will be targeted for attack or not.
Use of Windows Scheduled Task to establish persistence.
The report also includes the following information about countries and sectors affected by this threat:


Statistical Data on Avaddon Ransomware From Arete Metrics
The information listed is based on Avaddon cases investigated by Arete IR since September 2020. Our IR and Data Analytics practices work together to track key data points for every ransomware engagement, and our IR practice tracks data points on the ransomware variant and collects statistics based on handled engagements:
Arete has responded to nine Avaddon breach response engagements since September 2020 in the following sectors: Professional Services | Financial Services | Healthcare | Hospitality | Public Services | Retail
At victim/breach coach/carrier request, Arete negotiated and paid the ransom in four of the nine Avaddon cases. In the remaining five cases, we were able to assist the victim in recovering from backups.
Average ransom demand: US$1,089,375.
Maximum ransom demand: US$4,000,000.
Minimum ransom demand: US$15,000.
We observed data exfiltration in 67% of the incidents.
Phishing emails and RDP were the methods of infection 60% of the time.
During investigations, our incident responders have observed threat actors using RDP to remote into the victim environment. We have seen attackers use Mimikatz, Advanced Port Scanner, Advanced IP Scanner, PsExec, Rclone, Gmer, and svhost.exe. We have also seen exe_[victim_org].exe as the ransomware file names.
Mitigation Measures Recommended By The FBI and ACSC
Back up critical data offline.
Ensure copies of critical data are in the cloud or on an external hard drive or storage device.
Secure your backups and ensure data is not accessible for modification or deletion from the system where the data resides.
Use two-factor authentication with strong passwords, including for remote access services.
Monitor cyber threat reporting regarding the publication of compromised VPN login credentials and change passwords/settings, if applicable.
Regularly change passwords to critical systems.
Keep computers, devices, and applications patched and up to date.
Install and regularly update antivirus or antimalware software on all hosts.
Scan emails and attachments to detect and block malware.
Implement a training program and processes to identify phishing and externally sourced emails.
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Top 9 Security Controls for SMBs
In today’s complex cyber threat landscape, small and medium-sized businesses (SMBs) should implement a layered, multi-pronged approach to security. Here are some proven, effective controls to consider:
1. Implement MFA for All Users
Multi-factor authentication (MFA) is an effective and accessible way to protect sensitive data, comply with regulatory standards, and prevent unauthorized access to critical systems. By ensuring that users not only use a password but also a secure token, an organization can significantly reduce phishing attempts, credential stuffing attacks, and ransomware incidents. MFA should be enabled for email, VPN, and critical system access.
2. Update Patch Management Programs
A modern patching program should include policies and mechanisms to manage software updates in a timely manner. Patching efforts should address not just operating system updates, but also commonly utilized software within the environment. An active patching plan aims to reduce the mean time to patch and provide metrics on existing patch efforts. In the event of a high-severity vulnerability, a mature patching program should also be able to identify the risks and exposure for a given set of systems based on the average time to patch. This helps stakeholders make informed decisions when a new exploit is released.
3. Leverage a Properly Managed Endpoint Detection and Response (EDR) Tool
With real-time threat detection and advanced visibility, endpoint detection and response (EDR) solutions can enhance an organization’s ability to detect and investigate potential malicious activity, including ransomware, lateral movement, fileless attacks, and more. Effective management of EDR should include proper configuration, regular agent updates, and established procedures for responding to alerts.
4. Enhance EDR with Frontline Incident Intelligence
While EDR solutions are an important component of a security program, threat actors are continually adapting their techniques to evade detection, and as a result, standard detection methods may not always identify emerging threats or novel attack behaviors. To strengthen protection, organizations can supplement EDR tools with custom detection rules informed by incident response data. These rules can help identify indicators of compromise observed during cyber incidents, providing an additional layer of visibility beyond traditional detections.
Arete Bloktd℠ illustrates this approach by transforming threat intelligence and malware analysis into curated detection rules for EDR tools. Applying frontline intelligence to security tools can result in earlier detection, less investigative burden, and a more confident response.
5. Create and Continuously Test an Incident Response (IR) Plan
An incident response plan can help an organization effectively identify, respond to, and recover from a cybersecurity incident while minimizing disruption and downtime. An IR plan defines clear roles, escalation paths, communication strategies, and decision frameworks for both internal and external teams. To be effective, these plans should be regularly tested with post-incident reviews or tabletop exercises involving key stakeholders.
6. Maintain Encrypted and Tested Data Backups
In the case of a cyberattack, backups can help organizations maintain business continuity, support ransom negotiations with threat actors, and contribute to a timely and successful recovery. Encrypting backups makes it more difficult for threat actors to access or alter them, and regular testing ensures they remain accessible during a security incident.
7. Conduct Employee Security Awareness Training
Human error is a leading cause of cybersecurity incidents, and an organization’s employees are its first line of defense against cyber threats. Security awareness training reinforces the importance of data confidentiality, supports regulatory compliance, and helps employees recognize and understand red flags such as suspicious emails, malicious links, and social engineering attempts.
