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FBI warns ransomware assault threatens US healthcare system

Inside Telecom Staff

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FBI warns ransomware assault threatens US healthcare system
FILE – In this Nov. 1, 2017, file photo, traffic along Pennsylvania Avenue in Washington streaks past the Federal Bureau of Investigation headquarters building. In an alert Wednesday, Oct. 28, 2020, the FBI and other federal agencies warned that cybercriminals are unleashing a wave of data-scrambling extortion attempts against the U.S. healthcare system that could lock up their information systems just as nationwide cases of COVID-19 are spiking. (AP Photo/J. David Ake, File)

BOSTON (AP) — Federal agencies warned that cybercriminals are unleashing a wave of data-scrambling extortion attempts against the U.S. healthcare system designed to lock up hospital information systems, which could hurt patient care just as nationwide cases of COVID-19 are spiking.

In a joint alert Wednesday, the FBI and two federal agencies warned that they had “credible information of an increased and imminent cybercrime threat to U.S. hospitals and healthcare providers.” The alert said malicious groups are targeting the sector with attacks that produce “data theft and disruption of healthcare services.”

The cyberattacks involve ransomware, which scrambles data into gibberish that can only be unlocked with software keys provided once targets pay up. Independent security experts say it has already hobbled at least five U.S. hospitals this week, and could potentially impact hundreds more.

The offensive by a Russian-speaking criminal gang coincides with the U.S. presidential election, although there is no immediate indication they were motivated by anything but profit. “We are experiencing the most significant cyber security threat we’ve ever seen in the United States,” Charles Carmakal, chief technical officer of the cybersecurity firm Mandiant, said in a statement.

Alex Holden, CEO of Hold Security, which has been closely tracking the ransomware in question for more than a year, agreed that the unfolding offensive is unprecedented in magnitude for the U.S. given its timing in the heat of a contentions presidential election and the worst global pandemic in a century.

The federal alert was co-authored by the Department of Homeland Security and the Department of Health and Human Services.

The cybercriminals launching the attacks use a strain of ransomware known as Ryuk, which is seeded through a network of zombie computers called Trickbot that Microsoft began trying to counter earlier in October. U.S. Cyber Command has also reportedly taken action against Trickbot. While Microsoft has had considerable success knocking its command-and-control servers offline through legal action, analysts say criminals have still been finding ways to spread Ryuk.

The U.S. has seen a plague of ransomware over the past 18 months or so, with major cities from Baltimore to Atlanta hit and local governments and schools hit especially hard.

In September, a ransomware attack hobbled all 250 U.S. facilities of the hospital chain Universal Health Services, forcing doctors and nurses to rely on paper and pencil for record-keeping and slowing lab work. Employees described chaotic conditions impeding patient care, including mounting emergency room waits and the failure of wireless vital-signs monitoring equipment.

Also in September, the first known fatality related to ransomware occurred in Duesseldorf, Germany, when an IT system failure forced a critically ill patient to be routed to a hospital in another city.

Holden said he alerted federal law enforcement Friday after monitoring infection attempts at a number of hospitals, some of which may have beaten back infections. The FBI did not immediately respond to a request for comment.

He said the group was demanding ransoms well above $10 million per target and that criminals involved on the dark web were discussing plans to try to infect more than 400 hospitals, clinics and other medical facilities.

“One of the comments from the bad guys is that they are expecting to cause panic and, no, they are not hitting election systems,” Holden said. “They are hitting where it hurts even more and they know it.” U.S. officials have repeatedly expressed concern about major ransomware attacks affecting the presidential election, even if the criminals are motivated chiefly by profit.

Mandiant’s Carmakal identified the criminal gang as UNC1878, saying “it is deliberately targeting and disrupting U.S. hospitals, forcing them to divert patients to other healthcare providers” and producing prolonged delays in critical care.

He called the eastern European group “one of most brazen, heartless, and disruptive threat actors I’ve observed over my career.”

While no one has proven suspected ties between the Russian government and gangs that use the Trickbot platform, Holden said he has “no doubt that the Russian government is aware of this operation — of terrorism, really.” He said dozens of different criminal groups use Ryuk, paying its architects a cut.

