Ransomware: Hackers Break Into Blackmail Business

Cyberpirates engage in extortion on individuals as well as companies, through data kidnapping and threats to reveal sensitive information. Red Alert for the accounting department.

According to Europol, several millions computers have been infected in the past two years, generating a multi-million-euro turnover.
According to Europol, several millions computers have been infected in the past two years, generating a multi-million-euro turnover.
Sandrine Cassini

PARIS"If you are a customer of Domino's Pizza, know that we asked them not to publish your data in exchange of 30,000 euros...”

This was the message posted on Twitter in mid-June by the “collective" of hackers Rex Mundi. The pizza delivery company has refused to bow to the blackmail of the group, which boasted of stealing data from 600,000 customers.

This incident is just the latest illustration of the new weapon for cybercriminals: old-style extortion. “Usually, the demands are not made public. Here, the hackers are playing their last card,” says Gérôme Billois, computer security consultant at Solucom.

He reckons that Rex Mundi would have made more money by reselling the data on the black market. A brand's customer is worth between 50 cents and 2 euros, and between 300,000 and 1.2 million euros for the whole load like in this case of Domino’s Pizza, Billois estimates, “though data lose their value very quickly."

This is the “ransomware” game that is especially in fashion now. It can take the form of blocking the functioning of a computer and then asking the owner between 300 and 1,000 euros for him to have his encryption keys. “Sometimes the hacker makes a sneaky pass for ransom by sending an official message that appears to come from an authority imposing a fine," says Loïc Guézo from Trend Micro.

According to Europol, several millions of computers have been infected in the past two years, generating a multi-million-euro turnover.

The same phenomenon strikes companies in different ways. Discretion is required, so the ransom demands tend to be in bitcoin, the emerging virtual and untraceable currency.

But the first order of business is often kidnapping the data. Michel Van Den Bergue, CEO of Orange Cyberdefence, cites a case where hackers got their hands on a trove of human resources data. "They threatened to reveal the salaries of top managers on both internal and public forums,” he said. The ultimatum was a success for the hackers: the company paid.

A limitless imagination

A second option is for the hackers to paralyze an information system or threaten to destroy a sensitive data base (customers’ files, leaders’ email, etc). They can also threaten to overload a company's network or system. "The hackers paralyzed the trading room of a bank for 45 minutes, and it caused colossal losses," says Laurent Combalbert, a former officer in the anti-terror unit of the French national police, who now works in crisis management and ransom negotiation for private firms. If the amounts do not seem large compared to the damage that could be suffered, it is precisely because the approach has been to encourage the victims to pay.

So how should companies react? “We advise them to reveal the fuss and, more than anything, not to pay the ransom because otherwise it becomes a spiral," says Combalbert. "In extreme cases, negotiations happen — only by email since the hackers have dematerialized the negotiation — the ultimate goal remaining to convince the victim to give up."

The latest phenomenon is the fake orders of transactions. By getting informations on social networks, hackers pretend to be the bosses, putting pressure on an accountant or an assistant: “On LinkedIn, you can easily access all the charts of a company and its strategic projects. We saw some of our clients accepting to do transfers of 100,000 or 200,000 euros,” says Jean-Michel Orozco, chief of cybersecurity at Airbus Defence and Space.

Banks — particularly Société Générale, BNP Paribas, and CDC — take this phenomenon very seriously. The French central bank has made the issue a priority on its annual agenda.

And when you thought it couldn't get worse, the final trick worth mentioning: direct intrusion into the billing system. "I had the case of a client who had 1.5 million (euros) stolen this way," says Gerome Billois. How? The hacker broke into the company information system, and in the guise of the accounting department, commissioned several major transfers.

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Ecological Angst In India, A Mining Dumpsite As Neighbor

Local villagers in western India have been forced to live with a mining waste site on the edge of town. What happens when you wake up one day and the giant mound of industrial waste has imploded?

The mining dumpsite is situated just outside of the Badi village in the coastal state of Gujarat

Sukanya Shantha

BADI — Last week, when the men and women from the Bharwad community in this small village in western India stepped out for their daily work to herd livestock, they were greeted with a strange sight.

The 20-meter-high small hill that had formed at the open-cast mining dumpsite had suddenly sunk. Unsure of the reason behind the sudden caving-in, they immediately informed other villagers. In no time, word had traveled far, even drawing the attention of environment specialists and activists from outside town.

This mining dumpsite situated less than 500 meters outside of the Badi village in the coastal state of Gujarat has been a matter of serious concern ever since the Gujarat Power Corporation Limited began lignite mining work here in early 2017. The power plant is run by the Power Gujarat State Electricity Corporation Limited, which was previously known as the Bhavnagar Energy Company Ltd.

Vasudev Gohil, a 43-year-old resident of Badi village says that though the dumping site is technically situated outside the village, locals must pass the area on a daily basis.

"We are constantly on tenterhooks and looking for danger signs," he says. Indeed, their state of alert is how the sudden change in the shape of the dumpsite was noticed in the first place.

