'Ransomware' attack locks down law firm's files for three months - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
April 29, 2017 Newswires
Share
Share
Post
Email

‘Ransomware’ attack locks down law firm’s files for three months

Providence Journal (RI)

April 29--PROVIDENCE, R.I. -- An unknown person or group held a Providence law firm captive for months by encrypting its files and then demanding $25,000 in ransom paid in anonymous cyber currency to restore access, according to a lawsuit filed in U.S. District Court.

Moses Afonso Ryan Ltd. is suing its insurer, Sentinel Insurance Co., for breach of contract and bad faith after it denied its claim for lost billings over the three-month period the documents were frozen last year by the so-called "ransomware" attack.

During the time its system was disabled, the law firm negotiated ransom to be paid in bitcoins, cyber currency that is virtually impossible to trace, the suit says. The firm then had to re-negotiate those terms after the initial key to de-crypt its records failed to work. It arranged to purchase more bitcoins in exchange for other tools to recover its documents.

During the seizure, the firm's 10 lawyers were left unproductive and inefficient -- amounting to $700,000 in lost billings, according to the lawsuit.

Stephen A. Izzi, a principal in the firm, did not return a phone call placed to his office or an email seeking comment. Another principal, Mark T. Ryan, former executive vice president of the Providence Journal Co., also did not respond to an email request for comment.

The Westminster Street firm is not alone in falling victim to such a crippling attack. Police departments, town halls, law firms, accounting firms and individuals have been hit across Rhode Island, according to Capt. John C. Alfred, head of the the Rhode Island State Police cyber-crimes unit. Alfred declined to identify who filed complaints about the cyber strikes, but estimated that about 20 had been fielded by his agency in the past year.

"It's gotten crazy. They're making billions of dollars," Alfred said of the attackers.

What makes "ransomware" attacks particularly bedeviling to law enforcement is that the culprits remain unknown due to the use of untraceable currency. The strikes might be waged by someone working alone in a basement who purchased ransomware on the dark web or criminals based in Nigeria and the Eastern Bloc, as is often the case. They could be random or targeted.

"Chances are we're not going to find out who the bad guy is," Alfred said.

And the strikes are prolific. They are one of the top emerging cyber threats, according to the FBI Boston division.

American businesses and individuals in the thousands suffered more than $1.6 million in losses in 2015, and rose to about $2.9 million in 2016, according to federal internet crime analysts.

Attackers are tailoring their demands to their victims, in essence making it a brand of "valet thievery," said cyber expert Doug White, director of forensics, applied networking and security at Roger Williams University.

"We haven't really seen them remove the data," Special Agent Jeffrey Williams, of the FBI Boston division, said. "We've seen them encrypt it ... hoping for a payout.

They might demand $800 from a household, and push that sum into the thousands if they realize they've hit a law firm or hospital, White said. The infecting software jumps from computer to computer rapidly and even accesses data held in a cloud, locking up every file permanently through encryption. They key to the attacks is that someone has to hit on a corrupt link to let the malware in.

It's a crime, too, that is vastly underreported, law enforcement agencies say.

"The shame of it keeps it from being reported," White said, as businesses don't want to sully their image or reveal weakness. "Usually they just pay them off. It's the cost of doing business."

The FBI, like the state police, urges victims not to pay the attackers. Both agencies say that encourages more attacks and that the money in play could be used to fund serious crimes.

"I never tell anyone to buy the ransomware key because it's sponsoring illegal activity," Alfred said. He added: "You have to back-up the data beforehand. That's what you have to do. You're not going to get that data back. Even if you pay, you might not get the key."

Protecting a network involves everyone in it from a janitor to the CEO, Alfred said.

The FBI requests that victims of attacks reach out to the agency and file a complaint with the Internet Crime Complaint Center, at www.IC3.gov.

