Article
What To Do When A Hacker Encrypts Your Data
Combating Ransomware
Cyber Threats

RANSOMWARE, RANSOMWARE...
It’s the boogeyman looming in the corners of every digital task we do. Even businesses that don’t operate primarily online have data points that can be exploited, and hackers are always on the lookout for those with poor cyber health.

[This article originally appeared in Risk & Insurance at:
We Talk About Ransomware All the Time. So What Do We Actually Do When a Hacker Has Our Data? : Risk & Insurance (riskandinsurance.com)]
The cost of an attack is growing, too. As Gallagher reported in its 2022 Cyber Insurance Market Conditions Report, during the first six months of 2021, $590 million were paid in ransom payments, as opposed to $416 million paid in all of 2020.
While we talk about best practices to protect ourselves, how often do we flip the conversation and look at the steps we must take when a hack actually occurs? “Unfortunately, no one is safe from ransomware,” said Evgueni Erchov, head of security research & strategy, Arete.
“The most sophisticated groups can focus on larger organizations … but we also see the small companies being targeted all the time.”
Erchov is an experienced hacker negotiator, with more than 20 years in IT security, application development, cybercrime investigations, computer forensics, cryptocurrency blockchain and cyber threat intelligence analysis.
Erchov, alongside John Farley, managing director, cyber practice, at Gallagher, put on a recent webinar on what to do when a hacker strikes, running through a simulated hack to give businesses recovery tips.
The presentation, “What Really Happens When You Negotiate With a Hacker: An Insider’s View,” illuminated several key points, from how to communicate with hackers, where to gather cryptocurrency if a hacker demands it, and what conversations with underwriters should look like when reviewing cyber controls.
Getting in Touch with Your Hacker
Believe it or not, hacking is a business, and hackers treat what they do as such.
Organized criminals work together to suss out vulnerable targets — from a large corporation all the way down to the neighborhood corner store. If the business has the capability to store data — credit card info, health records, trade secrets, you name it — the business is a viable target.
When a hacker infiltrates a system, the language used in their demand can follow a similar pattern. Hackers will note the data they have access to — employee personal records, partner and client data, financial and accountant documents — and how they intend to gain ransom for encrypting these files.
Next steps will focus on how to communicate with the hacker.
“It depends on how sophisticated the group is,” Erchov said. “Sometimes a ransom note will contain an email address that will be used to go back and forth and negotiate a ransom.”
Money and Extortion: How Demands Lives Have Changed
“In the old days, five or six years ago, we had hackers typically freezing our data, we had extortion, but if you didn’t pay, you just didn’t get your data back,” Farley said.
The scare tactics being used by hackers are changing.
In the simulation during the presentation, the fictive hacker threatens to reveal extremely sensitive data from the company CEO if they don’t receive $1 million in bitcoin within five days. To prove how serious they are, the hacker sends an excerpt of that sensitive info.
Extortion and double extortion are commonplace for hackers these days, Erchov said.
“That really happens quite often, on average, close to 70% of cases nowadays will involve data exfiltration along with the encryption,” he said.
It’s a tactic used to encourage payment, because it not only involves the encryption of sensitive data, but it also hangs corporate reputation in the balance. The ransom becomes more than just retrieving data; it becomes about keeping that data out of public hands.
Bitcoin: How the Heck Do I get My Hands on That?
Once the decision to pay the hackers is made, the next issue is figuring out how to follow through. More hackers are demanding bitcoin payments in their ransoms, but not all companies are working in bitcoin.
So then, what do companies do when their data is held for ransom?
As noted by Farley and Erchov, people believe the first place to go for bitcoin is their cyber insurer. But this is not correct.
“The forensic investigator … the company that deals with forensic investigation and interim response, that’s typically the company that will be handling that,” Erchov said.
However, the cyber insurer can be there to guide the process.
“The beauty of the cyber insurance policy is that you have access to these companies [like a forensic investigation company] that have access to bitcoin and can facilitate the payments,” added Farley.
Forensic investigation companies are often operating on a 24/7 basis as well, and the cyber insurance policy acts as a bridge between client and forensics.
Farley noted these payments are also on reimbursement, so the cyber policy is typically designed to reimburse ransoms after the fact.
The Decision to Negotiate
While paying a hacker immediately to get encrypted data back seems like a no brainer, sometimes negotiating down the ransom is the best line of action, especially if a ransom demand is really large or unfeasible.
But what if low-balling a hacker leads to a bigger data leak?
“They almost expect the initial demand is not going to be paid,” said Erchov.
But it’s important to partner with a negotiator, he said, because the negotiation strategist knows what is a reasonable offer versus what could anger the hacker.
The good news: On average, hackers will negotiate down a ransom by 70%, according to Erchov, based on the cases his company Arete has dealt with in the past.
But that depends on several different factors.
“Potentially, the backups might be available. So in that case, if we only have to negotiate for promise of data deletion, it gives us additional leverage because we don’t need a decryption tool,” Erchov gave as an example.
Questions Your Underwriter Will Ask
“We have a very hard cyber insurance marketplace today,” said Farley. “We’re in a place where ransomware and other factors are really getting the underwriting community very nervous.”
Because of the risk landscape and the size of demand, rates are increasing. Some entities with less cyber controls in place are facing nonrenewal.
So, how can a company make itself a good risk for an underwriter?
“They are going to have a lot of questions for you,” said Farley. He noted his list was not all encompassing, but these are key areas to start.
“Multi-factor authentication. If you don’t have that in place, there’s a chance you might not get underwritten at all,” he said.
