If you run business, a bank, a utility or even a city, chances are you’ll be hit with a ransomware attack. Given the choice between losing your precious data or paying up, chances are you’ll pay. Why it matters: Paying the hackers is the clear short-term answer for most organisations hit with these devastating attacks, but it’s a long-term societal disaster, encouraging hackers to continue their lucrative extortion schemes. Driving the news: Colonial Pipeline paid hackers almost £3 million in ransom to restore its systems and get petrol flowing again after a ransomware attack held the USA’s largest pipeline hostage, which resulted in widespread disruption of petrol supply. The big picture: “This creates a collective action problem — the bad guys win so they’ll go out and hit someone else,” said Betsy Cooper, director of Aspen Tech Policy Hub at the Aspen Institute. - “As an organisation, you have to consider the immediate costs versus the cost of your data. The less prepared you are, the worse it’s going to be.”
Threat level: Code red. Negotiating can backfire. - Last week, foreign hackers released sensitive files they stole from the Washington, D.C., police department last month after the department offered to pay $100,000 rather than the $4 million that was demanded to return the data.
- The hackers reportedly said they’d keep the files public for months, even if the police department offered more than the original ransom.
Of note: The outfit responsible for the Colonial Pipeline attack announced it was shutting down Friday, but there’s no sign the larger problem will abate. - That same day, Ireland shut down its healthcare systems networkbecause of another ransomware attack.
- Let’s not forget the carnage that ensued for MCW & Bibendum earlier this year when in April they were forced to shut down their computer systems after becoming a target of a Cyber-attack, leaving thousands of retailers and brand owners scrambling for a route to market solution on the week that hospitality was waking up after 12 months of being locked down.
- There is not any evidence of a ransom request in this case, however the damage caused by the incident is still being felt by the business plus those that rely on their services and it will take them months to recover.
By the numbers: Payments to ransomware attackers rose 337% from 2019 to 2020, reaching more than £250 million worth of cryptocurrency, according to figures just released by Chainalysis, a blockchain analysis company. - So far in 2021, hackers have raked in more than £55 million.
- The average ransom payment has risen from £8,000 in the fourth quarter of 2019 to £38,000 in the first quarter of this year.
- Chainalysis notes these figures are conservative because they are based on reported attacks and payments.
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