How a ransomware attack paralysed businesses globally

As the US was preparing to go into holiday mode to celebrate the country's independence day on Friday, a ransomware attack on a technology company affected thousands of businesses not only within US but also elsewhere in the world.
 
The hackers hijacked a widely used technology management software from a Miami-based supplier called Kaseya. They changed a Kaseya tool called VSA, used by companies that manage technology at smaller businesses, and then encrypted the files of those providers' customers simultaneously.
 
Besides hitting and disrupting businesses in US, the ransomware forced Swedish grocery store chain Coop to close all 800 of its stores on Saturday as it could not operate its cash registers.
 
The hackers demanded ransom of $50,000 from small businesses and $5 million from bigger companies to restore their system and allow them to resume operations, as per a report in Quartz.
 
Security firm Huntress Labs, which was one of the first to sound the alarm over the attack, said over 1,000 businesses in US, Europe, among others, were affected by the attack. It said Russia-linked REvil ransomware gang might be behind the latest ransomware outbreak. The FBI had last month blamed the same group for the cyberattack on meat packer JBS USA.

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Meanwhile, Kaseya on Sunday said it had hired cybersecurity company FireEye Inc to help deal with the fallout of the ransomware attack. "Our security, support, R&D, communications, and customer teams continue to work around the clock in all geographies to resolve the issue and restore our customers to service," the company said in an update on its website.
 
The attack was serious enough for US government to get involved, with President Joe Biden directing intelligence agencies to investigate who was behind it. Biden said "we're not certain" who is behind the attack. "The initial thinking was it was not the Russian government but we're not sure yet," he said.
 
Last month during a meeting with Russian President Vladimir Putin, Biden had urged him to crack down on cyber hackers emanating from Russia, and warned of consequences if such ransomware attacks continued to proliferate.
 
The US government asked "anyone who believes their systems have been compromised" due to the latest attack to report the incident immediately.
 
(With agency inputs)

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