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Wooly Ransomware

Posted: August 29, 2017

Threat Metric

Ranking: 9,038
Threat Level: 10/10
Infected PCs: 1,590
First Seen: August 29, 2017
Last Seen: October 15, 2023
OS(es) Affected: Windows

The Wooly Ransomware is a Trojan that encrypts your files using AES to stop other programs from opening them. Its attacks may be for soliciting ransom payments for a decryption service its threat actor provides, although malware experts determine that current builds are for testing purposes. Use backups to keep this Trojan from damaging your files irrevocably and have an anti-malware program remove the Wooly Ransomware as soon as a detection occurs.

A Real Bear of a File Problem

As threat actors test how their Trojans fare against the threat detection solutions in use by different AV vendors currently, they also open up their new products to outside analysis. Through these means, malware experts acquire periodic samples of Trojans that are unfinished but retain enough functionality to cause damage to an infected PC. Such is the case with the Wooly Ransomware, a Trojan that displays full AES-based encryption features, but lacks any ransoming instructions and still uses traditional, CMD-based debugging output.

The Wooly Ransomware searches for media of different formats, such as JPG, BMP, DOC, or XLS, and encrypts them with an AES algorithm. It also generates two RSA-protected keys (hard-coded numbers with 'woolybear' strings included) for keeping the encryption from being too easy to decode and appends '.wooly' extensions onto the names of every file that it locks. While running through these attacks, the Wooly Ransomware opens the Windows Command Prompt and uses it for outputting debug messages for each file automatically. It doesn't try to hide the attack's purpose, and victims may be able to terminate the Wooly Ransomware before it finishes encoding everything included in its scan.

Malware experts also confirm that the Wooly Ransomware has some limited Trojan downloader functionality that lets it install the TOR Web browser. This Web-browsing program is often meant for assisting with ransom-paying transactions by giving the victim access to an anonymity-protected C&C site. However, the Wooly Ransomware doesn't include any messages on how to pay or even its threat actor's email address.

Getting beyond a Trojan's Fluff

Thanks to Windows retaining its place as the most-preferred operating system overall, threat actors still are designing Trojans with a high-compatibility with that OS in mind. As a .NET Framework Trojan, the Wooly Ransomware can run on almost any version of Windows and cause permanent damage to files, such as text documents. Victims always may contact third-party security researchers for decryption assistance, but decrypting a Trojan's cipher is sometimes impractical. Malware experts recommend personally using backups for preserving any files that are invaluable and keeping those backups detached from all potentially compromised computers.

In-progress Trojans like the Wooly Ransomware may deploy themselves through multiple strategies eventually. Spam emails and RDP-based hacking by remote attackers are two examples of infection vectors for high-value targets, such as private businesses, but individuals also can compromise their PCs through such methods as downloading mislabeled freeware or visiting piracy websites. Anti-malware products can block or remove the Wooly Ransomware, and good security practices (such as not using overly simple passwords) can eliminate the other vulnerabilities that threat actors abuse.

The Wooly Ransomware is showing the classic signs of a Trojan being 'geared up' towards an intentional campaign of extortion with a basis on taking files hostage. Windows users shouldn't make the process any easier than it needs to be and protect their data by all appropriate means.

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