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Between 800 and 1,500 businesses around the world have been affected by a ransomware attack centered on U.S. information technology firm Kaseya, its chief executive said Monday. Fred Voccola, the Florida-based company’s CEO, said in an interview that it was hard to estimate the precise impact of Friday’s attack because those hit were mainly customers of Kaseya’s customers. Kaseya provides software tools to information technology outsourcing shops: companies that typically handle back-office work for companies too small or modestly resourced to have their own tech departments. One of those tools was subverted Friday, allowing the hackers to paralyze hundreds of businesses on five continents. Although most of those affected have been small concerns such as dentists’ offices or accountants, the disruption has been felt more keenly in Sweden, where hundreds of supermarkets had to close because their cash registers were inoperative, or New Zealand, where schools and kindergartens were knocked offline. FILE – A sign reads: “Temporarily Closed. We have an IT-disturbance and our systems are not functioning”, posted in the window of a closed Coop supermarket store in Stockholm, Sweden, July 3, 2021.The hackers who claimed responsibility for the breach have demanded $70 million to restore all the affected businesses’ data, although they have indicated a willingness to temper their demands in private conversations with a cybersecurity expert and with Reuters. “We are always ready to negotiate,” a representative of the hackers told Reuters earlier Monday. The representative, who spoke via a chat interface on the hackers’ website, didn’t provide their name. Voccola refused to say whether he was ready to take the hackers up on the offer. “I can’t comment yes, no or maybe,” he said when asked whether his company would talk to or pay the hackers. “No comment on anything to do with negotiating with terrorists in any way.” Voccola said he had spoken to officials at the White House, the FBI and the Department of Homeland Security about the breach, but so far, he was not aware of any nationally important business being affected. “We’re not looking at massive critical infrastructure,” he said. “That’s not our business. We’re not running AT&T’s network or Verizon’s 911 system. Nothing like that.” Because Voccola’s firm was in the process of fixing a vulnerability in the software that was exploited by the hackers when the ransomware attack was executed, some information security professionals have speculated that the hackers might’ve been monitoring his company’s communications from the inside. Voccola said neither he nor the investigators his company had brought in had seen any sign of that. “We don’t believe that they were in our network,” he said. He added that the details of the breach would be made public “once its ‘safe’ and OK to do that.” About a dozen different countries have been affected by the breach, according to research published by cybersecurity firm ESET.
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An Asian industry group that includes Google, Facebook and Twitter has warned that tech companies could stop offering their services in Hong Kong if the Chinese territory proceeds with plans to change privacy laws.
The warning came in a letter sent by the Asia Internet Coalition, of which all three companies, in addition to Apple Inc, LinkedIn and others, are members.
Proposed amendments to privacy laws in Hong Kong could see individuals hit with “severe sanctions”, said the June 25 letter to the territory’s privacy commissioner for personal data, Ada Chung Lai-ling, without specifying what the sanctions would be.
“Introducing sanctions aimed at individuals is not aligned with global norms and trends,” added the letter, whose contents were first reported by the Wall Street Journal.
“The only way to avoid these sanctions for technology companies would be to refrain from investing and offering their services in Hong Kong, thereby depriving Hong Kong businesses and consumers, whilst also creating new barriers to trade.”
In the six-page letter, AIC managing director Jeff Paine acknowledged the proposed amendments focus on the safety and personal data privacy of individuals. “However, we wish to stress that doxxing is a matter of serious concern,” he wrote.
During anti-government protests in Hong Kong in 2019, doxxing – or publicly releasing private or identifying information about an individual or organisation – came under scrutiny when police were targeted after their details were released online.
The details of some officers’ home addresses and children’s schools were also exposed by anti-government protesters, some of who threatened them and their families online.
“We … believe that any anti-doxxing legislation, which can have the effect of curtailing free expression, must be built upon principles of necessity and proportionality,” the AIC said.
Facebook did not immediately respond to a Reuters request for comment, while Twitter referred questions to the AIC.
Google declined to comment.
The former British colony of Hong Kong returned to Chinese rule in 1997 with the guarantee of continued freedoms. Pro-democracy activists say those freedoms are being whittled away by Beijing, especially with a national security law introduced last year cracking down on dissent. China denies the charge.
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