The MOVEit Transfer Breach | What Went Wrong?

Table of Contents

• What is MOVEit Transfer?
• Overview of the MOVEit Breach
• How Did the Breach Happen?
• Who Was Affected?
• What Went Wrong?
• Response and Mitigation Efforts
• Lessons Learned
• Conclusion
• Frequently Asked Questions

What is MOVEit Transfer?

MOVEit Transfer is a managed file transfer (MFT) software developed by Progress Software. It’s designed to securely move large amounts of sensitive data—like financial records, medical information, or employee details—between organizations. Think of it as a digital courier service that ensures files get from point A to point B safely. Many industries, including healthcare, finance, and government, rely on MOVEit because it meets strict compliance standards for data protection.

Unfortunately, its widespread use made it a prime target for cybercriminals. When a vulnerability in MOVEit was discovered, it opened the door to one of the largest data breaches in recent history.

Overview of the MOVEit Breach

The MOVEit breach began on May 27, 2023, when the Cl0p ransomware gang exploited a zero-day vulnerability in the software. A zero-day vulnerability is a flaw that’s unknown to the software vendor, giving hackers a head start before a fix is available. By May 31, Progress Software was alerted to suspicious activity, and the scale of the attack quickly became clear.

The breach affected over 2,700 organizations and exposed the personal data of approximately 93 million individuals worldwide. Major companies like the BBC, British Airways, and government agencies in the U.S. and UK were among the victims. The financial impact is estimated to be in the billions, with some projections as high as $12.15 billion.

How Did the Breach Happen?

The attackers used a SQL injection vulnerability, identified as CVE-2023-34362, to gain unauthorized access to MOVEit servers. SQL injection is a technique where hackers insert malicious code into a database query to manipulate or steal data. In this case, the flaw allowed Cl0p to install a web shell called LEMURLOOT, disguised as a legitimate file, which gave them control over the server.

Here’s a simplified breakdown of the attack:

• Hackers found a flaw in MOVEit’s web application, specifically in the guestaccess.aspx file.
• They used SQL injection to bypass security and deploy LEMURLOOT.
• The web shell let them steal sensitive data, including files stored in Microsoft Azure Blob storage.
• Cl0p then extorted victims, threatening to leak stolen data unless ransoms were paid.

The attack was fast—some data thefts happened within minutes of the web shell’s deployment. Cl0p had likely been testing this exploit since 2021, giving them plenty of time to refine their approach.

Who Was Affected?

The MOVEit breach’s impact was staggering due to the software’s use across diverse sectors. Below is a table summarizing some key victims and the scale of their data exposure:

The breach didn’t just hit organizations directly using MOVEit. Many were affected through third-party vendors, like Zellis, which used MOVEit to handle payroll for clients like the BBC. This ripple effect made it a classic supply chain attack, where a single weak link compromises an entire network of partners.

What Went Wrong?

Several factors contributed to the breach’s scale and severity:

• Zero-Day Vulnerability: The unknown nature of the flaw meant Progress Software had no chance to fix it before Cl0p struck.
• SQL Injection Flaw: This common but preventable vulnerability was exploited due to inadequate input validation in MOVEit’s code.
• Lack of Supply Chain Visibility: Many organizations didn’t know their vendors used MOVEit, leaving them unaware of their risk.
• Slow Patching: Even after patches were released, some organizations delayed updates, allowing attackers to continue exploiting systems.
• Cl0p’s Expertise: The gang’s preparation and speed made it hard for defenders to keep up. They had honed their skills on similar attacks, like GoAnywhere in 2021.

The breach exposed a systemic issue: over-reliance on third-party software without enough scrutiny of its security practices.

Response and Mitigation Efforts

Once the breach was discovered, Progress Software acted quickly:

• Issued patches for CVE-2023-34362 on May 31, 2023, followed by fixes for additional vulnerabilities (CVE-2023-35036, CVE-2023-35708, etc.).
• Advised customers to disable HTTP/HTTPS traffic and block ports 80 and 443 until patched.
• Worked with cybersecurity firms like Mandiant, CISA to investigate and provide mitigation guidance.

Victims were advised to:

• Apply patches immediately.
• Monitor systems for signs of compromise, like unusual files or traffic.
• Check for stolen data on sites like HaveIBeenPwned.
• Freeze credit files to prevent identity theft.

Regulatory bodies, like the U.S. SEC, launched investigations into Progress Software, and class-action lawsuits followed. The incident also spurred new SEC rules requiring public companies to disclose breaches within four days.

Lessons Learned

The MOVEit breach offers critical takeaways for businesses and individuals:

• Vendor Risk Management: Know which third-party tools your partners use and ensure they follow robust security practices.
• Timely Patching: Apply software updates as soon as they’re available to close security gaps.
• Zero-Day Preparedness: Invest in monitoring tools to detect unusual activity, even for unknown threats.
• Supply Chain Security: Map out your digital supply chain to identify and mitigate risks.
• Employee Training: Educate staff on phishing and other tactics that could expose systems.

For individuals, it’s a reminder to monitor accounts, use strong passwords, and enable two-factor authentication wherever possible.

Conclusion

The MOVEit Transfer breach of 2023 was a stark reminder of how a single flaw in a trusted software can ripple across industries, exposing millions to risk. It highlighted the dangers of zero-day vulnerabilities, the importance of supply chain security, and the need for swift action in the face of cyber threats. While Progress Software and affected organizations worked to contain the damage, the incident’s fallout—legal battles, financial losses, and eroded trust—will linger for years. By learning from this breach, businesses can strengthen their defenses, and individuals can take steps to protect their data. Cybersecurity isn’t just about technology; it’s about vigilance and preparedness in an ever-evolving digital landscape.

Frequently Asked Questions

What is MOVEit Transfer?

A secure file transfer software used by organizations to move sensitive data.

Who was behind the MOVEit breach?

The Cl0p ransomware gang, a Russian-affiliated cybercrime group.

When did the MOVEit breach start?

May 27, 2023, with exploitation of a zero-day vulnerability.

What is a zero-day vulnerability?

A software flaw unknown to the vendor, exploited before a fix is available.

How did hackers exploit MOVEit?

Through a SQL injection vulnerability, allowing them to install a malicious web shell.

What is SQL injection?

A technique where hackers insert malicious code into a database query to steal data.

Who was affected by the breach?

Over 2,700 organizations and 93 million individuals, including the BBC and U.S. agencies.

What data was stolen?

Personal info like Social Security numbers, birthdates, and health records.

How much did the breach cost?

Estimates range up to $12.15 billion, based on data breach costs.

Why was the breach so widespread?

MOVEit’s use across industries and third-party vendors created a supply chain attack.

What is a supply chain attack?

An attack targeting a vendor to compromise its clients indirectly.

How did Progress Software respond?

Issued patches, advised blocking ports, and worked with cybersecurity firms.

What is LEMURLOOT?

A web shell used by Cl0p to steal data from MOVEit servers.

Can individuals check if they were affected?

Yes, use sites like HaveIBeenPwned to check for compromised data.

What should businesses do to prevent similar breaches?

Patch software, monitor systems, and vet third-party vendors.

How can individuals protect themselves?

Freeze credit, use strong passwords, and enable two-factor authentication.

Are there lawsuits related to the breach?

Yes, class-action lawsuits were filed against Progress and affected organizations.

Did the SEC investigate?

Yes, the U.S. SEC launched a formal investigation into Progress Software.

What new regulations followed the breach?

SEC rules requiring public companies to disclose breaches within four days.

Can zero-day attacks be prevented?

Not entirely, but monitoring and quick patching reduce risks.