Rogue Ransomware Negotiators Turned Extortionists in Cyber Attacks
Introduction
Imagine this: Your company is under siege by ransomware. Operations are frozen, the board is tense, and you’ve brought in a professional ransomware negotiator—someone who promises to bring calm to the chaos. But what if that expert, instead of resolving the crisis, deepens it—stealing data, demanding extra payouts, or even partnering with attackers?
According to a startling report by The Register, this scenario isn’t just fiction—it’s happening now. Rogue ransomware negotiators, once seen as vital middlemen, are flipping the script and becoming part of the problem. For CISOs, CEOs, and security teams already navigating the high-stakes ransomware landscape, this emerging threat adds a new layer of complexity and risk.
This isn’t just a story about bad actors—it’s a wake-up call. In this post, we’ll dig into:
– How some ransomware negotiators are turning against their own clients
– The risks and red flags every organization should recognize
– How to protect your company when hiring—or avoiding—ransomware negotiators
Whether you’re finalizing your incident response plan or in the middle of an active crisis, understanding this new threat vector is essential.
The New Insider Threat: When Negotiators Go Rogue
Ransomware negotiators historically served as a bridge between victims and attackers, helping to lower payments or buy time. But cybersecurity experts are now seeing negotiators exploit their positions, using insider access and sensitive knowledge to extort companies or even align themselves with ransomware gangs.
So how does this happen?
– Lack of regulation: Unlike lawyers or financial advisors, ransomware negotiators are rarely vetted or certified. Many offer a slick website and vague promises, but little else.
– Total access: To negotiate effectively, these third parties often access critical information—network schematics, employee details, ransomware notes—prime material for secondary extortion.
– Shifting incentives: Financially, it’s more lucrative for some negotiators to “double dip”—taking a fee from the victim while also cutting deals with attackers.
A case highlighted in The Register shows negotiators not only charging victims for services but later demanding an additional payment under a different alias when the original ransom was settled too swiftly. In some cases, negotiations were intentionally drawn out to increase service fees.
Warning signs CEOs and CISOs should look for:
– No transparency about prior engagements or clients
– Pressure to act quickly without involving in-house counsel
– Insistence on handling all communications unilaterally
– Resistance to sitting down with your legal and IT response team
Actionable tips:
– Conduct firm background checks and get references
– Require NDAs and engage through legal counsel
– Assign internal observers to all communications with threat actors
Redefining Trust in Crisis: Improving Vendor Due Diligence
No one hires a negotiator thinking they’ll make the breach worse. But as this trend evolves, we need a mindset shift. Negotiators aren’t just vendors—they’re crisis insiders, with potential access to your deepest vulnerabilities.
This means treating them with the same scrutiny you’d apply to a core security partner. Unfortunately, too many companies onboard these services in the heat of a breach, under massive pressure, with little vetting.
Here’s how to change that:
– Prequalify vendors before a breach happens. Include at least two vetted firms in your incident response (IR) playbook—ideally ones recommended by trusted security partners or cyber insurers.
– Involve legal and compliance from day one. Your IR team isn’t just IT. It’s also legal, HR, and executive leadership. Everyone should understand the boundaries and rules of engagement.
– Use retainer-based services. Bigger providers offering negotiation support as part of a managed incident response service are less likely to act opportunistically. They rely on long-term business, not one-off payouts.
Consider these stats:
– 79% of organizations that paid a ransom were attacked again, often by the same group or indirectly through known connections (Sophos, 2023).
– According to Coveware, the average ransom payment in Q1 2024 surged to over $850,000—up 77% from the previous year.
Dealings with ransomware threat actors require precision, trust, and insight into criminal psychology. Handing that job to an unvetted third-party? That’s a dangerous gamble.
Building Internal Capabilities: Rethink Who Negotiates
There’s a growing case for taking negotiations—or at least key elements of the response—in-house. Not necessarily to cut out experts, but to maintain tighter oversight and control.
Forward-thinking organizations are now:
– Training internal IR teams to coordinate negotiation efforts
Even if they don’t run negotiations directly, trained teams can set clear parameters for third-party negotiators.
– Partnering with MDR or MSSP providers that offer negotiation as a managed service
These providers tend to have long-standing reputations and internal auditing processes in place.
– Rehearsing ransomware response in tabletop exercises
Practice scenarios should include negotiation decisions: Who’s making calls? Who’s validating negotiator credentials? How is data being shared?
By building internal muscle, your organization doesn’t have to scramble for help in a crisis. You’ll know who’s on speed dial, who’s been vetted, and what your thresholds are for engagement.
Key takeaway: You don’t have to go it alone. But you do have to stay in control.
Conclusion
Ransomware is already one of the most destabilizing threats to enterprise operations. The emergence of rogue ransomware negotiators further muddies the waters, placing victims in even more precarious positions. As distressing as this development is, it also forces us to evolve.
As CISOs and executive leaders, we can’t afford to treat ransomware response as something we buy during a breach. It needs to be baked into our security strategy—with layers of planning, vetting, and internal coordination.
So here’s what you can do right now:
– Review your incident response plan with fresh eyes—specifically the negotiation section.
– Pre-vet at least two ransomware negotiation teams or services through referrals.
– Align legal, compliance, and IT in creating clear negotiation protocols.
In times of crisis, trust isn’t given—it’s built. Let’s make sure those we count on to help us in our darkest moments aren’t the ones holding the flashlight for the attackers.
Stay proactive, stay informed, and stay in control.
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