While the Internet offers a convenient means of communication, it also exposes every individual and business organization to an alarming variety of potential criminal activity. The confidential data and financial security of every substantial business, private organization, and government entity is under a persistent and relentless attack by cyber criminals searching for vulnerabilities in their most essential business systems. These criminals use sophisticated tools to find technical flaws in an organization’s computer system. They also test every employee with access to a computer with ingenious deceptions seeking passwords or other entry points to business computer systems. On June 1, 2022, the FBI and other federal agencies issued a Cybersecurity Advisory regarding the most recent threat, organized by a criminal group known at the Karakurt Data Extortion Group (Karakurt).

The Extortion Scheme

Prior extortion schemes by cybercriminals threatened a victim entity by planting malicious software within a system and then demanding a payment or the victim’s data or application software would be encrypted and rendered useless. There are published reports the Conti Group, a Russian-based organization related to Karakurt, engaging in this type of activity. Karakurt, which also operates under the names the Karakurt Team and Karakurt Lair, does not threaten to shut down an organization. Rather, after gaining access to a victim’s computer system, they steal entire databases of confidential and proprietary data. Its favored victims are located in the United States, Canada and Europe. The target is then warned that this sensitive data will be auctioned off or released to the public unless a ransom is paid. The FBI reports that these ransom demands may range from $25,000 to $13 million in Bitcoin. The victim is usually given only one week to make the ransom payment.

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