Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
The Threat of Ransomware 2.0 for Law Practices
During the past few months, there has been a significant paradigm shift in the cybersecurity world. Threat actors from Russia, in particular, have significantly enhanced their capabilities to target individual businesses and Managed Service Providers (MSPs) or IT companies. As of late December, hacking groups such as Sodinokibi (aka "Evil Corp") and Ryuk have been impacting thousands of businesses across the United States in a multitude of ways. It is critical that lawyers, their firms and the companies they serve be aware of these threats and take the appropriate measures to proactively secure their own — and their clients' — sensitive and private information.
Tracking Major Recent Ransomware Attacks
Approximately 16 months ago, the FBI and Department of Homeland Security warned MSPs that certain threat actors were planning large-scale attacks against them. In August of 2019, we saw the largest distributed ransomware attack encrypt and hold hostage the data of approximately 450 businesses and impact thousands of computers and servers. During Thanksgiving week, they hit 100 businesses and then, on December 24, approximately 1,300 businesses were victims.
The ransomware encrypted almost every computer, server, external backup, cloud backup, etc., resulting in the inability to access a single file. Think about this for a minute. The second largest attack in our nation's history was against small and medium-sized businesses; not banks, large corporations or hospitals.
How does something like this happen? It is simple. The threat actors gain access to the IT company's remote management tools that they use to access a law practice's computers and servers, load their malicious code into the tool and instruct the tool to download and install the ransomware into all the computers. Within minutes, they can strike tens of thousands of computers. These attacks typically occur during the early morning hours, so the first indicator of the attack is employees' inability to log in and access any information on the computers. The result is literally every single file and database is encrypted with ransomware.
Breaking Down the Fallout of a Ransomware Attack
Based on some of the most recent ransomware attacks, most businesses experienced a two- to four-week outage. In every case that we handled, the business experienced 100 percent encryption on every device and backup. Due to the pervasiveness of the ransomware attacks, there was no recovery option except to pay the threat actors the ransom payment. Most businesses had to pay, on average, $45,000 to the threat actors for a decryption tool. Add on top of that, the business interruption, inability to collect A/R or access critical business files and the complete rebuilding of every computer and server. The price tag for these attacks easily exceeds $100,000 for a small business and significantly more for a medium-sized business.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Bonus Content: How Emerging Technologies Are Impacting IP: A Chat With Legalweek Speaker Ryan Phelan
A Q&A with conference speaker Ryan Phelan, a partner at Marshall, Gerstein & Borun and founder and moderator of legal blog PatentNext, to discuss how courts and jurisdictions are handling novel technologies, the copyrightability of AI-assisted art, and more.
Overview of Regulatory Guidance Governing the Use of AI Systems In the Workplace
Businesses have long embraced the use of computer technology in the workplace as a means of improving efficiency and productivity of their operations. In recent years, businesses have incorporated artificial intelligence and other automated and algorithmic technologies into their computer systems. This article provides an overview of the federal regulatory guidance and the state and local rules in place so far and suggests ways in which employers may wish to address these developments with policies and practices to reduce legal risk.
Is Google Search Dead? How AI Is Reshaping Search and SEO
This two-part article dives into the massive shifts AI is bringing to Google Search and SEO and why traditional searches are no longer part of the solution for marketers. It’s not theoretical, it’s happening, and firms that adapt will come out ahead.
While Federal Legislation Flounders, State Privacy Laws for Children and Teens Gain Momentum
For decades, the Children’s Online Privacy Protection Act has been the only law to expressly address privacy for minors’ information other than student data. In the absence of more robust federal requirements, states are stepping in to regulate not only the processing of all minors’ data, but also online platforms used by teens and children.
Revolutionizing Workplace Design: A Perspective from Gray Reed
In an era where the workplace is constantly evolving, law firms face unique challenges and opportunities in facilities management, real estate, and design. Across the industry, firms are reevaluating their office spaces to adapt to hybrid work models, prioritize collaboration, and enhance employee experience. Trends such as flexible seating, technology-driven planning, and the creation of multifunctional spaces are shaping the future of law firm offices.