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

  • Just as Expected

    GSX produced a wonderful tradeshow earlier this week. Monday was surprisingly strong in the morning, and the afternoon wasn’t bad at all. That’s Monday’s results and asking attendees to travel on Sunday. Just a quick hint, no one wants to give up their weekend to travel and set up an exhibit booth. I’m just saying. Read Now

    • Industry Events
    • GSX
  • NOLA: The Crescent City

    Twenty years later we finds ourselves in New Orleans. Twenty years ago the aftermath of Hurricane Katrina forced exhibitors and attendees to look elsewhere for tradeshow floor space. Read Now

    • Industry Events
    • GSX
  • Nothing Artificial About this Intelligence

    I have been looking forward to this year’s GSX show in New Orleans, the Cresent City, or if you prefer The Big Easy. It seems like quite a while since we’ve been here. Twenty years ago, ASIS, as it was known then was literally washed out of the city by someone known as Katrina. It is a good thing to come back to NOLA. Read Now

  • From Monitors to Mission Control

    Security Operations Centers (SOC) were once defined by rows of static monitors, each displaying a single feed with operators quietly watching for issues. That model has become obsolete. Incidents evolve too quickly, data comes from multiple locations, and decisions must be made in seconds—not minutes. Read Now

  • 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

New Products

  • Compact IP Video Intercom

    Viking’s X-205 Series of intercoms provide HD IP video and two-way voice communication - all wrapped up in an attractive compact chassis.

  • FEP GameChanger

    FEP GameChanger

    Paige Datacom Solutions Introduces Important and Innovative Cabling Products GameChanger Cable, a proven and patented solution that significantly exceeds the reach of traditional category cable will now have a FEP/FEP construction.

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions.