Category: ransom

The question of whether victims of ransomware attacks can recover the money they’ve paid to cybercriminals is a complex and challenging issue. Cybersecurity professionals remain hopeful, believing that, with the right tools and efforts, some form of recovery may be possible. However, the reality is far more nuanced, and the road to recovering ransom payments is fraught with obstacles.

The Arrest of Rostislav Panev and the LockBit Ransomware Case

One of the latest developments in the fight against cybercrime involves the arrest of Rostislav Panev, a 51-year-old dual-nationality individual, apprehended in Israel by Interpol authorities. Panev is believed to have played a key role in the LockBit ransomware-as-a-service operation, a notorious cybercriminal group responsible for encrypting data and extorting victims worldwide. According to the U.S. Department of Justice, Panev is accused of earning approximately $230,000 in ransom payments between June 2022 and February 2024, the majority of which were paid by victims of the LockBit ransomware.

At the time of his arrest in August 2024, Panev was allegedly developing new digital weapons for further criminal activity. Investigators believe he was a significant player in the distribution of LockBit malware, which has caused billions of dollars in damages to over 2,500 organizations globally. Despite the group’s dissolution in March 2024 as part of an international law enforcement crackdown called Operation Cronos, the damage inflicted by LockBit continues to linger.

Panev, a Russian national, is scheduled for extradition to the United States by February 2025, where he will face charges related to his role in this massive cybercrime operation. He is expected to join Dmitri Yuryevich Khoroshev, another key LockBit figure, in U.S. custody early next year.

The Challenge of Recovering Ransom Payments

While law enforcement agencies are making significant strides in dismantling cybercriminal groups like LockBit, the issue of recovering ransom payments remains a complicated one. Many organizations that fall victim to ransomware attacks are left wondering: can they ever get their money back?

In theory, the U.S. government and other law enforcement agencies can try to pressure cybercriminals into returning ransom payments through legal and financial means. For instance, criminal proceeds—including the ransom money—could potentially be seized as part of the criminal’s assets. However, this process is not straightforward.

One major challenge is the anonymity inherent in cryptocurrencies, which are commonly used in ransomware attacks. Cryptocurrencies like Bitcoin are decentralized, with no central authority to track or oversee transactions. This makes it incredibly difficult for authorities to trace or seize the ransom payments, especially when the funds are moved through complex networks of digital wallets or exchanged for fiat currencies.

Furthermore, even when authorities manage to track down criminals or seize assets, there’s no guarantee that the victims will ever see any of their ransom money returned. Since many ransomware payments are made in cryptocurrency, which is inherently difficult to trace, and since the funds are often rapidly laundered through multiple channels, the recovery of such funds is rarely successful.

What Does This Mean for Ransomware Victims?

Given the complexity and uncertainty surrounding ransom recovery, it’s important for organizations to adjust their expectations. Victims of ransomware attacks should not rely on the possibility of recovering the ransom payments from criminals or law enforcement. The likelihood of getting that money back is low, and the process can be time-consuming and resource-intensive.

Instead, businesses should focus on preventative measures to safeguard their digital infrastructure. This includes investing in robust cybersecurity practices, such as strong encryption, network monitoring, and employee training to prevent phishing attacks. More importantly, organizations should implement data backup plans to ensure that they can recover their critical information in the event of an attack—without needing to pay the ransom.

Additionally, companies should regularly test their backup systems to ensure that they can restore their data efficiently. Having an effective and well-practiced disaster recovery plan can make a significant difference in maintaining business continuity after a ransomware attack.

Conclusion

While the legal and technical efforts to combat cybercrime are making progress, recovering ransom payments remains an unlikely outcome for most victims. The combination of cryptocurrency anonymity, the global nature of cybercrime, and the complex legal processes involved makes it difficult to reclaim extorted funds. As such, businesses must prioritize prevention over recovery, focusing on robust cybersecurity measures and comprehensive data backup strategies to mitigate the damage caused by ransomware attacks.

The post Can Ransom Payments Be Recovered or reimbursed? A Closer Look at Cybercrime and Law Enforcement Efforts appeared first on Cybersecurity Insiders.

