Energy Department among federal agencies breached by Russian ransomware gang – Boston Herald | #ransomware | #cybercrime

FILE – Jen Easterly, director of the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, speaks at the National Association of Secretaries of State winter meeting, Feb. 16, 2023, in Washington. U.S. officials say the Department of Energy and several other federal agencies were compromised in a Russian cyber-extortion gang’s global hack of a file-transfer program popular with corporations and governments. (AP Photo/Patrick Semansky, File)

By FRANK BAJAK (AP Technology Writer)

The Department of Energy and several other federal agencies were compromised in a Russian cyber-extortion gang’s global hack of a file-transfer program popular with corporations and governments, but the impact was not expected to be great, Homeland Security officials said Thursday.

Jen Easterly, director of the Cybersecurity and Infrastructure Security Agency, told reporters that unlike the meticulous, stealthy SolarWinds hacking campaign attributed to state-backed Russian intelligence agents that was months in the making, this campaign was short, opportunistic and caught quickly.

A senior CISA official said neither the U.S. military nor intelligence community was affected. Energy Department spokesperson Chad Smith said two agency entities were compromised but did not provide more detail.

Known victims to date include Louisiana’s Office of Motor Vehicles, the Nova Scotia provincial government, British Airways, the British Broadcasting Company and the U.K. drugstore chain Boots.

Louisiana officials said Thursday that people with a driver’s license or vehicle registration in the state likely had their personal information exposed. That included their name, address, Social Security number and birthdate. They encouraged Louisiana residents to freeze their credit to guard against identity theft.

The Cl0p ransomware syndicate behind the hack announced last week on its dark web site that its victims, who it suggested numbered in the hundreds, had until Wednesday to get in touch to negotiate a ransom or risk having sensitive stolen data dumped online.

The gang, among the world’s most prolific cybercrime syndicates, also claimed it would delete any data stolen from governments, cities and police departments.

The senior CISA official told reporters a “small number” of federal agencies were hit — declining to name them — and said “this is not a widespread campaign affecting a large number of federal agencies.” The official, speaking on condition of anonymity to discuss the breach, said no federal agencies had received extortion demands and no data from an affected federal agency had been leaked online by Cl0p.

U.S. officials “have no evidence to suggest coordination between Cl0p and the Russian government,” the official said.

The exploited program, MOVEit, is widely used by businesses to securely share files. The parent company of its U.S. maker, Progress Software, alerted customers to the breach on May 31 and issued a patch. But cybersecurity researchers say scores if not hundreds of companies could by then have had sensitive data quietly exfiltrated.

“At this point, we are seeing industry estimates of several hundred of victims across the country,” the senior CISA official said.

The cybersecurity firm SecurityScorecard says it detected 2,500 vulnerable MOVEit servers across 790 organizations, including 200 government agencies. It said it was not able to break down those agencies by country.

The Office of the Comptroller of the Currency in the Treasury Department uses MOVEit, according to federal contracting data. Spokeswoman Stephanie Collins said the agency was aware of the hack and has been monitoring the situation closely. She said it was “conducting detailed forensic analysis of system activity and has not found any indications of a breach of sensitive information.”

The hackers were actively scanning for targets, penetrating them and stealing data at least as far back as March 29, said SecurityScorecard threat analyst Jared Smith.

This is far from the first time Cl0p has breached a file-transfer program to gain access to data it could then use to extort companies. Other instances include GoAnywhere servers in early 2023 and Accellion File Transfer Application devices in 2020 and 2021.

AP reporter Sara Cline in Baton Rouge, Louisiana, contributed to this report.

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