Change Healthcare, a subsidiary of UnitedHealth Group, has admitted to paying a ransom to hackers following a cyberattack that disrupted its operations for over a week. The ransomware attack, which occurred on February 21, 2024, was carried out by a Russia-based ransomware gang known as ALPHV or BlackCat. The group claimed to have stolen more than six terabytes of data, including sensitive medical records.
The ransom payment, reportedly made in the form of bitcoin, amounted to $22 million. However, the payment led to internal disputes within the ransomware group, with the main organizers disappearing and an affiliate claiming to still possess the stolen data. This affiliate is now threatening to leak the data unless another ransom is paid.
The cyberattack has proven costly for UnitedHealth, causing an estimated loss of $872 million. This figure includes the disruption impacts on Change Healthcare’s business but excludes the direct response costs to the cyberattack. The total cost of the cyberattack to UnitedHealth is projected to be between $1.35 billion and $1.6 billion this year.
Despite the significant financial hit, UnitedHealth managed to exceed first-quarter expectations, reporting $99.8 billion in revenue and a per-share profit of $6.91. However, the incident has raised concerns about the increasing prevalence of ransomware attacks, particularly within the healthcare industry.
Read more at: www.wired.com