Ransomware attacks are among the most perilous threats facing individuals and organizations today. They lock or encrypt critical files, rendering them inaccessible until a ransom is paid. Despite paying the ransom, there are situations where the provided decryptor fails to restore your files. If you find yourself in this unfortunate scenario, here’s a comprehensive guide on what steps to take:

1. Verify the Problem
Before taking further action, ensure that the decryptor is indeed malfunctioning. Verify that:
    • You are using the correct decryptor for the ransomware variant that infected your system.
    • The decryption process was followed accurately, according to the instructions provided by the attacker.
    • The files were correctly targeted by the decryptor and were not damaged or corrupted in the process.

2. Consult Cybersecurity Professionals

If the decryptor fails to work, reach out to cybersecurity experts immediately. These professionals can:
    • Analyze the Decryptor: Verify if the decryptor is compatible with your ransomware strain and investigate why it isn’t functioning as expected.
    • Examine the Encrypted Files: Determine if the encryption method has unique characteristics that might require a different approach.
    • Provide Advanced Solutions: Offer alternative methods or tools that might be effective in decrypting your files.

3. Report the Incident
Report the ransomware attack to relevant authorities:
    • Local Law Enforcement: Inform them of the attack, as they may have additional resources or advice.
    • National Cybersecurity Agencies: Many countries have agencies dedicated to handling cybersecurity incidents and can offer support or guidance.
    • Cybercrime Units: Specialized units often work on ransomware cases and may provide assistance or even investigative support.

4. Assess Your Backup Options
Check if you have backups of the affected files. If so, assess the following:
    • Backup Integrity: Ensure the backups are up-to-date and not infected with ransomware.
    • Restore Procedure: Use the backups to restore your files, ensuring that your system is clean before doing so.

5. Evaluate Decryption Alternatives

If the decryptor provided by the attacker fails, consider these alternatives:
    • Decryption Tools from Security Vendors: Sometimes, cybersecurity companies develop decryption tools for specific ransomware strains. Research or consult with professionals to find out if such tools are available.
    • Online Ransomware Communities: Platforms like No More Ransom (nomoreransom.org) offer decryption tools and advice for various ransomware strains. Check if your ransomware variant is listed.

6. Improve Future Security Measures
Learn from the incident and take steps to enhance your cybersecurity posture:
    • Update and Patch Systems: Regularly update software and systems to protect against vulnerabilities exploited by ransomware.
    • Implement Comprehensive Backup Solutions: Use automated and regular backups stored in multiple, secure locations.
    • Educate Yourself and Your Team: Conduct training sessions on recognizing phishing attempts and other ransomware delivery methods.

7. Consider Legal and Financial Advice

In cases where ransomware attacks have significant impacts:

    • Consult Legal Advisors: Understand your legal obligations and rights regarding data breaches and ransomware payments.
    • Seek Financial Counsel: Assess the financial impact of the attack, including the costs of recovery and potential insurance claims.

8. Stay Informed

Ransomware tactics and decryption tools evolve rapidly. Stay informed about the latest developments in cybersecurity to better prepare for and respond to future threats.

Conclusion

Facing a ransomware attack and finding that a decryptor does not work can be an incredibly stressful situation. By taking these steps—verifying the problem, seeking professional help, reporting the incident, exploring backup and decryption alternatives, and enhancing future security measures—you can navigate the aftermath more effectively and safeguard against future threats. Always remember that prevention and preparedness are key to mitigating the impact of such attacks.    

The post What to do if a Ransomware Decryptor Doesn’t Work Even After Paying the Ransom appeared first on Cybersecurity Insiders.

Ransomware attacks are among the most perilous threats facing individuals and organizations today. They lock or encrypt critical files, rendering them inaccessible until a ransom is paid. Despite paying the ransom, there are situations where the provided decryptor fails to restore your files. If you find yourself in this unfortunate scenario, here’s a comprehensive guide on what steps to take:

1. Verify the Problem
Before taking further action, ensure that the decryptor is indeed malfunctioning. Verify that:
    • You are using the correct decryptor for the ransomware variant that infected your system.
    • The decryption process was followed accurately, according to the instructions provided by the attacker.
    • The files were correctly targeted by the decryptor and were not damaged or corrupted in the process.

