Article
Law Enforcement Actions Leave ALPHV/BlackCat Scrambling to Salvage Operations
Cyber Threats
Threat Actors
Combating Ransomware
Through a coordinated law enforcement effort spearheaded by the FBI, ALPHV/BlackCat infrastructure was disrupted on December 7, 2023, in an operation publicly announced on December 19, 2023. After terrorizing businesses and organizations for over two years, the notorious ransomware group may have finally met its match.
What happened to BlackCat’s Infrastructure?
On December 7, 2023, the data leak website for ALPHV/BlackCat went offline and remained offline for more than 30 hours. This is one of the most prolonged disruptions the group has faced, as it previously only experienced periodic outages due to technical hosting issues. The BlackCat data leak site came back online with all data from previous victims removed before apparently being taken down for good on December 19, 2023, when existing BlackCat branding was replaced by an FBI banner including a TOR-based tip line for information on BlackCat and its affiliates.
Figure 1: Law Enforcement Seizure Banner Displayed on Known ALPHV/BlackCat Data Leak Sites on December 19, 2023
The BlackCat Decryptor
Prior to the takedown of BlackCat’s infrastructure, law enforcement maintained access to the threat actor’s environment for months and was able to obtain victim-specific decryption keys to BlackCat’s ransomware executable by monitoring the environment. The FBI used these decryption keys to offer decryption to 500 BlackCat victims as the FBI neared publicizing the takedown. The FBI estimated they were able to save organizations a total of $68 million in ransom demands.
However, based on Arete data, this is likely a conservative number. With an average initial ransom demand of $2.28 million in 2023, BlackCat demands observed by Arete are significantly higher than the demands calculated by law enforcement. While ransom payments are often significantly discounted from the original $2.28 million demand following a negotiation process, it is possible that this action taken by law enforcement could have saved victim organizations as much as five times as what was assessed by the FBI. Alternatively, the gap between Arete and the FBI’s estimated ransom payments may indicate how many organizations had either already paid a ransom before the decryption keys were available or were able to recover without paying the ransom.
The After-Action Report
While the initial data leak site (DLS) disruption nearly two weeks ago caused BlackCat’s operations to decrease significantly, three new victims were posted to the DLS between when the site came back online and when it was finally seized by the FBI. In one of those postings, BlackCat claimed to have reported a new victim to the Securities and Exchange Commission (SEC). In the intervening period, Arete also responded to a BlackCat engagement in which the threat actors utilized an old BlackCat encryptor. Therefore, while the infrastructure takedown certainly disrupted the scale and speed of BlackCat operations, it did not stop the operations of all affiliates.
Shortly after the FBI announced the website seizure on December 19, 2023, ALPHV/BlackCat’s operators stood up a new data leak site and claimed their website was “unseized.” Security researchers assess that BlackCat operators maintained access to the keys used to sign the original data leak site but lost access to their original servers. After standing up the new data leak site, BlackCat made a new post about a victim and stated they will no longer give victims additional time to conduct negotiations. The operators also stated they will harass executive teams and their children, report companies to the SEC and US Department of Health and Human Services (HHS), and release a clearnet (regular internet) link to data on victims.
Figure 2 ALPHV/BlackCat Post Excerpt Uploaded December 19, 2023
With a lack of trust in their own infrastructure, BlackCat affiliates began communicating with victims directly via email rather than relying on typical communication methods. While attempting to continue operations to the best of their ability, BlackCat operators reportedly later discovered that law enforcement gained access to a compromised domain controller and issued a concerning statement to their affiliates, giving them permission to “take the gloves off” in future operations.
The statement shared that all previously observed rules, minus the inability to target CIS* countries, no longer apply to BlackCat affiliates, and an increased percentage of ransom payments, now 90%, will go to affiliates. Additionally, several targets that were reportedly previously forbidden, such as hospitals and nuclear power plants, are now fair game for affiliates to target with the BlackCat encryptor. Finally, BlackCat stated they will no longer accept discounts from the original ransom demand. With an average negotiated discount of 63% off the original ransom demand observed by Arete, the inability to negotiate could cost BlackCat victims millions of dollars if they choose to make ransom payments.
Who is ALPHV/BlackCat?
