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The Week in Breach News: 03/30/22 – 04/05/22

April 06, 2022

The Conti ransomware gang focuses on Shutterfly, an incident sours business at Japanese confectioner Morinaga, Anonymous continues its pressure on Russian organizations and Lapsus$ is back plus 10 key takeaways you need to see from the FBI IC3 2021 Report.


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The Partnership HealthPlan of California (PHC)

 https://www.csoonline.com/article/3655888/hive-ransomware-group-claims-partnership-healthplan-of-california-data-breach.html#tk.rss_all

Exploit: Ransomware

The Partnership HealthPlan of California (PHC): Health Insurer

cybersecurity news represented by agauge showing severe risk

Risk to Business: 2.227 = Severe

The Hive ransomware group says that they’re responsible for a ransomware attack on The Partnership HealthPlan of California (PHC), claiming to have snatched 400 GB of data including 850,000 unique records. PHC has been experiencing computer system disruptions and the organization said that it is working to investigate and recover from the attacks with support from third-party forensic specialists. The stolen data is known to include names, Social Security numbers, and addresses of current and past PHC members. 

How It Could Affect Your Customers’ Business: Healthcare data is an especially popular commodity for bad actors and incidents like this are expensive disasters for the institutions that have them.

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The New York City Department of Education 

https://www.k12dive.com/news/data-breach-exposes-820k-new-york-city-students-information/621352/ 

Exploit: Supply Chain Risk

The New York City Department of Education: Government Agency

cybersecurity news represented by a gauge indicating moderate risk

Risk to Business: 2.829 = Moderate

The New York City Department of Education has discovered that the personal information of an estimated 850,000 students was exposed in a supply chain service provider data breach in January. That incident occurred at Illuminate Education, a California-based company that provides software to track grades and attendance.  An agreement that the vendor had with NYC Schools called for the data to be encrypted, but it was discovered to not have occurred at the time of the breach. The incident is under investigation by New York state officials. 

Individual Impact: No information about the student data or any consumer/employee PII, PHI or financial data exposure was available at press time.

How It Could Affect Your Customers’ Business A security failure at a supplier can lead to a headache like a data breach for any organization.

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United States – Shutterfly

https://www.bleepingcomputer.com/news/security/shutterfly-discloses-data-breach-after-conti-ransomware-attack/ 

Exploit: Ransomware

Shutterfly: Photography Retail Platform

cybersecurity news represented by a gauge indicating moderate risk

Risk to Business: 2.735 = Moderate

Shutterfly has disclosed a data breach that exposed employee information in a ransomware attack by the Conti group. Shutterfly disclosed that its network was breached on December 3rd, 2021, and threat actors gained access to employee information.  The company went on to disclose that documents stolen during the attack may have contained employees’ personal information, including names, salary and compensation information and FMLA leave or workers’ compensation claims. Shutterfly is offering two years of free credit monitoring from Equifax for those affected. 

How It Could Affect Your Customers’ Business: Personal data is a hot ticket item, and big companies often have a storehouse of it in their employee records.

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Argentina – Globant 

https://thehackernews.com/2022/03/lapsus-claims-to-have-breached-it-firm.html 

Exploit: Ransomware

Globant: IT and Software Development

cybersecurity news represented by agauge showing severe risk

Risk to Business: 1.969 = Severe

Cybercrime outfit Lapsus$ is back in the saddle, claiming responsibility for a successful ransomware attack against IT powerhouse Globant. The company confirmed the incident. Lapsus$ posted images that it claims are of extracted data and credentials belonging to the company’s DevOps infrastructure on its Telegram channel. They also shared a torrent file that they claims holds around 70GB of Globant’s source code as well as other data including administrator passwords associated with the firm’s Atlassian suite, including Confluence and Jira, and the Crucible code review tool. One unusual detail: Lapsus$ pointed out the fact that a number of the stolen passwords had been reused several times and were compromised before they got ahold of them, chiding the company for weak password security.  

How it Could Affect Your Customers’ Business The Information Technology sector was the third most impacted sector for ransomware in 2021.

