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Crime doesn’t pay, as the saying goes—at least that’s how the saying used to go. In the good old days, criminals had to be physically present to rob you, which meant the risk often outweighed the reward.
But the digital crime of today is a different story. This crime doesn’t involve guns or in-person hold-ups—it involves things we do every day, like opening emails, answering phone calls, or logging on to social media platforms. Worst of all, digital crime is increasingly targeting honest, hardworking independent grocers through ransomware, which means one simple mistake, and your POS system or other important data could be held hostage for a mind-boggling ransom.
Ransomware is a form of malware (malicious software) that targets your critical systems and data for the main purpose of extortion, or getting money in exchange for returning your data unharmed. It’s the computer version of holding an employee hostage until you pay up. In some cases, criminals refuse to decrypt files even after you pay the ransom.
According to the FBI, ransomware is the fasting-growing malware threat, with over 4,000 ransomware attacks occurring daily since January 1, 2016. IGA Director of Information Technology Ron Gavrilovic explains the 2019 ransomware landscape is diverse, with security researchers tracking over 1,100 ransomware variants. He says there are many different kinds of malware, including viruses, Trojans, spyware, and ransomware, but ransomware is especially dangerous for businesses. “We’re expecting 2019 to be the most damage done, ever, with ransomware,” Gavrilovic says. We’re talking into the billions.” That breaks down to an average per-store ransomware demand of $224,871 in 2019's first quarter alone, according to retailer reports to Beazley Breach Insights.
Cyber criminals can target anyone, from individuals with a simple home computer or smartphone to large corporations or regional hospitals. Small businesses like independent grocers are particularly vulnerable to an attack because the threat of not being able to do business—especially during the holidays—can cripple the business.
“It’s happening to retailers on a regular basis and it’s really a big concern,” says Associate Wholesale Grocers (AWG) Chief Sales Officer Jeff Patterson, who is working with the AWG team to make sure their retailers are protected. “I think whether it’s small stores, multi-store owners, large regional chains, if there isn’t an immediate heightened awareness to avoid situations like this, there are small retailers that could be put out of business just because it shut them down.”
Criminals know that and will target grocers accordingly. Take, for example, a regional grocer in Northwest Indiana who was hit with ransomware just before Thanksgiving 2018. After an employee unknowingly opened an email that launched a ransomware attack, Strack and Van Til’s POS systems were shut down. Half of its stores closed and there were long lines at the others while they worked to resolve the issue. The police report did not say if this group paid the ransom or resolved the issue on their own, but the stores were reopened in time for Thanksgiving, luckily for them.
In some cases, a store hit by ransomware can also infect their wholesalers. Patterson explains, “They try to find these gaps and start moving through different industries,” finding a hole and unleashing a coordinated attack.
“The most common and effective way ransomware gets into your system is through bogus email, SMS [text] messages, websites that you go to,” Gavrilovic explains. By design, they look to infect the machine or device that you’re on at the time,” he says. From there, it looks to infect other machines that are online and connected to your network.
Ransomware doesn’t care if you access it through personal or professional networks. So an employee might be checking their personal Gmail account on a store computer, click an infected link, and within seconds, your POS could be infected.
Emails
Phone Calls
Social Media Credential Updates
Website Copies
Apps
With so many forms of deception out there, it’s time consuming to remain vigilant. “Everyone is really busy these days, so they don’t want to spend a lot of time analyzing things, which makes these tactics very effective, unfortunately,” says Gavrilovic. “If you’re ever concerned by [potential spam], disengage with these parties, and go on your own—navigate to the website on your own or give them a call.”
“Everyone has to take this really seriously and take a look at what they’re doing,” says Gavrilovic, because it’s very easy for criminals to access your devices or networks, since they don’t have to be physically present to do so and the crime reaps a lucrative return.
Ross advises all IGA retailers to prevent malware and ransomware with these best practices. “If you do these steps,” he says, “you can cut the risk by about 80 percent.”
Since so many networks are infected through email, ask yourself these questions and consider these email warning signs.
Gavrilovic recommends that associates seeing something suspicious send it to the IT professional the store works with or even someone they know with a basic knowledge of IT. He also encourages the store owners and managers to work with their email providers to get suspicious senders and messages blocked and marked as spam. “It helps the entire system that you’re on because it will help identify more examples,” he says.
If you are hit by an attack, Gavrilovic says:
He says it only takes an average of three seconds to start infecting a system once an attack is triggered, so taking these immediate steps is crucial to slowing the virus to minimize how much it can infect.
IGA is working to get retailers more information and best practices to prevent a ransomware attack. As Ross says, “We’re a service organization, and we can’t visit every store and do a security audit, but it is our obligation to ensure our retailers win.”
These tips are the beginning of more training that will be available soon, so stay tuned to The IGA Minute for more information coming your way in 2020--including two new courses from the IGA Coca-Cola Institute. In the meantime, please review the FBI’s detailed recommendations for ransomware prevention and response here.
If you follow the best practices outlined above, pair them with Gavrilovic’s key takeaway. “Always remember to slow down,” he says. “This false sense of urgency always creates a lot of this, so please take a step back and make sure it makes sense to you before you click.”
Watch the below webinar from IGA CEO John Ross and Director of Information Technology Ron Gavrilovic for more information and tips on preventing and fighting ransomware attacks.
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