In January, the Lewis Roca Rothgerber Christie Data Protection and CybersecurityTeam warned of evolving cybersecurity threats, including a significant re-emergence of ransomware-malicious software that locks or alters computer data and demands a ransom payment to unlock or restore the data. In particular, Maze ransomware was highlighted as a troubling new "double threat," which not only locks or alters the target data but also exfiltrates it, thus allowing the hackers to threaten publication of the data, identity theft, or other harms beyond the initial breach.
Since January, the COVID-19 pandemic has altered the global economy, leading to even greater cybersecurity threats as more and more people are connecting remotely. Indeed, the FBI has reported a 300% increase in the number of daily complaints submitted to its Internet Crime Complaint Center (IC3) during the pandemic. Security researchers have similarly reported a 600% increase in spear-phishing attacks, many of which relate specifically to COVID-19 (see also https://www.imcgrupo.com/covid-19-news-fbi-reports-300-increase-in-reported-cybercrimes/).
In addition, several high-profile targets have suffered security incidents during this period, including Bank of America, Cognizant (one of the world's largest IT services firms) and Grubman Shire Meiselas & Sacks (an entertainment law firm that had data relating to Lady Gaga and President Trump, among others). Both Cognizant and Grubman Shire suffered ransomware attacks, with the former tied to the Maze hackers or related cybercriminals and the latter credited to REvil, a similar ransomware gang, which apparently demanded a $42-million ransom from the law firm.
These attacks are part of the same worrying trend that we discussed in January, which has continued to grow exponentially during the COVID-19 pandemic. Therefore, and in light of possible second or third waves of COVID-19 that could extend remote-working arrangements, businesses should continue to work with their cybersecurity professionals, insurance providers, and legal counsel to review existing policies and practices and update them as necessary, not only to avoid possible data breaches but also to prepare for the aftermath if one were to occur. With regard to post-breach strategies, for example, many businesses continue to take a hard line in refusing to negotiate with hackers, but alternative strategies should be considered, as the hackers have demonstrated the ability and willingness to carry out their threats.
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