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Germany – Nordex Group 

https://www.nasdaq.com/articles/nordex-impacted-by-cyber-security-incident

Exploit: Hacking (Nation-State)

Nordex Group: Wind Turbine Manufacturer 

cybersecurity news represented by agauge showing severe risk

Risk to Business: 2.017 = Severe

The Nordex Group, a major manufacturer of wind turbines, has announced that it has been experiencing systems outages since March 31, 2022, due to an unnamed cyberattack. The company claims to have detected the attack in its early stages and successfully moved to contain it, going on to say that the outage may impact employees, customers and stakeholders. This is the second hit on a German wind turbine company since the start of the Russia/Ukraine conflict and early reports say that this may be a nation-state incident.  

Individual Impact: No information about consumer/employee PII, PHI or financial data exposure was available at press time.

How it Could Affect Your Customers’ Business Nation-state cybercriminals are all about infrastructure attacks, as illustrated in the run-up to the Russia/Ukraine conflict.

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Spain – Iberdrola 

https://spanishnewstoday.com/iberdrola-cyber-attack-compromises-data-of-millions-of-customers-in-spain_1758410-a.html 

Exploit: Hacking (Nation-State)

Iberdrola: Energy Company

cybersecurity news represented by agauge showing severe risk

Risk to Business: 2.017 – Severe

Spanish power company Iberdrola has disclosed a cyberattack that exposed data for an estimated 1.3 million customers. Iberdrola said that the attack was part of a pattern of attacks on utility and infrastructure targets in Spain and Europe that are suspected to be related to the Russia/Ukraine conflict. The incident is under investigation by the National Cryptology Centre. Exposed customer data includes ID numbers, addresses, phone numbers and email addresses, but not bank account details, credit card numbers or information about the clients’ use of energy.  

How it Could Affect Your Customers’ Business The US government recently warned infrastructure operators to expect a fresh wave of attacks by nation-state actors aligned with Russia.

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Russia – Marathon Group 

https://securityaffairs.co/wordpress/129713/hacktivism/anonymous-hacked-marathon-group.html

Exploit: Nation-State (Hacktivism)

Marathon Group: Investment Firm

cybersecurity news represented by agauge showing severe risk

Risk to Business: 2.176 = Severe

Anonymous announced that it has hacked into the Marathon Group, releasing 62,000 company emails (a 52GB archive) through DDoSecrets. Reports identify the Marathon Group as a Russian investment firm owned by EU-sanctioned oligarch Alexander Vinokuro, the son-in-law of Russian Foreign Minister Lavrov. The firm and its owner are suspected of financing Russian government activities. 

Individual Impact: No information about consumer/employee PII, PHI or financial data exposure was available at press time.

How it Could Affect Your Customers’ Business Anonymous has been hard at work hacking assets that belong to Russia and its allies after the Collective announced it was siding with Ukraine.

ID Agent to the Rescue Ransomware is the preferred weapon of nation-state threat actors. Get tips and expert advice to guide you through securing your clients effectively in Ransomware 101READ IT>>


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Japan – Morinaga 

https://portswigger.net/daily-swig/network-cavity-blamed-for-data-breach-at-japanese-candy-maker-morinaga

Exploit: Hacking 

Morinaga: Confectioner 

cybersecurity news represented by agauge showing severe risk

Risk to Business: 2.176 = Severe

Candy company Morinaga has announced that it has had a data breach impacting its online store. The incident has potentially exposed the personal information of more than 1.6 million customers who bought products from the candy maker between May 1, 2018, and March 13, 2022. The company also disclosed that their initial investigation confirmed that several of their servers had been subjected to unauthorized access “and that access to some data had been locked,” although there has been no clarification as to whether or not this was a ransomware attack. The confectioner also noted that there may be minor production impacts. 

Individual Impact: No information about consumer/employee PII, PHI or financial data exposure was available at press time.

How it Could Affect Your Customers’ Business Manufacturers of all kinds have been high on the cybercriminal hit list in recent months.

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1 – 1.5 = Extreme Risk

1.51 – 2.49 = Severe Risk

2.5 – 3 = Moderate Risk

Risk scores for The Week in Breach are calculated using a formula that considers a wide range of factors related to the assessed breach.



Go Inside the Ink to see how today’s biggest threats can impact your MSP and your customers in our blog.



