Russian cybercrime suspect arrested in $1m ransomware conspiracy


Here’s a cybercrime conspiracy story with a difference.

When we write about network-wide ransomware attacks where a whole company is blackmailed in one go, two burning questions immediately come up:

  • How much money did the crooks demand?
  • Did the victim pay up?

The answers vary, but as you have probably read here on Naked Security, modern ransomware criminals often use a two-pronged extortion technique in an attempt to maximise their asking price.

First, the crooks steal a trove of company files that they threaten to make public or to sell on to other crooks; then they scramble the data files on all the company’s computers in order to bring business to a halt.

Pay up the blackmail money, say the crooks, and they will not only “guarantee” that the stolen data will never be passed on to anyone else, but also provide a decryption program to reconstitute all the scrambled files so that business operations can resume.

Recent reports include an attack on fitness tracking company Garmin, which was allegedly blackmailed for $10m and did pay up, though apparently after wangling the amount down into the “multi-million” range; and on business travel company CWT, which faced a similar seven-figure demand and ended up handing over $4.5m to the criminals to get its business back on the rails.

In contrast, legal firm Grubman Shire Meiselas & Sacks faced a whopping $42m ransomware extortion demand but faced it down, likening the crooks to terrorists and refusing to pay a penny.

More recently, US liquor giant Brown-Forman took a similar stance, refusing to deal with criminals after its network was infiltrated.