As ransomware attacks continue to proliferate, organizations are facing increasingly complex practical and legal considerations. Ransomware threats can range from simple Ransomware-as-a-Service models to sophisticated attacks with network-wide impacts. In many cases, ransomware attacks involve not only encryption but also data exfiltration with accompanying regulatory and contractual notification obligations. Ransomware attacks are now so pervasive that they were deemed “a direct threat to our economy” by a Treasury Department Press Release. The resulting governmental focus on ransomware will create new and evolving regulatory challenges for organizations experiencing an attack.
Ransomware in 2021
If 2020 initiated a new era of ransomware threat due to pandemic-related shifts to remote work and the associated security risks, 2021 proved that this threat is only likely to increase in 2022, as the toxic mix of host nations accommodating ransomware gangs, the widespread ability of businesses to pay ransomware under insurance policies, the decreasing technical barriers to entry for attackers, and the ready availability of often untraceable cryptocurrency all remain strong. High-profile ransomware attacks in 2021 included the Colonial Pipeline attack, which interrupted gas supplies along the East Coast of the United States and the attack on JBS Food, one of the world’s largest meat producers, which caused panic buying by some consumers. As with other cybersecurity threats, supply chains were also exploited, with the REvil ransomware gang leveraging unauthorized access to Kaseya’s IT administrator software infrastructure to push out a fake software update containing ransomware. In that instance, the FBI was able to provide some assistance by obtaining encryption keys, but victims of future attacks may not be so fortunate.Continue Reading Ransomware Threat Continues to Explode with New Legal and Regulatory Risks