Tuesday, March 8, 2016

Cyberattack Takes Server Hostage; Calif. Hospital Pays $17,000 Ransom


Reprinted from REPORT ON PATIENT PRIVACY, the industry's #1 source of timely news and business strategies for safeguarding patient privacy and data security.

March 2016 Volume 16 Issue 3

For 10 days in February, hackers laid siege to Hollywood Presbyterian Medical Center, successfully taking the hospital’s network hostage before fading back into the recesses of the dark web with $17,000 in their pockets. The high-profile cyberattack sent a wake-up call rippling through the health care industry’s ranks, although cyber and legal experts say it isn’t the first ransomware incident and it certainly won’t be the last.

Initial reports had pegged the ransom at around $3.6 million, and although a statement issued by hospital CEO Allen Stefanek said those reports were false, multiple outlets have said the medical center was at least considering paying that much, even if it had only miscalculated the exchange rate between dollars and Bitcoin. The hackers ultimately released the network after receiving 40 Bitcoins, or $17,000, in payment.

Stefanek said the hospital immediately contacted law enforcement when his team first noticed the attack on the evening of Feb. 5, but the Los Angeles Times and others reported that the hospital paid the ransom first. Steve King, chief operations officer and chief security officer for San Francisco-based cybersecurity firm Netswitch Technology Management, indicated that fellow cybersecurity analysts “who are always on top of events that happen in the space” also are “pretty convinced” the hospital paid the hackers immediately.

Hollywood Presbyterian isn’t talking beyond Stefanek’s statement, but it isn’t the only one to suffer this type of attack. Two other high-profile ransomware attacks occurred in the weeks prior to the crisis at Hollywood Presbyterian. Titus Regional Medical Center in Mount Pleasant, Texas, suffered a similar lock-out in January, telling The Daily Tribune that the hospital had reverted back to the 1970s in terms of patient records. “Everything is on paper and people are serving as runners,” spokesperson Shannon Norfleet said. “There’s no automation.” The New York Times reported that Titus eventually caved and paid the ransom, but did not specify how much the hospital paid. (Titus did not return RPP’s request for comment.) The European Association of Healthcare IT Managers on Feb. 16 reported that several hospitals in Germany were also hit with ransomware in the last several weeks.

“Obviously hospitals have become a primary target,” King says.

Between 2013 and 2014, researchers saw a 250% increase in the number of “families” of crypto ransomware, the type of virus that locks a person out of a server’s files, according to an August 2015 report from Symantec. The average ransom in 2015 was a mere $300, the report found, but ransoms as high as $50,000 were reported.

To Pay or Not to Pay?

Hackers aren’t shy about who they target, either. Multiple police departments across the country have been held hostage too, and many end up paying the criminals. David Hall, a partner in the Philadelphia and New York offices of Wiggin and Dana, says hackers attacked one police department in Pennsylvania, encrypting its files until the department ponied up $1,000.

Law enforcement, lawyers and cyber experts are split on whether or not Hollywood Presbyterian should have paid, but they all agree that situations should be determined on a case-by-case basis. In one high-profile interview last year, a Boston FBI agent said the agency often advises people just to pay, because “the ransomware is that good.”

The apparent level of access that the hackers seemingly had at Hollywood Presbyterian is “pretty spectacular,” says Hall. “I personally think in general it’s not a good practice to pay ransom,” he says. “It does reward the wrongdoer. In a hospital setting, when patient care is at stake, you can see the hospital might have felt that it had no choice in order to keep treating its patients.”

In his statement, Stefanek said that neither patient records nor patient care was threatened during the incident. If that’s the case, King says, the hospital should not have paid. Doing so only encourages the criminal behavior, and many hackers are hacking for the thrill. He pointed to the case of ProtonMail, a Swiss encrypted email provider that he says paid around $6,000 to recover its network, only to see the hackers launch a denial-of-service attack when they received the money.

“I don’t think it’s about the money,” King says. “It’s really about the joy of hacking, that weird ego gratification that you get when you can blow up the system and show up the authorities.”

Ransomware attacks are definitely an “increasing trend,” says Evan Wolff, a partner in the Washington, D.C., office of Crowell & Moring LLP, but so are public and private sector responses. Wolff says he advises his clients to take a “layered approach” to cyber defense in ransomware situations, working with cybersecurity firms and law enforcement like the FBI before pulling out their wallets. “I would say even contemplating paying the ransom would be the last resort in any advice we would give,” he says.

Elliott Golding, a counsel at Crowell & Moring, likens it to a “chess match” between the good guys and bad guys. Because situations like these are so case-specific, it’s hard to determine what the legal fallout could be without the details.

“If you’re looking at various breach laws, typically what they say is that if there is unauthorized access, use or disclosure of data that compromises it, then you might have a breach on your hands,” he says. “In this case it’s just not clear to me if any of those things actually happened.”

The situation at Hollywood Presbyterian impacted King enough to impel him to issue a strongly worded advisory to other health care organizations. The precautions, he says, are “pretty simple.”

“The targets are so rich because networks are converged. So you’ve got these medical devices that are part of the core administrative network and so they’re accessible. You can shut down the hospital pretty easily,” King tells RPP. “It’s not like shutting down a bank, where the worst thing that could happen is that people can’t get their money out, I guess, whereas in a hospital the worst thing that can happen is people die.”

Segregating Networks Is Good Defense

Segregating networks is a crucial defense strategy, he says, especially considering the leverage hackers will have if they gain control of critical medical devices. “Then I can hold life or death ransoms, which are going to be a lot more than $17,000.”

Cybersecurity researchers at Independent Security Evaluators, LLC on Feb. 23 released a report detailing two years of hacking an array of 12 hospitals, two health care data facilities, two electronic health record platforms and two medical devices. They easily gained access to patient monitors and even accessed systems controlling medicine delivery and blood work requests by sitting down at one hospital lobby kiosk.

Backing up servers on a frequent basis is also key to beating the hackers at their own game. If a hospital has the ability to wipe their infected systems and restore them from a back-up server, the hacker loses his leverage.

“A lot of companies do in-house back-ups, which what you’re doing basically is giving the same access to the back-ups as you do to the live data, so when you do back-ups for these sorts of things, it should be off-site,” King says.

Health care organizations should also develop incident response plans ahead of time, which Wolff says are critical when a virus hits.

“The single most important thing a company can do is have an incident response plan, and be familiar with it,” he says. “It’s something that needs to be understandable by not just the IT department, but by lawyers and executives and everyone in the company.”

Read the research hackers’ report at http://tinyurl.com/zgjorhs.

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