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    4. Supply-chain cyberattacks: You’re only as strong as your weakest link

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    Article

    Supply-chain cyberattacks: You’re only as strong as your weakest link

    July 8, 2021

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    By Jason Kravitz

    Companies must be vigilant and mindful not only of their own cybersecurity, but also of the network security measures implemented by their suppliers.

    A group of Russian hackers operating under the moniker REvil is demanding $70 million in bitcoin to unlock data they encrypted in a ransomware attack launched on July 2. The hackers targeted Miami-based Kaseya Ltd., which provides software that allows businesses to manage their computer networks. The hackers apparently exploited vulnerabilities in Kaseya’s virtual systems/server administrator (VSA), which Kaseya’s customers use to disseminate software updates throughout their respective networks. This sets the stage for a so-called supply-chain attack, a sinister cyberattack that seeks to exploit the less-secure network of a target company’s supplier to infiltrate the target’s network. By targeting Kaseya’s VSA, the hackers were able to penetrate the networks of Kaseya’s customers. Coop, a Swedish supermarket chain and Kaseya customer, was forced to close some of its stores as a result of the attack.

    Supply-chain attacks present a particular concern for cybersecurity professionals, especially after last year’s sweeping SolarWinds hack, the full impact of which is still being determined. This incident is yet another reminder that companies must be vigilant and mindful not only of their own cybersecurity, but also of the network security measures implemented by their suppliers.

    Nixon Peabody’s Cybersecurity and Privacy Team will continue to monitor the epidemic of ransomware attacks.

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    The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.

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