Change Healthcare Finally Admits It Paid Ransomware Hackers—and Still Faces a Patient Data Leak

For Change Healthcare and the beleaguered medical practices, hospitals, and sufferers that rely on it, the affirmation of its extortion cost to the hackers provides a bitter coda to an already dystopian story. AlphV’s digital paralysis of Change Healthcare, a subsidiary of UnitedHealth Group, snarled the insurance coverage approval of prescriptions and medical procedures for tons of of medical practices and hospitals throughout the nation, making it by some measures probably the most widespread medical ransomware disruption ever. A survey of American Medical Affiliation members, performed between March 26 and April 3, discovered that 4 out of 5 clinicians had misplaced income on account of the disaster. Many mentioned they had been utilizing their very own private funds to cowl a apply’s bills. Change Healthcare, in the meantime, says that it has misplaced $872 million to the incident and tasks that quantity to rise nicely over a billion in the long term.

Change Healthcare’s affirmation of its ransom cost now seems to indicate that a lot of that catastrophic fallout for the US healthcare system unfolded after it had already paid the hackers an exorbitant sum—a cost in trade for a decryption key for the programs the hackers had encrypted and a promise to not leak the corporate’s stolen knowledge. As is usually the case in ransomware assaults, AlphV’s disruption of its programs seems to have been so widespread that Change Healthcare’s restoration course of has prolonged lengthy after it obtained the decryption key designed to unlock its programs.

As ransomware funds go, $22 million would not be probably the most {that a} sufferer has forked over. Nevertheless it’s shut, says Brett Callow, a ransomware-focused safety researcher who spoke to WIRED in regards to the suspected cost in March. Only some uncommon funds, such because the $40 million paid to hackers by CNA Monetary in 2021, prime that quantity. “It’s not with out precedent, however it’s actually very uncommon,” Callow mentioned of the $22 million determine.

That $22 million injection of funds into the ransomware ecosystem additional fuels a vicious cycle that has reached epidemic proportions. Cryptocurrency tracing agency Chainalysis discovered that in 2023, ransomware victims paid the hackers focusing on them absolutely $1.1 billion, a brand new document. Change Healthcare’s cost could characterize solely a small drop in that bucket. Nevertheless it each rewards AlphV for its extremely damaging assaults and will counsel to different ransomware teams that healthcare firms are notably worthwhile targets, given these firms are particularly delicate to each the excessive value of these cyberattacks financially and the dangers they pose to sufferers’ well being.

Compounding Change Healthcare’s mess is an obvious double-cross inside the ransomware underground: AlphV by all appearances faked its personal regulation enforcement takedown after receiving Change Healthcare’s cost in an try to keep away from sharing it with its so-called associates, the hackers who associate with the group to penetrate victims on its behalf. The second ransomware group threatening ChangeHealthcare, RansomHub, now claims to WIRED that they obtained the stolen knowledge from these associates, who nonetheless wish to be paid for his or her work.

That is created a state of affairs the place Change Healthcare’s cost supplies little assurance that its compromised knowledge will not nonetheless be exploited by disgruntled hackers. “These associates work for a number of teams. They’re involved with getting paid themselves, and there’s no belief amongst thieves,” Analyst1’s DiMaggio informed WIRED in March. “If somebody screws another person, you don’t know what they’re going to do with the info.”

All of meaning Change Healthcare nonetheless has little assurance that it is averted a fair worse state of affairs than it is but confronted: paying what could also be one of many greatest ransoms in historical past and nonetheless seeing its knowledge spilled onto the darkish internet. “If it will get leaked after they paid $22 million, it’s just about like setting that cash on fireplace,” DiMaggio warned in March. “They’d have burned that cash for nothing.”