Dmitri Alperovitch, co-founder and former chief technical officer of the cybersecurity firm Crowdstrike, said there are “certainly lot of connections between Russian cyber criminals and the state,” with Kremlin-employed hackers sometimes moonlighting as cyber criminals.

Neither Holden nor Carmakal would identify the affected hospitals. Four healthcare institutions have been reported hit by ransomware so far this week, three belonging to the St. Lawrence County Health System in upstate New York and the Sky Lakes Medical Center in Klamath Falls, Oregon.

Sky Lakes acknowledged the ransomware attack in an online statement, saying it had no evidence that patient information was compromised. It said emergency and urgent care “remain available” The St. Lawrence system did not immediately return phone calls seeking comment.

Increasingly, ransomware criminals are stealing data from their targets before encrypting networks, using it for extortion. They often sow the malware weeks before activating it, waiting for moments when they believe they can extract the highest payments, said Brett Callow, an analyst at the cybersecurity firm Emsisoft.

A total of 59 U.S. healthcare providers/systems have been impacted by ransomware in 2020, disrupting patient care at up to 510 facilities, Callow said.

Carmakal said Mandiant had provided Microsoft on Wednesday with as much detail as it could about the thr eat so it could distribute details to its customers. A Microsoft spokesman had no immediate comment.

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By FRANK BAJAK AP Technology Writer

Associated Press writers Eric Tucker in Washington, D.C., Lisa Baumann in Seattle and Deepti Hajela in New York City contributed to this report.

We’re a diverse group of industry professionals from all corners of the world. Our desire is to provide a high-quality telecoms publication that caters to an international market, offering the latest and most relevant telecoms information to businesses, entrepreneurs and enthusiasts.

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Didi pushes back on IPO rumors

Daryn Kara Ali

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Famous Beijing-based giant Didi denied any allegations of plans to go private in a bid to satisfy the Chinese government amidst latest regulations concerning users’ data security.  

After the Wall Street Journal released a report discussing the possibility of Didi going private, the ride-hailing app’s shares increased by approximately 50 percent in Thursday’s pre-market trade. 

The company has been targeted by Beijing regulators ever since it made its U.S. market debut about a month ago, followed by several U.S. senators asking its financial markets regulator to launch an investigation concerning the company’s Chinese share listings. 

In a statement that came as a reaction to the report, Didi debunked any allegations of going private as it currently switching it focus to cybersecurity. 

“The rumors about the privatization of Didi are untrue, and the company is currently actively cooperating with cybersecurity reviews,” Didi said on Chinese social media platform Weibo.  

Two days after the Beijing-based firm began trading shares on New York Stock Exchange (NYSE), the Beijing cyberspace supervisory authority ordered Chinese online stores to remove Didi from their app stores under the pretense that it is illegally collecting users’ personal data. 

The Chinese authorities’ move influenced the firm’s market value, leading to a sharp drop by around a third ever since Didi raised its initial public offering (IPO) to $4.4 billion a month ago. 

Since Didi’s released its IPO on NYSE at the end of June, the Chinese driver service broker’s shares fell drastically in value.  

On Thursday, Didi shares finished its U.S. trading day with a rise of 11.3 percent.  

Didi, alongside many Chinese Big Tech companies such as Alibaba and ByteDance have been under the Chinese government’s scrutiny regarding their behavior of monopolizing the market to their benefit.  

This led to some of the firms’ largest share prices slump in the U.S., Hong Kong, and mainland China’s trading market as China puts the industry under tough scrutiny. 

In parallel, Didi follows a comparable business model to its American competitor Ube. The Chinese app had already conquered Uber in a vicious price war in its home market. 

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Google is battling against a $1 billion legal claim

Rim Zrein

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$1 billion

Google is charging people for their digital purchases in its Play Store through an “unfair and excessive” manner, according to a new legal lawsuit filed against the tech giant. 

On behalf of 19.5 million Android phone users in the UK, the legal action is seeking up to $1 billion from Google. 

