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.