As a leading Managed Services and Solutions Provider firm based in Orlando, Florida, we have witnessed firsthand the seismic shift in how businesses operate, with many embracing cloud computing for its flexibility, scalability, and cost-efficiency. However, this transition is not without risks. In recent years, we’ve seen a surge in cyber attacks targeting companies that have moved to the cloud. This blog post aims to shed light on the vulnerabilities and consequences of these attacks, underscoring the importance of bolstering cybersecurity and educating your employees via one of the cybersecurity awareness training platforms.

Real-Life Examples of Cloud-Related Cyber Attacks

Here are some of the recent cloud-based cyber attacks and their impacts

  • Meadville Medical Center (2023): This breach occurred when Russian hackers exploited a vulnerability in Progress Software’s MOVEit file transfer application. Around 1,300 patient files from Meadville Medical Center were compromised. The breach was part of a larger incident involving 15 million individuals globally. The data breach was associated with Westat Inc., which collects health care statistics for the National Hospital Care Survey. This attack highlights the risks of using third-party data services and the importance of robust cybersecurity measures for file transfer applications. Regular security audits, timely patching of software vulnerabilities, and thorough vetting of third-party vendors could have mitigated the risks​​.
  • Crum & Forster (2023): Nearly 14,000 consumers had their names and Social Security numbers exposed in this breach. Unauthorized parties bypassed the company’s online security systems and accessed files on its servers. The breach was discovered and reported to the Massachusetts Attorney General. The leaked files contained confidential consumer information. This breach underscores the need for stronger network security protocols, continuous monitoring for unusual network activity, and rigorous data encryption to protect sensitive information. Timely detection and response to such incidents are also crucial​​.
  • Hong Kong Ballet (2023): The Hong Kong Ballet suffered a ransomware attack, resulting in unauthorized access to personal user details and internal organizational data. The extent of the breach was unclear due to the encryption of files by the ransomware. The institution immediately launched an investigation with external cybersecurity experts to assess and contain the breach. They also notified the police and the Office of the Privacy Commissioner for Personal Data. Preventative measures advised included regular password changes, monitoring financial statements, and caution against phishing attempts. This incident highlights the importance of robust, up-to-date cybersecurity defenses, regular backups, and employee training in identifying and responding to cyber threats​​.
  • The Newtron Group (2023): The Newtron Group, an electrical construction company based in Louisiana, experienced a data breach where hackers accessed sensitive customer information. On October 13, 2023, the company issued breach notices to 39,608 affected customers. The compromised data included protected medical and health information, Social Security numbers, driver’s license numbers, passport numbers, state ID numbers, financial account information, and dates of birth. This breach demonstrates the vulnerability of companies in sectors not typically associated with cyber threats. To prevent such incidents, companies should strengthen their network security, conduct regular cybersecurity training for employees, and implement robust data encryption and access controls​​.
  • Encore Pharmacy (2023): Encore Pharmacy, formerly known as Founder Project Rx, Inc., reported a data breach affecting over 30,000 people after unauthorized access to a business email account was confirmed. Sensitive information including names, contact information, insurance details, prescription and medical information, dates of birth, driver’s license numbers, and Social Security numbers were exposed. This breach, announced on September 15, 2023, emphasizes the need for enhanced email security, regular monitoring of access to sensitive accounts, and swift incident response protocols in the healthcare sector to safeguard patient data​​.
  • Shadow PC (2023): Shadow, a cloud-based PC gaming service, suffered a data breach where a database containing customer data was stolen following a social engineering attack against an employee. The breach involved personal information of approximately 533,624 customers, including full names, email addresses, dates of birth, billing addresses, and credit card expiration dates. The attack, which began with the downloading of malware on the Discord platform, highlights the risks posed by sophisticated social engineering tactics in the digital entertainment industry. Following the discovery of the breach, Shadow took immediate steps to secure its systems and reinforce security protocols with third-party providers. Preventive measures in such cases include enhanced employee training on cybersecurity, stringent access controls, and regular audits of security systems​​​​​​.
  • Frazier & Deeter (2023): Frazier & Deeter LLC, an Atlanta-based accounting firm, experienced a significant data breach, compromising the personal information of around 19,000 consumers, including their names, Social Security numbers, and financial account information. The unauthorized access was first detected due to unusual activity in their network on May 19, 2023. Frazier & Deeter confirmed the breach and sent out notification letters to affected individuals on October 11, 2023. This breach underscores the importance of continuous monitoring of network activities and implementing advanced cybersecurity measures in the financial sector​​.
  • LDLC ASVEL (2023): LDLC ASVEL, a prominent French professional basketball team, was targeted by the NoEscape ransomware gang. Alerted to a potential breach on October 12, the club confirmed that 32 GB of data, including personal data of players, passports, ID cards, and financial, taxation, and legal documents, were stolen. This attack, revealed on October 9, 2023, highlights the escalating cyber threats faced by sports organizations. ASVEL responded by engaging cybersecurity experts and reporting the incident to France’s national data protection authority. The incident raises the need for robust cybersecurity strategies in sports organizations, particularly for protecting sensitive players and operational data​​.
  • West Texas Gas (2023): West Texas Gas, a Texas-based energy company, reported a data breach affecting over 56,000 people. Unauthorized access to their systems was detected in May 2023, with sensitive information, including names and Social Security numbers, being compromised. The company sent out data breach notification letters on October 9, 2023. This breach highlights the growing cybersecurity risks in the energy sector and the need for stringent security protocols, regular system audits, and prompt incident response strategies to protect consumer data​​.
  • Lyca Mobile Data Breach (2023): London-based mobile operator Lyca Mobile experienced a breach in their systems, impacting a significant but undisclosed number of its 16 million global customers. The breach, detected on September 30, led to unauthorized access to customer personal data. Lyca Mobile stores a variety of customer information, including names, birth dates, addresses, identity document copies, customer service interactions, and partial payment card details. The breach possibly exposed customer passwords as well. Lyca Mobile took immediate measures to contain the breach, including isolating and shutting down compromised systems. The nature of the breach and how it occurred remain undisclosed, though data theft suggests a possible ransomware connection. The company informed the UK’s Information Commissioner’s Office (ICO) about the incident, and the ICO is currently assessing the situation​​.

