Change Healthcare Finally Admits It Paid Ransomware Hackers

Andy Greenberg reports via Wired: More than two months after the start of a ransomware debacle whose impact ranks among the worst in the history of cybersecurity, the medical firm Change Healthcare finally confirmed what cybercriminals, security researchers, and Bitcoin's blockchain had already made all too clear: that it did indeed pay a ransom to the hackers who targeted the company in February. And yet, it still faces the risk of losing vast amounts of customers' sensitive medical data. In a statement sent to WIRED and other news outlets on Monday evening, Change Healthcare wrote that it paid a ransom to a cybercriminal group extorting the company, a hacker gang known as AlphV or BlackCat. 'A ransom was paid as part of the company's commitment to do all it could to protect patient data from disclosure,' the statement reads. The company's belated admission of that payment accompanied a new post on its website where it warns that the hackers may have stolen health-related data that would 'cover a substantial proportion of people in America.'

Cybersecurity and cryptocurrency researchers told WIRED last month that Change Healthcare appeared to have paid that ransom on March 1, pointing to a transaction of 350 bitcoins or roughly $22 million sent into a crypto wallet associated with the AlphV hackers. That transaction was first highlighted in a message on a Russian cybercriminal forum known as RAMP, where one of AlphV's allegedly jilted partners complained that they hadn't received their cut of Change Healthcare's payment. However, for weeks following that transaction, which was publicly visible on Bitcoin's blockchain and which both security firm Recorded Future and blockchain analysis firm TRM Labs told WIRED had been received by AlphV, Change Healthcare repeatedly declined to confirm that it had paid the ransom.

Change Healthcare's confirmation of that extortion payment puts new weight behind the cybersecurity industry's fears that the attack -- and the profit AlphV extracted from it -- will lead ransomware gangs to further target health care companies. 'It 100 percent encourages other actors to target health care organizations,' Jon DiMaggio, a researcher with cybersecurity firm Analyst1 who focuses on ransomware, told WIRED at the time the transaction was first spotted in March. 'And it's one of the industries we don't want ransomware actors to target -- especially when it affects hospitals.' Compounding the situation, a conflict between hackers in the ransomware ecosystem has led to a second ransomware group claiming to possess Change Healthcare's stolen data and threatening to sell it to the highest bidder on the dark web. Earlier this month that second group, known as RansomHub, sent WIRED alleged samples of the stolen data that appeared to come from Change Healthcare's network, including patient records and a contract with another health care company.

Read more of this story at Slashdot.