Ransomware- Think Before You Click
Amy Fennell • December 27, 2017
By: Patricia B. McMurray, JD, Samuel L. Felker, JD, CIPP/US and Gina G. Greenwood, JD, CIPP/US Baker, Donelson, Bearman, Caldwell & Berkowitz, PC
Over the past year, no information security concern has demanded more media and corporate attention than ransomware. The evolution of this threat from an ineffective nuisance to a sophisticated business model generating hundreds of millions of dollars for hackers has been impressive to say the least, and the number and frequency of attacks are on the rise. Petya, Bad Rabbit, Wanna Cry, Crytolocker and other ransomware cybersecurity attack have infiltrated many company's IT systems.
WHAT IS RANSOMWARE?
Ransomware is a category of malware or malicious software that disables the functionality of a computer in some way. After infecting a computer, the ransomware program displays a screen message that demands payment, usually in bitcoin (or other cryptocurrency) in order to avoid traceability. Sometimes the scammers add pressure by including a countdown clock and threatening to destroy data unless payment is made by the deadline. Ransomware has evolved over time, using various techniques to disable a computer, but the most recent iteration either locks the computer display, disallowing any access to programs or actually encrypts and/or removes files. The malware, in effect, holds the computer captive and demands a monetary ransom as an extortion. The hackers promise to provide the "key" to unlock the computer and restore functionality once payment is made. Ransomware generally infects IT systems in a similar manner as other types of malware. Commonly, the user clicks on an infected popup advertisement or on an infected link within an email and is directed to an infected website. To provide perspective about the scope of this problem, PhishMe recently reported that a staggering 93 percent of phishing emails were infected with ransomware in Q1 of 2016. With a simple click on a link or by opening an attachment, malware can enter the network, quickly infecting files and encrypting data.
If that isn't scary enough, ransomware hacking techniques are becoming more sophisticated and dangerous. According to Bill Dean, digital forensics expert and Senior Manager for LBMC Information Security, ransomware attacks often involve encrypting with an "unbreakable" code the entire system – including local user created files, local system backups (volume shadow copies), network shares to which the infected user account has modify rights (often causing major devastation) and any locally attached USB drives. In addition, an undocumented "feature" of most current ransomware variants is that cloud-based storage is also at risk. Cloud storage solutions often synchronize the local user files to the Cloud provider. Dean warns that if the ransomware encrypts the local files that are to be synchronized, and there are not multiple versions in the cloud, the cloud-synchronized files will also be encrypted.
WHAT IS THE FUTURE OF RANSOMWARE?
By performing a detailed analysis of ransomware samples, Dean and his colleagues have determined that these attacks are currently geographically focused on certain countries. Additionally, due to the price tolerance (and likelihood of payment) of different countries, the amount of ransom fee demanded will actually vary based on the location of the machine that is infected, with most ransomware attacks commanding relatively small amounts in ransom to encourage quick, no-fuss payment. Attackers also target the file types most likely to glean payment. According to Dean, ransomware is getting highly sophisticated with the ability to avoid detection and lie in wait, attack later, and extract and remove data – causing true data theft scenarios.
HOW TO DEFEND AGAINST RANSOMWARE ATTACKS
There are currently no "silver bullets" to prevent ransomware infections. With the elusive methods of constant changing of attack signatures, conventional controls – such as anti-virus software – are not enough. However, there are preventative measures that can be taken by organizations to build resilience against ransomware attacks. The FTC recommends:
Train and Educate Staff. Implement education and awareness programs to train employees to exercise caution online and avoid phishing attacks.
Use Good Cyber Hygiene. Practice good security by implementing basic cyber hygiene principles:
o Assess the computers and devices connected to networks to identify proactively the scope of potential exposure to malware.
o Identify technical measures that can mitigate risk, including endpoint security products, email authentication, intrusion prevention software and web browser protection.
o Implement procedures to keep security current.
o Update and patch third-party software to eliminate known vulnerabilities.
Create Backups. Back up your data early and often. Well-prepared organizations with reliable backup systems may be able to restore systems from those backups with minimal data loss or business interruption.
o Identify business-critical data in advance and establish regular and routine backups.
o Keep backups disconnected from your primary network so that you can rely on the backup in the event of an attack.
Plan Ahead. Prepare for an attack. Develop and test incident response and business continuity plans. We recommend your response plan detail attorneys, IT and forensic vendors and experienced law enforcement agents and their 24/7 cell phone numbers - and incorporate vendors approved by your cyber insurance policy.
Additionally, in the unfortunate event of a ransomware attack, we recommend that businesses formally assess the damage after an attack by conducting a forensic examination; however, companies should not allow the IT system / logs to be wiped clean or otherwise be modified. Your business will need to preserve the firewall, network and server logs as evidence of what happened. This is critical to be able to prove whether there was or was not a breach that requires reporting to consumers, the media and state/federal government. Preparing in advance for a ransomware attack is critical to surviving and navigating a ransomware attack. An attack is not always fatal but mismanagement of an attack can be.
