Canadian Dental Service Corp Pays Ransom After Cyber Attack

CANADA: The Alberta Dental Service Corp. (ADSC), a Canadian provincial government body responsible for dental services, has acknowledged succumbing to a ransomware demand following an 8base ransomware attack. 

The incident came to light on July 26, when ADSC detected the ransomware attack and identified data related to public dental benefits programs under its administration to be compromised in a recent cybersecurity breach.

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Preventive Measures and Recovery

In response, ADSC swiftly undertook measures to block unauthorised access, engaged a third-party forensic firm, and managed to restore affected systems and data through backups, incurring minimal loss. Although nearly 1.47 million individuals’ data were believed to be compromised, only a small number had personal banking information exposed. Those affected in this manner were offered complimentary credit monitoring services.

What sets this case apart is ADSC’s decision to pay the ransom demanded by the 8base ransomware group. As reported by IT World Canada, ADSC’s corporate president Lyle Best revealed that the payment occurred as part of negotiations brokered by the organisation’s cyber insurance provider and forensic investigator. 

8base gang provided evidence of data deletion in accordance with the agreement, signalling an unusual outcome for a ransomware incident.

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Sophistication and Tactics

8base has been operating since March 2022, combining encryption and “name-and-shame” tactics to compel victims to comply with ransom demands. Researchers from VMware Inc. highlighted the group’s resemblance to previous ransomware campaigns, suggesting a level of sophistication despite its relatively recent appearance in the cyber landscape. 8base’s modus operandi includes maintaining a leak site to publicise victims’ data and employing intimidation strategies to coerce ransom payment.

Erfan Shadabi, a cybersecurity expert from comforte AG, emphasised the gravity of the breach in the healthcare sector. Patient information’s sensitivity mandates heightened vigilance in safeguarding it, considering the far-reaching consequences of such incidents. Shadabi urged healthcare organisations to prioritise data-centric security approaches like tokenisation, underscoring the importance of proactive cybersecurity measures.