Hundreds of millions of American companies paid ransom to hackers

The Biden administration urges big companies to be transparent about the security of their software

CNN Business revealed that Moody’s, the credit rating agency, has announced that it has spent hundreds of millions of dollars to better assess the cybersecurity risks afflicting the largest American companies.

The site added that Moody’s announcement comes as Biden administration officials are urging major companies to show more transparency regarding the security of their software, after piracy and ransomware attacks have rocked a number of interests and organizations over the past year, costing them hundreds of millions of dollars and endangering their business. at risk.

He explained that the credit rating agency is investing $250 million in the BitSight program, which uses algorithms to estimate the likelihood of an institution being hacked.

Under the agreement with the company, Moody’s will become the largest minority shareholder in BitSight, while the company will receive a cyber risk rating system developed by the agency in cooperation with Team8, which describes itself as a research center focused on cybersecurity issues.

The website quoted Moody’s CEO Rob Fauber as saying that the investment will be used to improve BitSite’s data and products such as its risk management offering, adding that it would enable BitSight, which says its clients include 20% of Fortune 500 companies, to make The more detailed assessments of the risks, the better the translation of the risks of financial loss.

US companies and government officials have been surprised by ransomware attacks in recent months, such as the attack last spring on the Colonial pipeline, the largest fuel pipeline in the United States, disconnecting it from the Internet, causing a crisis at gas stations on the country’s east coast. .

The pipeline company had to pay the hackers millions of dollars in ransom to end their hack, although the authorities were able to recover part of the ransom.

And the website quoted the company “Chinalysys”, which specializes in tracking digital currency, that the victims of ransomware attacks paid about $ 350 million in ransom amounts in 2020, but it is believed that the total amounts paid are much greater, and that those who do not pay face the possibility of spending millions of dollars on rebuilding their electronic systems.

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