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$6.7M Ransom, 700 Jobs Lost, and a 158-Year-Old Business Destroyed—All Thanks to One Bad Password

Surprisingly, that's not even the worst cybersecurity disaster that happened this week.

 & Alan Henry Managing Editor, Security

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At the beginning of September, we reported on what was then the biggest DDoS attack we’d seen, coming in at around 11.5Tbps. That record got smashed this week, with a DDoS attack that, despite lasting only about 40 seconds, pushed out a massive 22.2Tbps at 10.6 billion packets per second. That’s an incredible amount of traffic to control at one time, and as botnets grow, these types of attacks will only get bigger and target more platforms or companies that may not be able to defend themselves. 

In other “wow, that just happened” news, the US Secret Service just busted a massive rogue cellular network of over 100,000 SIM cards spread over multiple physical locations, perfectly assembled and poised on the steps of this week’s UN General Assembly session in New York City. While the sheer size of the operation is impressive enough, so were the ambitions of the people running it, hoping to target government officials and diplomats with DDoS attacks, deepfaked calls, or even swatting attacks, where a threat actor calls law enforcement claiming there’s a bomb or other violent threat at the target’s location in the hopes of using police as a weapon against them. Doxxing, where a threat actor makes private personal information public, was another risk. 

All of this underscores why it’s even more important to keep your private information as close to your pocket as possible. That’s harder to do than you might think, though. Your data is big business, especially to companies like data brokers who scoop up both public and sensitive information to build a profile they can sell. Even the apps on your phone, including popular ones like Duolingo and Candy Crush, hungrily collect your data. On the bright side, you can ask those data brokers to delete your data or sign up for a personal data removal service to do it for you.  

The tools to protect your data and your privacy are out there, but the scams aren’t going anywhere, and with the help of generative AI, they’re only getting worse and more convincing. Just this week, our own Kim Key used Google’s Gemini to build two fake class action settlement websites. It took her about five minutes, and revealed that even when you are owed money, scammers are quick to circle and try to get in on it for themselves. Seriously, watch yourself out there.  

But wait, there’s more! These are just some of the stories we covered. Here’s some more interesting security news from around the web that caught our eye:


Scammers Are Impersonating the FBI to Steal Your Personal Data

If you get scammed, you should definitely report it to the authorities. Not necessarily your local police department or anything, but one important step in putting your life back together after a scam is to help ensure that others don’t fall for the same thing. Of course, that could be complicated if the scammers are posing as the authorities, as Malwarebytes reports. Scammers have taken to spinning up fake (but very convincing) versions of the FBI’s Internet Crime Complaint Center (IC3) website, the very place you would go if you wanted to warn the bureau of illegal activity. The issue has gotten bad enough that the FBI had to issue a warning to the public to watch out for fakes. 

The fake sites are built to help scammers impersonate law enforcement (which has been a growing problem in recent months) and collect your personal information in order to steal your identity. Even worse, they may contact you directly to claim that they’ve recovered money you’ve lost in a scam, only to ask for details that allow them to steal even more money from you. Be careful out there, and check out our list of the biggest scams and how to avoid them.


How One Bad Password Ended a 158-Year-Old Business

In last week’s dispatch, I pointed out that security is everyone’s responsibility, and companies can only make it their employees’ problem so much without taking it seriously at the management level. Here’s another example of exactly that, with catastrophic results. The Hacker News reports that the UK-based KNP Logistics Group had just celebrated its 158th anniversary back in June when the Akira ransomware group (which we’ve also covered before) targeted the company and found a single employee who didn’t have multi-factor authentication enabled, and was able to guess the user’s password. It was all downhill from there.

The hackers then used ransomware to encrypt the company’s entire digital presence, and then went on to destroy its backups and disaster recovery systems. The group demanded £5 million (approximately $6.7 million) in ransom. The company didn’t have that kind of money, and despite calling in specialists and trying to recover their backups, the company’s operations froze, and within a matter of weeks, the company went under, and over 700 people lost their jobs. Sure, it’s a cautionary tale for both IT administrators and users alike, but above all, it’s a tragic story of exactly how much damage ransomware can cause, and how significant a threat it poses to everyone’s data.


Legacy Security Awareness Training Failing to Reduce Human Risk, Huntress Study Warns

Speaking of corporate IT policies, new research from Huntress and reported by IT Security Guru reveals something that I think many of us already know: traditional security awareness training offered by most companies is severely lacking. Companies are spending more and more money on fancy videos, quizzes, and monitored tutorials to guide their employees through topics like the dangers of social engineering and the importance of strong passwords, but the data shows that human error is on the rise. Part of the issue is a disconnect between how people feel about their skills once they take the training and how they would behave or react in a real-world situation. Combine that with the fact that many corporate IT security policies and training programs are largely outdated, and you have a userbase that’s primed to make mistakes or overestimate themselves in the face of ever-evolving threats. 

Huntress offers several solutions to the problem, but ditching security training entirely isn’t one of them. Instead, they suggest companies focus more on outcome-focused training that’s less about clicking next as quickly as possible and more about helping employees at all levels understand the importance of data security in a way that makes sense to them. But then again, none of that will count for anything if your company just takes bribes to let scammers in, I suppose.

About Our Expert

Alan Henry

Alan Henry

Managing Editor, Security

My Experience

I've been writing and editing stories for almost two decades that help people use technology and productivity techniques to work better, live better, and protect their privacy and personal data. As managing editor of PCMag's security team, it's my responsibility to ensure that our product advice is evidence-based, lab-tested, and serves our readers.

I've been a technology journalist for close to 20 years, and I got my start freelancing here at PCMag before beginning a career that would lead me to become editor-in-chief of Lifehacker, a senior editor at The New York Times, and director of special projects at WIRED. I'm back at PCMag to lead our security team and renew my commitment to service journalism. I'm the author of Seen, Heard, and Paid: The New Work Rules for the Marginalized, a career and productivity book to help people of marginalized groups succeed in the workplace.

The Technology I Use

I'm writing this on a computer I built myself. It's powered by an Intel Core i7 with 32GB of RAM, 2TB of storage, and a disturbingly anime-themed NVIDIA GeForce 3070 inside (look, it was on sale). It's connected to a beautiful LG 34-inch ultrawide monitor on my left that I use for gaming (and spreadsheets) and an LG 27-inch 4K monitor in portrait mode on my right that I use for browsing, editing, and reading. Connect all of that to a Logitech Streamcam, an Elgato capture card, an Elgato Stream Deck, and an Elgato Wave:3 using the WaveLink software for mixing, and you might have figured out that I'm also a streamer.

When I'm not at my desk, I usually use a Microsoft Surface Laptop Studio, which is a little heavy for my tastes but incredible as a combination of laptop and tablet that I can use to work and game when I'm traveling. My IT-issued Lenovo Thinkpad is lovely and light, but it's on standby should I need it. My current phone is a Pixel 6 Pro.

I used to be more of an Apple person. These days, I have an iPad Air for art and easy reading and an old MacBook Pro that used to be my daily driver before the Surface entered my life.

I use Firefox for browsing, and keep a cadre of privacy tools installed to minimize my data footprint. I use Proton products both for VPN and secure email, and I trust Bitdefender and MalwareBytes to keep my data safe from harm.

A handful of Sonos speakers power the audio around my home when I'm not wearing headphones. Speaking of which, I have a collection of both wired and wireless headphones, but my daily wear is a set of Sennheiser HD6XXs that I adore. On the go, I resort to a pair of Beats Studio Buds for the true wireless experience (with a set of Comply eartips, for comfort).

If you're a gamer, ask me about my relationship with Destiny 2.

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