[HN Gopher] Colonial Pipeline Paid Hackers Nearly $5M in Ransom
       ___________________________________________________________________
        
       Colonial Pipeline Paid Hackers Nearly $5M in Ransom
        
       Author : longdefeat
       Score  : 226 points
       Date   : 2021-05-13 14:26 UTC (8 hours ago)
        
 (HTM) web link (www.bloomberg.com)
 (TXT) w3m dump (www.bloomberg.com)
        
       | purple_ferret wrote:
       | >The company paid the hefty ransom in untraceable cryptocurrency
       | within hours after the attack
       | 
       | in Monero? Wonder how they converted USD.
        
         | TacticalCoder wrote:
         | I'm wondering too. Now in TFA I read:
         | 
         | "The company paid the hefty ransom in difficult-to-trace
         | cryptocurrency within hours after the attack..."
         | 
         | I don't know why you got "untraceable" and I get "difficult to
         | trace" when reading the article.
         | 
         | Bitcoin ain't exactly difficult to trace. I wonder if Colonial
         | took the "discount" of 30% and paid in Monero or if they paid
         | in Bitcoin.
         | 
         | Oh well it looks at least one company is going to give a bit
         | more sh-t about its IT security ; )
         | 
         | And another thing: often these news are followed, a few
         | weeks/months later by "How the hackers who got a $5m ransom
         | from Colonial got caught".
         | 
         | Waiting for that one...
        
       | AzzieElbab wrote:
       | All that money and lawlessness that went into enabling security
       | agencies must be crowned as the worst investment ever
        
         | Mauricebranagh wrote:
         | That has nothing to do with this the FBI presumably cannot
         | enforce security on a company.
         | 
         | Maybe for some industries they need to start mandating Security
         | Clearances and background checks and no outsourcing of certain
         | critical systems work.
        
           | BigGreenTurtle wrote:
           | I believe a judge recently signed an order allowing the FBI
           | to access and patch hacked exchange servers.
           | 
           | https://www.nbcnews.com/tech/security/fbi-might-gone-
           | ahead-f...
        
           | AzzieElbab wrote:
           | I am not familiar with any details of this hack that could
           | point to employees or contractors. Also, I am not sure what
           | exactly are the roles of FBI and NSA when it comes to
           | protecting US infrastructure, can you clarify?
        
         | Mountain_Skies wrote:
         | Many of those agencies seem more interested in making systems
         | less secure so they can get in easily than in protecting
         | systems from outsiders.
        
       | ineedasername wrote:
       | And the group originally though responsible for this was actually
       | just a ransomware-as-a-service partner here, and seem a little
       | embarrassed about the while thing. Basically they said "yeah, we
       | don't want our partners doing stuff that big so we'll ask them
       | not to in the future." Hopefully that doesn't stop the full
       | weight if the US intelligence services from coming down on them
       | and every single other ransomware scammers they can find... And
       | outlawing payments to these terrorists.
        
       | ineedasername wrote:
       | Per the Boston Globe story [0] they were actually in the process
       | of restoring from backups but it was going too slow. Something to
       | remember: when downtime is so critical that key pieces of a
       | country's infrastructure is at stake, backups can't be enough--
       | there also has to be a rapid recovery plan to actually use them.
       | 
       | [0]https://www.bostonglobe.com/2021/05/13/business/colonial-
       | pip...
        
       | koreanguy wrote:
       | nobody hacked Colonial Pipeline, its a insider trading racket.
       | which idiot would connect a oil Pipeline to the internet .
       | 
       | its impossible. 5M in ransom show me the transaction
        
       | paulpauper wrote:
       | So i take it that the involved crypto addresses should be in a
       | blacklist database somewhere? Who if anyone is monitoring all
       | these ransomware addresses? There are probably thousands of
       | addresses by now.
        
       | _tk_ wrote:
       | Disclaimer: I work as a CISO in a large corporation. The
       | interesting bit in this article is not necessarily the sum of the
       | ransom, but that Colonial decided to pay quasi-immediately. It
       | seems as if the attackers had full control over their network.
       | Another possibility: Colonial staff could not be sure that if
       | they used their backups, everything would be encrypted
       | immediately again - possibly the backup servers as well. My bet
       | would be on scenario 1.
        
         | Ancapistani wrote:
         | Having read the release by the attacker, my initial thought is
         | that the immediacy of paying was probably due to the threat of
         | the release of sensitive data, not the ability to restore
         | operations.
         | 
         | I'm sitting here wondering what exactly about the release of
         | their financials and internal procedures prompted them to
         | immediately pay $4-5m in the hopes of preventing it from
         | happening?
        
           | Mountain_Skies wrote:
           | Just spit balling here but they have had several other
           | pipeline shutdowns in recent years. One was blamed on a third
           | party damaging the pipeline but I believe the others were
           | operational issues. Perhaps there's more information on those
           | issues than the company would like the public to know? Just a
           | wild guess.
        
         | gist wrote:
         | I am curious what your thoughts are on other commenters making
         | as if it is possible to prevent these types of attacks by just
         | taking security 'more seriously'. My guess is that you know
         | that no matter how much is spent with a large entity and many
         | employees it's near impossible to prevent this type of attack.
         | People make mistakes people are easily fooled people don't
         | follow what they are told to do and so on.
         | 
         | I can't even begin to imagine the amount of people that could
         | cause an issue in the size company you are a CISO at.
        
           | nonameiguess wrote:
           | It's certainly possible to achieve serious security but
           | probably not practical for most private entities. I've spent
           | most of my development career making software for the US
           | intelligence community and their systems were definitely not
           | going to get broken into by a ransomware gang. Security
           | measures include multilevel air gapping plus heavily armed
           | physical security, six foot thick concrete walls set back
           | from the street by other concrete barriers, locating
           | facilities on military installations, disabling USB ports on
           | most devices, banning anything radio enabled from being
           | anywhere near your workstations, jamming radio signals
           | anyway, severely punishing, possibly executing, anyone caught
           | working as an intentional insider threat, requiring multiple
           | persons in the custody and approval chains to move any files
           | from one network to another via write-once media like DVDs,
           | having the transfer media itself in a separate locked cabinet
           | in a separate locked room inside the actual classified vault
           | serving as an office. Installing and running everything in a
           | separately sandboxed staging environment even after it gets
           | through all the walls and air gaps and DVDs and running it
           | through some fairly extensive testing and analysis before
           | putting it anywhere near a production system.
           | 
           | Clearly, you can never make it literally impossible, but to
           | my knowledge, nobody has ever managed to get malicious
           | software onto a classified production system. Information
           | leaks are, of course, another story.
        
           | Mountain_Skies wrote:
           | You cannot completely eliminate risk but you certainly can
           | reduce it and be prepared for what to do when one of those
           | low probability risks ends up happening.
        
       | magicsmoke wrote:
       | Parallels with the golden age of piracy anyone?
        
       | o_p wrote:
       | Should had paid for cybersecurity or not pay misery bug bounties.
       | Attract talent to the blue team!
        
         | ajay-d wrote:
         | They had cyber insurance coverage[0]. But I have no idea if
         | cyber insurance pays out ransomware ransoms.
         | 
         | [0]https://www.insidepandc.com/article/28is3dljuei18ioo7fri8/ax
         | ...
        
           | DrBenCarson wrote:
           | They should, most policies do cover ransomware. If their
           | policy did not, CIO loses their job in 5...4...
        
       | generationP wrote:
       | So, supposedly, Colonial paid the ransom "within hours after the
       | attack". And, supposedly, the attack didn't even hit any ICS,
       | just the payment infrastructure (
       | https://www.zdnet.com/article/colonial-pipeline-ransomware-a...
       | ). Why are there still gas shortages 6 days later?
       | 
       | Not a rhetorical question at all. To me, the idea that the
       | infrastructure we rely on is controlled by middle managers with
       | no sense of urgency and no grasp of their domain looks like the
       | real fridge horror story here. On the other hand, I have learnt
       | better than to trust everything I read in the press; thus the
       | supposedlies. Either way, "the decryption tool is slow" is not an
       | excuse to not deliver essential supplies.
        
         | mgolawala wrote:
         | You do not need actual disruptions in supply to create a
         | shortage. The threat of a disruption or a shortage for such a
         | critical commodity can create a situation that it becomes a
         | self fulfilling prophecy (short term).
         | 
         | That is what can often create bank runs and created the "great
         | toilet paper shortage of 2020".
        
         | nikanj wrote:
         | All you need for gas shortages is the rumor of gas shortages.
         | Remember how we ran out of TP last year, for absolutely no
         | reason whatsoever?
        
       | ppierald wrote:
       | I am definitely not an expert in these areas and I'm sure someone
       | 100x smarter than I am has thought of this and discounted it
       | already, but is there any ability to decompile the executable
       | provided to Colonial and get to patterns of source code, then
       | compel github to search their repositories for any patterns of
       | that code? Not sure if that is even legal or whether a judge
       | would authorize that fishing expedition, but it's an interesting
       | thought exercise (in my head) assuming the code is even in GH.
        
         | dehrmann wrote:
         | > then compel github to search their repositories for any
         | patterns of that code
         | 
         | Assuming we're talking private repos, compelling Github to do
         | that is a pretty blatant fourth amendment violation unless
         | there's a specific set of suspected repos.
        
