DragonForce is an emerging ransomware group first identified in late 2023, rapidly evolving into a significant cyber threat actor. Their attack methodology centers on dual-extortion: encrypting victim data to disrupt operations and simultaneously exfiltrating sensitive information to leverage additional ransom demands. The group primarily targets manufacturing and construction industries, sectors critical to supply chains and infrastructure. DragonForce operates a flexible ransomware-as-a-service platform supporting multiple operating systems and encryption modes, increasing their attack surface and adaptability. Recently, they transitioned to a cartel business model, allowing affiliates to establish their own brands under the DragonForce umbrella, which decentralizes operations and complicates attribution and takedown efforts. They introduced automated affiliate registration and a 'Company Data Audit' service, which likely involves analyzing victim data to tailor extortion demands and increase pressure on victims. Their operations include sophisticated techniques such as credential theft (T1078), process injection (T1055), disabling security tools (T1562), and exploitation of vulnerabilities (T1190). The group has engaged in conflicts with rival ransomware gangs and claims alliances with other major ransomware actors, indicating a complex threat landscape. Technical indicators include a known malware hash (c5554ab2ea04e9d938a47b09ea34ebedb46c223a500aa70f08f4b2dc6864bd90) and multiple IP addresses linked to their infrastructure. While no CVE or known exploits in the wild are currently associated, their sophisticated tactics and evolving business model pose a substantial threat to targeted organizations. The group’s activity has been notably observed in Germany and Italy, reflecting targeted sectors and regional industrial profiles.

For European organizations, particularly in Germany and Italy, DragonForce presents a multifaceted threat. The dual-extortion approach threatens confidentiality through data theft, integrity by encrypting critical files, and availability by disrupting operational continuity. Manufacturing and construction sectors are vital to European economies and infrastructure, so successful attacks could cause significant operational downtime, financial losses, and reputational damage. The cartel model increases the scale and unpredictability of attacks, as multiple affiliates with varying tactics and targets operate under the DragonForce umbrella. The automated affiliate onboarding and data audit services enhance the efficiency and pressure of extortion campaigns, potentially increasing ransom payments and victim impact. The threat also complicates incident response due to the diversity of attack vectors and the potential for simultaneous attacks by different affiliates. Additionally, the geopolitical importance of these sectors in Europe means that attacks could have broader economic and security implications, including supply chain disruptions and impacts on critical infrastructure.

European organizations should implement a layered and proactive defense strategy tailored to the DragonForce threat. Specific recommendations include: 1) Deploy advanced endpoint detection and response (EDR) solutions capable of identifying process injection, credential theft, and unusual encryption activities. 2) Use the provided malware hash and IP indicators to update threat intelligence feeds and firewall/IDS/IPS rules to detect and block known DragonForce infrastructure. 3) Enforce strict network segmentation, especially isolating critical manufacturing and operational technology (OT) networks from corporate IT networks to limit lateral movement. 4) Implement robust identity and access management (IAM) policies, including multi-factor authentication (MFA) and least privilege principles, to reduce credential theft risks. 5) Conduct regular backups with offline or immutable storage to ensure recovery without paying ransom. 6) Perform continuous monitoring and threat hunting focused on tactics, techniques, and procedures (TTPs) associated with DragonForce, such as disabling security tools and exploiting vulnerabilities. 7) Educate employees on phishing and social engineering risks, as initial access often involves user interaction. 8) Collaborate with industry information sharing groups and law enforcement to stay updated on emerging DragonForce activities and indicators. 9) Prepare and regularly test incident response plans specifically addressing dual-extortion ransomware scenarios. 10) Consider deploying deception technologies to detect lateral movement and early-stage intrusion attempts.