Preparing in advance for a ransomware attack is critical to surviving and navigating a ransomware attack. An attack is not always fatal but mismanagement of an attack can be.
For the detailed steps your organization can take to prepare for a ransomware attack, see Ransomware: What to Do When Your Files Are Held Hostage, developed by analysts at LBMC Information Security.
If you suspect you have been hacked or victimized by cybercriminals, you should immediately contact qualified counsel to assist in your investigation, resolution and in any required reporting to state or federal agencies such as the Consumer Protection Section of the Louisiana Attorney General, if the breach of the security of the computer systems includes personal data ( see LA R.S. 51:3071 et seq ).
Week 9 brought several major Louisiana REALTORS® priorities into posture as the Legislature moved deeper into the final stretch of the session. Two of our top priority bills, HB 468 and HB 1027 both by Representative Troy Hebert , cleared the Legislative Bureau and advanced to the Senate floor calendar for third reading and final passage. HB 468, our residential wholesaling regulation bill, remains one of the most important consumer protection measures of the session. The bill brings transparency, accountability, and clear rules of the road to residential real estate wholesaling in Louisiana. HB 468 previously passed the House by a vote of 96–0 and is now positioned for final Senate consideration. HB 1027, which clarifies that licensed real estate appraisers are not liable for a seller’s failure to comply with carbon monoxide detector requirements, also advanced to the Senate floor calendar after previously passing the House by a vote of 90–0. Both bills remain in strong posture, and Louisiana REALTORS® will continue working for final passage as they move through the Senate. Another major development this week was the House passage of HB 1166 by Representative Kim Carver , which passed unanimously on May 5, 103–0. HB 1166 creates a practical disclosure framework for vacant residential property transactions and is designed to help buyers, sellers and real estate professionals avoid late-stage surprises involving access, utilities, drainage, flood risk, prior use and other material property conditions. This bill has been a key part of Louisiana REALTORS®’ consumer protection and transactional clarity agenda. HB 1166 was received in the Senate on May 7 and now moves into the Senate side of the process, where Louisiana REALTORS® will continue working closely with the author and stakeholders as the bill advances. Tort reform and civil justice issues also moved forward this week. HB 437 by Representative Michael Melerine , which addresses the award of expert witness fees in civil litigation, passed the House by a vote of 75–18 and was received in the Senate on May 7. HB 1089 by Representative Dennis Bamburg Jr. , which creates structured CARE Accounts for certain categories of tort damages, passed the House by a vote of 67–29 and was also received in the Senate. Louisiana REALTORS® continue to support meaningful tort reform as part of the broader effort to improve Louisiana’s legal environment, reduce litigation-driven costs, and help stabilize the property insurance market. A more predictable civil justice system directly supports property owners, consumers, businesses and the long-term health of Louisiana’s real estate market. Property insurance remains one of the most important issues facing homeowners and property owners across the state. HB 1187 by Representative Paul Sawyer , dealing with Citizens Property Insurance emergency assessments, has been received in the Senate and referred to the Senate Insurance Committee after previously passing the House by a vote of 87–9. Several additional insurance-related measures remain active, including bills addressing fortified roof endorsements, stated-value homeowner policies, insurance notice requirements, nonrenewal restrictions, and pre-suit claim review. HB 408 , which addresses insurance nonrenewal prohibitions, and HB 1210 , which addresses mandatory pre-suit claim review, remain pending in the House Insurance Committee. Louisiana REALTORS® will continue to closely monitor these measures because insurance affordability, availability and market stability remain central to housing affordability and private property ownership in Louisiana. Several Senate bills also continued moving through the House processes this week. SB 241 by Senator Valarie Hodges , which requires insurance adjusters and appraisers to include their license numbers in written communications, cleared the Legislative Bureau on May 6 and returned to the House floor calendar. This measure remains relevant to transparency, accountability, and consumer confidence in the insurance claims process. SB 180 by Senator Franklin Foil , which allows surviving spouses of deceased disabled veterans to transfer their expanded property tax exemption, was scheduled for House floor debate this week and remains a positive homeowner protection and property tax fairness measure. Louisiana REALTORS® also continues to monitor legislation dealing with blight, redevelopment and rent stabilization. HB 284 by Representative John Wyble , which would authorize certain parishes and municipalities to expropriate blighted property by declaration of taking, remained on the House calendar this week as a notice-given, subject-to-call bill. The bill previously failed on the House floor by a narrow vote of 48–47 and remains under active reconsideration. Blight policy is important, but redevelopment tools must be balanced with private property rights, due process, and protections for property owners. HB 472 by Representative Alonzo Knox , which would authorize municipalities to implement rent stabilization programs, remains involuntarily deferred in committee. Louisiana REALTORS® continues to oppose rent control and rent stabilization proposals in any form because these policies reduce housing supply, discourage investment, and ultimately worsen affordability challenges over time. As we move into Week 10, Louisiana REALTORS® will remain focused on securing final Senate passage of HB 468 and HB 1027, advancing HB 1166 through the Senate, and continuing to engage on the tort reform and insurance measures that directly affect property owners, housing affordability and the real estate profession. With REALTOR® Day at the Capitol taking place during this critical stretch of the session, member engagement will be especially important as legislators continue to make decisions on real estate, insurance, liability, redevelopment and private property rights issues. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
