While bitcoin had a fantastic start to 2017 as it hit $1163 (Bitstamp) earlier this month, a case of bitcoin ransomware has been reported in which the Los Angeles Community College District (LACCD) made a payment of $28,000 in bitcoin to the cybercriminals who targeted its systems in a recent attack, CryptoCoinsNews reported.
In an official statement, LACCD Chancellor Francisco C. Rodriguez, said:
“In partnership with law enforcement and outside cybersecurity experts, the Los Angeles Community College District (LACCD) is investigating malicious cyber activity that disrupted many computer, online, email, and voice mail systems at Los Angeles Valley College (LAVC). At this early stage in the investigation, it appears LAVC was randomly targeted”.
The ransomware virus was first detected on December 30, 2016. The hackers gave a 7-day deadline for making the ransom payment. According to The Valley Star, the ransom note displayed on a compromised college server read:
“You have 7 days to send us the BitCoin after 7 days we will remove your private keys and it’s impossible to recover your files”
Rodriguez said that after the payment was made, the attackers delivered a ‘key’ to open access to the computer systems. He said that while process to unlock the compromised files will be a lengthy one, the key has worked in all the attempts made so far.
“At this point, no data breach as been identified; however this complex investigation is in its early stages”, Rodriguez said.
The LACCD security breach was the latest in the string bitcoin ransomware incidents reported last year. In February 2016, Hollywood Presbyterian Medical Center, a Los Angeles-based hospital paid the ransom of 40 bitcoins (worth around $16,664 dollars at the time) demanded by the hackers. Canada-based Carleton University in November stated that it has detected an attempt by an external group or individual to hack into its IT network. The attackers demanded for either two bitcoin per machine or 39 bitcoin (nearly $30,000 at press time) in total to release the encrypted files.
