The ransomware fight is an uphill battle—just ask Boeing

Ransomware is a reality that plays out constantly all over the world. Attacks have killed hospital patients, paralyzed gas pipelines, and funded North Korean crypto thefts (which in turn fund weapons development). And it’s getting worse—according to Sophos data from several months ago, two-thirds of organizations got hit by ransomware in the previous year, with three-quarters of attacks resulting in data encryption, and the average mean ransom having doubled year-on-year to $1.54 million. Nearly half of the ransom demands are met.

The latest casualty is Boeing, which yesterday admitted that the notorious LockBit gang had hit its parts and distribution business and was threatening to release sensitive data online today if Boeing didn’t pay up. The ransom demand has disappeared from LockBit’s website, which may indicate some kind of deal—TechCrunch couldn’t get an answer out of Boeing as to whether it had paid anything.

So what can a Washington meeting achieve? The biggest tangible result is a pledge among the 50 participating governments to refuse any ransom payments if targeted. The countries also said they’d set up a shared blacklist of crypto wallets used by ransomware gangs, use AI to spot ransom payments on crypto blockchains, and help each other out in the case of an attack on their governments or “lifeline” sectors, such as water systems and emergency services.

There are two big problems, though. The first is that the governments taking part in the initiative can’t force companies in their countries to also avoid paying ransoms—indeed, with ransomware being such a prevalent phenomenon, it’s practically become a cost of doing business. The second is that the initiative does not include countries such as Russia, China, and North Korea, which is where most of the attacks seem to come from. This means the group’s pledge not to harbor ransomware criminals doesn’t carry as much heft as it ought to.

The promised cooperation and information-sharing should help, though, particularly for smaller countries that don’t have heavily resourced cybercrime agencies of their own. One notable new signup at this year’s shindig was Costa Rica, which last year had to declare a state of emergency after Russia’s Conti gang crippled the government’s computer systems. The Costa Rican government refused to pay the $10 million ransom, with the result that the attack cost the country a reported $125 million in just two days, due to customs systems being down.

With no easy solutions, this battle is going to last a long time. More news below.

David Meyer

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NEWSWORTHY

ON OUR FEED

“This will give you the average stereotype of what an average person from North America or Europe thinks. You don’t need a data science degree to infer this.”

—Christoph Schumann, cofounder of the dataset nonprofit LAION, explains how biased data has infested Stable Diffusion’s output with Western preconceptions. Schumann was speaking to the Washington Post, whose picture-laden article demonstrates just how bad the problem is (very).

Bonus quote:

"Excited to announce that @SpaceX @Starlink has achieved breakeven cash flow!"

—Elon Musk, CEO of SpaceX, announcing a financial milestone for his rocket and internet-beaming satellite company. The latter, Starlink, now represents a majority of all active satellites, Musk said, "and will have launched a majority of all satellites cumulatively from Earth by next year."

IN CASE YOU MISSED IT

Israel’s cybersecurity startups are facing a double challenge, by Michal Lev-Ram

Google rolls out “.ing” web domains—and prices are already in the thousands, by Chris Morris

Disney to take full control of Hulu for about $8.6 billion to further ‘streaming objectives’, by the Associated Press

SEC says SafeMoon executives withdrew $200 million from crypto project to spend on McLarens and luxury homes, by Marco Quiroz-Gutierrez

Tether is nearly a decade old—and its books are still a mystery, by Jeff John Roberts

The Sam Bankman-Fried trial is an indictment of the crypto industry, by Leo Schwartz

BEFORE YOU GO

This just looks cool. Hoverboard and SoloWheel inventor Shane Chen has a new design out, and it’s way more ambitious. It’s a two-wheeled car called <slight cringe> the Shane, and here’s how Chen described its stability mechanism to IEEE Spectrum:

“With the SoloWheel and the Hoverboard, it’s an inverted pendulum for auto-balance. You’re going to balance like a stick—the taller, the better…With the car, it’s the opposite. The car has two large wheels. The center of the wheel is above the center of gravity of the car, so the car is already stable when sitting there, or when moving at a constant speed.”

The passenger pod between the giant wheels acts as their counterbalance to stop the thing from tipping over all the time, which means the pod is constantly moving while driving. Sounds like a wild ride. Here’s a video demonstrating the Shane concept, with an ending that should prove particularly tempting for those with parallelophobia (the fear of parallel parking).