The costs of ransomware attacks on critical national infrastructure (CNI) firms have soared over the last year.
According to Sophos' newest numbers, which were revealed today, the typical ransom payment increased to $2.54 million, more than 41 times last year's total of $62,500. The mean payment for 2024 is considerably greater, at $3.225 million, representing a less dramatic 6-fold rise.
IT, technology, and telecoms were the least likely to pay large sums to hackers, with an average payment of $330,000, but lower education and federal government organizations reported the highest average payments of $6.6 million.
The figures are based solely on ransomware victims who were willing to reveal the specifics of their mistakes, thus they do not provide the full picture.
Only 86 of the 275 CNI organizations surveyed provided statistics on ransom payments. There's a significant risk that the results would be distorted if all of the CNI ransomware victims polled were completely upfront with their information.
Costs to recover from ransomware attacks have also increased dramatically since the researchers' findings last year, with some CNI industries' costs quadrupling to a median average of $3 million per event.
According to the report, only one in every five people were able to recover in a week or less, down from 41 percent the previous year and 50 percent the year before that. The percentage of victims who take more than a month to recuperate has also increased to 55%, up from 36% last year.
Sophos stated in its analysis that this could be due to attacks getting more sophisticated and complicated, requiring more work from the IT team to effectively repair all of the damage caused by the crimes. However, the vendor's global field CTO, Chester Wisniewski, believes the industries should reevaluate their propensity to pay ransoms.
Since the incident, there’s been more awareness and willingness to invest in securing critical infrastructure in India, with the much-awaited Cybersecurity Bill 2024 being tabled in the Parliament in March this year.
The Indian government has continuously increased its cybersecurity investment with successive incremental budgetary allotments towards this cause. Three years on, the attack still begs the question: How exposed to attacks is India’s critical infrastructure?
Traditionally, operational technology (OT) systems were isolated and “air-gapped” from the internet. However, the convergence of IT and OT has led to increased connectivity. The Colonial Pipeline attack exploited this connectivity, highlighting the need for robust security protocols. India’s critical infrastructure sectors (energy, transportation, and water supply) must assess their OT networks and implement necessary safeguards.
While regulatory compliance provides a baseline, it alone is insufficient. Organizations should move beyond compliance and adopt a risk-based approach. Regular security assessments, vulnerability scans, and penetration testing are crucial. India’s proposed Cybersecurity Bill 2024 emphasizes the importance of proactive security measures.
India must allocate adequate resources to strengthen its critical infrastructure cybersecurity. Budgetary provisions should cover training, threat intelligence, incident response, and technology upgrades. Collaborating with international partners and adopting best practices can enhance India’s cyber resilience.
The Colonial Pipeline incident demonstrated that critical infrastructure is becoming a significant issue in cybersecurity and that businesses must constantly be ready. This incident, one of the most disruptive attacks in history, forever altered the cybersecurity environment, paving the way for increased discussions about OT security among the general public, government officials, and the cybersecurity sector. It sparked a trend, pressing the public sector to be more proactive and invest more in operational technology security.
As a result, legislators and politicians are looking for measures to improve regulations to strengthen cyber defenses. More importantly, the attack emphasizes the importance of a comprehensive risk management approach and understanding the trajectory of where we want to be in terms of cyber security in ten years. With OT at the center of the discourse, strengthening our cyber defenses is more important than ever.
The Federal Bureau of Investigation (FBI) and the Cybersecurity and Infrastructure Security Agency (CISA) have issued a joint Cybersecurity Advisory (CSA) on Scattered Spider, a cybercriminal gang that targets commercial facilities and subsectors. The advice contains tactics, methods, and procedures (TTPs) gathered from FBI investigations as recent as November 2023.
The FBI and CISA encourage network defenders and critical infrastructure companies to study the joint CSA for proposed mitigations to decrease the possibility and severity of a cyberattack by Scattered Spider actors.
Last year, the hacking collective called Scattered Spider made international headlines for its destructive cyberattacks on gambling behemoths MGM Resorts and Caesars Entertainment. Analysts identified the hackers in 2022, who employ social engineering to trick people into disclosing their login credentials or one-time password codes to defeat multifactor authentication.
Once inside, the group — Star Fraud, UNC3944, and Octo Tempest — builds persistence in networks, living off the territory as some state-sponsored hackers do, before deploying ransomware, stealing data, and demanding ransoms from victims.
Scattered Spider’s modus operandi revolves around data theft. They infiltrate systems, exfiltrate sensitive information, and then hold it hostage for ransom. Their victims include high-profile organizations, and the stakes are high. The group’s ability to extract valuable data without detection is a testament to their skill.
Scattered Spider doesn’t rely solely on traditional hacking methods. They’ve embraced ransomware, specifically the BlackCat/ALPHV variant. This malicious software encrypts victims’ files, rendering them inaccessible until a ransom is paid. The group’s proficiency in deploying ransomware underscores their adaptability.
What sets Scattered Spider apart is their mastery of social engineering. They exploit human psychology to gain access to systems. Whether through phishing emails, impersonation, or psychological manipulation, they find the weakest link—the human element—and exploit it. Their ability to deceive and manipulate individuals is their secret weapon.
Scattered Spider often targets employees within organizations. An unsuspecting employee may unwittingly click a malicious link or share sensitive credentials. The group’s understanding of human behavior allows them to bypass technical defenses. Cybersecurity professionals must recognize this insider threat and educate employees accordingly.
The Federal Bureau of Investigation (FBI) is actively pursuing Scattered Spider. Their dedicated cybercrime units are tracking down group members. However, the group remains elusive, operating across borders and leaving minimal traces. The FBI’s challenge lies in balancing resources to combat this agile adversary.
