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Another Day, Another Cyberattack: Kaseya Software and the Future of Ransomware

Once again, a major ransomware attack has affected businesses and consumers across the globe. Kaseya, a software company that provides IT infrastructure for managed service providers, was the victim of this latest cyberattack. Over the 2021 Independence Day weekend, REvil, a Russian-based hacker gang sent out a malicious software update to Kaseya’s clients, resulting in up to 1,500 small businesses being compromised[1]. Now, the group is asking for USD 50 million to undo the damage, the largest ransomware demand in history[2].

While the effects on some compromised businesses were minor, others were hit hard. For example, hundreds of grocery stores in Sweden were forced to close after their cash registers became inoperable following the attack, with railways and pharmacies in the country also being affected[3]. Additionally, some New Zealand schools were taken offline because of the attack[4]. This worldwide attack shows how crippling ransomware attacks can be, and highlights the importance of businesses protecting and securing their data.

The History of REvil

REvil, short for Ransomware Evil, is a Russian-based group of cybercriminals that attacks businesses by encrypting their data and rendering it unusable until a ransom is paid to them. Founded in 2019, REvil quickly gained prominence and, recently, has increased the scale of its attacks. While the average ransom demand from REvil was just USD 728,000[5], recent attacks have shown the group’s willingness to aim for more. For example, REvil attacked JBS, a meat processing company, in May. While food shortages were avoided, the company still paid REvil USD 11 million to prevent further supply chain interruptions[6]. Even worse, REvil uses its ransom money to hire new hackers and research new ransomware technology, becoming a thriving business of cybercrime[5]. In just two years, REvil has become a powerful group, launching successful ransomware attacks across the globe.

A Troubling Trend

Unfortunately, the Kaseya attack is just one example of a larger problem faced by businesses around the globe. Hacker groups seek to attack and exploit any business they can by threatening to destroy or leak data unless a massive payment is made. Much worse than simple computer viruses, ransomware attacks can grind business to a halt within hours.

Cyberattacks involving ransomware have increased further in 2021, with recent attacks affecting people and businesses around the globe. In May, an attack on the Colonial Pipeline affected millions of Americans, causing fuel shortages in the Southeast. Even though Colonial Pipeline paid the ransom within hours of the attack, the effect was still felt by millions. 

The Colonial Pipeline attack was just one of the thousands of expected ransomware attacks in 2021[7], and, unfortunately, they show no sign of slowing down. As long as hackers continue to find vulnerabilities in business security, ransomware attacks will continue. With more and more work being done online, data becomes more and more vulnerable. Ransomware attackers can strike at any time, destroying a business’s ability to function. And even if a business pays the ransom, it can take a long period of time to get back to normal. 

So while ransomware prevention can be a headache, it helps make sure you are as protected as possible from attackers. After all, there is nothing hackers love more than a business with lax cybersecurity.

Tips to Prevent Ransomware Attacks

Create and Frequently Update Offline Backups of Data: While this is a time-consuming process, this is the best way to ensure your business can still function if a ransomware attack occurs. Backing up your data offline ensures that if you are affected by ransomware, your important data will be safe from hackers. Simply delete your affected systems and reupload your offline data onto a new system.

Consider Using White Hat Hackers: While hackers have a negative connotation, white hat hackers can help businesses tremendously. They ethically check and test your cybersecurity measures and inform you of any potential vulnerabilities. Once you know the issues, you can fix them and protect your business from the hackers who wish to hurt rather than help.

Update your Antivirus Software: This is the simplest, easiest way to make sure you and your business are protected from ransomware attacks. Each update of antivirus software helps patch vulnerabilities that are present. Staying up-to-date helps ensure you are as protected as possible from unethical hackers who check for holes in security. If your business is on an older version of antivirus software, hackers can find a way past the protection and hold your business hostage. Patching these holes through software updates keeps you safe from old security bugs that attackers often exploit.

The Future of Ransomware

As technology evolves further, unfortunately, so do the practices of unethical hackers. Every day, businesses and individuals put data at risk of cyberattacks. While businesses and antivirus softwares try to ensure every security vulnerability is patched, hackers may still find a way to attack. However, following the tips mentioned before and safeguarding your data can make you less likely to become a victim of a ransomware attack.

Unfortunately, if attackers obtain data and threaten to sell or leak it unless a ransom is paid, a business has few options other than paying the ransom or losing the data. Once attackers have access to the data, there is not much a business can do. This is why the best defense against ransomware is prevention. Taking the time to secure your data, update your software, and find vulnerabilities will increase your protection from cybercriminals who wish to wreak havoc on a business.