         | mrastro wrote:
         | It's unlikely their code is hosted on GitHub because the
         | hackers wouldn't want to leave such an obvious trace there.
         | 
         | I think you're right that unless there is evidence code is
         | hosted there, the judge wouldn't authorize a "fishing" exercise
         | to search random sources for the code. In a hypothetical, what
         | would this even give? The IP addresses of the authors? They are
         | likely running through a proxy anyways so it wouldn't help. The
         | private key? It might have been generated server-side or using
         | an algorithm outside the code so might not help.
         | 
         | What I'm saying is getting the code source might not even be
         | helpful depending on how it was implemented and if only the
         | client code can be found.
        
         | axiosgunnar wrote:
         | are you assuming the ransomware is collaboratively coded on
         | github?
        
           | Mountain_Skies wrote:
           | The authors of the ransomware might have non-ransomware
           | projects on github where an analysis of coding style gives
           | them away. It's sounds like it would have a low probability
           | of working but this is essentially what got the Unabomber
           | caught. But writing styles in English might be easier to
           | identify than in code. Maybe they'll use "cool headed
           | logician" as a procedure name.
        
       | Mountain_Skies wrote:
       | It should be noted that Colonial had several infosec openings at
       | the time of the attack. While having those filled might not have
       | prevented this attack, it also might have or at least put them in
       | a better response position.
       | 
       | There are lots of infosec openings across the country but
       | compensation doesn't seem to be rising in response. It appears
       | that companies are fine with leaving these positions open for
       | long periods of time. As long as the position actually exists,
       | they're not all that concerned with filling it. This might be
       | complacency creep. Everyone staffed up after the cluster of
       | breaches that happened around the time of the Target and Equifax
       | breaches. A lack of other high profile breaches or attacks might
       | be why many companies have become lax in keeping their staffs
       | full.
        
         | sneak wrote:
         | You don't need infosec staff to know that you should have
         | backups of the data on your important computers/servers.
         | 
         | Being hit by ransomware is not an indicator of total IT
         | incompetence.
         | 
         | Having no good options but to pay the ransom absolutely is.
         | 
         | All ransomware is doing is exposing the existing hope-based DR
         | plans (that is to say, lack thereof) in the industry.
        
         | MattGaiser wrote:
         | Are there enough Infosec people to fill every open job for it
         | in the USA? I would imagine that it is like software
         | development, where the unemployed software devs are the kind
         | that can't figure out git.
        
           | Mountain_Skies wrote:
           | I doubt there are enough infosec people which means in theory
           | that compensation should rise which will then attract more
           | people into the field. Until they're trained and experienced,
           | whoever provides the best place to work (compensation and
           | intangibles that lead to satisfaction) would get the help
           | they need while others would be more vulnerable to attack.
           | But from what I've seen, this isn't happening. There's lots
           | of complaints about there not being enough workers but
           | instead of boosting compensation and/or quality of
           | employment, the positions simply stay open for extended
           | periods of time.
        
           | lawnchair_larry wrote:
           | This is basically accurate but with an added problem. When
           | devs do their job, the product is software. When security
           | does their job, the product is "not getting hacked", so if
           | you act busy enough, it's easy to appear as though you're
           | doing important work, until it's too late.
           | 
           | Then, paradoxically, you aren't actually punished, but
           | usually rewarded, when you do get hacked. That's the one time
           | you're needed most, and you get to act like the hero for
           | saving the company.
        
         | orev wrote:
         | For many companies, security threats are all theoretical, but
         | they are required to have the positions to meet some compliance
         | requirement. They need to have them, but don't really want
         | them, which would explain the lack of enthusiasm (as
         | demonstrated by the low salaries) in getting the jobs actually
         | filled.
         | 
         | Also, a lot of infosec positions are just chugging through
         | audits and ticking boxes to say whether you have some control
         | in place or not. Those are more clerical positions that don't
         | require deep technical knowledge that could command a higher
         | salary.
        
         | lawnchair_larry wrote:
         | The issue is less about people unwilling to take those wages,
         | and more about a lack of people whose breath can even fog a
         | security mirror so to speak. I work in security and have been
         | involved with hiring at several "brand name" companies
         | including FAANGs in hot tech markets, and it's always been a
         | talent pipeline issue more than anything. Given how difficult
         | it is for the biggest players to keep security staffed up, and
         | they still get hacked routinely, I can't imagine how low
         | quality the applicant pool is at Colonial, and doubt it would
         | have made a difference. Almost every company of moderate size
         | perpetually has openings for security roles.
         | 
         | The other problem is that the industry has an oversupply of by-
         | the-book certified security people who can configure firewalls
         | and run scanners, but who have never dealt with live hackers or
         | hacked anything themselves. But hackers are clever and
         | artistic, and defending against them isn't like following a
         | recipe for baking a cake.
         | 
         | And as an employer looking to introduce security, there is no
         | way to really evaluate a good security leader vs a charlatan,
         | and then it's either bad hires all the way down, or talented
         | people on the bottom who lack leadership and are ineffective in
         | the bureaucracy.
        
           | socialist_coder wrote:
           | Is being a "good" security person really more involved than:
           | 
           | * making sure you have all your ports locked down
           | 
           | * limit connectivity between all instances to only the bare
           | minimum
           | 
           | * any public access is via protocols such as ssh which have
           | zero-to-none vulnerabilities
           | 
           | * any 3rd party software you dont know is secure should never
           | be public
           | 
           | * routinely run employee training on how not to let
           | themselves get hacked via social engineering
           | 
           | I'm sure I'm missing other stuff, but I feel like if you
           | follow these "best practices", you have just made yourself a
           | very hard target and hackers will probably skip over you
           | unless they have some weird reason to target your org
           | specifically. So for 95% of companies out there, this level
           | of security should be sufficient.
           | 
           | I'm legitimately asking - is this sufficient? Or are hackers
           | so creative that even following these basic rules will still
           | not make you a hard target?
           | 
           | This stuff seems fairly easy to do but I agree you need
           | training or an info-sec person making sure your dev teams are
           | doing it all. You can't have any slip ups. Your devs /
           | managers have to take it seriously.
        
           | notyourday wrote:
           | > The issue is less about people unwilling to take those
           | wages, and more about a lack of people whose breath can even
           | fog a security mirror so to speak. I work in security and
           | have been involved with hiring at several "brand name"
           | companies including FAANGs in hot tech markets, and it's
           | always been a talent pipeline issue more than anything.
           | 
           | Oh come on. It is just an excuse. Look up what FAANG pays for
           | those jobs ( total compensation ). Pay 2x. Get people from
           | FAANG to work for you.
        
           | grumple wrote:
           | The problem I see is that there are tradeoffs between
           | security and usability, and again between developing security
           | vs developing features. Security doesn't make money next
           | quarter, while features and ease of use do.
           | 
           | Any software engineer can do security if they spend time
           | learning and working on it. But executives don't seem to care
           | about it.
        
         | Veserv wrote:
         | No. The security problem is not a lack of effort or laxness, it
         | is a fundamental inability to solve the problem. At a $5M
         | payout there are essentially 0 commercial IT systems in the
         | world that can stop such an attack. The absolute best of the
         | best commercial IT systems implemented as envisioned with full
         | support can _maybe_ protect up to the $10M level and I am just
         | extrapolating upwards since I have never had any security
         | professional or executive in a Fortune 500 company with a
         | budget in the tens to hundreds of millions of dollars ever
         | assess their own systems as more than $1M. With an ROI of 5 is
         | it only a matter of time before criminal enterprises can
         | bootstrap themselves up to exploit the entire total addressable
         | market. At best, better, but still inadequate, security means
         | that the thousands of hungry bears eat the slower fish in the
         | barrel first to get the energy to reproduce and make more bears
         | to eat the rest.
         | 
         | This is not a failure to live up to potential or incompetence,
         | though there is a fair amount of both of those. We need
         | solutions that are literally 100x better than the best systems
         | currently available before we get to even _adequate_ for
         | critical infrastructure whose disruption can literally cause
         | hundreds of millions or billions of dollars in damage let alone
         | potential human lives. Anything less than that keeps extortion
         | economically viable for the attackers and paying off extortion
         | economically sound for the victims. That is how far away we
         | are.
        
           | abraae wrote:
           | > At a $5M payout there are essentially 0 commercial IT
           | systems in the world that can stop such an attack.
           | 
           | Even if that's true, it doesn't affect backups.
           | 
           | Back your fucking systems up properly, and if you are
           | attacked by ransomware, then do a scorched earth restore.
        
             | Veserv wrote:
             | It absolutely does affect backups. If you stand to gain $5M
             | from an attack you can also target the backup systems and
             | still easily end up profitable. Only if you stand to gain
             | less than $100k does the budget actually start to get
             | tight.
             | 
             | As for how you attack the backup system it depends. If it
             | push based you send your payload during the push. If it is
             | pull based you craft your payload in the data that will be
             | backed up. If it is not append-only you can easily nuke the
             | entire available history. If it is append-only, but that is
             | only done in software you just need to take over the
             | software. If it is in hardware you just infiltrate then
             | silently encrypt any new data until it would be painful to
             | revert that far back in time. Given that the mean-time to
             | discovery is on the order of months that is quite painful.
             | If they regularly test their backups you just silently
             | decrypt the data on restore until it is time to strike.
             | There are plenty of ways to beat vulnerable backup systems
             | in that sort of budget.
             | 
             | Like, seriously, with a $5M budget you can literally
             | purchase and burn multiple zero days for every system in
             | the chain and still come out ahead. You can hire 10-50 full
             | time software engineers for a year _per_ attack. Most
             | systems have serious vulnerabilities discovered by lone
             | individuals working for a few months in their free time let
             | alone a team of _50_ people. The current backup systems
             | survive because most of these attacks are being done with
             | budgets closer to $10k-$100k to maximize profit and growth
             | rate and that is not really enough money to pay for the
             | second arm of the attack. But with a $5M return they could
             | easily allocate a few million to capitalize on the
             | opportunity if that is what is needed once all the juicier
             | targets have been eaten.
        
