Blackbaud Breach Leaves Hundreds of Non-Profits Scrambling

Blackbaud Breach Leaves Hundreds of Non-Profits Scrambling

This month Blackbaud, a cloud computing provider primarily serving nonprofits and educational institutions, announced that the company suffered a ransomware attack back in May. The company’s response, however, has raised more than a few eyebrows from security experts, and left hundreds of nonprofits scrambling to figure out if they’ve been affected. The Blackbaud breach is just the latest reminder that third party data processors can be a liability to your business.

According to Blackbaud’s statement about the breach, the company quickly discovered the attack and was able to remove the attackers from their systems — but not before the hackers stole a copy of a data set. Blackbaud has not specified the exact nature of that data, but claims it does not include sensitive information such as credit card information, bank account information, or social security numbers. On source told the BBC, however, that the stolen data involves donor information from hundreds of nonprofits and institutions and includes details such as names, addresses, ages, and estimated wealth. Now, organizations that are customers of Blackbaud are scrambling to see if their donors’ information was included in the breach and, if so, must release data breach disclosures of their own.

The most egregious part of the Blackbaud breach, however, was the company’s response. When they discovered their data had been stolen, they agreed to pay a ransom to have the attackers delete that data. Subsequently, Blackbaud assured their customers that there is no reason to believe the stolen data “was or will be misused; or will be disseminated or otherwise made available publicly.” However, cybersecurity experts have been quick to point out that this is a dangerous assumption to make.

Despite Blackbaud’s insistence that the data has been deleted by the hackers, the company has not stated why they are confident in that assumption, and no external investigation has been able to confirm it. As many have noted, Blackbaud’s response to the breach seems more an attempt to protect their brand’s reputation, rather than a transparent disclosure. There are also questions about the amount of time the company took to disclose the breach, and whether or not that violates GDPR requirements.

The fact that so many questions about the Blackblaud breach are still unanswered two weeks after it was announced has not been assuring to the nonprofits that use their services. Over 100 organizations have already notified their donor’s about the breach, and more will likely do so in the weeks ahead.

While this far from the only third-party provider to suffer a data breach, the attack on Blackbaud is a rather stark example of why businesses need to take the time to carefully evaluate third-party security practices, as well as insist on strong agreements that define accountability and responsibilities in the event of an incident. This is especially important for associations and non-profits because their very existence relies on the trust that their members or donors place in them.  When that trust is violated, it takes a long time to repair.

Ransomware Attackers are Playing the Long Game

Ransomware Attackers are Playing the Long Game

Over the past few years, ransomware has become a more and more common form of cyber attack. In part, this is because hackers have started to sell pre-made packages that anyone can buy on the dark web and run without a lot of technical know-how. While this form of ransomware allows malicious code to spread automatically, it’s not always the most sophisticated form of attack. This may be why human-operated ransomware has become more popular over the past few months. Unlike pre-coded ransomware that blindly crawls through infected networks, human-operated ransomware attacks tend to play more of the long game. Once attackers gain access to a victim’s system, they take their time to gather as much intel as possible about their target, often waiting months before launching their attack. This helps them gain access to other areas within the network and ultimately make it extremely difficult for the victim to put a stop to the attack once it starts.

The key to combatting these more sophisticated attacks, then, is to stop them from accessing your systems in the first place. Often, ransomware attacks gain access by taking the path of least resistance, such as unpatched applications. This has been an especially big problem for the healthcare industry recently. As hospitals continue to be overwhelmed by COVID-19, they have not had the time and resources to safeguard security systems and update applications quickly.

For example, recently human-operated ransomware attackers are using out of date virtual private networks (VPNs) to gain access. In fact, Microsoft identified “several dozens of hospitals” that were vulnerable to attack because of outdated VPN applications. To help combat this issue, Microsoft has developed a new alert system to notify hospitals that have unpatched applications and other vulnerabilities.

