Sherlocked Security – Malicious Code Analysis

Uncover the Nature, Behavior, and Impact of Malicious Code to Enhance Cybersecurity Defenses

1. Statement of Work (SOW)

Service Name: Malicious Code Analysis
Client Type: Enterprises, Government Agencies, Financial Institutions, Healthcare Providers
Service Model: On-Demand Engagement & Retainer Support
Compliance Alignment: NIST 800-53, ISO/IEC 27001, SOC 2, GDPR, HIPAA, PCI-DSS

Malicious Code Analysis Covers:

Identification and Classification of Malicious Code (e.g., malware, ransomware, trojans)
Static and Dynamic Analysis to Understand Malicious Code Behavior
Reverse Engineering to Examine Code Structure and Function
Identification of Indicators of Compromise (IOCs) and Tactics, Techniques, and Procedures (TTPs)
Behavioral Analysis to Detect Evasion Techniques
Threat Intelligence and Malware Attribution
Development of Mitigation and Remediation Strategies

2. Our Approach

[Preparation] → [Malicious Code Acquisition] → [Static Analysis] → [Dynamic Analysis] → [Reverse Engineering] → [IOC Extraction] → [Behavioral Analysis] → [Reporting & Mitigation]

3. Methodology

Pre-Incident Setup: Ensure that endpoint protection tools are in place, such as antivirus software and EDR platforms, to capture and contain malicious code during initial detection.
Malicious Code Acquisition: Collect suspicious files, executable programs, or scripts that are suspected to contain malicious code.
Static Analysis: Analyze the malicious code without execution to examine its structure, code obfuscation, and any embedded strings or known IOCs (e.g., file hashes, IP addresses, URLs).
Dynamic Analysis: Execute the malicious code in a controlled, isolated environment to observe its behavior, including network communication, file system changes, and any attempts to escalate privileges or spread.
Reverse Engineering: Decompile or disassemble the malicious code to understand its function, attack vector, and methods for persistence or evasion.
IOC Extraction: Extract Indicators of Compromise (IOCs) such as file hashes, registry keys, and IP addresses that can be used for detection and prevention across other systems.
Behavioral Analysis: Observe how the malicious code interacts with the system, including any attempts at evasion, data exfiltration, or encryption.
Reporting & Mitigation: Document findings in a detailed report, outline the risks posed by the malicious code, and provide recommendations for detection, mitigation, and prevention.

4. Deliverables to the Client

Malicious Code Report: A comprehensive report detailing the analysis of the malicious code, including its origin, behavior, and impact.
IOC List: A list of IOCs such as file hashes, IP addresses, and domain names that can be used to detect and block the malicious code across networks.
Reverse Engineering Findings: Detailed analysis of how the malicious code operates, including its code structure and attack mechanism.
Behavioral Analysis Report: A report detailing how the malicious code behaves in an isolated environment, including its persistence techniques, lateral movement, and data exfiltration methods.
Mitigation & Prevention Recommendations: Actionable recommendations to prevent further attacks, such as improving endpoint protection, implementing network segmentation, or updating detection systems.

5. What We Need from You (Client Requirements)

Access to Suspected Malicious Code: Provide any suspicious files, executable programs, or scripts that need to be analyzed.
Sample Data: Provide system logs, memory dumps, or other artifacts that might provide context on how the malicious code was executed or identified.
Access to Affected Systems: In the case of active infections, access to compromised systems (or snapshots of affected systems) for in-depth analysis.
Network Configuration Information: Detailed information about the network topology, firewall rules, and critical assets that could be affected by the malicious code.
Incident Report: Any preliminary analysis, alerts, or reports detailing when the malicious code was first detected and its initial impact.

6. Tools & Technology Stack

Static and Dynamic Analysis Tools:
- IDA Pro: Disassembler and debugger for reverse engineering malware and examining code structure.
- Ghidra: Open-source reverse engineering tool for disassembling and analyzing executable files.
- PEStudio: Tool for static analysis of Windows PE files to identify suspicious behaviors.
Sandboxing and Behavioral Analysis:
- Cuckoo Sandbox: Automated malware analysis tool for observing dynamic behavior and interactions.
- FireEye: Threat detection platform with advanced malware analysis and sandboxing capabilities.
- Any.Run: Interactive malware sandbox for dynamic analysis and real-time monitoring of malware behavior.
IOCs and Threat Intelligence Tools:
- MISP (Malware Information Sharing Platform): Open-source platform for sharing and correlating IOCs with other security teams and organizations.
- VirusTotal: Online service to analyze files for known threats using multiple antivirus engines.
- YARA: Tool for creating and using custom signatures to detect and classify malware based on its code structure.
Memory Forensics:
- Volatility: A memory forensics framework for analyzing memory dumps and identifying malware artifacts.
- Rekall: A memory forensics tool for detailed analysis of system memory and detecting active malware.