Can you trust environmental officials?

For someone visiting the place for the first time, the changes may not stand out. "But we have lived all our lives here, we know every little detail of this village. And when a 150-meter-long stretch cave-in by over 25-30 feet, the change can't be overlooked," Gohil adds.

This is not the first time that the dumpsite has worried local residents. Last November, a large part of the flattened part of the dumpsite had developed deep cracks and several flat areas had suddenly got elevated. While the officials had attributed this significant elevation to the high pressure of water in the upper strata of soil in the region, environment experts had pointed to seismic activities. The change is evident even today, nearly a year since it happened.

It could have sunk because of the rain.

After the recent incident, when the villagers raised an alarm and sent a written complaint to the regional Gujarat Pollution Control Board, an official visit to the site was arranged, along with the district administration and the mining department.

The regional pollution board officer Bhavnagar, A.G. Oza, insists the changes "aren't worrisome" and attributes it to the weather.

"The area received heavy rain this time. It is possible that the soil could have sunk in because of the rain," he tells The Wire. The Board, he says, along with the mining department, is now trying to assess if the caving-in had any impact on the ground surface.

"We visited the site as soon as a complaint was made. Samples have already been sent to the laboratory and we will have a clear idea only once the reports are made available," Oza adds.

Women from the Surkha village have to travel several kilometers to find potable water

Sukanya Shantha/The Wire

A questionable claim

That the dumpsite had sunk in was noticeable for at least three days between October 1 and 3, but Rohit Prajapati of an environmental watchdog group Paryavaran Suraksha Samiti, noted that it was not the first time.

"This is the third time in four years that something so strange is happening. It is a disaster in the making and the authorities ought to examine the root cause of the problem," Prajapati says, adding that the department has repeatedly failed to properly address the issue.

He also contests the GPCB's claim that excess rain could lead to something so drastic. "Then why was similar impact not seen on other dumping sites in the region? One cannot arrive at conclusions for geological changes without a deeper study of them," he says. "It can have deadly implications."

Living in pollution

The villagers have also accused the GPCB of overlooking their complaint of water pollution which has rendered a large part of the land, most importantly, the gauchar or grazing land, useless.

"In the absence of a wall or a barrier, the pollutant has freely mixed with the water bodies here and has slowly started polluting both our soil and water," complains 23- year-old Nikul Kantharia.

He says ever since the mining project took off in the region, he, like most other villagers has been forced to take his livestock farther away to graze. "Nothing grows on the grazing land anymore and the grass closer to the dumpsite makes our cattle ill," Kantharia claims.

The mining work should have been stopped long ago

Prajapati and Bharat Jambucha, a well-known environmental activist and proponent of organic farming from the region, both point to blatant violations of environmental laws in the execution of mining work, with at least 12 violations cited by local officials. "But nothing happened after that. Mining work has continued without any hassles," Jambucha says. Among some glaring violations include the absence of a boundary wall around the dumping site and proper disposal of mining effluents.

The mining work has also continued without a most basic requirement – effluent treatment plant and sewage treatment plant at the mining site, Prajapati points out. "The mining work should have been stopped long ago. And the company should have been levied a heavy fine. But no such thing happened," he adds.

In some villages, the groundwater level has depleted over the past few years and villagers attribute it to the mining project. Women from Surkha village travel several kilometers outside for potable water. "This is new. Until five years ago, we had some water in the village and did not have to lug water every day," says Shilaben Kantharia.

The mine has affected the landscape around the villages

Sukanya Shantha/The Wire

Resisting lignite mining

The lignite mining project has a long history of resistance. Agricultural land, along with grazing land were acquired from the cluster of 12 adjoining villages in the coastal Ghogha taluka between 1994 and 1997. The locals estimate that villagers here lost anything between 40-100% of their land to the project. "We were paid a standard Rs 40,000 per bigha," Narendra, a local photographer, says.

The money, Narendra says, felt decent in 1994 but for those who had been dependent on this land, the years to come proved very challenging. "Several villagers have now taken a small patch of land in the neighboring villages on lease and are cultivating cotton and groundnut there," Narendra says.

They were dependent on others' land for work.

Bharat Jambucha says things get further complicated for the communities which were historically landless. "Most families belonging to the Dalit or other marginalized populations in the region never owned any land. They were dependent on others' land for work. Once villagers lost their land to the project, the landless were pushed out of the village," he adds. His organization, Prakrutik Kheti Juth, has been at the forefront, fighting for the rights of the villages affected in the lignite mining project.

In 2017, when the mining project finally took off, villagers from across 12 villages protested. The demonstration was disrupted after police used force and beat many protesters. More than 350 of them were booked for rioting.

The villagers, however, did not give up. Protests and hunger strikes have continued from time to time. A few villagers even sent a letter to the President of India threatening that they would commit suicide if the government did not return their land.

"We let them have our land for over 20 years," says Gohil.

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