A UnitedHealth spokesperson confirmed that the black cat ransomware gang had breached Change Healthcare's network, using stolen credentials to get into the company's Citrix remote access service, which was not set up to support multi-factor authentication. It was revealed in a written statement issued by UnitedHealth's CEO Andrew Witty ahead of the hearing scheduled for tomorrow by a House Energy and Commerce subcommittee.
This incident illustrates the significance of the healthcare giant failing to protect a critical system by failing to turn on multi-factor authentication, a consequential mistake the healthcare giant made in failing to identify the source of the intrusion into Change Healthcare's system that UnitedHealth Group previously confirmed on March 13. It is clear, according to Tom Kellerman, SVP of Cyber Strategy at Contrast Security, that UnitedHealth has shown pure negligence in this incident.
According to the report, cybersecurity negligence resulted in systemic breaches throughout the U.S. healthcare industry. In his opinion, MFA would have likely prevented the attack chain that led to the breach, which will have long-term consequences. According to Casey Ellis, founder and chief strategy officer at Bugcrowd, the long-term effects of this massive breach will last for years. According to Ellis, at first glance, it appears that the software itself wasn't the issue that was causing the original access problem.
There was a threat of unauthorized access through remote access software without multi-factor authentication, and the credentials could have been leaked or guessed, leading to the most disruptive cyberattack on critical infrastructure in U.S. history. As a result of UnitedHealth Group's discovery and disclosure of the attack on Feb. 21, the medical claims and payment processing platform of Change Healthcare was paralyzed for more than one month, causing it to cease working completely.
It was in late February 2024 that Optum's Change Healthcare platform was severely disrupted by a ransomware attack, resulting in a severe disruption of Optum's Change Healthcare platform. In addition to affecting a wide range of critical services used by healthcare providers all over the country, this also caused financial damages of approximately $872 million as a result of the disruption. These services included payment processing, prescription writing, and insurance claims processing.
An exit scam was used by the BlackCat ransomware gang to steal money from UnitedHealth, which was allegedly a $22 million ransom payment made by UnitedHealth's affiliate. The affiliate claimed to still have the data shortly thereafter and partnered with RansomHub to begin an additional extortion demand by leaking stolen information in an attempt to extort the company of the affiliate.
Despite recently acknowledging that it paid a ransom for people's data protection following a data breach, the healthcare organization has not released any details of the attack or who carried it.
The company has confirmed that it paid a ransom to the hackers who claimed responsibility for a cyberattack and the subsequent theft of terabytes of data due to this cyberattack, which occurred last week. As part of their ransom demand, the hackers, known as RansomHub, threatened to post part of the stolen data to the dark web, if they did not sell the information. This is the second gang to claim theft and threaten to make money from it.
A company that makes close to $100 billion in revenue every year, UnitedHealth said earlier this month that the company has suffered a $800 million loss due to the ransomware attack, which took place in the first quarter of 2017