Cloak Ransomware Hits Virginia Attorney General's Office, Disrupts IT Systems

Summary:
Chief Deputy Attorney General Steven Popps communicated to staff via email that the majority of the office’s IT resources, which included vital systems such as email, virtual private network access, internet connectivity, and the attorney general’s website were rendered inoperative, as reported by the Washington Post.

The disruption also forced employees to revert to traditional paper-based documentation processes. In response, the attorney general’s office promptly notified the Virginia State Police, the Federal Bureau of Investigation (FBI), and the Virginia Information Technologies Agency, and investigations were initiated into the incident.

On 20 March, Cloak publicly listed the Virginia attorney general’s website on their Tor-based data leak platform, accompanied by a message stating, “The waiting period has expired. Compromised data can be downloaded from the leak page.”

This statement suggests that negotiations between the ransomware group and the attorney general’s office have reached a deadlock, with the latter refusing to meet the ransom demands. Cloak has released images alleged to be documents stolen from the attorney general’s systems to substantiate their claims.

However, the Virginia attorney general’s office has yet to officially acknowledge or confirm Cloak’s claims. At this stage, critical details remain undisclosed, including whether a ransom was paid, the amount demanded by Cloak, the nature and extent of the compromised data, and the specific methods used by the attackers to breach the attorney general’s network. We are also awaiting the official response from the attorney general’s office regarding the latest development.

Security Officer Comments:
Cloak is a ransomware group that emerged in 2022 and gained prominence in 2023. The group mainly targets small to medium-sized businesses in Europe and Asia, particularly Germany. It also employs malware designed to both exfiltrate data and encrypt computer systems, thereby compelling victims to pay a ransom.

Victims who refuse to pay face their stolen data published on Cloak’s data leak site for free download. The group’s payment rate is surprisingly high at 91-96%, showing how effectively it forces its victims. Since its emergence, Cloak has claimed responsibility for 13 confirmed ransomware attacks, including attacks on the Canadian town of Ponoka and the German municipality of Gemeinde Kaisersbach in 2024, and 54 unconfirmed attacks (where targeted organizations did not acknowledge the intrusions). The attack on the Virginia attorney general marks Cloak’s first confirmed operation in 2025.

Suggested Corrections:
Backup your data, system images, and configurations, regularly test them, and keep the backups offline:
Ensure that backups are regularly tested and that they are not connected to the business network, as many ransomware variants try to find and encrypt or delete accessible backups. Maintaining current backups offline is critical because if your network data is encrypted with ransomware, your organization can restore systems.

Update and patch systems promptly: This includes maintaining the security of operating systems, applications, and firmware in a timely manner. Consider using a centralized patch management system; use a risk-based assessment strategy to drive your patch management program.

Test your incident response plan: There's nothing that shows the gaps in plans more than testing them. Run through some core questions and use those to build an incident response plan: Are you able to sustain business operations without access to certain systems? For how long? Would you turn off your manufacturing operations if business systems such as billing were offline?

Check your security team's work: Use a 3rd party pen tester to test the security of your systems and your ability to defend against a sophisticated attack. Many ransomware criminals are aggressive and sophisticated and will find the equivalent of unlocked doors.

Segment your networks: There's been a recent shift in ransomware attacks – from stealing data to disrupting operations. It's critically important that your corporate business functions and manufacturing/production operations are separated and that you carefully filter and limit internet access to operational networks, identify links between these networks, and develop workarounds or manual controls to ensure ICS networks can be isolated and continue operating if your corporate network is compromised. Regularly test contingency plans such as manual controls so that safety-critical functions can be maintained during a cyber incident.

Train employees: Email remains the most vulnerable attack vector for organizations. Users should be trained on how to avoid and spot phishing emails. Multi-factor authentication can help prevent malicious access to sensitive services.

Implement multi-factor authentication (MFA): External-facing assets that leverage single-factor authentication (SFA) are highly susceptible to brute-forcing attacks, password spraying, or unauthorized remote access using valid (stolen) credentials. Implementing MFA enhances security and adds an extra layer of protection.

Link(s):
https://hackread.com/cloak-ransomware-virginia-attorney-generals-office/