Week 8 was one of the most consequential weeks of the session so far for Louisiana REALTORS® and the real estate industry. Two of the association’s flagship bills moved to the brink of final Senate action, rent stabilization was stopped again in committee, major insurance legislation continued to advance, and several bills affecting property rights, tort reform and transaction practice saw meaningful movement. The biggest developments of the week came on HB 468 and HB 1027 , both by Rep. Troy Hebert . HB 468 , the residential wholesaling bill, cleared the Senate Commerce Committee on April 28, had its amendments adopted on April 29, and was referred to the Legislative Bureau putting it one step away from the Senate floor. HB 1027 , the appraiser liability bill, followed the same path after its overwhelming House passage earlier this month and is also now pending Legislative Bureau review before final Senate consideration. Louisiana REALTORS® strongly supports both measures, which are designed to strengthen consumer protection, improve market clarity and reinforce confidence in the real estate transaction process. On the rent-control front, HB 472 by Rep. Alonzo Knox was brought back before the House Municipal, Local and Parochial Affairs Committee this week. Louisiana REALTORS® testified in opposition, and the committee voted 8-5 to defer the bill involuntarily. That is a meaningful win for property owners, housing providers, and the long-term health of Louisiana’s housing market. Louisiana REALTORS® remains firmly opposed to rent stabilization proposals, which may sound politically attractive, but have consistently been tied to reduced housing supply, deterioration in rental stock and long-term affordability problems in markets where they are adopted. Insurance remained one of the session’s most active and important policy areas. HB 1187, Rep. Paul Sawyer , dealing with Louisiana Citizens for emergency assessments, passed the full House 87-9 on April 29, and now heads to the Senate. Because Citizens' assessments can ultimately affect policyholders across the state, this bill has clear relevance for affordability and homeownership costs. HB 408, Rep. Edmond Jordan was heard in House Insurance Committee this week and remains pending. This bill would prohibit insurers from non-renewing residential policies when homeowners have taken documented steps to reduce risk, an issue with direct implications for insurability and failed closings in vulnerable markets. In addition, SB 241 by Sen. Valarie Hodges , which requires insurance adjusters and appraisers to include their license numbers in written communications, cleared House Insurance unanimously and is now headed to the House floor. Taken together, these measures reflect the legislature’s continued focus on insurance stability, transparency and accountability, all of which remain central to real estate activity in Louisiana. Week 8 also brought movement on broader tort reform and property-rights-related legislation. HB 437 , addressing expert witness fees, and HB 1089 , creating structured CARE Accounts for tort damages, both cleared House Civil Law and are now set for House floor debate next week. Meanwhile, SB 180 by Sen. Franklin Foil , allowing surviving spouses of disabled veterans to transfer a property tax exemption, is nearing final House passage after advancing to third reading. While not all of these bills directly regulate licensees, they reflect the broader civil liability and property tax environment that affects the cost and accessibility of owning property in Louisiana. Another key bill for the industry, HB 1166 by Rep. Kim Carver , remains very much alive and is now positioned for House floor debate on Tuesday, May 5 . The bill would require disclosures for vacant residential property, and it would close an existing gap in Louisiana law that currently exempts many vacant homes from standard seller disclosure rules. After being called and returned to the calendar earlier in the week, the bill is now finally set for debate. Louisiana REALTORS® also intends to use the bill as a vehicle for a structural amendment to the Louisiana Real Estate Commission that would move toward a more geographically balanced appointment process, with one member appointed from each congressional district and the remaining members appointed at large. That change would better ensure regional representation across Louisiana’s diverse real estate markets and help modernize the commission’s structure. Taken together, week 8 was a strong and consequential week for Louisiana REALTORS®. The association’s two flagship bills are now within reach of Senate floor passage, rent stabilization was turned back in committee, important insurance legislation continued moving, and HB 1166 remains positioned as both a major disclosure bill and a possible vehicle for meaningful LREC reform. Louisiana REALTORS® remains fully engaged at every stage of the process to protect private property rights, support practical regulation and advance policies that strengthen Louisiana’s real estate market. Lastly, this week, Louisiana REALTORS® wants to extend sincere thanks to Rep. Delisha Boyd — a real estate broker herself — for her tireless work shepherding HB 292 through the legislative process. The security deposit fairness bill, which allows landlords and tenants to mutually agree in writing to extend the timeline for returning a security deposit when damage is found, has passed to third reading and final passage in the Senate and is nearly on its way to the Governor's desk. This has been a meaningful win for both property owners and renters across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
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