         | hn8788 wrote:
         | From my experience, the problem is that most infosec positions
         | are powerless to do anything to increase security at the
         | company, and are primarily there for PR or compliance reasons.
         | The positions seem to be mostly filled with people who wanted
         | to make a career change for the money; experienced people
         | usually leave to work at private security companies, or FAANG
         | sized companies.
        
         | coldpie wrote:
         | I mean, let's address the elephant in the room: there is no
         | such thing as computer security. As we see with new leaks and
         | hacks and vulnerabilities every single week, the idea that a
         | computer that is connected to the Internet can be secure is a
         | joke. The whole industry is built on protocols and tools that
         | assume there will never be any bad actors, and we're reaping
         | the rewards of that now. It will take decades of layering on
         | band-aids to approach anything like security, and more likely
         | we will have to rebuild the entire industry from the ground up
         | without that assumption. Both will take a very long time and a
         | lot of money. Hiring some guy with an infosec cert would not
         | have stopped this attack, because there is no way to stop this
         | kind of attack.
        
           | TameAntelope wrote:
           | There are companies that get hacked a lot and there are
           | companies that don't. It is for sure true to say everyone is
           | vulnerable, but it's also true to say that you can reduce
           | your risk without reducing your revenue.
        
           | Mountain_Skies wrote:
           | Risk cannot be eliminated but it certainly can be reduced.
           | Also response plans for when something happens can be funded
           | and regularly tested. You can't anticipate every possible
           | successful attack but you can reduce the risk of being
           | unprepared to respond to whatever attack happens.
        
           | Aperocky wrote:
           | > Idea that a computer that is connected to the Internet can
           | be secure is a joke. The whole industry is built on protocols
           | and tools that assume there will never be any bad actors
           | 
           | This is just flat out wrong.
        
           | mistrial9 wrote:
           | the assumption that there is no security in open protocols is
           | badly misinformed here.
           | 
           | "Hiring some guy with an infosec cert would not have stopped
           | this attack, because there is no way to stop this kind of
           | attack."
           | 
           | blovation
        
         | medicineman wrote:
         | I mean, if you ignore how H1B's work, yeah you could call it
         | complacency.
        
       | dang wrote:
       | Recent and related:
       | 
       |  _AAA warns on gas prices, North Carolina invokes emergency as
       | hackers apologize_ -
       | https://news.ycombinator.com/item?id=27117515 - May 2021 (111
       | comments)
       | 
       |  _US passes emergency waiver over fuel pipeline cyber-attack_ -
       | https://news.ycombinator.com/item?id=27101092 - May 2021 (448
       | comments)
       | 
       |  _U.S. 's Biggest Gasoline Pipeline Halted After Cyberattack_ -
       | https://news.ycombinator.com/item?id=27086403 - May 2021 (202
       | comments)
        
       | drcode wrote:
       | So they paid a penetration-testing firm a consultancy fee to help
       | harden their network.
        
         | commandlinefan wrote:
         | Well, all we really know for sure is that they paid a
         | penetration-testing firm a consultancy fee to identify where
         | the network needs to be hardened. No guarantee they'll actually
         | prioritize doing it.
        
           | PaulDavisThe1st wrote:
           | Not even that.
           | 
           | Well, all we really know for sure is that they paid a
           | penetration-testing firm a consultancy fee to identify _THAT_
           | the network needs to be hardened.
        
         | _tk_ wrote:
         | Could you elaborate on where you see the hardening taking
         | place? Colonial had a threat actor in their network and by
         | paying the ransom, they supposedly left without doing any more
         | damage. I don't think they patched a lot of systems or hardened
         | their servers.
        
           | tolbish wrote:
           | They "helped harden", as in they verified that the network
           | needs hardening.
           | 
           | /s
        
       | bleair wrote:
       | Assuming the ransom was paid, it's an interesting example of how
       | cryptocurrencies contribute to the viability of this new
       | "business model"
        
       | coldcode wrote:
       | Too many companies prefer to skimp on security since it has no
       | apparent payoff until it's too late.
       | 
       | What I want to know are the circumstances of the hack; how did it
       | work, what systems did it affect, what security were they
       | lacking. Sadly these details are often ignored or hidden from
       | view. Attacks of this kind should get a public report so that
       | other companies can learn or at least be shamed into changing.
       | 
       | It seems like it's more important to cover up your inadequacy and
       | not help the next victim.
        
         | swiley wrote:
         | We need something like a fire diamond for software and data:
         | 
         | some tuple like ((fails to)conform to spec/testing(and
         | production) only (ie contains PII or is garbage
         | data)/(permissive,restrictive,free) license/(un)safe library
         | calls or language) or so.
         | 
         | Some stuff is pretty subjective but so are the fire diamond
         | numbers sometimes, plus we can pick objective boundaries (calls
         | to gets cannot be safe for example.) I think it could probably
         | work.
        
           | edoceo wrote:
           | A Fire Diamond:
           | 
           | https://en.m.wikipedia.org/wiki/NFPA_704
        
           | [deleted]
        
         | ben509 wrote:
         | Part of the problem is it's very hard to value security
         | because, frankly, so much security is theatrics and snake oil.
         | 
         | For instance, look at the consumer market, which is where an
         | executive without security knowledge is coming from. All the
         | big VPN vendors make security promises that are, frankly, false
         | advertising. AV products are notorious for including warnings
         | for viruses that pad their counts. That's not counting all the
         | security applications that are malware.
         | 
         | And if they talk to someone familiar with the industry side,
         | they should hear some skepticism. All the static analyzers are
         | full of flags for things that are there to drive up their
         | numbers. There have been a few HN stories on junk CVEs that are
         | filed so people can put them on their resume. I had to set up a
         | WAF at work that proudly said it mitigated the OWASP top-ten
         | (why the top ten? is #11 not important?) which include
         | recommendations like logging that a WAF is plainly not doing.
         | And then I tested its defense against SQL injection and it was
         | trivial to bypass.
         | 
         | And if a business that isn't a tech company hires contractors
         | to fix security issues, most of the time, those guys will do a
         | lot of check the box BS. It's fundamentally difficult, from a
         | business operations perspective, for a company to do security
         | because: 1. the horizon problem that you bring up 2. it's a
         | cost-center 3. it's not their core expertise 4. if you even ask
         | what secure looks like, you either get filibustered with long
         | lists of best practices, or a lot of hand waving but strident
         | proclamations.
        
           | Aperocky wrote:
           | The fact that are so many ads and info sessions about IT-sec
           | from people who seem to have never written a line of code in
           | their entire life is worrying.
        
       | AbrahamParangi wrote:
       | Paying ransom should be illegal.
       | 
       | Ransom funds illegal activities. Not indirectly, like buying
       | coffee or poppyseed or whatever, but literally money that is
       | directly reinvested in criminal activity- like ransomware.
        
         | mattnewton wrote:
         | I am not a lawyer, but my understanding is that while paying a
         | ransom is not illegal itself, anything that facilitates the
         | payment of a ransom is. There is a chance some party that
         | handled the ransom money broke this law by doing so.
         | 
         | There is another much greater chance that some party with a
         | fiduciary duty to shareholders could be sued for
         | misrepresenting the risk of this happening to shareholders.
        
         | [deleted]
        
         | colinmhayes wrote:
         | Ransoms would still be paid. We just wouldn't know about it. I
         | think it's better to allow companies to be transparent.
        
           | teruakohatu wrote:
           | The next group will want more than $5 million, and so on. If
           | the lottery didnt allow advertising of big wins that were
           | made, a lot less people would buy lottery tickets.
        
             | ben509 wrote:
             | No, there's a hard upper limit on ransoms; the cost of
             | recovery.
        
               | nstj wrote:
               | What about when the cost of having the data exposed to
               | the public is higher than that of recovery
        
               | xphos wrote:
               | That requires you to have that kind of data. The company
               | could have be operating legally and not have compromising
               | stuff. The ransomware team gains nothing if a company
               | refuses to pay and has everything to lose by hacking. If
               | there price is to high they are taking on a lot of risk
               | for no reason. Hacks are smart people (I find breaking
               | the law to be a bad decision but if one does it knowing
               | the consequences and mitigations then they aren't dumb
               | just unethical)
        
               | ben509 wrote:
               | Yeah, I was pushing that all under "recovery." Say it all
               | sums to $C.
               | 
               | Arguably the bigger problem is you don't know that the
               | ransomer will actually give you a valid key, but suppose
               | you guess a likelihood P that they do.
               | 
               | Now you have some scenarios:
               | 
               | 1. Don't pay. We're out $C.
               | 
               | 2. Do pay, and get a valid key. We're out $R.
               | 
               | 3. Do pay, and get no key. We're out $R + $C.
               | 
               | So the limit is at scenario 1 being equal to the
               | combination of 2 and 3.
               | 
               | Set C = PR + (1-P)(R + C), and your max ransom R = CP
               | 
               | (You could probably work in additional costs for cleaning
               | up even if the ransom is paid.)
        