2. Consult Cybersecurity Professionals

If the decryptor fails to work, reach out to cybersecurity experts immediately. These professionals can:
    • Analyze the Decryptor: Verify if the decryptor is compatible with your ransomware strain and investigate why it isn’t functioning as expected.
    • Examine the Encrypted Files: Determine if the encryption method has unique characteristics that might require a different approach.
    • Provide Advanced Solutions: Offer alternative methods or tools that might be effective in decrypting your files.

3. Report the Incident
Report the ransomware attack to relevant authorities:
    • Local Law Enforcement: Inform them of the attack, as they may have additional resources or advice.
    • National Cybersecurity Agencies: Many countries have agencies dedicated to handling cybersecurity incidents and can offer support or guidance.
    • Cybercrime Units: Specialized units often work on ransomware cases and may provide assistance or even investigative support.

4. Assess Your Backup Options
Check if you have backups of the affected files. If so, assess the following:
    • Backup Integrity: Ensure the backups are up-to-date and not infected with ransomware.
    • Restore Procedure: Use the backups to restore your files, ensuring that your system is clean before doing so.

5. Evaluate Decryption Alternatives

If the decryptor provided by the attacker fails, consider these alternatives:
    • Decryption Tools from Security Vendors: Sometimes, cybersecurity companies develop decryption tools for specific ransomware strains. Research or consult with professionals to find out if such tools are available.
    • Online Ransomware Communities: Platforms like No More Ransom (nomoreransom.org) offer decryption tools and advice for various ransomware strains. Check if your ransomware variant is listed.

6. Improve Future Security Measures
Learn from the incident and take steps to enhance your cybersecurity posture:
    • Update and Patch Systems: Regularly update software and systems to protect against vulnerabilities exploited by ransomware.
    • Implement Comprehensive Backup Solutions: Use automated and regular backups stored in multiple, secure locations.
    • Educate Yourself and Your Team: Conduct training sessions on recognizing phishing attempts and other ransomware delivery methods.

7. Consider Legal and Financial Advice

In cases where ransomware attacks have significant impacts:

    • Consult Legal Advisors: Understand your legal obligations and rights regarding data breaches and ransomware payments.
    • Seek Financial Counsel: Assess the financial impact of the attack, including the costs of recovery and potential insurance claims.

8. Stay Informed

Ransomware tactics and decryption tools evolve rapidly. Stay informed about the latest developments in cybersecurity to better prepare for and respond to future threats.

Conclusion

Facing a ransomware attack and finding that a decryptor does not work can be an incredibly stressful situation. By taking these steps—verifying the problem, seeking professional help, reporting the incident, exploring backup and decryption alternatives, and enhancing future security measures—you can navigate the aftermath more effectively and safeguard against future threats. Always remember that prevention and preparedness are key to mitigating the impact of such attacks.    

The post What to do if a Ransomware Decryptor Doesn’t Work Even After Paying the Ransom appeared first on Cybersecurity Insiders.

During the Central Banking Summer Meetings 2024 in London, a group of security analysts explored the contentious issue of ransomware payments. They suggested that, in many cases, paying off hackers who spread ransomware may indeed yield results, given the alarming frequency of attacks involving data theft. This stolen information often ends up either leaked online or sold for profit.

Advocates for banning ransom payments should consider the limitations of law enforcement in such scenarios. Retrieving hacked and stolen data poses significant challenges, as there’s no foolproof method to reclaim data from cybercriminals who may have stored it across various IT infrastructures, both on-premise and geographically dispersed.

Initially, Ciaran Martin, head of Britain’s NCSC, supported the cessation of ransom payments. However, by March 2023, the head of GCHQ’s cyber arm concluded that this strategy didn’t effectively halt the proliferation of file-encrypting malware, raising doubts about its efficacy.

Nevertheless, it’s essential to recognize that there are avenues for addressing this issue. While paying a ransom may incentivize criminal behavior and doesn’t guarantee decryption, relying on robust data backups can mitigate financial losses, except in cases involving double extortion tactics.

Sharing insights into the nature and consequences of attacks can empower other organizations to implement proactive measures to combat similar threats.

