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Instructure pays ransom to Canvas hackers

insidehighered.com

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Re: Instructure pays ransom to Canvas hackers

#51

Earlier quoted context omitted.

Not only is it not illegal, there are insurance policies set up to take care of this very scenario. It's almost always handled by a third party, not the company themselves, that would deal with any such concerns.

It is illegal to pay terrorists. As bad and annoying as hackers are, I'm not familiar with any government recognizing any hacking group as a terrorist group. If they did, would they be able to send in SEAL Team 6 to handle the hackers?

> As bad and annoying as hackers are, I'm not familiar with any government recognizing any hacking group as a terrorist group.

If you’re sending a large sum of money to $anonymoushacker, how do you ensure they’re not on some OFAC list? Or do your AML checks? Or make sure you’re not on the wrong side of Foreign Corrupt Practices act? The third party probably turns a blind eye to that cuz there’s no way of really checking.

Re: Instructure pays ransom to Canvas hackers

#52
post #39

Earlier quoted context omitted.

This is always the game theory of ransoms, and it is a classic example of a collective action problem (and is a form of a prisoner's dilemma). Each individual company is probably better off paying the ransom, but everyone would be better off if no one paid a ransom. This is why the United States, for example, has an official no-ransom policy, and why other no-ransom policies exist. You have to have something forcing…

> Each individual company is probably better off paying the ransom, but everyone would be better off if no one paid a ransom. You're then a target known to be vulnerable and pay ransoms, so best focus on security.

If you have to pay, at least try to negotiate 1) a guarantee that the hackers won't just do it again sometime later, and 2) full disclosure / assistance in repairing your vulnerabilities so you have some kind of head start for the future. Outside of politically motivated hackers, this would probably be reasonably successful.

Re: Instructure pays ransom to Canvas hackers

#53

Earlier quoted context omitted.

The same group has a reputation to uphold (i.e., that of 'honourable' criminals), so they just move on to the next target, who will, incidentally, know that they are absolutely true to their word. (This is why paying off ransomware hackers is being made illegal in a number of countries.) A different group? Certainly. I wouldn't want to be in the shoes of the infosec guys at Canvas right now.

So they hacker group could create an unregistered subsidiary and hack some more?

They could but also why would they?

They can always just hack them again but with a different method this time.

The ransom doesn't bind them from hacking the company multiple times. It just obligates them to destroy the data they collected from this attack.

As a matter of kindness and good business they'll probably wait a few months or a year or so before poking around again but they'll almost certainly continue poking at Instructure's systems.

Data exfil ransom attacks are a business first and foremost. They don't permanently halt or destroy the original infra and their goal is to get a payout for their labor and move on. Maybe the come back around in the future with another, different attack, maybe they don't.

They made their money and made it big in the news as having complied with the ransom payout, no reason to hurt their reputation trying to double dip. Plenty of other soft targets to poke.

Re: Instructure pays ransom to Canvas hackers

#54

Earlier quoted context omitted.

The same group has a reputation to uphold (i.e., that of 'honourable' criminals), so they just move on to the next target, who will, incidentally, know that they are absolutely true to their word. (This is why paying off ransomware hackers is being made illegal in a number of countries.) A different group? Certainly. I wouldn't want to be in the shoes of the infosec guys at Canvas right now.

So they hacker group could create an unregistered subsidiary and hack some more?

Sure. In all likelihood ShinyHunters will 'gracefully' point out the weak spots leveraged in the system of the 'customer' upon receiving payment to prevent this happening again next week.

They have a rather strong incentive to keep this a happily-ever-after ending for Instructure and any other target who pays up. It's all taught in Maffia 101.

Re: Instructure pays ransom to Canvas hackers

#55

on one hand, every ransom paid encourages like-minded individuals to start or ramp up their ransomware game , which is not great. on the other hand, the ransomware groups that want to stay in business need to be honest (with respect to not releasing/deleting data) or they wont be 'credible' ransomware operators, which is kind of funny to think about. and in many cases, the victims would rather the ransomware operator…

I'm not sure that attacker reputation is particularly meaningful. The group can rebrand into a new identity at any time. They're anonymous cybercriminals after all and there are lots of reasons they might need to do that beyond reputation laundering. The calculus for the victims doesn't seem to change much whether the same people are using a "new" name or an old one to hold their systems hostage.

> I'm not sure that attacker reputation is particularly meaningful. The group can rebrand into a new identity at any time. They're anonymous cybercriminals after all and there are lots of reasons they might need to do that beyond reputation laundering.

It is very meaningful. You seem to equate that "new" = "trust by default", but a new group is distrusted by default. Let's say that for a new group which is unproven to hold up their end of the deal, only 5% of victims will pay the ransom. But if you've built up a reputation over 5 years of honoring your ransoms, then maybe 50% of your victims will pay the ransom. Reputation is literally everything here. I doubt Instructure would have paid such a high-profile ransom if they didn't have a strong reason to believe it would work.

Re: Instructure pays ransom to Canvas hackers

#56

on one hand, every ransom paid encourages like-minded individuals to start or ramp up their ransomware game , which is not great. on the other hand, the ransomware groups that want to stay in business need to be honest (with respect to not releasing/deleting data) or they wont be 'credible' ransomware operators, which is kind of funny to think about. and in many cases, the victims would rather the ransomware operator…

This is always the game theory of ransoms, and it is a classic example of a collective action problem (and is a form of a prisoner's dilemma). Each individual company is probably better off paying the ransom, but everyone would be better off if no one paid a ransom. This is why the United States, for example, has an official no-ransom policy, and why other no-ransom policies exist. You have to have something forcing…

Famously summarized by Kipling

https://www.kiplingsociety.co.uk/poem/poems_danegeld.htm

Re: Instructure pays ransom to Canvas hackers

#57

Earlier quoted context omitted.

This is always the game theory of ransoms, and it is a classic example of a collective action problem (and is a form of a prisoner's dilemma). Each individual company is probably better off paying the ransom, but everyone would be better off if no one paid a ransom. This is why the United States, for example, has an official no-ransom policy, and why other no-ransom policies exist. You have to have something forcing…

There’s a similar dynamic from within the hacker group itself. For the ransom group, it is better for them to be perceived as trustworthy. Pay the ransom and we won’t leak your data. For any individual within the ransom group, they can get a big payout by selling the data.

I don’t know if that’s really true. Nobody would really give a shit if you leaked where everyone goes to college… because it’s already on their LinkedIn or whatever.

The only people it’s valuable for is the ransomee, because they don’t want the reputational hit of having their data everywhere.

Re: Instructure pays ransom to Canvas hackers

#58
post #5

LOL that's some super heavy duty optics framing on what basically amounts to "we paid out a ransom but don't worry the bad guys assured us things were okay"

They said “received digital confirmation of data destruction (shred logs)” - is this supposed to fool users into thinking the hackers didn’t keep any of the data?

Re: Instructure pays ransom to Canvas hackers

#60
I suspected as much as it disappeared from the ShinnyHunters page and it recovered so fast. The main thing I'm interested in knowing was how much was paid. Also I don't really like their statement that the data is safe or destroyed, those promises seem a little questionable with regards to these incidents.
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