         | paulpauper wrote:
         | it should be illegal if the government wants to help recoup the
         | losses.
         | 
         | If a have a firm that makes $100,000,000 a year in net-profit ,
         | paying a $5 ransomware is a cost of doing business, an
         | unfortunate one nonetheless
        
           | TheCoelacanth wrote:
           | It incentivizes more crime and should be illegal.
           | 
           | Businesses don't have a right to do whatever they want just
           | because it is profitable.
        
         | UncleOxidant wrote:
         | Indeed, not only should it be illegal, but the US Gov should
         | offer any and all assistance for helping organizations get back
         | online after such an attack. If organizations quit paying
         | ransoms pretty soon the bad guys would give it up.
        
         | FDSGSG wrote:
         | Ransomware actors could easily punish such legislation. By
         | continuing ransomware attacks they would place many companies
         | in an impossible situation, either break the law by paying or
         | face imminent collapse.
         | 
         | How many jobs are you willing to lose in order to stop
         | ransomware attacks?
         | 
         | One ransomware attack probably costs the ransomware operation a
         | few thousand dollars, any legislation would have to be
         | extremely successful to result in a negative ROI.
        
         | vortico wrote:
         | Giving up your wallet while at gunpoint should also be illegal!
        
         | gist wrote:
         | > Paying ransom should be illegal.
         | 
         | Perhaps instead it should not be legal to say publicly you paid
         | a ransom but ok to pay the ransom. That would tamp down a bit
         | the publicity that encourages more actors. That would be a
         | quick and easy fix along the lines of insider trading.
        
         | sithadmin wrote:
         | >Paying ransom should be illegal
         | 
         | In certain cases, it is:
         | https://www.sidley.com/en/insights/newsupdates/2020/10/offic...
        
         | savanaly wrote:
         | It should be illegal on another basis as well. Paying it
         | contributes to a norm that randoms will be paid that will
         | encourage more randomware in the future against other
         | companies. So you're harming other people when you pay it.
         | That's an externality that won't be factored into the decision
         | to pay the ransom.
         | 
         | Suppose god handed down powers that allowed you to smite from
         | the earth anyone who ever paid a ransom with perfect accuracy
         | and you made a credible commitment to do so. If this fact was
         | well known, presumably random-paying would disappear overnight
         | and ransomware attacks would soon cease to exist as well
         | (ironically rendering the power to smite ransom-payers
         | redundant). We won't ever live in that world but we can move
         | marginally toward it by severaly penalizing clear cut cases
         | where a company or individual pays a ransom.
        
         | tlb wrote:
         | It's as direct any other revenue => business activity
         | connection. More direct than how buying coffee causes fields to
         | be planted with coffee trees.
         | 
         | Of this $5M, expect $4M to be spent on salaries in the next
         | year or 2, funding 20 person-years of malicious hacking. 20
         | skilled people paid to hurt the internet instead of building it
         | up. A terrible crime.
        
           | rblatz wrote:
           | Now we have one less critical piece of infrastructure that
           | could be trivially knocked out by a hostile state.
        
             | dmingod666 wrote:
             | They are installing more software from the hacker
             | voluntarily after paying the ransom. At this rate it looks
             | more like they just hired a competent and highly unethical
             | vendor..
        
               | FredPret wrote:
               | That's one hell of a way to provide "red-team" security
               | testing services
        
             | rsync wrote:
             | They didn't need security experts for that- all they had to
             | do was not connect it to the Internet ...
        
             | PaulDavisThe1st wrote:
             | How do you know that? What evidence is there that it's any
             | more secure than it used to be?
        
               | Nextgrid wrote:
               | The 5M ransom plus all the other damage such as
               | reputation loss, increased government scrutiny and
               | potential damages to pay to partners (I'm sure they
               | provide some sort of SLA for their oil delivery
               | services?) is a good enough deterrent from allowing this
               | to happen again.
        
               | akomtu wrote:
               | 5M is nothing to that pipeline management firm. I think
               | nothing will change because the "fine" is tiny and later,
               | when a VP of opsec gets to decide between a massively
               | expensive hardening of security which includes big
               | recurring costs to keep an opsec team on payroll and just
               | pocketing a multimillion dollar bonus for optimizing the
               | opsec budget, he will choose the latter. There's no risk
               | of getting jail time and any reputation damage won't be
               | to his personal reputation, but to that firm he will have
               | left long ago.
        
               | kortilla wrote:
               | > keep an opsec team on payroll and just pocketing a
               | multimillion dollar bonus for optimizing the opsec budget
               | 
               | This is not how companies actually work. This is a fun
               | "incompetent executive" fantasy that floats around but in
               | real businesses you don't pocket a huge bonus solely by
               | cutting costs.
               | 
               | You're gonna have a lot of explaining to do on why that
               | money was being spent in the first place and why it's not
               | needed now.
        
               | edoceo wrote:
               | These pirates have committed to not hitting the same
               | target again?
        
               | leesalminen wrote:
               | Ah yes, the code of the pirates. The epitome of ethics
               | and morality.
        
               | pomian wrote:
               | I dont think it's a code. It's more of a guideline.
        
               | headmelted wrote:
               | I'm sure at some point they must have just asked if
               | they'd give them the password for free on account of all
               | the collateral damage.. but it looks like they were
               | disinclined to acquiesce to the request.
        
               | toomuchtodo wrote:
               | And what about the others?
        
               | ryanlol wrote:
               | Can you name some examples of orgs getting hit twice?
        
               | HeyLaughingBoy wrote:
               | As someone who had their home broken into twice in the
               | same week, probably by the same people, I prefer to
               | subscribe to the theory that there's no honor among
               | thieves.
        
               | xphos wrote:
               | But they could have made holes in the system or not
               | disclosed all system holes which other hackers might take
               | advantage of in the future
        
         | koheripbal wrote:
         | Imagine making it illegal to hand over your wallet to a mugger
         | holding a gun to you.
         | 
         | All you are doing is incentivizing companies to not report
         | these attacks.
        
           | freshair wrote:
           | If the mugger isn't bluffing, then he'll get your money one
           | way or the other. This makes it different from paying
           | ransoms.
           | 
           | Furthermore, a corporation's bottom line is not truly
           | comparable to a human life. However it is my understanding
           | that paying ransoms to save human lives is technically
           | illegal to. If paying a ransom to save your family member's
           | life is illegal, then corporations paying ransoms to protect
           | their finances should certainly be illegal.
        
           | mrtesthah wrote:
           | It would in incentivize more people to fight back rather than
           | acquiesce, and therefore likely reduce the number of
           | muggings.
        
           | motbob wrote:
           | Not a good analogy, for two reasons. First, workers who don't
           | have equity in a company don't really have a gun to their
           | head even if the existence of the company is at risk. The
           | real "gun to the head" is the threat of jail time. Second, it
           | has historically been difficult to convince dozens of people
           | to coordinate with each other and do something illegal for
           | little to no personal gain.
        
         | debt wrote:
         | The ransom payments are covered by insurance. It's the
         | insurance companies making the payments.
        
           | [deleted]
        
         | ryoshu wrote:
         | A greyhat should launch ransomware and then not decrypt when
         | the ransom is paid. Make the ransomware industry unreliable.
        
           | cgb223 wrote:
           | This is the chaotic evil way of dealing with the problem
        
           | xvector wrote:
           | I think a lot of businesses would still pay. Pay $2M for a
           | 50% chance of getting out of the situation, versus $200M in
           | losses if you don't - you'd take the gamble.
        
         | fvv wrote:
         | This fees will support next 1000's attacks , if someone gets
         | attacked next i think should sue colonial pipeline
        
         | jsight wrote:
         | I feel the same way. It seems like the government wouldn't do
         | it, but was practically encouraging the company to pay.
        
         | Meekro wrote:
         | I understand the sentiment, but you'd end up re-victimizing the
         | victim. Someone who felt like they had no choice but to pay
         | could later be prosecuted, while the the actual criminal walks
         | free in anonymity.
        
           | nradov wrote:
           | That is an acceptable outcome. Let the victims suffer. That
           | protects the rest of us, and serves as an object lesson in
           | proper cyber security.
        
             | aqme28 wrote:
             | That's pretty easy to say when it's not e.g. your child
             | being held for ransom.
        
               | ben509 wrote:
               | I don't think people here are considering all forms of
               | ransoms, but you hit on an interesting aspect of it all
               | the same.
               | 
               | It's why, I think, such a law wouldn't pass
               | Constitutional review.
               | 
               | If your person is threatened with imminent danger, you
               | have a right to self-defense, we'll even let you commit
               | intentional homicide if the threat is serious enough.
               | 
               | And self-defense also covers your property and livelihood
               | to a lesser extent.
               | 
               | I think it'd be extremely hard to convince courts that
               | this right to self-defense doesn't include negotiating
               | with an attacker. Imagine if it were a crime to toss some
               | money at a mugger and run away, for instance.
        
               | nradov wrote:
               | The US Constitution contains no explicit right to self
               | defense. There are a variety of state and federal laws
               | covering justifiable use of force but none of them are
               | even remotely applicable to paying ransoms. If you
               | disagree then please cite a specific legal case.
               | 
               | https://www.natlawreview.com/article/us-government-warns-
               | com...
        
             | ryanlol wrote:
             | This would only protect those without proper cyber
             | security. Why is it acceptable to let random targets suffer
             | as opposed to everyone without proper security?
        
