Vgod RANSOMWARE Encrypt Your Entire System and Set A Ransom Notes As Wallpaper

A new ransomware strain dubbed Vgod has emerged recently as a critical cybersecurity threat.

This new ransomware employs advanced encryption techniques and psychological pressure tactics.

While the ransomware do so by altering the desktop wallpapers of the targeted victims.

First observed on February 5, 2025, by CYFIRMA researchers, this Windows-targeting malware combines file encryption with double extortion methods, threatening data leaks unless ransoms are paid.

Technical Mechanisms and Encryption Process

Vgod ransomware uses a hybrid cryptographic approach, leveraging AES-256 for file encryption and RSA-4096 for key protection, a methodology consistent with advanced ransomware families like Ryuk and LockBit.

Upon infection, it appends the ‘.Vgod’ extension to encrypted files, rendering them inaccessible.

For example, document.pdf becomes document.pdf.Vgod. The malware also embeds unique victim identifiers and contact information within filenames, a tactic observed in God ransomware variants.

The encryption process is preceded by defense evasion techniques, including:-

• Process injection (T1059.001) to execute malicious PowerShell commands
• DLL side-loading (T1574.002) to bypass application whitelisting
• Registry modification (T1112) to disable security tools

# Example of process injection technique used (simplified)
$code = @"
[DllImport("kernel32.dll")]
public static extern IntPtr VirtualAlloc(IntPtr lpAddress, uint dwSize, uint flAllocationType, uint flProtect);
"@
Add-Type -MemberDefinition $code -Name "Mem" -Namespace "Win32"

Vgod distinguishes itself by changing the desktop wallpaper to a ransom note (example below), ensuring victims cannot overlook the attack.

This complements traditional Decryption Instructions.txt notes that demand payment in cryptocurrency while threatening to publish stolen data on dark web forums.

The ransomware employs multiple persistence mechanisms like “Bootkit installation” (T1542.003) to survive OS reboots, “Scheduled tasks” for periodic execution, and “Network propagation” via compromised RDP credentials.

This attack aligns with 2024’s ransomware surge, where 63% of incidents involved double extortion tactics according to July 2024 ThreatDown reports.

Vgod’s infrastructure shares similarities with CyberVolk operations, using Russian-aligned servers and leaked Babuk ransomware code components.

CYFIRMA urges organizations to immediately implement application allowlisting to block unauthorized executables, enforce multi-factor authentication (MFA) for all remote access points, and maintain **frequent air-gapped backups for data protection.

Network defenders should stay vigilant for unusual svchost.exe memory allocations exceeding 500MB, suspicious PowerShell execution logs, and failed login attempts from Eastern European IP ranges.

With ransomware groups increasingly targeting virtualization platforms, prioritizing patch management—especially for VMware ESXi vulnerabilities—is critical to preventing cross-platform attacks like those seen in ElDorado ransomware campaigns.

IOCs

Security analysts have identified the following indicators of compromise (IoCs):-

# File hash of malicious payload
SHA256 = "241c3b02a8e7d5a2b9c99574c28200df2a0f8c8bd7ba4d262e6aa8ed1211ba1f"

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