BlackMatter

What is BlackMatter Ransomware?

BlackMatter, first identified in mid-2021, is a ransomware strain operating under the Ransomware-as-a-Service (RaaS) model. It is designed to target organizations across multiple industries, including healthcare, telecommunications, finance, education, government, and other critical infrastructure, making it one of the more disruptive threats in circulation.

In contrast to opportunistic ransomware, BlackMatter is deployed strategically. Once active, it encrypts files on both local and network resources, disables recovery mechanisms, and prevents victims from restoring data without negotiating with the attackers.

The malware features advanced evasion capabilities, such as Safe Mode encryption, partial file encryption to accelerate attacks, and anti-debugging techniques. It leverages a hybrid cryptographic approach, Salsa20 for file content and RSA-1024 for session keys, to lock data securely while remaining under detection thresholds.

Since its emergence, BlackMatter has been observed in both Windows and Linux campaigns, with incidents continuing into 2025. Its operators often deliver the ransomware via phishing emails, malicious attachments, or by exploiting stolen credentials to move laterally through a network.

Attackers commonly spread BlackMatter through:

• Phishing emails carrying malicious attachments or links
• Compromised websites and malvertising campaigns
• Trojanized installers posing as legitimate software
• Exploitation of valid user credentials for lateral movement
• Abuse of administrative tools and system utilities (e.g., PowerShell, net.exe, sc.exe)

Like other modern ransomware families, BlackMatter often disguises its processes under legitimate Windows services (such as svchost.exe) to evade detection and maintain persistence within the system.

BlackMatter Victimology

BlackMatter ransomware campaigns were notable for targeting large enterprises and critical infrastructure rather than indiscriminate attacks on individuals. Although the group publicly claimed to avoid healthcare and government sectors, many victims still came from sensitive industries.

Typical targets included:

• Financial services and banking institutions
• Energy and utilities providers
• Telecommunications and technology companies
• Manufacturing and logistics firms
• Educational organizations
• Regional and local government entities

The ransomware was distributed globally, with most confirmed victims in North America, Europe, and Asia. Reported ransom demands ranged from $80,000 to $30 million, with attackers typically requiring cryptocurrency payments.

Some of the most high-profile cases included:

• NEW Cooperative (Iowa, USA): In September 2021, BlackMatter demanded $5.9 million, disrupting agricultural operations.
• Olympus Corporation (Japan): In the same month, the gang reportedly demanded $30 million, one of the highest known ransom figures attributed to BlackMatter.

The group struck more than 50 organizations in just four months of active operations, with an average ransom demand of $5.3 million.

Despite its short lifespan after launching in mid-2021, BlackMatter quickly built a reputation as one of the most prolific ransomware operations of its time. Following law enforcement pressure and a wave of arrests in Europe, the operators announced their shutdown in November 2021. Still, successor activity, blending tactics from DarkSide and REvil, ensured that organizations across multiple sectors continued to face derivative campaigns into 2025.

BlackMatter Typical Attack Chain

There are numerous BlackMatter ransomware samples detonated in ANY.RUN’s Interactive Sandbox and analyzed by SOC teams worldwide. Let’s walk through how a typical infection unfolds.

View analysis session with BlackMatter RAT

BlackMatter RAT analyzed inside ANY.RUN sandbox

Once executed, BlackMatter begins with a system check, creates the mutex Global\SystemUpdate_svchost.exe, copies itself into a new directory, and registers for autorun to ensure persistence. It then bypasses UAC, escalates privileges, and modifies the PowerShell execution policy to allow malicious commands to run without restriction.

Next comes the destructive preparation stage. The ransomware deletes shadow copies and backups (vssadmin, wbadmin), disables the Windows Recovery Environment (reagentc), and modifies boot configuration settings (bcdedit) to prevent recovery. In parallel threads, it uses net.exe and sc.exe to stop critical services and applications such as antivirus software, SQL databases, and backup tools, clearing the way for uninterrupted encryption.

Relevant TTPs displayed inside ANY.RUN sandbox

Finally, BlackMatter scans local and network drives, encrypts files with its own extension, and drops ransom notes with payment instructions in every affected directory. It also replaces the victim’s desktop background with a warning message, pointing to the ransom note for further details.

Ransom note displayed inside ANY.RUN’s sandbox

What BlackMatter Can Do to a System

Once deployed, BlackMatter executes a destructive sequence designed to ensure full control and maximum damage. Its capabilities include:

• Stealth and Masquerading: Runs malicious components under svchost.exe to disguise activity and creates a unique mutex (Global\SystemUpdate_svchost.exe) to prevent multiple instances.
• System Reconnaissance: Collects system details such as computer name, Machine GUID, Windows installation date, and language settings. It also retrieves browser security parameters to understand the environment.