With ransomware attackers playing the long game, it’s vitally important to ensure your systems and applications are patched and that you fix any known vulnerabilities. In addition, any potential compromise to your system, however small, should be investigated and dealt with as soon as possible. Otherwise, hackers can spend months moving throughout your networks undetected and make it near impossible to remove once they launch their attack.

5 Tips To Protect Against Ransomware

5 Tips To Protect Against Ransomware

When you think about different types of cyber attacks, ransomware might not be the first thing to come to your mind. It’s the sort of thing you might expect to see in a movie, but not in real life. The truth is, however, that ransomware is an increasingly common form of cyber attack. Government agencies, for example, are now a prime target for ransomware. However, it’s not just governments that should be worrying. According to one report, ransomware attacks against businesses rose by a whooping 263% in 2019. Business everywhere should therefore ensure they take precautions to prevent a ransomware attack and also have a plan in place if one does happen. To help, here is a list of 5 ransomware tips that all businesses should consider.

Ransomware Tip #1: Back It Up

Perhaps the most crucial way to protect yourself against ransomware is to have a robust and regular backup system in place. Any data that is sensitive or essential to business operations should be backed up on a regular basis. However, you have to be smart about it. Make sure your backups are stored offline or somewhere separate from your other networks. If a hacker gains access to your systems, you want to ensure they won’t be able to reach your backups. You should also regularly test your backups to ensure there is no corruption in the data. That way, if an attack occurs and they encrypt your data, you can be sure you have a backup to avoid paying the ransom.

Ransomware Tip #2: Use Security Awareness Training

Ransomware attackers often gain access to systems by first conducting phishing attacks or other forms of social engineering exploits. The key to the attackers success are employees who are not sufficiently trained in detecting emails that contain malicious links. This is just one of the many reasons more businesses should invest in security awareness training programs. For many forms of cyber attacks, your employees are your first line of defense, so making sure they have the tools needed to spot phishing attacks is a must.

Ransomware Tip #3: Stay Up to Date

Operating systems and software are constantly being updated to patch any known security vulnerabilities, but it can be easy to miss an update or put it off for another day. The problem is that attackers are constantly looking for these vulnerabilities and will prey on anyone who hasn’t updated their systems. Updating software, operating systems, and applications should therefore be a priority. In many cases, you are able to set up your systems to update automatically when a new patch is released.

Ransomware Tip #4: Segment and Limit Access

If an attacker gets into your system, you want to ensure they can’t access everything. It’s therefore important to segment your networks. This essentially just means keeping different elements of your network separate from each other so you can control how information flows from one to the others. This also involves implementing access controls so that users on your network are only able to access what they need for their job. These controls should be regularly evaluated. That way, if an attacker steals one of your user’s credentials, they won’t be able to access your entire network.

Ransomware Tip #5: Plan Your Response

Lastly, when it comes to ransomware, it’s important to not just try and prevent an attack, but also have have a plan in place in case one actually happens. Ransomware response should be included in every organization’s overall incident response plan, and you should have a team dedicated to carrying out the plan if an attack happens. Every organization’s response to a ransomware attack will be different, so response teams should sit down with members of the organization at various levels to ensure everyone is on the same page.

Hacked But Not Yet Attacked: What You Should Do

Hacked But Not Yet Attacked: What You Should Do

A hacker got into your system, but you spot the problem before the hacker has a chance to carry out an attack. Best case scenario, right? Well, it all depends on what you do next. The government of Florence, Alabama found themselves in this exact situation, but their response is now costing them nearly $300,000. Here’s what happened:

In late May, cybersecurity report Brian Krebs received a tip that hackers known for ransomware attacked gained access to Florence’s IT system. Krebs made numerous attempts to contact city officials before finally receiving a voicemail thanking him for the tip and telling him that the city took care of the issue. However, on June 5th the city announced that a ransomware attack shut down the city’s email system. The city plans on paying the hackers the nearly $300,000 ransom to restore their system.