7. Engagement Lifecycle

Client Onboarding & Incident Briefing: Initial gathering of malicious code samples, system logs, and incident reports.
Malicious Code Acquisition & Preliminary Analysis: Collection and basic analysis of the suspicious files.
Static Analysis: Conduct an in-depth examination of the code’s structure, looking for IOCs and suspicious behaviors.
Dynamic Analysis: Execute the malicious code in a controlled sandbox to observe its actions in a safe environment.
Reverse Engineering: If necessary, reverse engineer the code to gain a deeper understanding of its behavior and functionality.
IOC Extraction & Reporting: Extract IOCs and compile detailed findings into a report.
Post-Incident Review & Recommendations: Provide actionable steps to prevent future incidents, such as security tool updates, patching recommendations, and network security enhancements.

8. Why Sherlocked Security?

Feature	Sherlocked Advantage
Comprehensive Malware Analysis	Combine static, dynamic, and reverse engineering techniques to understand the full scope of malicious code.
Expert Reverse Engineering	Skilled analysts capable of disassembling complex malware and identifying attack mechanisms.
Real-Time Behavioral Analysis	Observe malware behavior in controlled environments to gain insights into its impact and potential evasion techniques.
Advanced IOC Extraction	Identify critical indicators of compromise to prevent future attacks and improve detection capabilities.
Mitigation & Prevention	Offer actionable recommendations to reduce the risk of future malware infections and improve security posture.

9. Real-World Case Studies

Advanced Persistent Threat (APT) Malware Analysis

Client: A government agency experienced a sophisticated malware attack attributed to an APT group.
Findings: After reverse engineering the malware, we identified advanced evasion techniques, such as code obfuscation and rootkit functionalities.
Outcome: We provided a full IOC list, identified the attacker’s tactics, and helped the agency implement stronger endpoint defenses.

Ransomware with Fileless Malware

Client: A financial institution was targeted by a ransomware attack that utilized fileless malware for persistence.
Findings: The malware was found to leverage legitimate system tools for its payload execution and persistence.
Outcome: Our team provided insights into how the malware bypassed traditional detection methods and offered recommendations to detect similar future attacks.

10. SOP – Standard Operating Procedure

Malicious Code Acquisition: Collect suspected files, executables, and memory dumps for analysis.
Static Analysis: Examine the code without execution to detect embedded IOCs, suspicious functions, and obfuscation.
Dynamic Analysis: Execute the code in a controlled environment to track its behavior, communication, and any malicious activities.
Reverse Engineering: Disassemble the code to understand its functionality and tactics.
IOC Extraction: Identify and catalog IOCs such as file hashes, IP addresses, domains, and registry keys.
Reporting: Document all findings, including the code’s behavior, IOCs, and mitigation recommendations.
Post-Incident Mitigation: Provide actionable recommendations for system hardening, security updates, and incident prevention.

11. Malicious Code Analysis – Readiness Checklist

1. Pre-Incident Setup

[ ] Endpoint Protection: Ensure that endpoint protection software (e.g., Antivirus, EDR) is up-to-date and capable of detecting advanced threats.
[ ] System Monitoring: Implement robust monitoring systems capable of detecting suspicious file behaviors, abnormal processes, and network anomalies.
[ ] Backup Strategies: Ensure that regular and secure backups are being made, allowing for recovery in the event of a malware infection.
[ ] Network Segmentation: Apply network segmentation to limit the lateral movement of malware in the event of a breach.
[ ] Intrusion Detection Systems (IDS): Configure and update IDS/IPS systems to detect and alert on malicious network activity.
[ ] Access Control: Enforce strict access controls to limit the spread of malware within the network.
[ ] Patch Management: Regularly apply security patches to operating systems, software, and firmware to reduce the risk of exploitation.

