Report: Managed Service Providers Are New Frontier of Ransomware Attacks

Report: Managed Service Providers Are New Frontier of Ransomware Attacks

Hackers are targeting IT service providers as a means of attacking dozens of organizations at once and potentially reaping bigger financial rewards.

Hackers are increasingly finding ways to target several organizations at once through attacking managed service providers (MSPs) that often provide IT services to small businesses.

Several recent attacks targeted MSPs, including malware that paralyzed hundreds of dental clinics and an incident that temporarily affected services in 22 Texas cities and towns. The providers are widely used because local governments, clinics and other small organizations do not want to take on the cost of hiring their own IT staff and therefore outsource their needs to contractors.

In turn, cybercriminals can target one service provider, particularly smaller ones with fewer resources and employees, and potentially reap the financial benefits from dozens of small businesses in one attack. ProPublica recently reported on the phenomenon as ransomware attacks continue to rise and have severe consequences for organizations.

Read more: Multitude of Ransomware Attacks Cause Lawmakers to Take Notice

Hackers have largely preyed on MSPs that have weak passwords or do not use two-factor authentication. ProPublica also found that attackers have exploited issues with “remote monitoring and management” software that businesses and governments had downloaded to install systems updates.

Remote management is often used to install updates and solve users’ problems right on their screens, but can also serve as “golden keys to immediately distribute ransomware,” said Kyle Hanslovan, the CEO of cybersecurity firm Huntress Labs.

“Just like how you’d want to push a patch at lightning speed, it turns out you can push out ransomware at lightning speed as well,” he told ProPublica.

Cyber criminals have leverage over the MSPs because they often serve many companies and government agencies that contain sensitive information and need access to the data as soon as possible. The providers are more likely to pay ransoms because they are often small businesses themselves and cannot handle the influx of needs from dozens of clients that were paralyzed by the attack, according to Chris Bisnett, the chief architect at Huntress.

‘It’s one thing if I have 50 computers that are ransomed and encrypted and I can fix them,” Bisnett said. “There’s no way I have time to go and do thousands of computers all at the same time when I’ve got all these customers calling and saying: ‘Hey, we can’t do any business, we’re losing money. We need to be back right now.’ So the likelihood of the MSP just saying, ‘Oh I can’t deal with this, let me just pay,’ goes up.”

The rapid growth of ransomware attacks does not seem to be slowing down any time soon, particularly as the insurance industry continues to incentivize hackers by paying the ransoms instead of doling out money for data recovery services.

About the Author

Haley Samsel is an Associate Content Editor for the Infrastructure Solutions Group at 1105 Media.

Featured

  • New Gas Monkey Garage Venue Uses AI-Enhanced Video Technology

    Gas Monkey Garage, the automotive custom shop and entertainment brand founded by Richard Rawlings of Fast N’ Loud TV fame, has opened a vibrant new restaurant and bar in South Dakota, equipped with advanced, AI-enhanced video tech from IDIS Americas. Read Now

  • Data Driven, Proactive Response

    As cities face rising demands for smarter policing and faster emergency response, Real Time Crime Centers (RTCCs) are emerging as essential hubs for data-driven public safety. In this interview, two experts with deep field experience — Ross Bourgeois of New Orleans and Dean Cunningham of Axis Communications — draw on decades of operational, leadership and technology expertise to share how RTCCs are transforming public safety through innovation, interagency collaboration and a relentless focus on community impact. Read Now

  • Integration Imagination: The Future of Connected Operations

    Security teams that collaborate cross-functionally and apply imagination and creativity to envision and design their ideal integrated ecosystem will have the biggest upside to corporate security and operational benefits. Read Now

  • Smarter Access Starts with Flexibility

    Today’s workplaces are undergoing a rapid evolution, driven by hybrid work models, emerging smart technologies, and flexible work schedules. To keep pace with growing workplace demands, buildings are becoming more dynamic – capable of adapting to how people move, work, and interact in real-time. Read Now

  • Trends Keeping an Eye on Business Decisions

    Today, AI continues to transform the way data is used to make important business decisions. AI and the cloud together are redefining how video surveillance systems are being used to simulate human intelligence by combining data analysis, prediction, and process automation with minimal human intervention. Many organizations are upgrading their surveillance systems to reap the benefits of technologies like AI and cloud applications. Read Now

New Products

  • Camden CV-7600 High Security Card Readers

    Camden CV-7600 High Security Card Readers

    Camden Door Controls has relaunched its CV-7600 card readers in response to growing market demand for a more secure alternative to standard proximity credentials that can be easily cloned. CV-7600 readers support MIFARE DESFire EV1 & EV2 encryption technology credentials, making them virtually clone-proof and highly secure.

  • Automatic Systems V07

    Automatic Systems V07

    Automatic Systems, an industry-leading manufacturer of pedestrian and vehicle secure entrance control access systems, is pleased to announce the release of its groundbreaking V07 software. The V07 software update is designed specifically to address cybersecurity concerns and will ensure the integrity and confidentiality of Automatic Systems applications. With the new V07 software, updates will be delivered by means of an encrypted file.

  • PE80 Series

    PE80 Series by SARGENT / ED4000/PED5000 Series by Corbin Russwin

    ASSA ABLOY, a global leader in access solutions, has announced the launch of two next generation exit devices from long-standing leaders in the premium exit device market: the PE80 Series by SARGENT and the PED4000/PED5000 Series by Corbin Russwin. These new exit devices boast industry-first features that are specifically designed to provide enhanced safety, security and convenience, setting new standards for exit solutions. The SARGENT PE80 and Corbin Russwin PED4000/PED5000 Series exit devices are engineered to meet the ever-evolving needs of modern buildings. Featuring the high strength, security and durability that ASSA ABLOY is known for, the new exit devices deliver several innovative, industry-first features in addition to elegant design finishes for every opening.