8. Assess and Address Existing Risk and Vulnerabilities
To maintain a proactive approach to risk management and improve resilience, organizations should regularly assess existing vulnerabilities through expert-led Vulnerability Assessments, Penetration Testing, and Threat Hunting Assessments. These exercises can help identify security gaps, support regulatory compliance, and prevent potential incidents. During remediation, prioritize high-impact vulnerabilities and make a plan for periodic assessments.
9. Apply Least-Privilege Access Controls
Employees should have access only to the systems, applications, and data necessary to perform their jobs. By removing unnecessary administrative privileges and regularly reviewing user permissions, organizations can reduce the risk of unauthorized access and limit the damage caused by compromised accounts or insider threats.
Organizations should regularly review their cybersecurity programs, stay informed about emerging threats, and evaluate whether their security controls are adapting to the evolving threat landscape.
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Ransomware Trends & Data Insights: August 2026
Although INC Ransom was the most active ransomware threat group observed in August 2026, overall activity remained relatively distributed across the threat landscape, with approximately 30 unique ransomware and extortion groups, including both established and newly emerged actors, observed during the month. Alongside INC Ransom, Storm, DragonForce, Qilin, and The Gentlemen were among the top five most active threat groups, underscoring the continued diversity and competitiveness of the ransomware ecosystem.

Figure 1. Activity from the top 5 threat groups in August 2026
Throughout the month, analysts at Arete identified several trends behind the threat actors perpetrating cybercrime activities:
August 2026 was a significant month for the emergence of new threat actors, with Arete identifying several previously untracked ransomware groups, including Storm, Dark Project, DireWolf, Morpheus, Orova, Spirals, Wallstreet Team, and Zawoo Team. This trend underscores the ongoing evolution of the threat landscape and the low barriers to entry for new cybercriminal operations.
Arete observed a continued use of AI-enabled capabilities across the ransomware ecosystem during August. Similar to Fulcrumsec and Setra, the newly emerged Zawoo Team appears to leverage AI-assisted analysis of stolen data, publishing highly structured and detailed victim assessments on its data leak site (DLS). Additionally, both the Aurora and Storm ransomware groups have been observed utilizing AI-driven or AI-assisted chat representatives during victim communications. These developments suggest that threat actors are increasingly incorporating AI to enhance data analysis, automate victim engagement, and improve the effectiveness and scalability of extortion operations.
In August, Arete also observed that despite sustained law enforcement disruption efforts, LockBit continues to demonstrate operational resilience, likely through the expansion of its affiliate ecosystem and the evolution of its tactics. Recent activity indicates an increased reliance on data theft and exfiltration-only operations, with observed victimology suggesting a notable focus on organizations within the financial sector.
Sources
Arete Internal
Report
Arete's H1 2026 Crimeware Report
Explore intelligence and operational data from the frontlines of ransomware and extortion response as we detail the most significant trends and developments in the cyber threat landscape in the first half (H1) of 2026.
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WinRAR Path-Traversal Vulnerability Exploited in Ransomware Attacks
CISA has warned that CVE-2025-8088, a path-traversal vulnerability in WinRAR, is being exploited in ransomware attacks. The vulnerability allows attackers to use specially crafted archive files to place malicious executables in locations such as the Windows Startup folder, enabling code execution when the system restarts. WinRAR addressed this vulnerability in version 7.13, but exploitation has continued due to challenges in updating the software. CISA's updated KEV entry now specifically identifies the vulnerability as being used in ransomware attacks.
What’s Notable and Unique
The vulnerability was initially exploited as a zero-day by the Russia-linked RomCom group, enabling malware execution at user logon and supporting credential theft, cyberespionage, and ransomware-related activities.
CVE-2025-8088 continues to be actively exploited by both government-backed and financially motivated threat actors. Observed campaigns have been attributed to Russian- and Chinese-linked groups targeting several organizations.
Phishing campaigns leveraging weaponized RAR attachments exploited CVE-2025-8088 to silently place malicious payloads in autorun locations using directory traversal and Alternate Data Streams (ADS).
The widespread exploitation of CVE-2025-8088 highlights strong demand for effective WinRAR exploits, with multiple underground vendors previously supplying exploit capabilities to a diverse range of threat actors. One such vendor, zeroplayer, advertised a WinRAR exploit in July 2025.
Analyst Comments
Organizations should immediately upgrade WinRAR to version 7.13 or later and conduct an enterprise-wide inventory to identify unmanaged installations. Given that WinRAR lacks automatic updates, Group Policy support, and integration with common enterprise patch management platforms, manual verification and remediation may be required to ensure all vulnerable instances are addressed. Security teams should also enhance defenses against archive-based phishing attacks by blocking or scrutinizing unsolicited compressed files, monitoring for suspicious file creation in Windows Startup directories, and detecting abuse of ADS. With CISA now linking CVE-2025-8088 to ransomware activity, organizations should treat remediation as a high priority and actively monitor for indicators of WinRAR-based exploitation across their environments.
Sources
CISA Adds Three Known Exploited Vulnerabilities to Catalog
WinRAR vulnerability being exploited in ransomware attacks, CISA warns