             | FredPret wrote:
             | So let people who aren't experts at physical security
             | suffer break-ins, and physically weak people get beaten up?
             | 
             | We have law enforcement so everyone can be free to focus on
             | their own value-add in life without having to learn 1000
             | skills to cover their own ass. I love security but 99% of
             | people don't, and shouldn't
        
               | throwawaygh wrote:
               | _> So let people who aren't experts at physical security
               | suffer break-ins, and physically weak people get beaten
               | up?_
               | 
               | First, in many jurisdictions, paying protection money for
               | physical security _is_ illegal.
               | 
               | Second, Colonial Pipeline has an operating revenue of
               | $1.32 billion. I suppose in the USA it's technically a
               | person, but... it's not actually a person.
               | 
               |  _> We have law enforcement so everyone can be free to
               | focus on their own value-add in life without having to
               | learn 1000 skills to cover their own ass. I love security
               | but 99% of people don't, and shouldn't_
               | 
               | I submit that oil pipeline operators, hospitals, and
               | large corps are part of that 1%.
        
               | Vrondi wrote:
               | So, you are saying that there are jurisdictions where
               | home security systems are illegal? Night
               | watchmen/security guards and body guards are illegal?
               | Where would these jurisdictions be located?
        
               | throwawaygh wrote:
               | I don't think that's even close to what I'm saying. I'm
               | not even really sure what you are trying to communicate
               | here; are you insinuating that ADT or Ring hire roving
               | bands of bandits who break into houses that aren't
               | protected by their security systems? If not, I genuinely
               | don't know what you're trying to say here.
        
               | FredPret wrote:
               | You have a point. They should do minimum due diligence to
               | harden their networks.
               | 
               | However... how much do you want to bet that the CEO of a
               | pipeline company has the knowledge to make this happen?
               | One has to be an intelligent customer to make something
               | like this happen.
        
               | WJW wrote:
               | Well then, perhaps there should be minimum requirements
               | to become CEO of a large corporation in regulated areas
               | like pipelines? If the alternative is large harm to the
               | public, this seems like a no-brainer to me for future
               | legislation.
        
               | briandear wrote:
               | So should the president of the United States be an expert
               | on tactical jet engines? And also have a PHD in
               | economics? And also be an expert in immunology? And power
               | plant operations? How about the national airspace system?
               | 
               | People are quick to conclude that Colonial's security was
               | "bad." But do we know that to be true? A sophisticated,
               | potentially state-sponsored organization initiated this
               | attack. The best security in the world is not 100%
               | secure. It might be wise to get the facts before rushing
               | to judgement.
        
               | FredPret wrote:
               | It's probably cleaner and easier to run this if the
               | spooks set up a bureau of cyber security standards and
               | fine strategically important companies for non-
               | compliance. The gov can do security audits on these
               | corps.
        
               | Siira wrote:
               | He's a CEO. His job is to ask others to find him the
               | experts needed and manage them. He doesn't need to know
               | any actual security engineering.
        
               | FredPret wrote:
               | He needs to know the basics. How does he know someone is
               | a real expert?
        
               | nradov wrote:
               | That's a non sequitur. Certainly law enforcement should
               | aggressively pursue criminals who engage in assault,
               | burglary, and extortion. But that has nothing to do with
               | paying off ransomware gangs.
        
               | FredPret wrote:
               | Yes it does, it's a crime, in this case a class of crime
               | perpetrated, prosecuted, and prevented by experts. It
               | falls under law enforcement
        
               | dumpsterdiver wrote:
               | > We have law enforcement so everyone can be free to
               | focus on their own value-add in life without having to
               | learn 1000 skills to cover their own ass.
               | 
               | No, that's why we have division of labor. Law enforcement
               | is just another brick in the wall. If a company is
               | already making massive profits from the public by running
               | critical services, why should tax payers fund their lack
               | of diligence? Should we just fund their entire payroll
               | while we're at it?
        
           | AbrahamParangi wrote:
           | Here we have a coordination problem, like the prisoner's
           | dilemma. People who pay ransom are the defectors, improving
           | their situation at the cost of making the problem much worse
           | for everyone.
           | 
           | If fewer people paid ransom, ransomware would be less
           | profitable and would happen less often and we'd all be better
           | off.
           | 
           | The government can help coordination by making defecting more
           | costly (with criminal penalties).
        
             | sameboat632746 wrote:
             | I think criminal penalties is too much. I think at some
             | point paying ransom is better than not paying, for example,
             | in case of attacks on hospitals. People can literally die.
             | 
             | What needs to happen is that when an organization that
             | skips IT security practices, it should have large monetary
             | penalties and its executives held responsible, no golden
             | parachutes for them. You can imagine any factory where they
             | don't practice OSHA safety guidelines will get in major
             | trouble.
        
               | kortilla wrote:
               | > in case of attacks on hospitals. People can literally
               | die.
               | 
               | Setting aside the appeal to emotion, there are a couple
               | of things to unpack. In real-world ransom kidnappings,
               | life and death was always at stake and the government
               | still errs on the side of not paying.
               | 
               | Second, you presume ransomware authors are prepared to
               | commit murder. If a hospital cannot legally pay, the only
               | thing to gain by shutting it down is murder.
        
               | ls612 wrote:
               | Kidnapping for ransom is basically a dead enterprise in
               | the US because of laws essentially forbidding the paying
               | of ransom. Your appeal to emotion is exactly the sort of
               | thing that ransomware gangs want people to hear because
               | its how they make money. In the long run though its a
               | terrible idea.
        
             | UncleOxidant wrote:
             | > The government can help coordination by making defecting
             | more costly (with criminal penalties).
             | 
             | not just sticks, but also carrots: The federal government
             | should commit to doing all it can to help organizations
             | that refuse to pay ransoms. This would include help from
             | 3-letter agencies as well as bringing in alternative IT
             | infrastructure. Obviously the federal government doesn't
             | have all of these capabilities now, but this should be a
             | priority going forward.
        
               | candiodari wrote:
               | Nobody in their right mind will consider a lot of
               | attention by three letter agencies a reward or help. They
               | may, and can, do a lot more damage than 0.4% of revenue,
               | and can do a lot of damage to the individuals making the
               | decisions as well.
               | 
               | Even if they help out, it will alert everyone and
               | everything in 5 governments to all details about their
               | firm.
               | 
               | Three letter agencies have used (and destroyed) companies
               | for unrelated reasons and then left everyone without any
               | recourse. With smaller companies, this happens regularly.
               | 
               | Those governments will have representatives from their
               | lenders, from their investors, from their large clients
               | and so on in them, who will get a lot of details they
               | wouldn't normally get access to.
               | 
               | This is not happening.
        
               | UncleOxidant wrote:
               | It's the 3-letter agencies where the expertise lies.
               | Maybe a new agency needs to be created outside of the
               | intelligence agencies?
        
               | walshemj wrote:
               | Yet another one :-)
        
               | taurath wrote:
               | Yes, at least a 16-letter agency consisting of uppercase
               | lowercase letters and special characters would be much
               | better ;)
        
               | Sohcahtoa82 wrote:
               | I like to use foreign letters like ss and o in my
               | passwords.
               | 
               | Good luck guessing that password. I'm not even German.
        
             | slavik81 wrote:
             | Civil penalties may be more palatable. If organizations are
             | willing and able to pay a ransom, there should be no
             | problem with paying a fine as well.
        
               | dboreham wrote:
               | You've finally found a way to fund open source
               | development.
        
           | jeffbee wrote:
           | Let's be clear that the victims here are the public and the
           | perpetrators are the computer operators at the pipeline firm.
        
           | UncleOxidant wrote:
           | The federal government should commit to doing what it can to
           | help make organizations who refuse to pay ransoms whole
           | again.
        
             | nradov wrote:
             | That role can be better handled by private insurers in the
             | same way they make policy holders whole after physical
             | thefts.
        
             | jaywalk wrote:
             | Why should this be a problem that the federal government is
             | required to solve? Or in other words: why should my tax
             | dollars go to help an organization that couldn't manage
             | their security properly?
        
               | Vrondi wrote:
               | Because this organization endangered the economy of a
               | significant chunk of the country by their negligence,
               | then your tax dollars should go to setting standards and
               | holding them liable when they fail to meet those
               | standards.
        
               | walshemj wrote:
               | Some board member resignations might be in order and
               | being banned from being directors for 10-20 years
        
               | jaywalk wrote:
               | That's not what the OP said though. That is something
               | completely different.
        
       | nneonneo wrote:
       | Ugh. This ransomware crap _doesn 't stop until the money stops_.
       | At this point, ransomware operators are bribing insiders to
       | install their custom, AV-evading ransomware directly on company
       | servers (e.g. https://www.secureworldexpo.com/industry-news/fbi-
       | sting-the-...). No need to trick someone into running a malicious
       | Word attachment when you can just wire someone $1M to do it
       | deliberately! And, best of all, you can set this up in a totally
       | plausibly deniable way - the employee just "accidentally" opens
       | that attachment and off you go.
       | 
       | A lot of ransomware operators are on sanctions lists. Paying them
       | is _already_ illegal. The US DoJ might want to check if Colonial
       | has violated any laws in making these payments - and if they
       | have, punishing them to serve as an example could well discourage
       | future ransomware payers. As long as ransomware operators know
       | they can get paid for their work, they 're going to keep doing
       | it.
        
