July 2, 2019 at 16:44 #4244
A slew of ransomware attacks in recent months have brought the issue to greater prominence and raised justifiable alarm. While data theft and conventional hacking are alarming enough, ransomware attacks entail affected users being locked out of their systems until a demanded fee is paid; there is, of course, no guarantee that access will be restored even if the demand is met. Targets may be individuals, companies, or government institutions.
In May of this year, a Norwegian-based aluminum company, Norsk Hydro, was subject to a crippling attack, receiving the message ‘Pay us or be locked out forever’. The company’s entire global network – comprising 35,000 employees and 22,000 computers distributed between 170 different sites around the world – came under a coordinated and simultaneous assault. With the company’s computers out of action, production was only resumed thanks to the help of retired workers brought back in to help, and the discovery of old paperwork detailing how to perform the operations the computers have been conducting automatically in more recent years. Even after a month following the attack, the company was still struggling to return to operations, and their recovery process accumulated costs in excess of $57 million.
Yet the company did not consider paying the ransom demands. Jo De Vliegher, Norsk Hydro’s Chief Information Officer, told the BBC: “I think in general it’s a very bad idea to pay. It fuels an industry, it’s probably financing all sorts of crimes.”
This logic is in line with the consensus of cyber security companies and law enforcement agencies, which dictates that refusing to pay is preferable to caving in to ransom demands. Yet the issue remains that firms will be tempted to give in to the hackers – the eventual cost could be far less than the price of actually making up for the damaged caused.
This idea was certainly in the minds of a number of towns in Florida, whose local government bodies came under attack in late June. Over $1.1 million was paid to the attackers, and while this fee will be covered by insurance, it will still result in an additional $10,000 cost to taxpayers. Computer access was ultimately restored to the towns, and within two weeks all normal services had been resumed.
The ransom payments are usually demanded in Bitcoin, largely due to the simplicity of transaction from the attacker’s perspective, but the ease in which cryptocurrency can be traced on public blockchains has resulted in several instances in which law enforcers were able to catch cyber criminals. The perpetrators were at particular risk when attempting to convert Bitcoin into national currencies.
As Edward Lowery, Special Agent in Charge of the Criminal Investigative Division of the U.S. Secret Service, told the Senate Homeland Security Committee’s inquiry into digital currencies: “The public ledger feature of the Bitcoin blockchain differentiates Bitcoin, and other decentralized digital currencies, from many of the centralized digital currencies, such as e-gold and Liberty Reserve. The blockchain makes it harder for criminals to hide their illicit activity. The work of researchers to link known transactions to individual identities reduces the attractiveness of Bitcoin for criminal activities. This research also provides an additional tool for law enforcement to identify illicit transactions, assets and the individuals associated with this activity in support of apprehension, asset forfeiture, and prosecution.”
However, this does not mean that any risk on the part of the attacker will deter cyber criminals from distributing ransomware. It is entirely possible that other ways to demand payment will be thought of, in the form of other types of crypto currency or more traditional monies. Yet it can be hoped that the increasing frequency of ransomware attacks will at least instill a sense of urgency in sectors of the private sector and governments, as well as amongst individuals, and help propagate the fact that cyber security measures must constantly be evaluated, installed, and constantly updated.July 17, 2019 at 17:48 #4689October 30, 2019 at 15:38 #5755
Further proof on why cyber security and the use of effective and pre-emptive methods to safeguard information are so crucial. The idea that people can put a large scale business in a corner like that and cost them such sizeable resources should be a cautionary tale for all those who may still not see the importance of being set up properly and making the necessary technological arrangements.November 1, 2019 at 16:40 #5780
You know, at this point, after having seen so many stories like this, I would ay that governments and corporations should really wake up and invest heavily in their tech and cyber security departments, and consider them to be of top priority. It is clear that the dynamic that exists today looks nothing like the one that did ten years ago, and the dangers we once feared such as theft, murder, etc.., although definitely still prominent, have given way to a new type of danger. The number of crimes and the losses incurred online are tremendous, and everyone must seek to take every precaution necessary to avoid falling into such unpleasant hindrances. Cybersecurity is the condom everyone must wear before sharing information online, lest they catch something they may regret.November 18, 2019 at 18:01 #6046
It is unfortunate that it takes individuals, organisations and governments a hard nudge for them to wake up and begin working on improving their cyber security. I think the information above, along with a lot of readily available information across the world is enough for people to finally open their eyes that cyber security is no longer an added value, but a necessity for all.November 18, 2019 at 18:03 #6047
HaroldReese, I agree with you absolutely. What we must all be doing is learning from the misfortunes of others and implementing the necessary reforms in order to prevent such a reality befalling us. Basically, we must all ride the wave that is cyber security before it’s too late.November 21, 2019 at 23:34 #6111
It truly takes something like this for people to learn, which is unfortunate. Instead of reading the warning signs that are already ever present, people wait until it happens to them before beginning to take the matter of cyber security seriously. In all honesty, it is ridiculous. As sometimes, the repercussions of doing so can be so dire that the affected party cannot recover.November 23, 2019 at 23:58 #6128
This is what takes obviously, being put in a precarious position where people have been caused damage by cyber criminals and easily outsmarted because of preparedness. Hence why it is wiser to be safe than sorry.November 24, 2019 at 23:46 #6137
It is unfortunate to see how cyber criminals are causing so much damage to countries and organisations, sometimes laying waste to them complete. The cyber war is only getting started, and we must all be very prepared to face it.November 25, 2019 at 21:26 #6145
Millions of dollars absconded with was what was necessary for some people to wake up and smell the thorns. The fact of the matter is, cyber threats are everywhere, and we need to all safeguard ourselves and be very prepared for the fact that it could be us who are put at risk.November 26, 2019 at 11:59 #6160
Ransomware attackers have been everywhere recently, and it is about time the individuals, organisations and governments, opened their eyes to the dangers that they pose. Yet unfortunately for many, it takes being put in a desperate situation in which many losses are incurred before wising up and taking any form of action. Hence why it is crucial to take all necessary steps in regards to cyber security, and not wait until it is too late.
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