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Fresh Resources


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Start a conversation that will be profitable to you both with the NEW infographic “Top 5 Nation-State Cybercrime Risks for Businesses” (perfect for social sharing) GET INFOGRAPHIC>>

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10 Things MSPs Need to Know from the FBI IC3 Report 


These Key Takeaways Will Help You Protect Your Customers


The yearly report on cybercrime activity from the U.S. Federal Bureau of Investigation Internet Crime Complaint Center (FBI IC3) always offers invaluable insight into how cybercrime is trending and how expensive it has grown to be. The IC3 2021 Internet Crime Report was recently released, and it offers MSPs some important clues as to what risks their clients might be facing today and tomorrow. The report also includes the kind of concrete data from a respected source that may prove beneficial for MSPs to use when starting or continuing conversations about the need for powerful, innovative solutions with their clients and prospects. These ten insights clearly show why strengthening cybersecurity should be high on every organization’s priority list


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  1. Cybercrime losses surged by 48% 

2021 was a very good year for cybercriminals, and a very bad year for everyone else who was trying to avoid falling victim to one of their schemes. IC3 received another record number of complaints in 2021. The total of 847,376 reported complaints wasn’t so much larger than the year prior, just a 7% increase from 2020. But the money total is a stunner. The total amount of loss reported hit a new record high in 2021 of $6.9 billion. That’s a whopping 48% increase over 2020’s 4.2 billion. 


Source: FBI IC3


  1. BEC is still the biggest threat to a company’s profits

Business email compromise (BEC) is still the attack that costs organizations the most, and the total loss amounts for BEC reached painful new heights in 2021. While there was only a 3% growth in BEC complaints, there was 28% growth in BEC losses between 2020 and 2021. The BEC/EAC category clocked in at a painful $2,395,953,296 in losses. That’s an average loss of $120,000 per victim, compared to last year’s $96,700 per victim. Investment scams rolled in in second place, up an astonishing 333% over 2020.  

  1. Cryptocurrency-related cybercrime has exploded onto the scene 

One of the biggest stories of this report was the emergence of cryptocurrency schemes as a major security risk. In fact, they became so prevalent that they received their own focus section. In 2021, IC3 received 34,202 complaints involving the use of some type of cryptocurrency. While the actual number of complaints dropped slightly from 35,229 recorded in 2020, the total loss amount for those complaints exploded. Cryptocurrency-related losses increased nearly seven-fold, from 2020’s reported amount of $246,212,432 to a total reported loss of more than $1.6 billion in 2021.   


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  1. Healthcare, Financial Services & Information Technology got walloped by ransomware 

While organizations of every stripe suffered under the pressure of an unprecedented wave of ransomware attacks in 2021, a few sectors had it just a bit harder than others. Healthcare was hit with the most ransomware attacks in 2021, enduring 148. The Financial Services landscape came in second, experiencing 89 ransomware attacks in the measured period. Information technology took third place, notching 74 attacks in 2021. That put it just a bit above the next closes sectors, Critical Manufacturing and Government facilities 


Source: FBI IC3


  1. 14 of 16 critical infrastructure sectors were hit with ransomware 

The report noted that in June 2021, IC3 began tracking infrastructure ransomware attacks where the victim fit one of the 16 critical infrastructure categories designated by the US Cybersecurity & Infrastructure Security Agency (CISA). IC3 defines organizations that make up critical infrastructure as those whose “assets, systems, and networks, whether physical or virtual, are considered so vital to the United States that their incapacitation or destruction would have a debilitating effect on our security, national economy, public health or safety, or any combination thereof.” In their measurement, organizations in 14 of 16 critical infrastructure sectors experienced at least one ransomware attack in 2021. 

  1. Ransomware losses grew by 69% 

Ransomware is always a big headline maker, and it’s easy to see why. Cybercriminals waged an unprecedented number of successful attacks and raked in an unprecedented amount of money from ransomware in 2021. IC3 received 3,729 complaints identified as ransomware in 2021, a 51% increase over 2020’s 2474. Those complaints also cost victims a lot more money than in previous years. Ransomware victims suffered losses of more than $49.2 million. That’s a 69% increase over the $29,157,405 recorded in 2020. The report is careful to note that its ransomware loss amount numbers do not include estimates of lost business, time, wages, files or equipment or any third party remediations sources the victim may contract.