         | ttul wrote:
         | Absolutely this. Paying a ransom should be illegal and company
         | officers should face personal criminal liability for allowing
         | it. If the CEO of Colonial was facing jail time, there is no
         | way the payment would have happened.
        
           | Guest42 wrote:
           | I would sooner have security negligence be criminalized as
           | there are a number of products that are critical to the
           | economy and peoples health. Having a companies systems get
           | wiped out can have a monumental amount of collateral damage.
        
             | silexia wrote:
             | Paying Ransoms should be criminalized as there is far more
             | damage from allowing this to continue then having a few
             | systems wiped and restored from backups.
             | 
             | Not taking steps to have cybersecurity in companies should
             | be criminalized as well... I am a CEO and thinks CEO's
             | should be held directly criminally responsible for this.
             | 
             | Finally, any nation that allows hackers to operate from
             | within their borders should be subject to 100x over damages
             | caused sanctions. Countries without strong governments to
             | enforce this should have direct airstrikes conducted
             | against the individual hackers.
        
               | mjevans wrote:
               | If you think the 100X damages is overkill please
               | reconsider within this framework:
               | 
               | Any nation that harbors international terrorists by not
               | at least attempting to hold them accountable is
               | implicitly operating an outsourced covert activities
               | team. The actions of any such team should be considered
               | representative of that country and thus this would be an
               | act of guerilla warfare.
        
               | warlog wrote:
               | Nukem from orbit, it's the only way to be sure.
        
           | briandear wrote:
           | The Obama administration secretly organized an airlift of
           | $400 million worth of cash to Iran that coincided with the
           | January 2016 release of four Americans detained in Tehran,
           | according to U.S. and European officials and congressional
           | staff briefed on the operation afterward.
           | 
           | Wooden pallets stacked with euros, Swiss francs and other
           | currencies were flown into Iran on an unmarked cargo plane,
           | according to these officials. The U.S. procured the money
           | from the central banks of the Netherlands and Switzerland,
           | they said.
        
             | monocasa wrote:
             | To be fair, that was Iranian money in the first place that
             | had been frozen.
        
               | briandear wrote:
               | It was still a ransom. "I'll give you money, you release
               | our hostages."
        
               | jjoonathan wrote:
               | "I'll give you [back your] money, you release our
               | hostages" -- but that doesn't fit the agenda as well,
               | does it?
        
           | skinnymuch wrote:
           | I'll go to prison for some time for being their new CFO. If
           | some cash goes to myself or a close family member after I pay
           | the ransomware as CCO.
           | 
           | Obviously this would be too transparent if done in the span
           | of a week.
        
         | comboy wrote:
         | I think ransomware is the best thing that happened in computer
         | security in a long time.
         | 
         | All these companies keeping lots of people data or even being
         | relevant to national security having completely no incentive to
         | stay secure. Now There is incentive to test their security.
         | 
         | A single person being able to compromise your company when paid
         | a lot is a security issue that needs to be addressed.
        
           | [deleted]
        
           | chubs wrote:
           | I know what you're getting at... but as far as I see it, all
           | it means is that every company i've contracted to lately
           | installs horrifically limiting corporate safety-dreck that
           | ruins your battery and performance, it's really becoming a
           | lot less fun working with computers nowadays. Everything is
           | so slow and limited.
        
           | AnIdiotOnTheNet wrote:
           | This sounds like the kind of argument a ransomware developer
           | would use to delude themselves... or quite a lot like the
           | "Bitcoin is actually _good_ for the environment! " people.
        
             | fastball wrote:
             | Maybe let's try more substantive arguments than a genetic
             | fallacy.
        
             | HarryHirsch wrote:
             | Wasn't that what Jesus said about Judas Iskariot? To
             | paraphrase: there must necessarily be evil in the world,
             | but woe to the one who makes himself its conduit.
        
           | HarryHirsch wrote:
           | They could have started incentivizing after the Equifax hack.
           | Personal data of hundreds of millions of people spilled over
           | the web, everyone plus their dog gets to monitor their credit
           | report or swap credit cards, yet Equifax still exists, and no
           | meaningful consequences for anyone, including the CEO who
           | sold his shares before the intrusion become public. Why is
           | that even permitted?
        
             | hellbannedguy wrote:
             | I was going to say fine these companies a fair amount if
             | there's a data breach;
             | 
             | But they would just turn around and add their costs on to
             | the consumer.
             | 
             | I'll get hammered for this, but there's a part of me that
             | would like to just outlaw all bitcoins worldwide, and even
             | that might not work unless every country banned them?
        
           | nslice wrote:
           | To add, I'm pretty sure ransomware groups provide tips on how
           | to beef up security and how they got hacked in the first
           | place.
           | 
           | Like dentistry, you can pay a little upfront for a better
           | toothbrush or you can pay the dentist way more to repair your
           | teeth later on.
        
           | miohtama wrote:
           | The proper Milton Friedman / Reagan capitalism solution is to
           | let the hacked oil company to bankrupt, wipe out the cap
           | table and then competent new owners can take over for cheap
        
         | andy_ppp wrote:
         | I wonder how long you'd sit it out losing money before you
         | paid. I think it's very easy to talk a big game until you've
         | lost many multiples of the ransom with no end in sight. It's
         | literally just a waiting game for the hackers, they have
         | nothing to lose and everything to gain. So what if you don't
         | pay, you can just leave them screwed and move on to the next
         | one.
        
           | viraptor wrote:
           | Or if you're running a service which can't wait. Like a
           | medical clinic with no access to patient records.
        
             | andy_ppp wrote:
             | Or you know people's power, heating, electricity, ability
             | to drive, ability for services to run generally. etc. etc.
        
         | panny wrote:
         | >ransomware
         | 
         | I prefer to think of them as bug bounties. Too often, bugs are
         | reported now to bug bounty programs and are either grossly
         | underpaid for the bug's actual value, or deflected as not a
         | real issue at all. Ransomware is ultimately the result. "Fuck
         | you, pay me."
         | 
         | https://www.youtube.com/watch?v=3XGAmPRxV48
        
         | sudosysgen wrote:
         | Realistically, ransomware will just never stop until IT systems
         | are sufficiently hardened.
        
           | lurquer wrote:
           | Nah. It will never stop.
           | 
           | The problem is information density.
           | 
           | So long as billions of records that are needed for the
           | business exist in a device the size of a shoebox, we're
           | fucked. An insider can always take the shoebox, lock the
           | shoebox, etc.
           | 
           | Three stories of paper files in file cabinets can't be
           | ransomed short of a physical bomb threat.
           | 
           | Don't know what the solution is. But I do know the problem.
           | Exfiltrarion is similar: the odd quirk of technology that has
           | enabled these massive thefts is the ability to load millions
           | of pages in a few seconds into a thumb drive. Odd pickle
           | we've got ourselves into.
        
             | mrtesthah wrote:
             | Your metaphor works both ways: the ability to fit billions
             | of records in a shoebox means that it's perfectly
             | manageable to keep another shoebox as a backup, under
             | independent control.
        
             | hellbannedguy wrote:
             | There is a part of me that would like to go back to the way
             | we dud business before the internet, and computers.
             | 
             | I think three daily encrypted backups mandated by law would
             | be enough to stop the multi-million dollar ransoms.
             | 
             | We will still see companies paying ransom for a business
             | days loss, but not complete shutouts? And infrastructure
             | specific operations, like this pipe line, should be air
             | gapped.
        
           | throwaway6734 wrote:
           | And if the penalty for hacking systems for malicious purpose
           | goes up.
           | 
           | Hopefully every member of DarkSide ends up in court if
           | they're US or friendly nation citizens or in Gitmo otherwise
        
           | jorvi wrote:
           | Some ransomware is time-delayed because of this, so it isn't
           | clear which backup is still untainted.
        
           | user3939382 wrote:
           | Or sufficiently backed up, right? If you've got a backup and
           | quick recovery process ransomware is impotent.
        
             | speed_spread wrote:
             | If hackers take the slow route, all backups may be
             | encrypted too. Or at least, compromised.
             | 
             | Also, backups are often taken but rarely is their actual
             | recoverability tested.
        
             | viraptor wrote:
             | Not quite. The attacker still got access to the system in
             | some way. They may have a permanent backdoor now and
             | opportunity for messing with your backup operation.
        
             | salawat wrote:
             | This is by far the cheapest solution.
        
               | phkahler wrote:
               | unless your data is legally required to stay confidential
               | under HIPPA or similar law. Then a backup just keeps you
               | operating but not immune to the threat of data
               | publication.
        
               | johnvaluk wrote:
               | While the threat of publication is a risk, the data has
               | already been breached and you are no longer compliant
               | with the law.
        
               | mateo- wrote:
               | I wonder if companies still get fined if the data is just
               | encrypted without any exfil
        
               | dragontamer wrote:
               | What data needs to be confidential in the case of the
               | Colonial Pipeline?
               | 
               | I'm sure that there's proprietary data. Maybe knowing how
               | much oil / gasoline is flowing might allow some traders
               | to make unfairly informed trades (or maybe not: only
               | inside trading is illegal. If someone figures out the
               | information some other way, its not illegal IIRC).
               | 
               | And maybe employee data should be kept private, but
               | there's no HIPPA requirement on that. Its not like
               | there's payment processors on this thing either, so no
               | PCI compliance here.
               | 
               | So I'm not exactly seeing why backing up data would be an
               | issue in this case.
        
