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Chubb tackles claim increase with ransomware focused product

Ransomware is a form of malware that restricts access to data on infected computer systems. It generally propagates as a trojan, where the file initially seems to be legitimate, but can take on different forms. Some types restrict access to an infected computer, others systematically encrypt files on a system’s hard drive. No matter the style, a ransom is extorted to regain access to the data, typically in a digital currency such as bitcoin or pre-paid cash vouchers.

Ransomware is a form of malware that restricts access to data on infected computer systems. It generally propagates as a trojan, where the file initially seems to be legitimate, but can take on different forms.

Some types restrict access to an infected computer, others systematically encrypt files on a system’s hard drive. No matter the style, a ransom is extorted to regain access to the data, typically in a digital currency such as bitcoin or pre-paid cash vouchers.

McAfee“Ransomware will remain a major and rapidly growing threat in 2016. With upcoming new variants and the success of the ‘ransomware-as-a-service’ business model, we predict that the rise of ransomware that started in the third quarter of 2014 will continue in 2016.”
— – McAfee Labs 2016 Predictions

In the last four weeks, hospitals in the United States have been held hostage by ransomware attacks, putting people’s lives, private information and insurance claims at risk.

Unlike credit cards, health records are less likely to depreciate in value, and are proving to be an attractive hoard for bad actors. ‘‘If someone steals your credit card and home address, they might be able to buy something, but you can usually get that locked down quickly,’’ said Tony Anscombe, a security expert at AVG Technologies. ‘‘With medical records and a Social Security number, it’s not so simple.”

Earlier this week, the Methodist Hospital in Henderson, Kentucky, placed a scrolling red alert on its homepage stating that they were working in an “Internal State of Emergency,” due to a computer virus that had “limited our use of electronic web based services.”

The amount being demanded for the release of the files is approximately US$1,600. However, last month, Hollywood Presbyterian Hospital, paid approximately US$17,000 in bitcoin to unlock encrypted data on their system.

The ransomware responsible for the attacks is called “Locky,” as it renames all files with the extension .locky, and it is not the first of its kind. In 2013, Cryptolocker ran rampant, accumulating over US $3m before it was taken down by authorities in 2014. The US Federal Bureau of Investigation estimate that a separate variant, Cryptowall, had extorted over US$18m by June 2015. These are merely two examples, and new additions, such as Locky are the on the rise.

New ransomeware

Due to the complexity behind malware, and an unfamiliarity with digital currencies and encryption, many businesses and institutions are struggling to remain secure against this growing threat.

Security companies, such as AVG, provide some simple protection advice. Do not open an email from an unrecognized source, do not open any suspicious attachments when you don’t recognize the sender, and don’t download anything unless and until you are running current, updated antivirus software.

Another security company, Kaspersky, are attempting to thwart the onslaught. Kaspersky Lab worked with the Netherlands’ National High Tech Crime Unit (NHTCU) last year, in an attempt to disable the CoinVault and Bitcryptor ransomware campaigns.

“During our joint investigation we have obtained data that can help you to decrypt the files being held hostage on your PC,” states Kaspersky. “We are now able to share a new decryption application that will automatically decrypt all files for Coinvault and Bitcryptor victims.”

Kaspersky“We are considering this case as closed. The ransomware authors are arrested and all existing keys have been added to our database.”
— – Kaspersky Labs

While they may have won the battle, the war is far from over. In a recent blog post, Kapersky Lab described a new version which attacks servers, called CTB-Locker. So far 70 servers in ten different countries have been affected, and a decryptor tool kit does not yet exist.

Those who are unfortunate enough to be infected by these newer versions of ransomware are left with little choice. Pay the ransom, or lose the data.

"Similar to data breaches, many businesses are not equipped to deal with a cyber extortion attempt, where the timeliness of the response is even more critical. If not handled properly, recently publicized cases show that ransomware can be just as damaging as data breaches to a company’s reputation and balance sheet," said Toby Merrill, Division Senior Vice President and Global Cyber Risk Practice Leader.

Earlier this month, Chubb, one of the world’s largest publicly traded property and casualty insurance companies, announced its Global Cyber Risk Practice, a service to assist policyholders with ransomware attacks.

Chubb“In response to a 430-percent growth rate in Chubb’s criminal-related cyber losses over the past five years, Chubb’s Global Cyber Risk Practice has launched a service to assist policyholders with ransomware attacks.”
— – Chubb

According to a recent press release, threat assessment is a critical component of the service being offered. Chubb states that ransomware can potentially be used to disguise a much larger attack, which will often distract from larger data breaches, which could result in greater losses.

The product is an end-to-end risk management solution, designed specifically to serve the needs of middle-market and larger companies, along with multinationals in Continental Europe and the UK. policyholders can immediately assess the scope of the attack by connecting with cyber experts.

Chubb has assembled an independent panel of cyber experts, who can help determine the appropriate course of action. This includes assisting with ransom payments, including the use of bitcoin technology.

"The introduction of our ransomware service underscores Chubb’s commitment to helping businesses face the increasingly complex nature of cyber risk. Cyber exposures have no boundaries, and Chubb is one of the few insurers capable of quickly delivering truly global solutions to all organizations, regardless of size, industry or location."
— – Chubb


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