Colossal Ransomware Attack At Florida-Based IT Firm Hits Thousands Of US Companies

According to the cybersecurity firm Huntress Labs Inc, a breach at the U.S. IT firm Kaseya in Miami led to more than thousands of American businesses hit by ransomware attacks.

What Happened: On Friday, the attackers changed a Kaseya tool called VSA, used by the company to provide IT services primarily to small- and medium-sized businesses, Reuters reported. 

Huntress said that this is a colossal and devastating supply chain attack and the REvil ransomware gang was to blame for the attack. REvil, is among ransomware gangs that steal data from targets before activating the ransomware, strengthening their extortion efforts. 

The ransomware attack potentially threatened the MSP customers by gaining access to their system. The security firm said that 20 MSPs had been affected thus far. The firm was tracking eight managed service providers used to infect some 200 clients.

SYNNEX Corporation SNX and Avtex LLC are the two major MSPs affected by this ransomware attack. 

On its website, Kaseya has said that it was investigating the potential attack on VSA. The company has also shut down some of its infrastructures and has asked customers that used VSA on their premises to turn off their servers immediately.

The U.S. Cybersecurity and Infrastructure Security Agency said it was “taking action to understand and address the recent supply-chain ransomware attack” against Kaseya’s VSA product.

Why It Matters: Last month, President Joe Biden had proposed $750 million for the government agencies hit by the SolarWinds Corp SWI hack to pay for cybersecurity improvements to prevent the attack. An additional $500 million fund was proposed for a technology modernization fund. 

An additional $110 million for the Cybersecurity and Infrastructure Security Agency and $15 million for the Office of the National Cyber Director were set aside. 

According to the New York Times report, the chief executives of Wall Street’s six largest banks were asked to name the greatest threat to their companies, and they all mentioned “cybersecurity.” 

In recent times, cyber attackers have gained a strong foothold because of increased nation-state cyberattacks against critical infrastructure.

According to the report, the federal government and financial institutions have formed information-sharing groups, performed tabletop exercises, and invested heavily in cybersecurity. JPMorgan Chase & Co. JPM spends about $600 million each year on cybersecurity efforts.

However, experts say there are significant gaps in awareness and preparation for a cyberattack on Wall Street.

Image by methodshop from Pixabay

Posted In: CybersecurityRansomware attacksREvilNewsTop StoriesTech

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.