             | uses wrote:
             | Nowadays the attackers will threaten to disclose the
             | sensitive data publicly, as they did in this case. So
             | ensuring your own access to your data, i.e. backups, is not
             | the only concern. It's still important, of course.
        
       | splithalf wrote:
       | Every corporation in the US should be lobbying to abolish
       | Bitcoin. It's an existential threat that could be eliminated if
       | they pooled their financial and political resources.
        
         | GartzenDeHaes wrote:
         | We should start calling Bitcon etal cyber crime futures, since
         | that's what it is. The only people that have to use it are
         | crime victims and the people who are making money on it are
         | criminals and speculators.
        
         | tommoor wrote:
         | Bitcoin has nothing to do with this news? It seems like you
         | have an unrelated axe to grind.
        
           | bostonsre wrote:
           | Not sure if I agree with the sentiment or not, but I think he
           | has a point that crypto currencies can make paying ransoms to
           | international ransomware gangs much easier. Using the
           | traditional banking system would have been extremely
           | difficult and have a low chance of success for that gang.
           | 
           | I could definitely see this reasoning being used as
           | justification for anti crypto currency laws in the future.
        
           | fortran77 wrote:
           | They paid the ransom in Bitcoin.
        
         | drcode wrote:
         | Isn't it better that these networks are getting hardened in
         | exchange for a small cryptocurrency payment, instead of waiting
         | for all the exploits to be used by an adversary in World War
         | Three?
        
           | megablast wrote:
           | How are they getting hardened?? Magically??
        
           | 55555 wrote:
           | idk, considering humans are the weakest link and socially
           | engineering them is easy, I don't think they're going to end
           | up much safer. A determined nation state will always be able
           | to get in, at least with how computers currently work.
        
           | splithalf wrote:
           | I've thought about this. No.
        
         | ben509 wrote:
         | It'd have to be an international effort as there are big mining
         | operations are in Russia, Switzerland, China, Iceland as well
         | as the US.
         | 
         | Being legal means that you can run big mining operations, so
         | you could clamp down on those and slow mining. That would not
         | stop it, though.
         | 
         | Being legal means that it can be used to trade goods and
         | services, and you could clamp down on that and harm its value
         | as a currency.
         | 
         | And being legal means that legal businesses can exchange it for
         | other currencies, so clamping down on that harms its liquidity.
         | 
         | Even if you can make it broadly illegal across the globe, it's
         | hard to see how effective that would be. Illegality has made
         | anything else on the black market go away, after all, and the
         | whole point of a crypto-currency is to thrive despite
         | government suppression.
        
         | maccam912 wrote:
         | Maybe we should abolish the USD so US patent trolls can't be
         | paid?
        
       | notsureaboutpg wrote:
       | I had a feeling this was the case and even had a discussion with
       | some colleagues about whether they paid up or not. Like the
       | article says, they couldn't afford not to.
        
       | belatw wrote:
       | That's retirement money. Live on an island, doing drugs and
       | drinking champagne for the rest of your life money.
       | 
       | Im in the wrong line of work.
        
         | xwdv wrote:
         | Yea, crime really does pay here. If I was a lone hacker in a
         | nation with loose laws I'd be ransoming foreign systems and
         | building a fortune.
        
       | [deleted]
        
       | antattack wrote:
       | Correction: Consumers Paid Nearly $5M in Ransom to Hackers.
        
       | whall6 wrote:
       | In Cambodia, people buy dirt to increase their property's
       | elevation so that their neighbor's house floods when the monsoon
       | comes. Then the neighbor has to pay for more dirt and so on
       | throughout the whole neighborhood.
       | 
       | It seems like the attackers are finding the paths of least
       | resistance. Beefing up security at each organization isn't fixing
       | the underlying problem. It's just making the next entity the more
       | likely target.
       | 
       | I don't even know what the underlying problem is though...
        
         | petermcneeley wrote:
         | What a great story reminds me of this:
         | https://slatestarcodex.com/2017/02/22/repost-the-non-liberta...
        
         | syrrim wrote:
         | Suppose that everyone has raised their house up on a pile of
         | dirt. The rain comes down. It fills up the large ditches
         | between people's houses, and leaves the houses dry.
         | 
         | Suppose I implement better, but imperfect, security. It now
         | costs an attacker $6 million, in salaries, paying for exploits,
         | whatever, to hack my system. They still can only get $5 million
         | in ransom. The attack isn't worth doing anymore, so they find a
         | different business.
        
           | supertrope wrote:
           | Like The Netherlands
        
         | pawsforapplase wrote:
         | >I don't even know what the underlying problem is though...
         | 
         | Lack of accountability for either criminals or negligent
         | operators?
         | 
         | Monsoons are not directly caused by individuals, and they
         | cannot be prevented.
        
       | nimbius wrote:
       | Colonial is being widely lambasted for a culture of absolutely
       | lackadaisical security. Call me callous but numerous federal
       | agencies exist to issue security best practices and exploit
       | announcements. numerous vendors also exist. play stupid games,
       | win stupid prizes.
       | 
       | Not paying the ransom would have been tantamount to complete
       | dissolution of the company. it would have tirggered a much wider
       | investigation into the company with shareholders abandoning it as
       | the outage dragged on at the hands of an incompetent leadership.
       | 
       | Unfortunately it seems to have been a Pyrrhic victory as paying
       | the ransom puts their shareholders at risk of serious sanctions
       | and indictment from the US Dept. of the Treasury.
       | 
       | https://home.treasury.gov/system/files/126/ofac_ransomware_a...
        
         | HarryHirsch wrote:
         | You'd damn well hope so. In civilized countries, when you leave
         | the key in the ignition the cops will go after the thieves. The
         | next thing that'll happen is that they'll also go after you
         | because you just made the roads unsafe.
         | 
         | And this isn't a car, this is infrastructure with national
         | security implications. Someone needs to go and do time.
        
         | ethbr0 wrote:
         | If the US were to be serious about corporate IT security,
         | they'd empower and indemnify DoD, NSA, private industry red
         | teams to pentest against everything with a US point of presence
         | or customers, using commercial available / in the wild methods.
         | 
         | This would have the beneficial side effect of flushing all the
         | incompetent paper-pushers / requirement-box-checkers out of the
         | security industry.
         | 
         | If you're found vulnerable, that's a fine. If something gets
         | accidentally broken in the exercise, that's the price of
         | commitment.
         | 
         | Nothing is going to change until you increase the frequency /
         | likelihood of breaches for these companies. If it's a yearly
         | cost, it gets addressed. If it's a catastrophic possibility, it
         | gets ignored.
        
           | Miner49er wrote:
           | The market has already solved this in the form of ransomware
           | groups. No need to have the government do it and issue a
           | fine, ransomware groups literally are doing what you said.
           | 
           | I guess the government could legalize ransomware hacking to
           | encourage it, but that'll never happen.
        
             | beardbandit wrote:
             | I'd rather the money and fines flow to the US government,
             | not random hacker groups.
        
               | meepmorp wrote:
               | But the hacker groups let me pay in crypto.
        
           | rini17 wrote:
           | They could do it indirectly, by requiring insurance against
           | security holes.
        
           | kingaillas wrote:
           | >If the US were to be serious about corporate IT security
           | 
           | What happened to the responsibility of corporations for
           | corporate security? Including corporations that are the
           | victims of attacks, and corporations that sell buggy
           | operating systems and applications?
           | 
           | Why does the government have to provide the red teams? The
           | general attitude is all government agencies are wasteful and
           | incompetent, except in this circumstance where the wealthiest
           | corporations in the history of the world apparently can't
           | spend enough to fix their own crap. But the government not
           | only can but should??
           | 
           | This just sounds like externalizing costs to the public while
           | banking record private profits.
           | 
           | How about rather than subsidizing software corporations we
           | talk about liability laws and fines, like any other physical
           | industry that releases dangerous, broken products. Or an
           | insurance system that is funded by a portion of the profits
           | the software industry makes. Then we're actually making the
           | software vendors feel some pain which will incentivize them
           | to release higher quality code.
        
             | miohtama wrote:
             | "Too big to fail" and investors do not get hurt.
             | 
             | The problem does not fix itself until the investors start
             | truly losing money, the care, unlike the Equifax case.
             | Until the portfolio value cannot go down 90% there is not
             | going to be a change in corporate actionism.
        
         | TechBro8615 wrote:
         | I wasn't aware of this policy. Is it totally apolitical or does
         | the WH need to initiate the sanctions process? Consider the
         | optics of sanctioning the domestic company providing your own
         | country's critical infrastructure, right after you spend a week
         | discovering just how critical it really is.
        
       | ggm wrote:
       | Charge the board and top execs: Take the $5m payment out of their
       | bonus and KPI and share stock.
        
       | kjrose wrote:
       | The fact this was paid off, and paid off so rapidly means that
       | targeting major infrastructure for massive payoffs is going to
       | become more and more prominent. The next time though, it'll be
       | $50M. I work with people in the oil fields and I know the numbers
       | they are playing with and the fact that a single well being down
       | can easily be $100,000 lost per hour. So obviously they want
       | these systems back up fast.
       | 
       | $5M for shutting down that major of a pipeline seems like too
       | little, unless, of course, they weren't expecting the company to
       | even pay. Now that these actors know that the oil (and quite
       | likely other utilities) are more than willing to pay big bucks to
       | get back online, they will be targeted far more.
       | 
       | There are so many reasons this is very very bad.
        
         | charlesju wrote:
         | Yeah, but now there is also a massive bounty out for these
         | hackers. Money needs to get out at some point and that's when
         | they'll get nailed.
        