ALPHV/BlackCat is a ransomware-as-a-service (RaaS) group that first emerged in November 2021. The group operates by providing ransomware software and infrastructure to other cybercriminals, who then use it to launch attacks on various targets. The group takes a cut of the ransom payments and leaks the stolen data of its victims on its Dark Web site. The group is also known for its unique extortion methods, which include reporting its victims to the SEC and creating false domains to impersonate victims and leak data.
Since its inception, ALPHV/BlackCat listed over 650 companies on its data leak site, making it one of the most prolific and dangerous ransomware groups active today. Throughout 2023, BlackCat was the most frequently observed ransomware group in Arete’s industry data. Among 56 different ransomware and extortion groups observed in 2023, BlackCat accounted for nearly a quarter of Arete’s overall engagements.
Figure 3: Visual from Arete’s Q3 2023 Crimeware Report
Affiliates of ALPHV/BlackCat include Scattered Spider, the ransomware group behind the brazen cyberattacks against MGM Resorts, Caesars, and more. The FBI and CISA issued a joint advisory about Scattered Spider in November 2023, warning of their use of ALPHV/BlackCat ransomware.
What are the implications of this takedown?
While the full implications of this takedown are currently unknown, it could have significant implications for the ransomware landscape. The takedown may disrupt the activities of many affiliates relying on ALPHV/BlackCat’s ransomware encryptor and infrastructure, likely forcing existing affiliates to move on to other ransomware programs or develop their own. Notably, LockBit ransomware quickly seized the opportunity to advertise that BlackCat affiliates could continue their current operations under LockBit’s RaaS operation. Additionally, this could lead to the emergence of new ransomware variants and groups, with affiliates bringing experience from previous programs. This happened before when law enforcement actions against other ransomware groups, such as DarkSide and REvil, resulted in the formation of new groups, like BlackMatter and Haron. Even before the FBI takedown, Arete observed a splintering of BlackCat affiliates, with groups like Scattered Spider conducting solo operations alongside operations using the BlackCat encryptor.
While the takedown of ALPHV/BlackCat’s websites is a positive development in the fight against ransomware, it is not a definitive victory. Ransomware remains a persistent and evolving threat that requires constant vigilance and collaboration from all stakeholders, including governments, businesses, and individuals.
BlackCat has been a widely impactful ransomware group, in part because it relied on affiliates with diverse means of compromising victims. Arete observed a wide variety of initial access measures in engagements involving ALPHV/BlackCat affiliates, including a sophisticated capability to exploit software and hardware vulnerabilities. Preventing BlackCat attacks and future ransomware attacks from affiliates that escape law enforcement requires a strong patch management program that prioritizes vulnerabilities with publicly released exploit code. Additionally, managing remote management tools in an environment is critical in preventing similar attacks. Arete identified third-party remote access tools as the initial intrusion method in more than eight percent of ALPHV/BlackCat engagements, but analysis of the full lifecycle of an ALPHV/BlackCat engagement showed those tools being used throughout the attacks to enable attacker operations. Neither method is unique to BlackCat operators and remains an important focus for defenders.
Footnotes
*The Commonwealth of Independent States (CIS) is a regional intergovernmental organization formed following the dissolution of the Soviet Union, including Russia, Belarus, Kazakhstan, Moldova, Armenia, Tajikistan, Uzbekistan, Kyrgyzstan, Azerbaijan, and Turkmenistan.
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Ransomware Trends & Data Insights: July 2026
INC Ransom was the most active threat group in July, while activity remained relatively distributed among multiple threat groups, with 19 unique groups observed throughout the month. Alongside INC Ransom, Qilin, Global Secret Group, Anubis, and DragonForce rounded out the five most active threat groups observed in July. Several emerging threat actors were also observed during the month, including Booba Team, Settra, and Global Secret Group.
Figure 1. Activity from the top 3 threat groups in July 2026
Throughout the month, analysts at Arete identified several trends behind the threat actors perpetrating cybercrime activities:
In July 2026, Global Secret Group emerged as a new threat actor, leveraging the leaked LockBit 3.0 (LockBit Black) source code. Although the group began operations in June 2026, it quickly accumulated a substantial number of victims on its data leak site (DLS). The group operates through TOR-based negotiation portals and qTox communications. Notably, its DLS provides step-by-step guidance on purchasing Bitcoin, including references to Coinbase and Binance, demonstrating a streamlined, victim-focused extortion process designed to simplify ransom payments.
