Travelex ransomware attack hints at future systemic failure

The recent cyberattack on Travelex that has taken down currency services is a sign of things to come as ransomware steps up a pace and threatens systemic failure, according to cyber risk analytics firm CyberCube. As Travelex works to recover its systems following the cyberattack that was detected on 31 December, CyberCube said ransomware attacks are increasing each year and will soon hit a point where a major attack could “cripple businesses around the world – which would amount to a complete systemic failure”. Following the attack, foreign exchange firm Travelex took down its online currency systems and posted a maintenance message to online customers in Europe, the US and Asia as 2019 drew to a close, after the firm detected a virus. Its partner banks that use Travelex’s services to sell currency online – including Virgin Money, Tesco and Sainsbury’s – have also been out of action, while high street banks in the UK have said this week that their supply of Travelex notes is drying up. Travelex confirmed that the software virus is ransomware known as Sodinokibi, or REvil. The BBC said it had been contacted by the Sodinokibi ransomware gang to confirm they are behind the Travelex attack, telling the corporation that they want $6m to free Travelex’s systems. The hackers told the BBC that they gained access to Travelex’s network six months ago and are holding 5GB of customer data – including birthdates, credit card information and national insurance numbers – that will be sold if they do not receive payment. Travelex said it has contained the spread of the ransomware. It added that although there has been some data encryption, this is not thought to include customers’ personal data and the company does not believe any data has been exfiltrated. But heading into the second week since the virus was detected, Travelex has yet to recover its online currency systems, although a number of internal systems have been restored. The firm said detailed forensic analysis is underway and it is working to resume normal operations as quickly as possible. Travelex added it does not expect any material financial impact for parent company Finablr Group. Tony D’Souza, chief executive at Travelex, said it is working with partners and customers to protect their data. “We take very seriously our responsibility to protect the privacy and security of our partners’ and customers’ data, as well as providing an excellent service to our customers,” he said. Mr D’Souza added that the company is using manual processes to keep money moving while “working tirelessly” to bring systems back online. Travelex said it also working with the UK’s National Crime Agency and Metropolitan Police, which are leading a criminal investigation into the ransomware attack. The scale of the Travelex attack and level of disruption to its currency services is part of a new trend for ransomware attacks, according to CyberCube. It said businesses must be prepared for attacks “so widespread they could stifle economic growth”. Nick Beecroft, client services manager at CyberCube, said: “Ransomware has become more than a cottage industry, with ransomware developers and hackers teaming up to attack companies and then divide the spoils. There are also so-called ‘big-game hunters’ who work alone and target firms able to pay large ransoms. “While some businesses have been slow to admit they’ve fallen victim to attacks, we’ve recently seen a movement towards the publication of ‘shaming sites’, with companies infected being listed,” he added. A new report from CyberCube says that capacity from the insurance-linked securities (ILS) market could be crucial to propping up the traditional insurance market in the event of a systemic cyberattack loss, and adds that talks are underway to make such risk transfer solutions a possibility.

Travelex ransomware attack hints at future systemic failure

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