The Kaseya Ransomware Attack Is a Really Big Deal

Screen Shot 2021-07-19 at 2.26.52 PM
(Managed Service Provider image by the Canadian Centre for Cybersecurity)

Matt Tait, as normal, has good insights into just why the Kaseya ransomware attack1 was such a big deal:

In short, software supply chain security breaches don’t look like other categories of breaches. A lot of this comes down to the central conundrum of system security: it’s not possible to defend the edges of a system without centralization so that we can pool defensive resources. But this same centralization concentrates offensive action against a few single points of failure that, if breached, cause all of the edges to fall at once. And the more edges that central failure point controls, the more likely the collateral real-world consequences of any breach, but especially a ransomware breach will be catastrophic, and cause overwhelm the defensive cybersecurity industry’s ability to respond.

Managed Service Providers (MSPs) are becoming increasingly common targets. It’s worth noting that the Canadian Centre for Cybersecurity‘s National Cyber Threat Assessment 2020 listed ransomware as well as the exploitation of MSPs as two of the seven key threats to Canadian financial and economic health. The Centre went so far as to state that it expected,

… that over the next two years ransomware campaigns will very likely increasingly target MSPs for the purpose of targeting their clients as a means of scaling targeted ransomware campaigns.

Sadly, if not surprisingly, this assessment has been entirely correct. It remains to be seen what impact the 2020 threats assessment has, or will have, on Canadian organizations and their security postures. Based on conversations I’ve had over the past few months the results are not inspiring and the threat assessment has generally been less effective than hoped in driving change in Canada.

As discussed by Steven Bellovin, part of the broader challenge for the security community in preparing for MSP operations has been that defenders are routinely behind the times; operators modify what and who their campaigns will target and defenders are forced to scramble to catch up. He specifically, and depressingly, recognizes that, “…when it comes to target selection, the attackers have outmaneuvered defenders for almost 30 years.”

These failures are that much more noteworthy given that the United States has trumpeted for years that the NSA will ‘defend forward‘ to identify and hunt threats, and respond to them before they reach ‘American cybershores’.2 The seemingly now routine targeting of both system update mechanisms as well as vendors which provide security or operational controls for wide swathes of organizations demonstrates that things are going to get a lot worse before they’re likely to improve.

A course correction could follow from Western nations developing effective and meaningful cyber-deterrence processes that encourage nations such as Russia, China, Iran, and North Korea to punish computer operators who are behind some of the worst kinds of operations that have emerged in public view. However, this would in part require the American government (and its allies) to actually figure out how they can deter adversaries. It’s been 12 years or so, and counting, and it’s not apparent that any American administration has figured out how to implement a deterrence regime that exceeds issuing toothless threats. The same goes for most of their allies.

Absent an actual deterrence response, such as one which takes action in sovereign states that host malicious operators, Western nations have slowly joined together to issue group attributions of foreign operations. They’ve also come together to recognize certain classes of cyber operations as particularly problematic, including ransomware. Must nations build this shared capacity, first, before they can actually undertake deterrence activities? Should that be the case then it would strongly underscore the need to develop shared norms in advance of sovereign states exercising their latent capacities in cyber and other domains and lend credence to the importance of the Tallinn manual process . If, however, this capacity is built and nothing is still undertaken to deter, then what will the capacity actually be worth? While this is a fascinating scholarly exercise–it’s basically an opportunity to test competing scholarly hypotheses–it’s one that has significant real-world consequences and the danger is that once we recognize which hypothesis is correct, years of time and effort could have been wasted for little apparent gain.

What’s worse is that this even is a scholarly exercise. Given that more than a decade has passed, and that ‘cyber’ is not truly new anymore, why must hypotheses be spun instead of states having developed sufficient capacity to deter? Where are Western states’ muscles after so much time working this problem?

  1. As a point of order, when is an act of ransomware an attack versus an operation? ↩︎
  2. I just made that one up. No, I’m not proud of it. ↩︎