Similar to Fulcrumsec, the recently emerged Settra ransomware group appears to leverage AI-driven analysis of stolen data, publishing detailed and highly structured victim reports on its DLS. Additionally, a potential EDR-disabling tool, edr_blind.exe, was identified in multiple cases, suggesting a focus on defense-evasion capabilities.
With the continuation of the FortiBleed campaign, researchers have now identified compromised FortiGate credentials being leveraged by both the INC and Lynx ransomware operations. Analysis revealed direct operational links between the groups, including shared ransomware infrastructure and overlap between FortiBleed victims and ransomware targets. The operators are also incorporating AI to enhance various stages of the attack lifecycle and increase operational efficiency and scale. Notably, Arete also observed an INC ransomware intrusion leveraging FortiBleed-derived access in July, reinforcing the campaign's role as a precursor to ransomware deployment.
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Current: Misconfigured Server Reveals Multiple Phishing Campaigns
Researchers uncovered three Microsoft 365 phishing campaigns after discovering a misconfigured HTTP server that exposed a threat actor’s phishing tools, configurations, victim logs, and operational infrastructure. The investigation revealed two operators using custom Evilginx-based adversary-in-the-middle (AiTM) phishing frameworks to steal authentication sessions and bypass MFA protections. A third operator abused Microsoft’s OAuth Device Code flow by tricking victims into completing authentication through Microsoft’s legitimate login process, allowing attackers to obtain valid access and refresh tokens without stealing passwords. The largest campaign compromised at least 218 victims across 12 countries, primarily targeting corporate Microsoft 365 accounts, with refresh tokens enabling persistent access. Researchers also identified the use of remote management tools for maintaining access, AI-assisted development of phishing tooling, and links to broader Phishing-as-a-Service (PhaaS) ecosystems, highlighting how commodity frameworks and automation are lowering the barrier for sophisticated identity-based attacks.
What’s Notable and Unique
The campaigns demonstrate the continued shift from traditional credential theft to identity- and token-based compromise, in which attackers target authentication sessions, cookies, and OAuth tokens rather than relying solely on password theft. By obtaining valid authentication artifacts, attackers can access Microsoft 365 environments while bypassing conventional MFA protections.
The use of Evilginx-based AiTM frameworks highlights how publicly available phishing tools have evolved into effective MFA-bypass platforms. These frameworks proxy legitimate login pages, capture authenticated sessions, and allow attackers to reuse valid sessions without requiring victims’ credentials again.
The OAuth Device Code flow abuse represents a different attack method, in which attackers leverage a legitimate Microsoft authentication mechanism to obtain tokens after victims approve the request. This approach bypasses password theft entirely by abusing trusted authentication workflows.
The exposed infrastructure provided insight into attacker operations, including phishing configurations, victim tracking data, remote administration tools, and evidence of AI-assisted development. The findings demonstrate how phishing ecosystems now provide reusable tooling and automation that reduce the technical expertise required to conduct large-scale identity attacks.
Analyst Comments
These Microsoft 365 phishing campaigns demonstrate the ongoing evolution of identity-focused attacks, as adversaries increasingly target authentication sessions, tokens, and legitimate cloud authorization mechanisms to bypass traditional security controls. The combination of AiTM phishing, OAuth abuse, remote management tools, and PhaaS infrastructure enables threat actors to maintain persistent access while blending into legitimate cloud activity.
The growing availability of phishing frameworks and AI-assisted attack development highlights the need for continuous identity security improvements beyond traditional phishing defenses. Arete recommends that organizations strengthen identity monitoring, adopt phishing-resistant MFA where possible, review OAuth application permissions, monitor token activity, and implement conditional access policies to detect and restrict suspicious Microsoft 365 authentication behavior. Security teams should also monitor post-compromise indicators such as abnormal mailbox access, suspicious application consent, unauthorized remote tools, and unusual sign-in activity.
Sources
One Misconfigured Server, Three Active Campaigns: Full exposure of three AiTM Phishing Operators
Misconfigured Server Reveals Three Evilginx Phishing Operations Targeting Microsoft 365
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