Securing Your Data

At AXEL, we believe data privacy is a right. Unlike other tech companies, we will never sell your data to third parties, helping ensure your data is only yours. Our file-sharing application, AXEL Go, uses blockchain technology and AES 256-bit encryption to provide the most secure cloud-sharing system in the industry. Whether for business or personal use, AXEL Go helps protect your most important files. 

Sign up today to receive a free 14-day trial of our Premium service with all of AXEL Go’s features unlocked. After the trial period, you can choose to continue your Premium account for just $9.99/month or use our Basic service free of charge. Together, we can help protect data from malicious attackers.

[1] “Up to 1,500 Businesses Compromised by Latest Ransomware Attack, Kaseya CEO Says.” CBS News. July 06, 2021. http://www.cbsnews.com/news/ransomware-attack-kaseya-1500-businesses/.

[2] “In Private Conversation, Hackers behind Massive Ransomware Outbreak Lower Demand to $50 Million.” CNBC. July 05, 2021. http://www.cnbc.com/2021/07/05/revil-hackers-behind-massive-ransomware-outbreak-drop-demand-to-50m.html.

[3] Browning, Kellen. “Hundreds of Businesses, From Sweden to U.S., Affected by Cyberattack.” The New York Times. July 03, 2021. https://www.nytimes.com/2021/07/02/technology/cyberattack-businesses-ransom.html.

[4] Satter, Raphael. “Up to 1,500 Businesses Affected by Ransomware Attack, U.S. Firm’s CEO Says.” Reuters. July 05, 2021. http://www.reuters.com/technology/hackers-demand-70-million-liberate-data-held-by-companies-hit-mass-cyberattack-2021-07-05/

[5] Javers, Eamon. “Axis of REvil: What We Know about the Hacker Collective Taunting Apple.” CNBC. April 23, 2021. https://www.cnbc.com/2021/04/23/axis-of-revil-inside-the-hacker-collective-taunting-apple.html.

[6] Bunge, Jacob. “JBS Paid $11 Million to Resolve Ransomware Attack.” The Wall Street Journal. June 10, 2021. https://www.wsj.com/articles/jbs-paid-11-million-to-resolve-ransomware-attack-11623280781.

[7] Hum, Thomas. “Over 65,000 Ransomware Attacks Expected in 2021: Former Cisco CEO.” Yahoo! Finance. June 14, 2021. https://finance.yahoo.com/news/over-65000-ransomware-attacks-expected-in-2021-former-cisco-ceo-125100793.html.

Ransom-Wars: The Task Force Awakens

Ransomware is a significant societal problem. If you’re unaware of how it works, read our previous blog on the topic.  2020 was a banner year for ransomware gangs, as analysts estimate they brought in approximately $350 million, with the average payment exceeding $315,000[1]. It’s gotten so concerning that 60+ government agencies and industry leaders formed a task force to tackle the situation.

Key members include the United States Department of Justice, the FBI, the Department of Homeland Security, Europol, Microsoft, Amazon, Cisco, and more. They recently published an 81-page document that discusses the issue and creates a framework for dealing with ransomware[2]. Lucky for you, we read it, so you don’t have to. Here’s the easily digestible summary.

Definition of ransomware

The first quarter or so of the report focuses on defining ransomware and the tactics threat actors use. These are covered in our previous blog if you’re interested. To summarize quickly, ransomware is a type of malware malicious agents install on high-priority computer systems, typically governmental organizations or successful businesses.

Once they infect these networks, the malware moves throughout them and encrypts or exfiltrates the files it finds. A ransom is given that the organizations must pay to decrypt their data or prevent the hackers from leaking it on the internet.

Some rather nasty gangs require double ransoms, one for decryption, the other for not leaking the information. It’s known as double-extortion and is becoming a popular tactic. Now, onto the proposed framework.

The framework for fighting ransomware

We should note that this document’s crux lies in the need for international cooperation for its implementation. Although the United States suffers the majority of ransomware attacks, it is a global problem. The perpetrators come from many different countries such as Russia, Iran, and North Korea, which have zero incentive to stop. This means the rest of the global community needs to agree to the framework for it to work.

Goal 1: Deter

The first goal of the framework is to prevent as many ransomware infections as possible. The document outlines various steps the world must take to do so:

Establish an international ransomware coalition. Governments and corporations around the world have to come together. The document suggests that leaders must communicate regularly about the threats to keep the global community informed about new groups and malware variants. It outlines that nations should create “investigation hub” networks for data sharing and analysis.

The U.S. Government should prioritize ransomware policy. The task force wants the United States, in particular, to get tough on ransomware. It proposes the intelligence community designate it as a formal national security threat and for the DoJ to prosecute ransomware cases more aggressively. Furthermore, it wants the U.S. to levy sanctions against countries that harbor ransomware gangs to increase pressure for cooperation.

