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It seems that Western Australia's legal sector and government sectors are experiencing ripples right now following reports that the Russian ransomware group AlphV has successfully hacked the prominent national law firm HWL Ebsworth and extracted a ransom payment from the firm. This has sent shockwaves through the legal and government sectors across Western Australia.
It has raised serious concerns since May, when the first hints about the breach came to light, concerning the risk of revealing sensitive information, such as information pertaining to over 300 motor vehicle insurance claims filed with the Insurance Commission of Western Australia. In a statement released by the ABC on Monday, the ABC has confirmed that HWL Ebsworth data that was held by the company on behalf of WA government entities may have been compromised after a cybercriminal syndicate claimed to have published a vast repository of the firm’s files earlier this month on the dark web.
Although the full extent of the breach is unclear, investigations are currently underway to determine how large the data exposure is and what the potential consequences are. It has been reported that an ICWA spokesperson acknowledged in an official statement that there has been an impact on the Commission, which is responsible for providing insurance coverage for all vehicles registered in Western Australia as well as overseeing the government's self-insurance programs for property, workers' compensation, and liability.
Although the agency indicated that the extent of any data compromise cannot yet be verified because of ongoing investigation restrictions, the agency noted that it cannot verify the extent of any data compromise at the moment. A spokesperson from the Insurance Commission said, “The details of the data that has been accessed are not yet known, but this is part of a live investigation that we are actively supporting. It is important to note that this situation is extremely serious and that the information that may be compromised is sensitive.
Anubis, a ransomware group that was a part of the law firm that has been involved in the cyberattack, escalated the cyberattack by releasing a trove of sensitive information belonging to one of the firm's clients, which caused the cyberattack to take an alarming turn. The leaked material was reportedly containing confidential business correspondence, financial records, and deeply personal correspondence.
An extensive collection of data was exposed, including screenshots of text messages sent and received by the client and family members, emails, and even Facebook posts - all of which revealed intimate details about private family disputes that surrounded the client. Anubis stated, in its statement on the dark web, that the cache contained “financial information, correspondence, personal messages, and other details of family relationships.”
Despite this, the company highlighted the possibility of emotional and reputational damage as a result of such exposure.
It was pointed out by the group that families already going through difficult circumstances like divorce, adoption, or child custody battles were now going to experience additional stress due to their private matters being made public, even though the full scope of the breach remains unclear, and the ransomware operators have yet to provide a specific ransom amount, making it difficult to speculate about the intentions of the attackers.
Cyber Daily contacted Paterson & Dowding in response to inquiries it received, and a spokesperson confirmed that there had been unauthorized access to data and exfiltration by the firm. “Our team immediately acted upon becoming aware of unusual activity on our system as soon as we became aware of it, engaging external experts to deal with the incident, and launching an urgent investigation as soon as possible,” said the spokesperson.
There is no doubt in the minds of the firm that a limited number of personal information had been accessed, but the threat actors had already published a portion of the data online. In addition to notifying affected clients and employees, Paterson & Dowding is coordinating with regulatory bodies, including the Australian Cyber Security Centre and the Office of the Information Commissioner, about the incident.
A representative of the company stated that he regretted the distress the firm had caused as a result of the breach of confidentiality and compliance. Meanwhile, an individual identifying himself as Tobias Keller - a self-proclaimed "journalist" and representative of Anubis - told Cyber Daily that Paterson & Dowding was one of four Australian law firms targeted by a larger cyber campaign, which included Pound Road Medical Center and Aussie Fluid Power, among others.
While the HWL Ebsworth cyberattack is still unfolding, it has raised increasing concern from the federal and state government authorities as the investigation continues. In addition to providing independent legal services to the Insurance Commission of Western Australia (ICWA), the firm also reviews its systems in order to determine if any client information has been compromised. In this position, one of 15 legal partners serves the Insurance Commission of Western Australia (ICWA).
A representative of ICWA confirmed that the firm is currently assessing the affected data in order to clarify the situation for impacted parties. However, a court order in New South Wales prohibiting the agency from accessing the leaked files has hampered its own ability to verify possible data loss.
As ICWA's Chief Executive Officer Rod Whithear acknowledged the Commission's growing concerns, he stated that a consent framework for limited access to the information is being developed as a result of a consent framework being developed.
Currently, the Insurance Commission is implementing a consent regime that will allow them to assess whether data has been exfiltrated and if so, will be able to assess the exfiltrated information." He assured that the Commission remains committed to supporting any claimant impacted by the breach.
In addition to its involvement in insurance-related matters, HWL Ebsworth has established an extensive professional relationship with multiple departments of the State government of Washington.
According to the firm's public transportation radio network replacement program, between 2017 and 2020, it was expected that it would receive approximately $280,000 for its role in providing legal advice to the state regarding its replacement of public transport radio networks, a project which would initially involve a $200 million contract with Huawei, the Chinese technology giant.
A $6.6 million settlement with Huawei and its partner firm was reached in 2020 after U.S. trade restrictions rendered the project unviable, ultimately resulting in Huawei and its partner firm being fined $6.6 million. Aside from legal representation for public housing initiatives and Government Employees Superannuation Board, HWL Ebsworth has provided legal representation for the Government Employees Superannuation Board as well.
In light of the breach, the state government has clarified, apart from the ICWA, that no other agencies seem to have been directly affected as a result.
A significant vulnerability has been highlighted by this incident in the intersection of government operations with private legal service providers, but the incident has also highlighted broader issues related to cyber security.
Addressing the broader impacts of the attack will also be in the hands of the new Cyber Security Coordinator, Air Marshal Darren Goldie, who was appointed in order to strengthen the national cyber resilience program.
The Minister of Home Affairs, Clare O'Neill, has described the breach as one of the biggest cyber incidents Australia has experienced in recent years, placing it alongside a number of major cases such as Latitude, Optus, and Medibank.
The Australian Federal Police and Victorian Police, working together with the Australian Cyber Security Centre, continue to investigate the root cause and impact of the attack.
A number of cyber incidents are unfolding throughout Australia, which serves to serve as an alarming reminder of how fragile digital trust is becoming within the legal and governmental ecosystems of the country. Experts say that while authorities are intensifying their efforts to locate the perpetrators and strengthen defenses, the breach underscores the urgent need for stronger cybersecurity governance among third parties and law firms involved in the handling of sensitive data.
The monitoring of threats, employee awareness, and robust data protection frameworks, the nation's foremost challenge is now to rebuild trust in institutions and information integrity, beyond just restoring the systems. Beyond just restoring systems, rebuilding confidence in institutions and information integrity are the most urgent tasks facing us today.
