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PYSA: 2020 to Now

Arete Analysis

Cybersecurity Trends

Cyber Threats

PYSA is the newest variant of the Mespinoza Ransomware as a Service (RaaS) family, which was first observed infecting victims in the wild in December 2019. PYSA is likely a reference to the open-source web application auditing tool PYSA (Protect Your System Amigo) released by security engineers at Facebook.

Like Ryuk, PYSA is dubbed a “big game hunter” for their tendency to target large corporations. Based on their advanced encryption methods, double extortion tactics, and desire to distinguish themselves, this up-and-coming ransomware group is “one to watch.”

Since Q3 2020, Arete has responded to 26 total PYSA cases. With an average ransom payment of $346,603, PYSA ranks third highest in average ransom payouts tracked by Arete through July 2021. Additionally, Arete has observed a steady increase in cases sine Q3 2020 (see Figure 1).

Figure 1: PYSA cases over a one-year period.


Figure 2: Arete PYSA cases average ransom payment.

Targeting Big Game 

PYSA targets large companies or organizations susceptible to extortion, where business downtime would pose a significant impact to operations. By extorting companies with the threat of publishing sensitive data, PYSA increases the chances of ransom payments. The top three sectors targeted by PYSA include K-12 school systems (36%), professional services (20%), and healthcare providers (12%). See Figure 3 for all targeted sectors.

Figure 3: Arete PYSA cases, all targeted sectors.

Sophisticated Criminals 

PYSA exhibits discipline by first surveying compromised systems to determine a victim’s potential “extortion value.” Open-source reporting indicates that PYSA searches not only for common keywords (e.g., PII, balance, routing), but also for keywords (e.g., illegal, fraud, criminal) that could be evidence of illegal activities by the victim.

Arete also identified some other key PYSA activity — specifically, that PYSA occasionally publishes data on leak sites after payment, provides decryptors that partially corrupt data, and stops communication for multiple days during negotiations.

Figure 4: Average time of business interruption.

Infection vector and persistence: Human-operated ransomware

Arete identified the following PYSA tactics, techniques, and procedures (TTPs) as being consistent with manually operated ransomware during the initial access phase:

  • Uses brute force remote desktop protocol (RDP) attacks against central management consoles, domain controllers, and Active Directory accounts.

  • Exfiltrates password databases prior to exploitation.

  • Leverages Mimikatz in victim environments, likely to gain access to credentials.

Additionally, Arete observed the following persistence toolset as part of PYSA campaigns:

  • Gasket. A backdoor written in the Go programming language, Gasket is designed as a backup to RDP to maintain access to the network. Gasket has many capabilities (e.g., “MagicSocks”) that allow PYSA to tunnel traffic to an externally controlled server.

Figure 5: Gasket functionality.

  • MagicSocks. Leverages code from the Chisel project to tunnel traffic from the local system to an external, actor-controlled server. Next, uses Chisel code to tunnel traffic out of the local system to a landing page (“creatordampfe[.]xyz”) before routing the traffic to an unknown actor-controlled server.

Advanced encryption techniques

According to open-source data, PYSA uses Crypto++ to encrypt victim files with both RSA-4096 and AES-256-CFB. The group appends the encrypted files with the “.pysa” extension and leverages an allowlist and denylist to determine which files to encrypt.

  • The denylist contains all files to be encrypted.

  • The allowlist includes vital directories, such as Windows and Boot, which, if encrypted, would make recovery via the decryptor impossible. After, PYSA drops the ransom note (Figure 6) in every directory listed in the denylist.

Figure 6: PYSA ransom note.

PYSA threat likely to remain steady 

PYSA utilized the rapid shift of corporations to remote work during COVID-19 for opportunistic targeting against RDP and remote admin infrastructure. Arete asserts that the threat posed by PYSA campaigns will likely remain steady, with PYSA targeting larger corporations across sectors to demand higher ransom payments. PYSA’s discipline, target selection, and advanced encryption techniques make them a credible threat on the ransomware scene.

How Arete can help you “Protect Your Systems Amigo”

Arete has a complete suite of managed security services, including managed detection and response (MDR), SentinelOne Endpoint Detection and Response (EDR) software deployment, and Arsinal threat hunting services for defending against ransomware attacks.

The following rulesets would detect PYSA activity on a client endpoint:

  • PowerShell used to disable Windows Defender Protection.

  • Lsass dump.

  • Firewall Exception for Remote Desktop.

  • MS Windows Defender stopped.

  • Security Tool Services stopped.

  • Volume Shadow Copy deletion.

  • Process Masquerading in Registry – Svchost.

  • Advanced Port Scanner Tool download.

  • Advanced Port Scanner Process Masquerading.

  • Advanced Port Scanner Process.

  • Advanced Port Scanner File detected.

  • Mimikatz Process Execution.

  • Advanced IP Scanner Network Mapping Tool download.

  • Advanced IP Scanner Network Mapping Tool Process.

  • Advanced IP Scanner Network Mapping File detected.

  • Advanced IP Scanner Process Masquerading.

Indicators

Ransom Note Emails

  • johnfitzgerald@onionmail.org

  • cristianpalmerss@protonmail.com

  • wcraijones@protonmail.com

  • dec_restore1@outlook.com

  • zljanczplaizr@onionmail.org

  • EfreTavernia@protonmail.com

  • lizawilkinson@onionmail.org

  • Makailahuff@protonmail.com

  • Davionfinley@protonmail.com

  • joedansereau@onionmail.org

  • m0arc7bdhsohar@onionmail.org

  • david_ansty@protonmail.com

  • t.trstram@protonmail.com

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Article

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.

Article

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.

Article

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