The FBI collaborates with international agencies, sharing intelligence and pooling resources. Scattered Spider’s attacks span continents, and global cooperation is essential. By working together, law enforcement agencies can build a comprehensive profile of the group and disrupt their operations.
Scattered Spider is a formidable adversary in the cybercrime landscape, and law enforcement agencies are actively working to counter their activities. For more information, check this advisory.
The IT services firm's most recent Cyber Security in Critical National Infrastructure report is based on interviews with over 1000 CISOs and equivalents from CNI providers in the United States and the United Kingdom.
It found that over a third (31%) identified "trust in cybersecurity tools" as a key challenge this year, up 121% from the 2023 edition of the survey.
Confidence in tools took a hit last year when the UK joined the US and other nations in warning providers of key services about China-backed action against CNI, according to the research.
74% of respondents expressed fear about Chinese state actors, which is comparable to 73% anxiety about Russian state operatives.
These worries are likely to have been heightened recently, with the United States warning in February that Chinese agents have pre-positioned themselves in several CNI networks to unleash damaging strikes in the event of a military conflict.
Budgets have declined in tandem with trust in tooling. According to the research, the share of IT (33%) and OT (30%) budgets set aside for cybersecurity has dropped drastically from 44% and 43% the previous year, respectively.
The dramatic reduction is evident across the board, from new recruits to training and risk assessments to technological investments.
Despite these financial challenges, nearly a third (30%) of CNI respondents who were victims of a ransomware attack last year informed Bridewell that they paid the extortionists.
Bridewell cautioned that, in addition to the fees, CNI enterprises could face legal consequences.
Ransom payments could, for example, be sent to persons facing legal repercussions from the United Kingdom, the United States, or the European Union. The UK's Office of Financial Sanctions Implementation has warned that payments may violate the law in other jurisdictions, according to the report.
Interestingly, more than a quarter (27%) of respondents reported that ransomware intrusions had a psychological impact on employees.
Bridewell CEO Anthony Young expressed sympathy for those firms that do wind up paying.
If the firm is unable to recover, paying the ransom may be the only viable alternative for resuming operations short of reinstalling its systems from the start, he argued.
However, this tough decision can be avoided by implementing a security plan that reduces the possibility of threat actors obtaining access and moving through your systems without being detected and effectively removed.
This information is part of a Ransomware Vulnerability Warning Pilot (RVWP) program conducted by CISA, which shows concern over the ransomware devices discovered on the networks of critical infrastructure organizations.
To date, RVWP has discovered and identified over 800 vulnerable systems with internet-accessible vulnerabilities that are often targeted by different ransomware activities.
CISA stated that "Ransomware has disrupted critical services, businesses, and communities worldwide and many of these incidents are perpetrated by ransomware actors using known common vulnerabilities and exposures (CVE) (i.e., vulnerabilities)."
"However, many organizations may be unaware that a vulnerability used by ransomware threat actors is present on their network[…]Now, all organizations have access to this information in our known exploited vulnerabilities (KEV) catalog as we added a column titled, 'known to be used in ransomware campaigns.' Furthermore, CISA has developed a second new RVWP resource that serves as a companion list of misconfigurations and weaknesses known to be used in ransomware campaigns," CISA added.
RVWP is a component of a much larger effort that was initiated in response to the growing ransomware threat to critical infrastructure that first surfaced almost two years ago with a wave of cyberattacks targeting key infrastructure companies and U.S. government organizations, including Colonial Pipeline, JBS Foods, and Kaseya.
In June 2021, CISA broadened its horizon by launching the Ransomware Readiness Assessment (RRA), a component of its Cyber Security Evaluation Tool (CSET), whose goal is to help companies analyze and evaluate their preparedness in order to mitigate the risks and tackle from potential ransomware attacks.
By August 2021, CISA also made recommendations to help vulnerable public and commercial sector organizations stop data breaches brought on by ransomware incidents.
In addition, CISA further formed an alliance with the business sector to defend vital US infrastructure against ransomware and other online dangers. All federal agencies and businesses who joined the cooperation have a collective response strategy embodied in this collaborative initiative, the Cyber Defense Collaborative.
The Indian Space Research Organisation (ISRO) has been facing over 100 cyber-attacks daily, according to a statement by ISRO Chief S Somanath. The attacks are mostly phishing attempts and malware attacks.
During the concluding session of the 16th edition of the c0c0n, a two-day international cyber conference in Kerala’s Kochi, Somanath stated that rocket technology, which employs advanced software and chip-based hardware, is more susceptible to cyber-attacks.
"The organization is equipped with a robust cybersecurity network to face such attacks," said Mr. Somnath. "Earlier, the way of monitoring one satellite has changed to a way of software monitoring many satellites at a time. This indicates the growth of this sector. During COVID, it was possible to launch from a remote location which shows the triumph of technology."
During the concluding session of the c0c0n, Kerala Revenue Minister P Rajeev stated that the state government is capable of providing sufficient security to the cyber arena, making it a model for cyber security governance. He stated that The Kerala state government is capable of ensuring cybersecurity and supporting the sector by establishing a Digital University in the state. Additionally, K-Fone ensures internet access in every household in Kerala.
The ISRO is responsible for India’s space program and has been instrumental in launching several satellites and missions. The organization has been targeted by hackers in the past, with reports of cyber-attacks dating back to 2017. The recent statement by the ISRO Chief highlights the increasing threat of cyber-attacks on critical infrastructure.
The ISRO has taken several measures to improve its cybersecurity posture. In 2020, the organization launched a cybersecurity policy aimed at protecting its critical infrastructure from cyber threats. The policy outlines guidelines for secure coding practices, access control, incident management, and other security-related aspects.
"We can face the challenges posed by cyber criminals using technology like artificial intelligence with the same technology. There should be research and hard work towards this end," Mr. Somnath said.