Security News > 2021 > May > Insurance Firm CNA Financial Reportedly Paid Hackers $40 Million in Ransom
U.S. insurance giant CNA Financial reportedly paid $40 million to a ransomware gang to recover access to its systems following an attack in March, making it one the most expensive ransoms paid to date.
CNA Financial's $40 million ransom only shows that 2021 continues to be a great year for ransomware, potentially emboldening cybercriminal gangs to seek bigger payouts and advance their illicit aims.
According to an analysis by ransomware recovery firm Coveware, the average demand for a digital extortion payment shot up in the first quarter of 2021 to $220,298, up 43% from Q4 2020, out of which 77% of the attacks involved the threat to leak exfiltrated data, an increasingly prevalent tactic known as double extortion.
In October 2020, the Treasury Department issued a guidance warning of penalties against companies making ransom payments to a sanctioned person or group, prompting ransomware negotiation firms to avoid cutting a deal with blocked groups such as Evil Corp to evade legal action.
"Companies that facilitate ransomware payments to cyber actors on behalf of victims, including financial institutions, cyber insurance firms, and companies involved in digital forensics and incident response, not only encourage future ransomware payment demands but also may risk violating regulations," the department said.
The surge in ransomware attacks has also had an impact on the cyber insurance industry, what with AXA announcing earlier this month that it will stop reimbursing clients in France should they opt to make any extortion payments to ransomware cartels, underscoring the dilemma that "Insurance firms grapple with successfully underwriting ransomware policies while confronted with rising payout costs that threaten profitability."