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New Hellcat Ransomware Gang Uses Tactics That Humiliate

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The HellCat ransomware gang has garnered public attention due to their use of psychological tactics to pressure victims into paying extortion demands, according to a recent analysis by Cato Networks. The group, which emerged in mid-2024, has targeted high-value victims in sectors such as government, energy, and education.

Etay Maor, Chief Security Strategist at Cato Networks, highlighted the group’s focus on victims typically targeted by nation-state actors. HellCat has gained media coverage by demanding large sums of money, such as $125,000 from French energy giant Schneider Electric in exchange for not leaking sensitive data.

One of the key tactics employed by HellCat is humiliation, which Maor identified as a significant psychological strategy used by the group. This approach marks a concerning shift in the ransomware ecosystem, as ransomware actors increasingly turn to novel methods to increase pressure on victims.

Double extortion tactics, where data is exfiltrated before systems are encrypted, are a key strategy used by HellCat and its affiliates. The group has been observed selling root access to compromised servers on dark web forums, putting sensitive data at risk and potentially disrupting critical systems.

In addition to double extortion, HellCat has exploited vulnerabilities in enterprise software tools to gain initial access into systems. By infiltrating systems like the Jira project management system of Schneider Electric, the group has been able to escalate privileges and move laterally within networks.

Researchers have also identified similarities between HellCat and another ransomware group, Morpheus, suggesting that the groups may be using shared infrastructure. This shared code and tactics may indicate collaboration between the two groups’ affiliates.

One of the notable attacks attributed to HellCat occurred in January 2025 when they targeted telecommunication giant Telefonica, resulting in the theft of customer data. The attackers posted the exfiltrated data on a hacking forum, underscoring the group’s willingness to publicly expose stolen information to pressure victims into meeting their demands.

Overall, the rise of groups like HellCat highlights the evolving tactics used by ransomware actors to pressure victims and maximize profits. As these groups continue to target high-value victims and exploit vulnerabilities in enterprise systems, organizations must remain vigilant in protecting their networks and data from ransomware attacks.

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