 

Conclusion and Discussion Points

These incidents reveal the diverse and widespread nature of cloud-based cyber threats, impacting sectors from healthcare to entertainment. They underscore the necessity for businesses to adopt a multi-faceted approach to cybersecurity, including continuous monitoring, robust data protection measures, and effective incident response plans.

  • How are different industries adapting their cybersecurity strategies in response to these emerging threats?
  • What lessons can we learn from these incidents to enhance cloud security across various sectors?
  • How can businesses effectively implement cybersecurity best practices without relying solely on specific products or services?

This discussion is crucial for building a more resilient and secure digital ecosystem. By learning from these incidents, businesses can better prepare and protect themselves against the ever-evolving landscape of cyber threats. We will be discussing topics like this in our next posts. We will make sure to get some of the latest attacks and then we will dive in to figure out what is that “little more” we can do to minimize some risks – or potentially close some existing gaps that you might have. You never know. Our goal is to bring value and get you folks who are reading more ideas and information here.

We will close it with some impacts and aftermath twists that organizations can face after the major cyberattack. 

Impact and Consequences of Cloud-Related Hacks

  • Financial Losses:
    • Companies face direct financial losses due to ransom payments, data recovery costs, and legal fees. Indirect costs include loss of business, decreased stock value, and reputational damage.
  • Operational Disruption:
    • Cyber attacks disrupt operations, leading to downtime and loss of productivity. For smaller businesses, this can be catastrophic, sometimes leading to complete shutdown.
  • Legal and Compliance Ramifications:
    • Breaches often result in legal actions and hefty fines, especially when they involve sensitive customer data and violate regulations like GDPR or HIPAA.

Conclusion:

The transition to the cloud, while beneficial, exposes businesses to new cyber threats. The examples of Crum & Forster, West Texas Gas, and others serve as sobering reminders of the importance of robust cloud security measures. We strongly advocate for integrating SOCaaS with continuous network packets monitoring, and a comprehensive DR strategy into your security framework. It’s not just about protecting data; it’s about safeguarding your business’s future.

  • How can businesses balance the advantages of cloud computing with its security challenges?
  • What measures does your organization take to protect against cloud-based cyber threats?
  • How does your disaster recovery plan address potential cloud security incidents?

We will continue to discuss and we hope that you enjoyed reading our article!

Thank you!
Z7 Solutions

 

 

 

 

Resources:

Seculore.com
JDSupra.com
theregister.com
TechCrunch.com
idstrong.com
news.yahoo.com