Dana M. Horton, representing Sentinel Insurance in the lawsuit, also did not immediately respond to an email and a phone call seeking comment. The company has not yet filed a response in U.S. District Court.

White questioned whether the law firm's suit would succeed, saying it would "open a giant can of poison worms" for the insurance industry. Alfred, too, emphasized that cyber security insurance is a growing field.

"Everybody is going to be insuring their data," Alfred said.

___

(c)2017 The Providence Journal (Providence, R.I.)

Visit The Providence Journal (Providence, R.I.) at www.projo.com

Distributed by Tribune Content Agency, LLC.

Older

Rep. Slaughter to Introduce Bill to Close Ethics Loopholes and Strengthen the STOCK Act

Newer

Commissioner Jones Authorizes Health Insurers to File Two Sets of Rates: ‘Trump Rates’ and ‘ACA Rates’

Advisor News

  • Using digital retirement modeling to strengthen client understanding
  • Fear of outliving money at a record high
  • Cognitive decline is a growing threat to financial security
  • Two lessons career changers wish they knew before starting the CFP journey
  • Americans less confident about retirement as worries grow
More Advisor News

Annuity News

  • CareScout Joins Ensight™ Intelligent Quote LTC & Life Marketplace
  • Axonic Insurance Annuities, Built for Banks, Broker-Dealers and RIAs, Now Available through WealthVest.
  • Allianz Life Adds New Accumulation-Focused Fixed Index Annuities
  • Allianz Life adds new accumulation-focused FIAs
  • Industry objects to ‘tone and tenor’ of draft NAIC Annuity Buyer’s Guide
More Annuity News

Health/Employee Benefits News

  • Son hopes dad’s legal win in Miami spares cancer patients from fighting insurers
  • Findings from RTI International Broaden Understanding of Insurance (US Medicaid Spending and Health Insurance Coverage for People Involved in the Criminal Legal System as Children): Insurance
  • Researchers at University of Pittsburgh Target Managed Care (The state of hospice: Impacts on equity, quality, and nursing-An AAN consensus paper): Managed Care
  • Findings from CareQuest Institute for Oral Health Provide New Insights into Managed Care (Repeated Use of Emergency Departments for Nontraumatic Dental Conditions: Factors Associated With Being a Superutilizer): Managed Care
  • Reports Outline Insurance Study Findings from University of North Texas (Health Insurance Coverage and Access To Care Among Older Immigrants: Evidence From the National Health Interview Survey, 2020 To 2023): Insurance
More Health/Employee Benefits News

Life Insurance News

  • Agam Capital and 1823 Partners Announce Strategic Partnership to Provide Life Insurers with an End-to-End Value Chain Solution
  • AM Best Revises Outlooks to Positive for Western & Southern Financial Group, Inc. and Its Subsidiaries
  • Principal Financial Group Announces First Quarter 2026 Results
  • SBLI Enhances its OmniTrak Term to Deliver Faster Decisions, More Client Coverage, and Improved Pricing
  • Life insurance premium surges, but coverage is still falling short for many
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Protectors Vegas Arrives Nov 9th - 11th
1,000+ attendees. 150+ speakers. Join the largest event in life & annuities this November.

A FIA Cap That Stays Locked
CapLock™ from Oceanview locks the cap at issue for 5 or 7 years. No resets. Just clarity.

Aim higher with Ascend annuities
Fixed, fixed-indexed, registered index-linked and advisory annuities to help you go above and beyond

Unlock the Future of Index-Linked Solutions
Join industry leaders shaping next-gen index strategies, distribution, and innovation.

Leveraging Underwriting Innovations
See how Pacific Life’s approach to life insurance underwriting can give you a competitive edge.

Bring a Real FIA Case. Leave Ready to Close.
A practical working session for agents who want a clearer, repeatable sales process.

Press Releases

  • RFP #T01325
  • RFP #T01325
  • RFP #T01825
  • RFP #T01825
  • RFP #T01525
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet