Colonial Pipeline Reportedly Paid $5M Ransom to Free Data System

[TomCADem]

Source: The Street

Colonial Pipeline Co. reportedly paid Eastern European hackers almost $5 million in ransom on Friday to free up its data system, after it had shut its East Coast pipeline system.

Two knowledgeable sources provided the information to Bloomberg. Their account conflicted with reports earlier this week that the company wouldn't pay ransom to the hackers.

The payment was made in the form of untraceable cryptocurrency within hours after the attack, which had led Colonial to close its pipeline for safety, the sources said.

Once the hackers got their money, they gave Colonial a decrypting tool to restore its frozen computer network, the sources said. The tool acted slowly, so the company continued using its own backups to restore the system, one of the sources said.

Read more: https://www.msn.com/en-us/money/markets/colonial-pipeline-reportedly-paid-5m-ransom-to-free-data-system/ar-BB1gHvVG

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Unlike the Trump administration, which tried to hide the hacks to the US infrastructure, Biden should treat this like a terrorist attack originating from the country of the hackers.

https://apnews.com/article/donald-trump-politics-mark-levin-coronavirus-pandemic-hacking-6080f156125a4a46edef2a6dcf826611

Trump downplays Russia in first comments on hacking campaign

WASHINGTON (AP) — Contradicting his secretary of state and other top officials, President Donald Trump on Saturday suggested without evidence that China — not Russia — may be behind the cyber espionage operation against the United States and tried to minimize its impact.

In his first comments on the breach, Trump scoffed at the focus on the Kremlin and downplayed the intrusions, which the nation’s cybersecurity agency has warned posed a “grave” risk to government and private networks.

“The Cyber Hack is far greater in the Fake News Media than in actuality. I have been fully briefed and everything is well under control,” Trump tweeted. He also claimed the media are “petrified” of “discussing the possibility that it may be China (it may!).”

There is no evidence to suggest that is the case. Secretary of State Mike Pompeo said late Friday that Russia was “pretty clearly” behind the operation against the United States.

[Deminpenn]

1. US cybersecurity experts will be interested in the decrytion key

code, I'm sure

[PSPS]

6. The decryption key is unique to each infection.

[Deminpenn]

28. Would think it's like bombs, though

where every bomb is unique, but there is a discernable signature.

[PSPS]

31. No. RSA encryption means, without the unique key for that individual infection, you've had it.

[Miguelito Loveless]

2. I would think this, right here,

would be a reason to ban cryptocurrency.

[TomCADem]

5. Exactly. What legitimate purpose does cryptocurrency serve...

...but I bet that if Biden supports, watch Republicans immediately jump on the side of terrorists again.

[Miguelito Loveless]

8. When I ask this of crypto proponents

they give me all sorts of arguments that pretty much sound the same as the nonsense I get from gun advocates who tell me guns maintain "freedom" and "protect" us from tyrannical government.

[DENVERPOPS]

19. It serves the purpose

of ending all MONEY LAUNDERING by all the white collar mob......and tyrants around the world.....

[AllyCat]

22. How does cryptocurrency end money laundering by the white collar mob?

And tyrants? It seems that it is just easier for them to launder money through virtual currency.

[Warpy]

27. Actually, they have a perfect money laundry in London

especially the tyrants.

Cryptocurrency is how drug lords and other scum move their money around.

Oh, it started out high minded, defeat the man, increase privacy, blah blah blah. Now it's a pure Ponzi scheme being exploited by some Very Bad Men (TM).

I would love to see governments unite to ban these scams, uniting in this is what it will take since new ones keep popping up like poison mushrooms.

[JohnSJ]

32. Two legitimate purposes Tom

1. Money laundering
2. Ponzi scheme

[jmowreader]

61. You forgot buying illegal items off the Dark Web...

...also drug deals and paying ransom.

[JohnSJ]

62. Gosh, it is sooooo flexible

[melm00se]

25. The genie is out of the bottle

Not sure how you can undo that.

[Miguelito Loveless]

39. Seems to me this only works if

crypto can be exchanged for legal tender. Stop that, and the party is over. Also, treat any bank/business that facilitates crypto, or any person facilitating is engaged in money laundering.

The major purpose of crypto that I have seen is to facilitate crimes such as blackmail, extortion, money laundering, and tax evasion.

[melm00se]

48. Unfortunately

you would have to prove that.

The state cannot assume that the possessor of cryptocurrency is going to break the law.

Additionally, all it takes is one state to allow the exchange of cryptocurrency for legal tender and the system breaks down.

[Miguelito Loveless]

60. All banks must deal withe Federal Reserve

so any state that decides it wants to exchange crypto can find itself cut off from the Federal banking system. A currency can't exist without gov't tolerance at least. I would subject crypto to the same reporting requirements as regular cash. Transactions over $10K must be explained and documented.

Cryptocurrency is a financial ghost gun. Sure it MIGHT have a legitimate use, but not in practice. It pretty much exists to facilitate crime.

[ffr]

43. Or regulate it.

That'll force the Dark Web scum that use it, to run back to cash.

[ProudMNDemocrat]

3. Of course, consumers will repay the ransom.

[FailureToCommunicate]

49. Especially since Colonial didn't HAVE to turn off the tap, but since they did, prices shot up. They

will reap more than enough to cover the ransom, AND still claim they have to have the rest of us pay for their lax, hackable systems.

[PSPS]

4. "untraceable cryptocurrency" is a widely-believed falsehood

The owner of the "wallet" can be identified and the funds can be frozen and clawed back.

[getagrip_already]

15. While that is true of some crypto currencies, others are much harder to trace....

Guess which they tell you to use?

[PSPS]

26. They're all traceable.

It's just not talked about very often for obvious reasons but it is mentioned in several indictments I've read.

[Warpy]

29. The FB( cracked Tor

so I think by now they've managed to crack Bitcoin, which is how the scammers have been traced to China.

[PSPS]

30. China? Virtually all ransomware attacks originate in russia or eastern europe.

[Warpy]

37. I read it earlier, now I can't find the article

It was likely premature.

[getagrip_already]

35. hint - cyber criminals don't use bitcoin, and it wasn't china..... n/t

[getagrip_already]

38. not all are as easy to track as bitcoin.....

Not all use standard blockchain and go to great lengths to obscure traceability.

Ever hear of Monero, Zcash, Komodo, or Horizen?

Not your daddies block chain.

[PSPS]

45. They're all traceable. Don't believe the sizzle.

[getagrip_already]

56. and aes 2048 can be broken - but....

At what cost, and what level of effort, and in what timeframe.

Untraceable doesn't mean unbreakable, just impractical.

[yaesu]

7. tRump gave the words crime pays a whole new meaning. nt

[ancianita]

9. Now, can they follow the money?

[Chainfire]

10. Putin's hold on Trump still intact

Once again, Trump goes to bat for his buddy.

[3825-87867]

11. Guess who lost here!

For 5 million, they could have had a rather good backup system and better security. But, hey, who cares when you really get down to it?
The company isn't going to lose on this. The "ransom" will be paid by its customers through rate increases (temporary til 2100 A.D., of course) or special fees.

Sounds like a good plan to allow companies to raise prices and set blame elsewhere and in reality, lose nothing.

The Russians didn't screw an American Company, they just stuck it up the asses of the American People. And I wouldn't be surprised if more happens.

Putin moved into 21st Century Warfare while we're still on the beach waiting for supplies that Republicans (R - Russian) claim cost too much.

And the Pipeline Company? Do you think they really care? If they did then they should have had better preparation and while their almighty bottom line is their reason to exist, they WILL get their money back (from us) and then some.

SAPs - Stupid American People

[3825-87867]

16. Excuse me?

I guess I needed to add the sarcasm note.

WOW! No words!

[AllyCat]

23. Uh, no. Not pro-Putin. Try reading it again.

Completely agree with the poster. The American people get screwed and the corporation can do it again and probably make some money in the process. Unbridled American capitalism at work again...for the corporations!

[3825-87867]

50. Thank you Allycat

[DENVERPOPS]

17. The cost is passed along

the corporations never absorb the costs of their poor decisions...........

Just wait until the good ol' USA becomes a wholly owned subsidiary of the UCA......United Corps of America.
That will just become an automatic thing when the republicans install their Corporate Fascist Tyranny.

No one has heard much from Trailer Trash Barbie and her husband Jared. Maybe Putin set them up as a malware franchisee of Putin's very own Russian hackers.........

All roads lead to Putin..............was it Pelosi that said that?

And Putin is still going after the U.S. via Kompromat he has on countless Republican leaders.........

[AllyCat]

24. The UCA? The United Cities of America?

I am a Death Stranding fan

[DENVERPOPS]

57. United Corporations of America

or better yet......United Corporations of Fascist America......

has a nice ring to it, don't you think? THE REPUBLICANS sure as hell do..........

[neohippie]

44. many businesses have cyber insurance

Our company went through one of these attacks and the I think most of the expenses related to it were covered by our insurance many of these policies cover extortion and then the costs to help prevent future attacks as well.

[DENVERPOPS]

58. The insurance premiums are probably

just short of how much the cyber thieves would demand...........

and a ton more to pay for future security costs of improvement......

Soon, all these corporations will figure out a way to ask the Politicians to make a law that the federal gov't will cover the costs for a small token of what the insurance companies want for the coverage.

Crazy?

What about the Federal Insurance program for flood insurance???? No insurance company would touch flood insurance for any amount of money, so the feds offer the insurance for a considerably cheaper price. When you see all those coastline uber wealthy homes that get totaled in a hurricane????? You can be sure that a large portion is subsidized by taxpayers thru that gov't flood insurance...........

[rockfordfile]

59. I agree

[TheFarseer]

12. We need to get serious

About finding these people and hunting them down.

[Rocknation]

14. Either someone is lying to us

Last edited Sun Jun 6, 2021, 09:41 PM - Edit history (1)

or Colonial plans to use the payment as an excuse to jack up post-hack gas prices...though I find it quite interesting that former President Putin Pal has started playing his "No Collusion with Russia" broken record again.

https://www.democraticunderground.com/10142742123


rocktivity

[The Mouth]

18. Should be an instant and lethal visit

from a SEAL team when they figure out who it was.

I'd love to interrogate one of those 'hackers'.

[Evolve Dammit]

20. Ex-Pres. seems pretty cool with Extorsion. Of course.

[Shanti Shanti Shanti]

21. So the criminals have a name now?

[roamer65]

33. A nice attack on the Russian oil and gas industry would be nice.

Go at Rosneft.

[barbtries]

34. i really hope they had not.

crime pays.

[neohippie]

36. The vast majority of these ransomware attacks

These cyber gangs are most likely linked and backed by nation states that are the enemies of the US.

North Korea, Russia and even Arabic actors are know to use these kinds of crimes to move billions of dollars from European and North American targets of ransomware attacks using crypto-currencies. The crypto-currencies allow these countries to avoid international banking and US sanctions, they allow them to get around embargos etc...


And yes the attacks all use unique decryption keys.

Its not just the crypto-currencies that allow this to happen, its also email services that allow the users to remain anonymous too that are needed so that these criminals can evade being traced as well, so they are constantly hiding behind other hacked systems to launch new attacks and jumping from one email account to another so that they are harder to trace back to the gangs or track their locations

This is a huge international problem and it will be while these nation states allow this to happen and give the criminals safe harbor

[bucolic_frolic]

40. Gee, I wonder who needed and got the money

Just askin'

[Traildogbob]

41. Equates to pennies for them.

Right off loss on taxes, will raise price enough to get it back in a day.

[ffr]

42. $5M more to hire more talent and improve their ransomeware practices

FFS!

[kimbutgar]

46. I don't understand why President Biden is to blame for a private company being hacked!

[DFW]

52. That seems to be the going rate

About 2 years ago, they tried this with my outfit, too, and asked $5 million to ransom us. But our IT department anticipates this kind of attack all the time, and backs everything up offline every few hours. Back then, it was every day, but as it cost us a few days of reconstruction for that one day, we now do it every few hours. The good news is that we didn't pay those assholes a dime (or a ruble), but they probably just shrug their shoulders and move on to the next victim, and hope for better luck next time.

[FBaggins]

53. "(K)nowledgeable sources" doesn't necessarily mean truthful sources

The company has reason to want people to believe that they didn't pay a ransom (or need to)... but the hackers have a reason to want people to believe that paying them is a rational decision.

[NCjack]

54. Fire the CEO and reduce his termination pay by $5M. Then, we will

see CEOs get serious about computer security.

[AllaN01Bear]

55. so, now they will be embolden to do more of this .

[Devil Child]

63. This is terrorism and I hope Biden responds appropriately, like a drone-strike on the hackers homes.