         | brightball wrote:
         | What I have heard regarding ransoms like these is that the
         | perpetrators goal is to incentivize the transaction goes
         | smoothly, or it won't continue to work.
         | 
         | So they have to follow through with unlocking and they have to
         | use an amount of money low enough to make the decision obvious.
        
         | TechBro8615 wrote:
         | Sounds like a $50m incentive to hire a security team.
        
         | alasdair_ wrote:
         | I agree. I'd give 60% odds that there is at least one
         | significant attack (ransomware plus shutdown) on US power grids
         | in the next 18 months.
        
       | ed25519FUUU wrote:
       | "That if once you have paid him the Dane-geld, You never get rid
       | of the Dane."
       | 
       | It's going to be a tough few years being in security in the
       | industrial control field for the next few years.
       | 
       | https://www.poetryloverspage.com/poets/kipling/dane_geld.htm...
        
         | mikewarot wrote:
         | I was thinking that now is a good time to go INTO computer
         | security, you now have a solid example to use justifying your
         | actions.
         | 
         | In the past we worried about exfiltration of data, now we'll be
         | worried about infiltration of control.
        
           | ed25519FUUU wrote:
           | Good point. If only they paid software engineers who work on
           | critical infrastructure the same as they paid software
           | engineers who work on ads.
        
       | aazaa wrote:
       | > Once they received the payment, the hackers provided the
       | operator with a decrypting tool to restore its disabled computer
       | network. The tool was so slow that the company continued using
       | its own backups to help restore the system, one of the people
       | familiar with the company's efforts said.
       | 
       | I thought the protocol for these attacks was to send the
       | decryption keys, not provide a "decrypting tool."
       | 
       | If some kind of software was provided by the attackers, and
       | Colonial installed it, this could be far from over.
       | 
       | Also, if the company has backups, then why not use them instead?
       | If they're incomplete, then that's the real problem.
        
         | londons_explore wrote:
         | The ransomware typically has both the encrypter and decryptor
         | built in.
         | 
         | It's a simple matter of copy-pasting the key into a box, and
         | the decryption will happen.
         | 
         | Over a slow network link (like a VPN to a remote NAS), I could
         | totally imagine it taking days/weeks/months to scan every file
         | though...
        
         | capableweb wrote:
         | Probably a reporter/reporting issue. No company that just have
         | been hacked would run a binary received from the hackers in
         | order to restore the systems, they cannot be that stupid. But
         | then again, they did pay the ransom and also seemingly can't
         | restore their systems from backups, so who knows how stupid
         | they really are?
         | 
         | More charitable reading is that the encryption key was sent
         | over, and they started restoring with that but using standard
         | OSS tooling.
        
           | solarkraft wrote:
           | > No company that just have been hacked would run a binary
           | received from the hackers in order to restore the systems,
           | they cannot be that stupid.
           | 
           | Uh, why? The system is already compromised. They're already
           | in.
        
             | bellyfullofbac wrote:
             | Well if the company is already that messed up to not have
             | backups and desperate that they paid criminals...
             | 
             | One would hope they'd just run the decryption program on
             | each computer, not connected to the network. Or maybe hire
             | some experts to extract the decryption key.
        
           | smsm42 wrote:
           | > they cannot be that stupid
           | 
           | Oh yes they can.
           | 
           | Also, assume you have the key - what you do with it? You
           | don't know how the files were encrypted, in which way they
           | were stored afterwards, etc. There are many ways one can
           | encrypt and write data, even with the same key - you
           | obviously need the algorithm, but also there are often
           | parameters (e.g. block sizes), storage formats etc. The
           | easiest way to deliver all that is to provide a program.
           | 
           | Otherwise, what a random "press any key" IT person would do
           | with an encryption key? They probably don't even have any
           | tools that can do encryption on any of the systems. Do they
           | have to write those themselves? Use OSS tools - which ones?
           | With which parameters? What if it doesn't work?
        
           | hangonhn wrote:
           | > More charitable reading is that the encryption key was sent
           | over, and they started restoring with that but using standard
           | OSS tooling.
           | 
           | That would make a lot more sense but I also bet there's a
           | non-zero chance that in a day some dumb media outlet will
           | conflate those tools as "hacker tools" and the headline will
           | be "Hacker tools used in Colonial pipeline hack available
           | freely on Internet. News at 10."
        
             | Red_Leaves_Flyy wrote:
             | These inane arguments didn't kill GTA, or virtually
             | anything else. How are they going to kill OSS that hasn't
             | needed mainstream appeal and still doesn't? So, maybe some
             | high school kids end up on the github pages and become 1337
             | hackers? Quite a stretch..
        
           | megablast wrote:
           | How do they decrypt it then?? Just show the key to the
           | computer??
        
           | stefan_ wrote:
           | What? No, the ransomware people truly do send a decryption
           | tool, or the decryption functionality is built into the
           | ransomware. Do you think they are sending people some AES key
           | and then everyone goes off and builds some python tool to
           | decrypt his data?
           | 
           | This is a fundamental misunderstanding of the ransomware
           | business. The whole reason people pay up is because the
           | hackers don't run and leave you hanging; if you pay they will
           | decrypt your data. Trust and convenience are essential to
           | making this work.
        
             | [deleted]
        
             | axiosgunnar wrote:
             | Great, we should get the word out then that some don't.
             | 
             | Perhaps a few cases of high-profile companies falsly
             | claiming ,,wow, what a load of shit! we got ransommed and
             | after paying up the hackers disappeared! we had to restore
             | from backup, AND the money is gone".
             | 
             | What are the hackers gonna do, sue those companies? :-)
        
               | abrawill wrote:
               | Oh I don't know. Maybe the hackers will hold their
               | operation hostage for ransom? Get the money and get some
               | nice PR all at the same time!
        
         | Nextgrid wrote:
         | > If some kind of software was provided by the attackers, and
         | Colonial installed it, this could be far from over.
         | 
         | To be fair, malicious code has already ran on the affected
         | machines, so if the ransomware authors wanted to do further
         | damage they wouldn't need a malicious decryptor to do that.
         | 
         | So you'd either:
         | 
         | 1) not trust the ransomware authors, rebuild everything from
         | scratch (potentially paying the ransom and reverse-engineering
         | the decryptor or running it isolated from the internet) and
         | make sure to not carry over any executable code that could
         | allow potential malware to persist
         | 
         | 2) trust the ransomware authors and not rebuild everything, in
         | which case you may as well run their decryptor
        
         | ben509 wrote:
         | Don't rely on technical details from Bloomberg.
        
         | yodelshady wrote:
         | > I thought the protocol for these attacks was to send the
         | decryption keys, not provide a "decrypting tool."
         | 
         | Fair, but anyone who pays me $5M and wants a powershell script
         | gets one, and an air freshener of their choice.
        
         | Neil44 wrote:
         | I've only helped people pay a couple of times but they always
         | provided a shoddy .exe decryptor.
         | 
         | Consider that most victims are small fry who would not know
         | what to do with just a key.
        
         | booleandilemma wrote:
         | I don't think the hacking group would want to show future
         | targets that paying the ransom won't get them un-hacked. People
         | would stop paying them. It would be bad for business.
         | 
         | If anything they're working on speeding up their decrypting
         | tool for the next release :)
        
       | thedogeye wrote:
       | I'm kinda surprised the CIA doesn't randomly disappear hackers
       | like they've done to so many terrorists the last few decades.
        
         | aynyc wrote:
         | I'm willing to bet state actors blend into random ware group.
        
       | wonderwonder wrote:
       | One thing that this attack has proven is that if we ever reach
       | the point where we engage in military conflict with either Russia
       | or China we are going to be functioning as if we experienced a
       | country wide emp within a few days. Our infrastructure is
       | massively vulnerable.
        
         | TechBro8615 wrote:
         | Wait til you hear about the satellites.
         | 
         | A global hot war between super powers would be disastrous for
         | everyone involved. That's why it probably won't happen. I'd be
         | more worried about rogue actors, terrorists and other "mad men"
         | who might get their hands on a dirty bomb or fry the power grid
         | in New York in January.
        
       | loveistheanswer wrote:
       | It's better to have criminals who are only interested in a
       | relatively small payout exposing to the general public how
       | vulnerable critical infrastructure is than people who are
       | interested in causing mass destruction.
        
         | [deleted]
        
         | demadog wrote:
         | They should have just called it a bug bounty and then everyone
         | would be happy.
        
       | dmingod666 wrote:
       | - Got Hacked by installing malware for free.
       | 
       | - Liked it so much, sent 5M to download another program from the
       | same people.
        
       | ineedasername wrote:
       | I'm not really anti-crypto, but a strong disadvantage to society
       | is that these attacks are made much more easily because they can
       | bypass traditional financial institutions.
        
       | podgaj wrote:
       | Why is everyone taking the word of colonial pipeline and all
       | this?
       | 
       | I could think of several scenarios where they would want to shut
       | down by making up the whole story. Or maybe even hired the
       | hackers them selves.
        
       | drzoltar wrote:
       | Dumb question: why can't crypto currencies and exchanges place
       | the ransom tokens on some kind of blocklist, thereby forever
       | tainting those coins? As I understand, the rise of "privacy
       | wallets" has greatly increased the anonymity of such
       | transactions. But, at the end of the day, don't we always have a
       | ledger of the coin ids? I'm curious how the coins actually get
       | laundered back into cash.
        
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