{"id":35797,"date":"2020-06-29T15:23:56","date_gmt":"2020-06-29T15:23:56","guid":{"rendered":"https:\/\/packetstormsecurity.com\/news\/view\/31341\/How-Hackers-Extorted-1.14-Million-From-University-Of-California-San-Francisco.html"},"modified":"2020-06-29T15:23:56","modified_gmt":"2020-06-29T15:23:56","slug":"how-hackers-extorted-1-14-million-from-university-of-california-san-francisco","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/how-hackers-extorted-1-14-million-from-university-of-california-san-francisco\/","title":{"rendered":"How Hackers Extorted $1.14 Million From University Of California, San Francisco"},"content":{"rendered":"
\"hackerImage copyright<\/span> Getty Images<\/span> <\/span> <\/figure>\n

A leading medical-research institution working on a cure for Covid-19 has admitted it paid hackers a $1.14m (\u00a3910,000) ransom after a covert negotiation witnessed by BBC News.<\/p>\n

The Netwalker criminal gang attacked University of California San Francisco (UCSF) on 1 June.<\/p>\n

IT staff unplugged computers in a race to stop the malware spreading.<\/p>\n

And an anonymous tip-off enabled BBC News to follow the ransom negotiations in a live chat on the dark web.<\/p>\n

Cyber-security experts say these sorts of negotiations are now happening all over the world – sometimes for even larger sums – against the advice of law-enforcement agencies, including the FBI, Europol and the UK’s National Cyber Security Centre. <\/p>\n

Netwalker alone has been linked to at least two other ransomware attacks on universities in the past two months.<\/p>\n

<\/span>
Image caption<\/span> Netwalker’s dark web website used for negotiations with victims <\/span> <\/figcaption><\/figure>\n

At first glance, its dark-web homepage looks like a standard customer-service website, with a frequently asked questions (FAQ) tab, an offer of a “free” sample of its software and a live-chat option. <\/p>\n

But there is also a countdown timer ticking down to a time when the hackers either double the price of their ransom, or delete the data they have scrambled with malware.<\/p>\n

Instructed to log in – either by email or a ransom note left on hacked computer screens – UCSF was met with the following message, posted on 5 June.<\/p>\n

<\/span> <\/figure>\n

Six hours later, the university asked for more time and for details of the hack to be removed from Netwalker’s public blog.<\/p>\n

<\/span> <\/figure>\n

Noting UCSF made billions a year, the hackers then demanded $3m<\/p>\n

But the UCSF representative, who may be an external specialist negotiator, explained the coronavirus pandemic had been “financially devastating” for the university and begged them to accept $780,000. <\/p>\n

<\/span> <\/figure>\n
<\/span> <\/figure>\n

After a day of back-and-forth negotiations, UCSF said it had pulled together all available money and could pay $1.02m – but the criminals refused to go below $1.5m.<\/p>\n

<\/span> <\/figure>\n

Hours later, the university came back with details of how it had procured more money and a final offer of $1,140,895. <\/p>\n

<\/span> <\/figure>\n

And the next day, 116.4 bitcoins were transferred to Netwalker’s electronic wallets and the decryption software sent to UCSF. <\/p>\n

UCSF is now assisting the FBI with its investigations, while working to restore all affected systems.<\/p>\n

It told BBC News: “The data that was encrypted is important to some of the academic work we pursue as a university serving the public good.<\/p>\n

“We therefore made the difficult decision to pay some portion of the ransom, approximately $1.14 million, to the individuals behind the malware attack in exchange for a tool to unlock the encrypted data and the return of the data they obtained.<\/p>\n

“It would be a mistake to assume that all of the statements and claims made in the negotiations are factually accurate.”<\/p>\n

Image copyright<\/span> iBrave<\/span> <\/span>
Image caption<\/span> The hackers and the university negotiated in a live chat on the dark web <\/span> <\/figcaption><\/figure>\n

But Jan Op Gen Oorth, from Europol, which runs a project called No More Ransom, said: “Victims should not pay the ransom, as this finances criminals and encourages them to continue their illegal activities. <\/p>\n

“Instead, they should report it to the police so law enforcement can disrupt the criminal enterprise.”<\/p>\n

Brett Callow, a threat analyst at cyber-security company Emsisoft, said: “Organisations in this situation are without a good option.<\/p>\n

“Even if they pay the demand, they’ll simply receive a pinky-promise that the stolen data will be deleted. <\/p>\n

“But why would a ruthless criminal enterprise delete data that it may be able to further monetise at a later date?”<\/p>\n

Most ransomware attacks begin with a booby-trapped emaiI and research suggests criminal gangs are increasingly using tools that can gain access to systems via a single download. In the first week of this month alone, Proofpoint’s cyber-security analysts say they saw more than one million emails with using a variety of phishing lures, including fake Covid-19 test results, sent to organisations in the US, France, Germany, Greece, and Italy. <\/p>\n

Organisations are encouraged to regularly back-up their data offline.<\/p>\n

But Proofpoint’s Ryan Kalember said: “Universities can be challenging environments to secure for IT administrators.<\/p>\n

“The constantly changing student population, combined with a culture of openness and information-sharing, can conflict with the rules and controls often needed to effectively protect the users and systems from attack.”<\/p>\n

READ MORE HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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