Goal 2: Disrupt

The second objective is to disrupt the current business of ransomware gangs and make it a less profitable endeavor. The task force recommends:

Crack down on cryptocurrency markets. Ransomware groups force victims to pay nearly all ransom payments in cryptocurrency.  They do this because cryptocurrencies are borderless and can be challenging to track. There are anonymous exchanges, privacy coins, and techniques to exchange the assets from cryptocurrency to cryptocurrency to obfuscate the origins. The report suggests governments provide more of a regulatory framework to this market. It wants exchanges to follow current anti-money laundering laws to which other financial institutions must adhere.

Create an insurance company consortium. Insurance companies do offer protective plans against ransomware. The task force would like to see collaboration and data sharing between these organizations. It claims this could reduce payments to sanctioned or terrorist bodies since they could use the mass amount of information to get a clearer picture of the groups demanding the ransoms.

Target infrastructure used by criminals. Ransomware campaigns require significant computer infrastructure. The report proposes international cooperation that targets these systems and brings them down.

Goal 3: Help

Unfortunately, many organizations aren’t well prepared for ransomware attacks. The fact is that most organizations over a certain size will be targeted sooner than later. The task force recognizes this and wants to provide these organizations with more information and better toolsets to deal with attacks. It advises:

Create and highlight complementary materials for the framework’s adoption. There are a significant amount of readily available materials about ransomware prevention and mitigation. The task force wants to promote these existing materials and create new ones to fill in any information gaps. The new materials should be geared toward organizational leaders and include specific implementation procedures.

Require government agencies to follow guidelines and incentivize private businesses. The task force wants to include ransomware-specific guidelines in existing cyber-hygiene standards and require government agencies to follow them. Furthermore, it supports creating more grants while alleviating fines and taxes for private companies that follow the framework. This would make a strong incentive for everyone to be on board.

Goal 4: Respond

Organizations need a more effective response after a ransomware infection. This goal aims to aid businesses and agencies after an incident. The task force recommends:

Increased support for victims. Ransomware is destructive and could be incredibly dangerous if it affected critical infrastructure or health-based organizations such as hospitals. The task force wants to set up a relief fund that would help funnel resources quickly if such a situation ever occurs.

Encouragement to report ransomware.  Ransomware attacks are embarrassing for companies, and many don’t even report them. This stops the flow of information and hinders future efforts to predict and prevent attacks. The task force feels proper encouragement and education materials are crucial to getting an accurate, holistic picture of the insidious malware.

Educate organizations about payment alternatives. The truth is, if organizations stopped paying the ransoms, the income would dry up for ransomware gangs, and it would no longer be a worthwhile endeavor. This is easier said than done, as some data is very sensitive and perhaps not backed up offline. Still, the task force urges companies to look at the alternatives to paying whenever possible.

Potential roadblocks

These all sound like good suggestions and would actually go a long way in fighting ransomware if implemented adequately. However, there are some weaknesses to consider:

Privacy concerns. If the world at large enacts this framework, governments and businesses will share a lot of data. As with most scenarios regarding Big Data collection, this has a good chance of going awry from a privacy standpoint. Is it worth it? A detailed cost-benefit analysis would have to be done, but AXEL believes the possibility of abuse is too great as-is. The fact is, even if governments gave privacy guarantees, they don’t mean much.

Inefficient bureaucracy. The task force recommends multiple new governmental and private-public partnership organizations created to combat ransomware. It’s admirable to put so much thought into methods to take on the problem, but additional levels of bureaucracy may prove (as they typically do) to be inefficient.

Data security

AXEL believes that basic education about cybersecurity best practices for all members of an organization is the best way to prevent ransomware infections currently. While all systems have technical weaknesses, the biggest weakness tends to be the human factor. Teaching employees to be vigilant about ransomware and understand the risks entirely is effective.

Another part of the equation is data security. Are you storing and sharing data securely? If not, or you aren’t sure, you should try AXEL Go. AXEL Go utilizes multiple layers of security to protect data from malicious agents. You can read more about our use of technology and download the app to try for yourself at AXELGo.app. Sign up today and receive a free 14-day trial of our Premium service.

[1] “Ransomware Skyrocketed in 2020, But There May Be Fewer Culprits Than You Think”, ChainAnalysis.com, Jan. 26, 2021, https://blog.chainalysis.com/reports/ransomware-ecosystem-crypto-crime-2021

[2] Ransomware Task Force, “Combatting Ransomware”, SecurityAndTechnology.org, April 2021, https://securityandtechnology.org/wp-content/uploads/2021/04/IST-Ransomware-Task-Force-Report.pdf