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Insurance giant CNA Financial reportedly paid hackers $40M in ransom

Mount Equity Group Tokyo, Japan > News > Business > Insurance giant CNA Financial reportedly paid hackers $40M in ransom

CNA Financial, one of the biggest insurance companies in the US, reportedly forked over $40 million in ransom after it was hit by a cyberattack in late March.

The Chicago-based company was locked out of its network and decided to pay the hackers after about two weeks, Bloomberg News reported, citing two people with knowledge of the attack.

A CNA spokeswoman confirmed to Bloomberg that the cyberattack occurred, but declined to comment on the ransom.

The spokeswoman said the company shared information about the attack and the hackers with the FBI and the Treasury Department’s Office of Foreign Assets Control, which said last year that facilitating ransom payments to hackers could pose sanctions risks.

“CNA followed all laws, regulations, and published guidance, including OFAC’s 2020 ransomware guidance, in its handling of this matter,” the spokeswoman, Cara McCall, told Bloomberg.

CNA, which offers cyber insurance, said it believed the hackers behind the cyberattack were a group called Phoenix, according to Bloomberg. The $40 million ransom is larger than any previously disclosed payment to hackers, the report said.

CNA reportedly believes group called Phoenix are behind the cyberattack.Getty Images/iStockphoto

Ransomware is a malicious software that locks up a user’s data. Hackers typically