System information discovery, including computer name, Machine GUID and language settings

• Privilege Escalation: Bypasses UAC using fodhelper.exe and modifies registry keys to execute with elevated privileges. It also forces PowerShell execution policy to Bypass, ensuring malicious scripts can run unhindered.
• Persistence: Adds itself to autorun via registry keys and creates scheduled tasks with elevated rights, allowing the ransomware to survive reboots and maintain long-term access.

Creation of scheduled task exposed inside ANY.RUN sandbox

• Recovery Elimination: Deletes shadow copies with vssadmin.exe, removes backups via wbadmin.exe, disables Windows Recovery Environment using reagentc.exe, and alters boot settings with bcdedit.exe to block system restoration.
• Service and Network Control: Uses sc.exe and net.exe to terminate antivirus tools, databases, and critical services, while probing proxy settings and network shares to prepare for lateral movement.

Sc.exe and net.exe used for service control

• Scripted Automation: Runs malicious .bat files and leverages timeout.exe to synchronize operations and evade heuristic defenses.

Malicious .bat files visible inside ANY.RUN’s sandbox

• Encryption: Finally, BlackMatter encrypts local and network files, appends its custom extension, and drops ransom notes in each affected directory, ensuring victims are aware that restoration is impossible without paying.

How BlackMatter Functions

BlackMatter is built for speed and disruption rather than long-term control. Its architecture combines:

• Pre-encryption sabotage, where backup tools and recovery features are disabled to ensure data cannot be restored.
• Fast encryption logic, using Salsa20 for file content and RSA-1024 for keys, with partial file encryption to lock large volumes quickly.
• Victim communication infrastructure, where ransom notes direct organizations to attacker-controlled portals for negotiation and payment.

This streamlined design allows attackers to cripple organizations in a short window of access, leaving defenders with almost no opportunity to intervene once execution begins.

How BlackMatter Threatens Businesses and Organizations

For organizations, BlackMatter ransomware poses a severe threat that extends far beyond the encryption of individual files. Its design ensures maximum operational disruption, financial loss, and reputational damage.

1. Complete Data Inaccessibility: BlackMatter encrypts both local and network resources while simultaneously removing recovery options like shadow copies and backups. This ensures organizations face a sudden and total loss of access to business-critical data.
2. Rapid Spread Across Infrastructure: Because it can leverage administrative tools (net.exe, sc.exe) and stolen credentials, BlackMatter often moves laterally within networks. This allows attackers to cripple not just a single endpoint but entire domains, file servers, and NAS devices.
3. Critical Service Shutdowns: By stopping antivirus engines, SQL databases, and other core services, the ransomware halts operational systems that businesses depend on daily, from transaction processing to logistics management.
4. High-Value Extortion: With ransom demands ranging from $80,000 to $30 million, BlackMatter has directly targeted enterprises with high revenues and valuable data. This level of financial pressure, combined with the threat of leaked stolen files, forces executives into making urgent, high-stakes decisions.
5. Sector-Specific Impact: Attacks against agriculture (e.g., NEW Cooperative in 2021) and healthcare technology (e.g., Olympus) demonstrated that ransomware is not just an IT problem, it can disrupt food supply chains, delay medical services, and destabilize critical infrastructure.
6. Long-Term Business Consequences: Even after restoration, organizations may face weeks of downtime, lost contracts, reputational damage, and regulatory scrutiny. In some cases, disruption caused by ransomware like BlackMatter can threaten the long-term viability of smaller businesses.

Gathering Threat Intelligence on BlackMatter

Integrating threat intelligence into security operations is essential for detecting and mitigating BlackMatter attacks. Threat intelligence provides fresh indicators of compromise (IOCs), such as malicious IP addresses, domains, and file hashes, that can be used to block command-and-control infrastructure and monitor for early signs of compromise.

It also supports proactive threat hunting, enabling SOC teams to look for BlackMatter’s presence before encryption begins. Detection can rely on known behaviors, including registry modifications for persistence, use of tools like vssadmin and bcdedit for recovery elimination, and service control via sc.exe and net.exe.

Start gathering IOCs and behavioral data with the malware name search request to Threat Intelligence Lookup:

threatName:"Blackmatter"

BlackMatter ransomware samples found via TI Lookup

Conclusion

BlackMatter highlights how ransomware groups now operate like professional businesses, capable of paralyzing entire organizations in hours. By wiping recovery options, halting services, and demanding multimillion-dollar ransoms, it forces executives, IT teams, and SOC analysts into crisis mode.

For security leaders, this means preparing not just technically but organizationally: ensuring SOC teams can spot ransomware behaviors early, aligning with legal and communications teams for incident response, and protecting brand trust when critical services are disrupted.

Staying ahead requires threat intelligence that goes beyond file signatures; context on attacker tactics, visibility into live campaigns, and shared IOCs that teams can act on quickly.

Gather fresh actionable threat intelligence via ANY.RUN’s TI Lookup: start with 50 trial requests.