So, what went wrong? According to city officials, when the attack hit, the IT department was in the middle of securing approval for funds to investigate and stop the attack. Local governments are often slow to act, to be sure, but officials knew about the hacker 10 days before the attack and they still weren’t prepared. The bottom line is, given the rise in ransomware attacks on public institutions, Florence officials needed to have a detailed plan in place before an attack took place. Instead, they scrambled. And, to add insult to injury, hackers accessed to the city’s systems by stealing the Florence IT manager’s credentials through a phishing attack.

How to Beat the Hackers

So, what should you do if you know you’ve been hacked but haven’t yet been attacked? Here are just a few steps you can take:

1. Have a Plan in Place

One of the main reasons Florence was slow to act is because they waited until after the hack to figure out a game plan. Instead, the city needed to have a detailed incident response plan in place. This involves first identifying what types of attacks you are most vulnerable to. Then, you need to create a detailed step-by-step response for each type of attack, and create a team of employees responsible for carrying out each of the steps. You also need to ensure you have contingency funds readily availble to carry out the plan quickly. Finally, it is important to simulate each type of attack so that the team can practice carrying out their response. Overall, the goal of an incident response plan is to deal with potential attacks as quickly and efficiently as possible.

2. Shut Down and Isolate Infected Systems

In order to keep the hackers from accessing other systems, it is important to shut down and isolate infected systems and any devices connected to it. Remove the system from your network. Disconnect the system’s wireless and bluetooth capabilities. Any devices previously connected to the infected systems should be shut down and removed from the network. Along with keeping the hack from spreading, this also limits the hacker’s ability to encrypt or damage the infected systems.

3. Secure Your Backups

Having updated and secure backups are especially important for ransomware attacks. If a hacker encrypts your data, having a recent backup of that data could save you from having to pay the ransom. There are two important caveats, however. First, it’s important that you regular test your backups to ensure your data isn’t corrupted in the backup or restoration process. Second, keeping the copies of your backups secure and offline is essential. Otherwise, it is possible for hackers to gain access to your backups and encrypt of remove them from your systems.

4. When in Doubt, Rebuild

The hard truth is, the most reliable way to shut down a hack before an attack is to completely remove the infected systems and rebuild them from scratch. Of course, the time, resources, and personnel required to do this makes it a difficult pill to swallow for many organizations. However, it is the only way to guarantee that a hack is removed from your systems.

The Bottom Line

Spotting a hack before the attack can give you the leg up on the hackers. But, as the ransomware attack on Florence, Alabama makes clear, knowing that someone accessed into your systems is not enough. You need to have a game plan ready to go and carry it out as fast as possible. Using your time and resources to prepare for an attack now will give you piece of mind, and potentially reduce the cost of a hack later. 

1 in 5 Small Businesses Unprepared for Ransomware

1 in 5 Small Businesses Unprepared for Ransomware

In October, the FBI warned that ransomware attacks are becoming “more targeted, sophisticated, and costly.” Now, a new survey shows that small business are baring the brunt of these attacks, with 46% reporting that they have been targeted.

Ransomware is a form of cyber attack in which the attacker steals or encrypts the victim’s data and demands payment in order to regain access to that data. The new survey highlights two issues that small businesses in particular at a high risk for further attacks and even irreparable data loss.

1. No Data Protection in Place

Perhaps the most troubling trend the survey found is that 20% of small business do not have data protection systems in place. Using solutions such as data backup or disaster recover tools are essential for a variety of potential issues, but especially for ransomware. According to Russell P. Reeder, the CEO of the company behind survey, “every modern company depends on data and operational uptime for its very survival…Data protection and operational uptime have never been more important than during the unprecedented times we are currently facing.”

With a strong backup system that is tested regularly, small businesses faced with a ransomware attack are in better position to recover their data without succumbing to the demands of the attackers. Without proper data protection systems in place, however, businesses are left in the hands of the bad guy, with no other means to recover their data. And the truth is, the more small businesses that leave themselves unprotected, the more they will be targeted. Ransomware attackers are looking for easy money, and are therefore far more likely to target those who leave themselves the most vulnerable.