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  1. Cybercriminals are using virtual meetings for BEC 

A pandemic-era twist has emerged in BEC: schemes that leverage virtual meetings. This scheme typically starts with bad actors compromising an executive’s email, like a CEO or CFO. The bad guys then use that email to invite the victim company’s employees to participate in virtual meetings. Once the trap is set, the bad actors use a combination of impersonation, social engineering and deep fakes to get the job done. In some scenarios, cybercriminals capitalize on the unreliability of connections and software for virtual meetings, just using a photo of the executive whose account has been compromised in order to impersonate them with no video or audio, claiming they’re having technical difficulties. Sometimes the bad guys even create audio deep fakes to facilitate the scheme, with the goal of obtaining money directly or access to sensitive data. 

  1. Cybercrime is a growth industry 

Cybercrime has been on the rise for the last five years, and that trend looks set to continue. Three of the cybercrimes on the Top 5 Cybercrimes chart grew in 2021. Phishing had a solid 29% growth, rising from 241,342 in 2020 to 323,972. There were a few bright spots, including a huge drop in extortion, down 64% in 2021, dropping to 39,360 from 76,741 complaints in 2020. However, there may be other variances with reported cybercrime rates since the data reflected in this report is only from cybercrime that was formally reported to law enforcement.  


Source: FBI IC3


  1. Phishing and exploitation of software vulnerabilities or RDP are top ransomware causes 

Phishing is still the king of ransomware risks. The report notes that ransomware attacks are growing more sophisticated saying that “phishing emails, Remote Desktop Protocol (RDP) exploitation, and exploitation of software vulnerabilities remained the top three initial infection vectors for ransomware incidents reported to the IC3”, going on to say that these vectors are expected to remain popular for cybercriminals as remote work continues. Your clients can reduce their risk of trouble by improving their protection against phishing through security awareness training and automated anti-phishing email security as well as making sure they patch regularly. 

  1. Ransomware, phishing and BEC losses have grown every year for the last 3 years 

When looking at the pattern of cybercrimes, it’s easy to see that losses have mounted in the last three years, especially for heavy hitters like ransomware. While losses for some cyberattacks like non-ransomware malware, one of last year’s biggest growth spots, have decreased, down just over 20% in 2021, others are on a solidly upward trajectory that doesn’t promise anything good for businesses.  


Source: FBI IC3


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Security and Compliance Awareness Training 

BullPhish ID is the ideal security and compliance awareness training solution for companies of any size with an array of training options that enable you to provide the right training for each client’s individual business needs painlessly.  

  • A huge library of security and compliance training videos in 8 languages – and 4 new video lessons are added a month!  
  • Plug-and-play or customizable phishing training campaign kits with new kits released regularly 
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Dark Web Monitoring 

Dark Web ID makes it easy for you to offer your clients best-in-class protection from dark web credential compromise risk that could be a fast pass to a data breach. An estimated 60% of data breaches involved the improper use of credentials in 2021.  

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  • Fast alerts to compromises of business and personal credentials, including domains, IP addresses and email addresses  
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Apr 07: Human Error: Are YOU the Reason for the Next Breach? REGISTER NOW>>

Apr 07: 5 Red Flags That Will Help Your Clients Identify a Malicious Insider REGISTER NOW>>

Apr 12: How Nation-State Cybercrime Affects Your Business REGISTER NOW>>

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Cybercrime is More Expensive Than Ever Before 

Cybercrime losses are up 45% according to a newly released report from the U.S. Federal Bureau of Investigation’s Internet Crime Complaint Center (FBI IC3), making 2021 the most expensive year on record for U.S. cybercrime. 

That massive surge in the cost of cybercrime can be attributed to upticks in several common cyberattacks that organizations face daily including business email compromise, phishing and ransomware. These cybercrimes have been steadily growing every year for the last five years, making cybercrime a growth industry. 

That’s one trend that you don’t want your company to have anything to do with. Now is the time to sit down with your MSP and review your security buildout to ensure that you’ve got the right defenses working for your organization. Any expenditure on new solutions now will be less of a hit to your budget than the response and recovery that you’ll face in the wake of a successful cyberattack could be later.  


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