The lawsuit has been filed with the Competition Appeal Tribunal in London by former Citizens Advice digital policy manager Liz Coll, who’s claiming that the 30 percent cut Google takes from digital purchases on its app store is unjust. 

“Google created the Android app marketplace and controls it with a vice-like grip,” Coll said, explaining that Google has went against UK and European competition law. 

In response, Google defended its case by issuing a statement saying that “Android gives people more choice than any other mobile platform in deciding which apps and app stores they use, in fact most Android phones come preloaded with more than one app store.” 

“We compete vigorously and fairly for developers and consumers,” Google noted, mentioning that 97 percent of developers on Google Play don’t pay any service fee at all, which means their apps are free to consumers.  

“Less than 0.1 percent of developers are subject to a 30 percent service fee and only when they’re earning over one million dollars, that fee is comparable with our competitors and allows us to constantly reinvest in building a secure, thriving platform that benefits everyone who uses it,” Google highlighted. 

The trillion-dollar tech giant recently decreased its service charge to 15 percent for all app creators making less than $1 million, with only a small group of the most valuable app developers paying 30 percent. 

According to Google, the charge allows the company to “constantly reinvest in building a secure, thriving platform that benefits everyone who uses it.” 

The $1 billion lawsuit is the latest incident in an ongoing battle with both Apple and Google, as they’re currently under intense scrutiny following Epic Games’ legal action. 

Epic argued that the Play Store and Apple’s app store policies and management were against producing fruitful competition, as the American video game and software developer described the two tech giants as “monopolistic.” 

For the past years, major tech firms have been in hot water over anti-trust and monopoly charges. 

In 2020, ten U.S. states led by Texas, brought legal action against Google over its ad revenue practices, accusing Google with illegally collaborating with the popular social network Facebook. 

“As internal Google documents reveal, Google sought to kill competition and has done so through an array of exclusionary tactics, including an unlawful agreement with Facebook, its largest potential competitive threat,” the lawsuit stated. 

“This Goliath of a company is using its power to manipulate the market, destroy competition, and harm you, the consumer,” Texas Attorney General Ken Paxton said regarding Google through a video released on Twitter. 

The key question many analysts have been asking is to what extent Google should be given the freedom to charge its services as it sees fit, no matter what the cost is to other developers. 

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Rick rolls past a billion views on YouTube

Rim Zrein

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Rick Rolls

When it comes to famous memes from the 2000s, millennials are just never going to give them up. 

Anyone who was active on the internet since 2009 surely stumbled upon Rick Astley’s music hit “Never Gonna Give You Up.” Almost 12 years later, and the music video has exceeded one billion views on YouTube on Wednesday. 

For the Generation Z who weren’t surfing the web at that time, the video itself started off as an internet meme under the name “Rick Roll,” which is the most famous prank in the internet’s history. 

The prank consisted of luring people to click on a hyperlink that claims to be one thing but turns out to be the red-haired iconic singer’s video “Never Gonna Give You Up.” 

The British singer cannot deny the impact the meme had on his music video. According to YouTube, on April Fool’s Day this year, the “Rick roll” generated 2.3 million views. 

Following Guns N’ Roses’ “Sweet Child o’ Mine,” A-ha’s “Take on Me,” and Michael Jackson’s “Billie Jean,” Rick Astley’s song is the fourth in line to join the 80’s hits on YouTube. 

The 55-year-old singer celebrated the achievement on Twitter, saying in a video “So I’ve just been told that ‘Never Gonna Give You Up’ has been streamed a billion times on YouTube. That is mind-blowing. The world is a wonderful and beautiful place, and I am very lucky.” 

To celebrate the huge milestone, 2,500 copies of the 7-inch blue vinyl of Astley’s popular song were released. Exclusively signed by the singer himself, the $17 vinyl completely sold out, according to Astley’s official website. 

In the past, the singer voiced his perspective on the “Rick roll” meme, saying that he’s completely fine with it. 

In a 2008 interview with the L.A. Times, the famous meme figure in every millennial’s childhood said “I think it’s just one of those odd things where something gets picked up and people run with it. That’s what’s brilliant about the internet.” 

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