2. To Pay or Not to Pay

The survey also found that a whooping 73% of small businesses targeted by ransomware opted to pay the ransom in order to get their data back. One reason for this is that, if a business does not have proper data protection in place, the cost to restore data may end up being more costly than simply paying the bad guys. However, this solution is misguided on a number of fronts.

First of all, there is no guarantee that paying the ransom will result in regaining all or even any of the data stolen. The survey found that 17% of those who paid the ransom did not recover all of their data.  Secondly, paying the ransom is a short-term solution to a long-term problem. Paying the ransom signals to attackers that they can squeeze money out of that business in the future. Reporting by ProPublica also found ransomware payments were substantially lower than they are now, and that the number of businesses willing to cough up the dough has led to an increase in the price of the ransom.

Prevent and Defend

In order to defend against ransomware attacks, small businesses should first and foremost ensure they have strong data protection solutions in place. However, this is only one piece of the puzzle. Taking measures such as awareness training can help prevent these attacks in the first place. Ransomware attackers often gain access to systems through malware installed via phishing campaigns. If you and your staff are properly trained to spot deceptive practices, you already have a leg up on the bad guys. Attackers also hope that their victims will panic and make rash decisions. There is no question that falling victim to ransomware is scary stuff, but taking a few breaths, reviewing your options, and responding rationally might help keep your money and data in your hands and prevent further attacks from taking place in the future.

Hacks Against Healthcare Industry on the Rise

Hackers are continuing to use the coronavirus crisis for personal profit. We recently wrote about the increase in malicious sites and phishing campaigns impersonating the World Health Organization and other healthcare companies. But now hackers appear to be turning their sights to the healthcare sector itself. Here are two notable cases from the past few weeks.

WHO Malware Attempt

Earlier this week, the World Health Organization confirmed hackers attempted to steal credentials from their employees. On March 13th a group of hackers launched a malicious site imitating the WHO’s internal email system. Luckily, the attempted attack was caught early and did not succeed in gaining access to the WHO’s systems. However, this is just one of many attempts being made to hack into the WHO. The chief information security officer for the organization Flavio Aggio told Reuters that hacking attempts and impersonations have doubled since the coronavirus outbreak.

Similar attempted hacks against other healthcare organizations are popping up every day. Costin Raiu, head of global research and analysis at Kaspersky, told Reuters that “any information about cures or tests or vaccines relating to coronavirus would be priceless and the priority of any intelligence organization of an affected country.”

Ransomware Attack Against HMR

Unlike the attack on the WHO, a recent ransomware attack was successful in stealing information from a UK-based medical company, Hammersmith Medicines Research (HMR). The company, which performs clinical trials of tests and vaccines, discovered an attack in progress on March 14th. While they were successful of restoring their systems, ransomware group called Maze took responsibility. On March 21st, Maze dumped the medical information of thousands of previous patients and threatened to release more documents unless HMR paid a ransom. HMR has not disclosed how the attack occurred, but have stated that they will not pay the ransom.

Four days after the initial attack, Maze released a statement saying they would not target medical organization during the coronavirus pandemic. Yet, this did not stop them from publicizing the stolen medical information a week later. After the attack gained publicity, Maze changed their tune. The group removed all of the stolen files from their website, but blamed the healthcare industry for their lack of security procedures: “We want to show that the system is unreliable. The cyber security is weak. The people who should care about the security of information are unreliable. We want to show that nobody cares about the users,” Maze said.

Conclusion

 Times of crisis and confusion are a hacker’s delight. The staggering increase of hacks against the healthcare industry only help prove that.  The key to mitigating these threats is to ensure that security configurations are set to industry best practices, continuously scan your networks, lock down or close open ports, secure or (preferably) remove Remote Desktop Protocol, and require Multi-Factor authentication for any remote access.  And certainly, make sure you are testing your incidence response plan.

Subscribe to our blog here:  https://mailchi.mp/90772cbff4db/dpblog