Additionally, investing in comprehensive cyber insurance policies that cover various costs incurred during and after an attack emerges as a prudent strategy in navigating these increasingly prevalent cyber threats.

The post Ransomware payments work in some cases say experts appeared first on Cybersecurity Insiders.

The US House of Representatives is on the brink of passing a significant bill aimed at curbing the scourge of ransomware attacks by prohibiting payments exceeding $100,000. The primary objective is to safeguard the nation’s financial infrastructure from the growing threat of ransomware.

The reintroduction of the Ransomware and Financial Stability Act by the House Financial Services committee Chairman signals a proactive stance in combating ransomware threats. Expected to garner full house endorsement following a brief deliberation next week, the legislation seeks to dissuade the proliferation of ransomware and associated criminal activities.

Central to the bill are provisions mandating authorization from the Treasury Department prior to any ransom payments. Notably, if the ransom demand exceeds $100,000, clearance from law enforcement or the president is required, effectively halting the payment process until such authorization is granted.

The urgency of such measures cannot be overstated, particularly in light of recent data from Chainalysis revealing ransom payments exceeding $1 billion in 2023 alone. Moreover, the bill underscores its commitment to ensuring the security and confidentiality of information pertaining to ransomware attacks targeting financial institutions.

Nevertheless, there remains ambiguity regarding the impact of the bill on the prevalence of cryptocurrencies, given the challenges associated with regulating these decentralized digital assets. The inclusion of provisions to restrict the use of cryptocurrency in ransom payments underscores the government’s dilemma in effectively combating cyber-crime.

In sum, the White House’s proactive stance in addressing ransomware threats through legislative measures is a step in the right direction. It is hoped that these efforts will lead to the eventual eradication of this menace.

The post US House bill prohibits ransomware payments over $100,000 appeared first on Cybersecurity Insiders.

In the year 2019, a Netherlands-based University was victimized by a ransomware attack where cyber criminals demanded 200,000 Euros or $200,000 in the BTC to free up the database from encryption. As the educational institution was about to lose valuable staff, students and curriculum related data, it bowed down to the demands of ransomware spreading gang/s.

After thinking a lot and taking a time of a week, the IT and Senior Managerial staff of Southern Maastricht University paid the ransom as the criminals locked down Windows Server Access to about 25,000 students and employees as they encrypted scientific information, library and email access. The issue was resolved as the ransomware distribution group of criminals returned the stolen data and also offered a decryption key, as promised.

During a separate investigation made in the year 2020, the Dutch police discovered that ransom payment made by Southern Maastricht University was diverted to a person based in Ukraine. And they arrested him and tried to extract the funds earned by him in illicit ways.

They seized his bank and e-wallets accounts and found that they were filled with different crypto currencies, out of which a portion of amount belonged to Maastricht University.

After a thorough investigation and follow-ups, they returned the recovered money to their victims.

So, as the value of the bitcoins paid then has doubled in recent times, the university victim will receive the amount of 200 BTC. Since the value of BTC has tripled against US Dollar in recent times, the victim will be paid 500,000 Euros literally by the Netherlands Police.

Michael Borgers, the ICT Director of Maastricht, confirmed the news and added that the additional profits gained from the ransom reimbursement will fund crash strapped students who are economically backward.

 

The post Dutch University gets back double the ransomware payment appeared first on Cybersecurity Insiders.

Ransomware has matured significantly over the previous decade or so. Initially thought to be a relatively basic virus that could be contained on a floppy disk, it can now damage global business infrastructures, stop healthcare systems dead in their tracks, mess with fuel supply networks, and disrupt transportation infrastructure. Its simplicity is what makes it […]… Read More

The post Are Protection Payments the Future of Ransomware? How Businesses Can Protect Themselves appeared first on The State of Security.

A new report, which surveyed 1200 IT security professionals in 17 countries around the world, has shone a light on a dramatic rise in the number of organisations willing to pay ransoms to extortionists. The ninth annual Cyberthreat Defense Report (CDR), produced by CyberEdge Group, shows that not only has there been a substantial increase […]… Read More

The post Companies are more prepared to pay ransoms than ever before appeared first on The State of Security.