• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Jobs
  • Career
    • Cyber Security Training
    • Work from Home
    • Cyber Security Analyst
    • Remote Work – Six Ways to Keep Your Data Safe When Working Remotely
  • Field Guide
  • Newsletter Signup
  • Deals
  • News
AskCyberSecurity.com

AskCyberSecurity.com

Cyber Security News & Information

  • Home
  • Data Privacy
    • Gamers
    • Government Cyber Security
      • Legislation
      • Standards
        • What are the risks of computer security?
        • Medical Cyber Security
    • Social Media
  • Security
    • Data Breaches
    • Scams
    • Malware
  • Software
    • Apps
    • Web Browsers
  • Glossary
    • Cyber Security Acronyms
  • About Ask Cyber Security
    • Authors
    • Contact Us
  • VPN
    • How Do I Know If My VPN is Working?
    • Best Free VPN iPhone
    • Why Use a VPN?
    • NordVPN vs IPVanish
    • Private Internet Access Download
    • Best VPN for Streaming
      • TikTok VPN
    • VPN Porn
    • Computer Security Software – What You Really Need
  • Tutorials
  • ChatGPT
    • Does ChatGPT Save Data?
AskCyber Home » News » News » CNA Pays Attackers $40 Million Ransom

CNA Pays Attackers $40 Million Ransom

2021-05-26 by Grace Choi

Chicago Based Insurance Company Attacked in Late March

Note: We may earn a commission from products or services when you click on a link and make a purchase.

CNA Financial Corp. reported a ransomware attack in March when hackers stole company data, locking CNA officials out of their network. The insurance company reported to the FBI and the Treasury Department’s Office of Foreign Assets Control (OFAC), and a spokesperson stated that the company had all laws and procedures in their report.

Attack Specifics

The attackers used a malware named Phoenix locker which is a variant of ‘Hades,’ a Russian malware developed by Evil Corp. Evil Corp is a Russian cybercrime syndicate which was sanction by the U.S. in 2019. The identity of CNA’s attackers themselves is unconfirmed, as cybercrime forums and file sharing makes tracking difficult, however following investigation, CNA believes the attackers were part Phoenix, an unsanctioned cybercriminal group.

Ransom Payments Increase by 311% Since 2019

Although CNA initially followed the FBI’s instructions to refrain from paying ransom, they negotiated with the attackers one week after the attack, paying the $40 million a week following negotiations. CNA’s ransom payment goes against the FBI’s strong stance on paying ransom to criminals, as it acts as positive reinforcement, encouraging future attacks. Paying ransoms also does not guarantee return of data or system control.

Heimdel Malware Protection
Heimdel Malware Protection

CNA Financial Corp. is not the only major company to pay the demanded ransom to attackers. Most companies do not disclose ransomware attacks and handle them internally, often negotiating and paying the ransom. Most recently, the Colonial Pipeline dominated headlines as their ransomware attack caused fuel shortages in the northeast. After issuing a statement that they had no intention of paying the ransom or following their attacker’s demands, Colonial Pipeline reportedly paid almost $5 million in ransom to get a decryption tool from their attacker. This tool allowed the company to begin gaining access to their systems and files. Their attacker, DarkSide, subsequently disappeared, stating that they were closing their business due to pressure from the U.S. government.

Can We Effectively Root Out and End Ransomware attacks?

From reported cases, authorities have calculated that approximately $350 million in ransom has been paid to ransomware attackers. This amount is likely to be much larger considering the underreporting of such attacks. The problem that is difficult to solve with cyberattacks in general is that malicious code is easy to share and online groups can disband and reappear under a different name. The use of cryptocurrency also makes it difficult to exhaustively trace payments to individuals. We no longer live in an era where ransom payments are made in briefcases dropped off at discreet locations. As digital currency is gaining traction, legitimacy, and value, large transactions are easy and in many ways anonymous. As companies pay attackers to regain control of their data and continue operations, ransom demands have increased, with the new average demand landing between $50-70 million. This effect was predicted by the FBI, but companies are put in what is often considered an impossible position, especially when those companies handle sensitive consumer or client data. As the federal government has not yet figured out a legal or effective way to find and punish cybercriminals without harm coming to victims, targets of ransomware attacks make ransom payments as a means to operate and fix vulnerabilities as soon as possible.

Filed Under: News Tagged With: ransomware

Primary Sidebar

Subscribe to Our Free Newsletter

We Don't Share or Sell Your Info

Web Browsers

Where Are My Saved Passwords in Chrome?

Google Removes 70 Malicious Browser Add-ons from Chrome Web Store

Firefox 75 Reports Your Browser Settings to Mozilla

Categories

Cyber Security Field Guide

Computer Security While TravelingGet Our Cyber Security Field Guide - Available on Amazon!

Recent Posts

Security Marketing Manager – Remote

Sr. Associate, Cybersecurity Architect – Pfizer

Strategic Customer Success Manager – Cybersecurity – Opportunity for Working Remotely

Top 20 Passwords Leaked on Dark Web

ISU Cybersecurity Leader Job Opening

Cyber Security News

Top 20 Passwords Leaked on Dark Web

… [Read More...] about Top 20 Passwords Leaked on Dark Web

Apple Warns of Actively Exploited Zero-Day Flaw

… [Read More...] about Apple Warns of Actively Exploited Zero-Day Flaw

IRS Stops Facial Recognition System for Online Access

… [Read More...] about IRS Stops Facial Recognition System for Online Access

National Cybersecurity Alliance Announces Data Privacy Week

… [Read More...] about National Cybersecurity Alliance Announces Data Privacy Week

More Cyber Security News

Tags

amazon Android Apple bitcoin China chrome CISA credit card DarkSide DHS DOJ Equifax Europe Facebook facial recognition FBI Firefox FTC games GDPR Google Government hacker identity theft India iPhone Iran IRS LinkedIn Microsoft North Korea PayPal phishing phishing email ransomware REvil Russia smartphone T-Mobile TikTok tutorial VPN WhatsApp WiFi Windows

Government

CBP Looks to Access Airline Passenger Data

FTC Releases Cyber Threat Video Playlist

Malware Found on US Government Funded Phones

UK NCA Reaches Out to Youth to Deter Cybercrimes

More Posts from this Category

Footer

Menu

  • Home
  • About
  • Authors
  • Newsletter Signup
  • PRIVACY POLICY

Search

Why Use a VPN?

NordVPN vs IPVanish VPN Review

NAVIGATION

  • Data Breaches
  • Data Privacy
  • Gamers
  • Scams
  • Malware

MEMBER NJCCIC

New Jersey Cybersecurity & Communications Integration Cell

STAY CONNECTED

  • Facebook
  • Instagram
  • Pinterest
  • YouTube
  • Twitter
  • RSS

Copyright © 2023 · AskCyberSecurity.com · METRONY, LLC

Go to mobile version