2. During Malicious Code Analysis

[ ] Malicious Code Acquisition: Collect any suspicious files, executable programs, and related artifacts (memory dumps, logs) for analysis.
[ ] Static Analysis: Analyze the code without execution, checking for known IOCs, embedded malware signatures, and obfuscation techniques.
[ ] Dynamic Analysis: Run the code in a controlled, isolated sandbox environment to observe behavior, network communications, and interactions with the file system.
[ ] Reverse Engineering: If necessary, reverse engineer the code to understand its inner workings, attack vectors, and evasion techniques.
[ ] Sandboxing: Utilize dedicated malware analysis sandboxes like Cuckoo or FireEye to safely execute suspicious code and monitor its activity in a secure environment.
[ ] Memory Analysis: If the malicious code affects system memory, conduct memory forensics to capture evidence of running processes, injected code, and memory-resident malware.
[ ] Indicator of Compromise (IOC) Extraction: Extract all IOCs, including file hashes, registry keys, IP addresses, domain names, and any network activity patterns associated with the malware.
[ ] File System Impact: Analyze the file system for any new or altered files, particularly those used to maintain persistence (e.g., startup programs, registry modifications).
[ ] Malware Evasion Tactics: Identify and document any techniques the malware uses to evade detection, such as code obfuscation, anti-analysis techniques, or encryption.

3. Post-Incident Response

[ ] IOC List: Provide a comprehensive list of IOCs (file hashes, IP addresses, URLs, registry keys, etc.) to assist in detecting and blocking the malware across other systems.
[ ] Behavioral Analysis Report: Document the observed behavior of the malicious code, including persistence mechanisms, data exfiltration tactics, and lateral movement techniques.
[ ] Root Cause Identification: Identify the entry point of the malware and any vulnerabilities exploited for the attack.
[ ] Malware Attribution: If possible, attempt to attribute the malware to a specific threat actor or group, and document any observed tactics, techniques, and procedures (TTPs).
[ ] Mitigation Recommendations: Provide actionable recommendations to prevent similar attacks, including hardening endpoints, improving security monitoring, and enhancing network segmentation.
[ ] Network Traffic Analysis: Examine network traffic for unusual activity, such as communication with known malicious IPs, domains, or C2 servers.
[ ] Data Exfiltration Identification: If the malware attempted to exfiltrate data, identify what data was targeted and how it was transmitted (e.g., via FTP, HTTP, or email).

4. Continuous Improvement

[ ] Lessons Learned: Document lessons learned from the analysis to refine the organization’s security posture and response plans.
[ ] Share IOCs with Threat Intelligence Community: Share IOCs with platforms like MISP, VirusTotal, or other threat intelligence networks to help other organizations detect and block similar threats.
[ ] Security Tool Enhancement: Update antivirus, EDR, and network monitoring tools to detect signatures or behaviors associated with the malicious code.
[ ] Patch Vulnerabilities: If the malware exploits specific vulnerabilities, ensure that these are patched and that systems are updated to prevent future attacks.
[ ] Implement Multi-Factor Authentication (MFA): If not already in place, recommend the implementation of MFA to reduce the risk of unauthorized access due to stolen credentials.
[ ] Network Segmentation Review: Regularly review network segmentation practices to ensure they are effective in isolating and containing malware.
[ ] Incident Response Plan Updates: Revise the incident response plan based on insights from the analysis, ensuring better preparedness for future attacks.
[ ] Staff Awareness and Training: Regularly train employees on how to recognize malicious attachments, phishing emails, and other tactics commonly used in malware delivery.
[ ] Simulated Attacks: Conduct simulated malware attacks (e.g., red teaming or tabletop exercises) to improve readiness for future incidents.

5. Ongoing Monitoring

[ ] Continuous Monitoring of IOCs: Continuously monitor for the presence of IOCs across the environment and external networks to detect any re-emergence of the malware.
[ ] Behavioral Analytics: Implement behavioral analytics tools to detect abnormal activity, such as lateral movement or unusual file access patterns, that might indicate ongoing malware activity.
[ ] Threat Hunting: Proactively search for signs of compromise or malware activity within the organization’s environment to identify threats before they cause significant damage.
[ ] Endpoint Detection & Response (EDR): Ensure EDR tools are actively monitoring endpoints for signs of malicious activity, such as unusual processes or file modifications.
[ ] Alerting & Logging: Set up alerting for unusual activity (e.g., the execution of suspicious code, unusual network connections) to provide early detection of future threats.

6. Collaboration and Reporting

[ ] Collaborate with Law Enforcement: If the attack is significant and impacts critical infrastructure or sensitive data, consider collaborating with law enforcement or other governmental entities.
[ ] Report to Management: Provide executive-level reporting on the impact of the malware, the recovery process, and steps taken to prevent future incidents.
[ ] Public Disclosure: If necessary, prepare a public disclosure report in coordination with stakeholders, detailing the breach, its impact, and steps taken to mitigate it.

Malicious Code Analysis