FunkSec, a new ransomware group that attacked more than 80 victims in December 2024, was developed using AI tools.
The FunkSec ransomware-as-a-service (RaaS) group has been active since late 2024, the gang published over 85 victims in December 2024.
The group likely used AI-based systems to quickly develop advanced tools, blending hacktivism and cybercrime. However, many datasets leaked by the group are recycled, raising authenticity doubts.
FunkSec has no known ties to prior ransomware groups, with limited details available.
“Our analysis of the group’s activity indicates that the impressive numbers of published victims may mask a more modest reality both in terms of actual victims as well as the group’s level of expertise. Most of FunkSec’s core operations are likely conducted by inexperienced actors. In addition, it is difficult to verify the authenticity of the leaked information as the group’s primary goal appears to be to gain visibility and recognition.” reads the report published by Check Point. “Evidence suggests that in some instances, the leaked information was recycled from previous hacktivist-related leaks, raising questions about its authenticity.”
Unlike other ransomware groups, FunkSec demanded low ransoms, in some cases as low as $10,000. The group sells stolen data to third parties at reduced prices.
Check Point’s analysis shows FunkSec ransomware is under active development by an inexperienced author, likely in Algeria, with variants referencing FunkSec and Ghost Algeria.
The ransomware is written in Rust and was uploaded to VirusTotal from Algeria. Its prototype encrypts files, creates ransom notes, modifies environments, and checks for admin privileges.
The group extensively uses AI to enhance capabilities, with tools and scripts featuring polished, AI-generated code comments, including in their Rust ransomware source code.
“In some of their published messages, the group specifically linked the development of their ransomware to AI-assisted agents, likely providing it with the source code for the ransomware and simply shared the output on their site.” continues the report. “The use of such tools aligns closely with the group’s public claims, as they also released an AI chatbot based on Miniapps to support their operations. Miniapps is a platform that facilitates the creation and use of AI applications and chatbots, often without the restrictions found in more popular systems like ChatGPT. The bot developed by FunkSec is specifically designed to support malicious activities.”
FunkSec emerged in October 2024, introduced by a threat actors using the handles Scorpion and DesertStorm. Later, the RaaS was promoted by other threat actors named El_Farado. XTN, Blako, and Bjorka are likely linked to the group.
Once executed, FunkSec ransomware disables security features, including Windows Defender, logging, PowerShell restrictions, and shadow copy backups during execution.
The malware adds the ‘.funksec’ extension to the filenames of encrypted files, then it drops a ransom note to the disk.
The RaaS operation aligns with the Free Palestine movement, targeting India and the US, and associates with defunct hacktivist groups like Ghost Algéria and Cyb3r Fl00d.
“FunkSec’s operations highlight the role of AI in malware development, the overlap between hacktivism and cybercrime, and the challenges in verifying leaked data. It also raises questions about how we assess the threat posed by ransomware groups, as we often rely on the groups’ own claims.” Check Point concludes. “These findings reflect a changing threat landscape, where even low-skill actors can make use of accessible tools to cast a very large shadow.”
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