Underwriters will also want to see patch management — a written and detailed plan to manage any hacker exploitation. Point detection and response, which is technology used to find a hacker in your system and alert you to them, is another control underwriters like to see.
At the end of the day, the key thing to remember is if your company is on the receiving end of a cyber ransomware event, call your cyber partners immediately.
They will know which resources, from bitcoin, negotiators, forensics and more, will aid in appeasing the hacker and getting your data secured.
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Article
FortiBleed Campaign Remains Active
The FBI and Secret Service recently warned that the FortiBleed credential-harvesting campaign remains an active threat targeting internet-facing Fortinet FortiGate firewalls and secure socket layer (SSL) virtual private network (VPN) gateways. The agencies report that attackers continue to scan internet-exposed Fortinet firewalls using previously obtained credentials. This has reinforced assessments made by other security researchers, who have stated that “FortiBleed should be treated as an active access operation, not as a one-time credential leak.”
What’s Notable and Unique
FortiBleed, active since February 2026, begins with widespread reconnaissance to identify internet-facing FortiGate firewalls and SSL-VPN services. Once potential targets are identified, operators attempt to gain initial access through credential stuffing, password spraying, and dictionary attacks using previously compromised credentials.
Following successful access, the attackers deploy the Go-based FortigateSniffer tool on compromised appliances. The tool leverages native FortiOS diagnostic functionality to passively intercept authentication traffic across 24 protocols, enabling the collection of cleartext credentials and password hashes passing through the device.
Successfully recovered credentials are reused to expand access, including Active Directory enumeration, Kerberos validation, SMB authentication, and network share discovery, enabling threat actors to move deeper into the victim environment.
Reporting indicates that initial access brokers (IABs) leveraging the FortiBleed attack chain have facilitated access for downstream ransomware operations, including the INC Ransom/Lynx and Payload ransomware groups. This aligns with Arete’s observations of ransomware groups, including INC, Qilin, and DragonForce, targeting Fortinet FortiGate and VPN infrastructure as an initial access vector.
Remediation
Organizations should restrict internet-facing FortiGate management interfaces, rotate administrative and VPN credentials, review local and privileged accounts, and enforce MFA for remote access. If a potential compromise is detected, organizations should isolate affected systems, conduct threat hunting to determine the scope and identify compromised accounts and devices, and preserve relevant logs and artifacts. Organizations should also report the incident to appropriate authorities and implement targeted eviction measures based on identified threat actor activity.
Analyst Comments
FortiBleed represents an ongoing access-enablement threat, rather than a one-time credential exposure. The campaign’s ability to harvest, validate, and reuse credentials can provide sustained access to victim environments and create opportunities for downstream ransomware activity. Organizations with suspected FortiGate exposure should treat the activity as a potential active compromise and investigate for persistent access, compromised accounts, and lateral movement.
Sources
FortiBleed Operations Continue Targeting Exposed Systems Leading to Reports of Lockouts
FBI Warns FortiBleed Remains Active After Amassing 86,644 Fortinet Device Credentials
Article
Threat Actors Exploiting Critical FortiMail Zero-Day Vulnerability
Fortinet has disclosed a critical vulnerability in FortiMail, tracked as CVE-2026-104286, that is currently being exploited as a zero-day in the wild. The flaw, which carries a Critical CVSS score of 9.8, affects the FortiMail management interface and can allow unauthenticated attackers to write arbitrary files to affected systems, potentially leading to unauthorized code execution and full system compromise. Fortinet has confirmed active exploitation and urged customers to implement mitigations immediately while awaiting security updates.
What’s Notable and Unique
The vulnerability stems from improper restriction of file paths combined with improper neutralization of NULL byte characters. An unauthenticated attacker can exploit the flaw via specially crafted HTTP or HTTPS requests to write arbitrary files on the underlying operating system.
Organizations running FortiMail 7.2 can remediate the vulnerability by upgrading to 7.4 or newer. For customers using affected FortiMail 7.4, 7.6, and 8.0 versions, fixes have not yet been released. However, Fortinet has confirmed that the issue will be addressed in the upcoming 7.4.9, 7.6.7, and 8.0.2 releases.
Until the patched versions become available, Fortinet recommends mitigating risk by disabling the Identity-Based Encryption (IBE) feature. As an additional safeguard, administrators should restrict access to the FortiMail management interface, either by removing internet exposure altogether or limiting access to trusted internal networks only. The advisory also includes log entries that administrators can use to identify potentially compromised appliances.
The U.S. Cybersecurity and Infrastructure Security Agency (CISA) has added CVE-2026-104286 to its Known Exploited Vulnerabilities (KEV) catalog and directed federal agencies to perform forensic triage and mitigation by October 4th.
Analyst Comments
Impacted organizations should review their FortiMail instances to ensure there are no unauthorized logins, examine device settings, evaluate all configurations as potentially compromised, and carry out the necessary recovery procedures. Defenders should immediately implement Fortinet's recommended mitigations, review systems for IOC matches, and prepare to deploy the forthcoming security updates as soon as they become available. It is strongly advised that all enterprises assess their setups to reduce risk, as protecting publicly accessible management interfaces is a fundamental security best practice.
Sources
Improper limitation of a pathname to a restricted directory
Article
Ransomware Trends & Data Insights: September 2026
The Akira ransomware group re-emerged as the most active ransomware threat observed by Arete in September. Overall activity remained relatively distributed among multiple threat groups, with 29 unique groups observed throughout the month. Alongside Akira, INC Ransom and the relatively new Storm group were among the three most active threat actors observed in September. Several new threat groups also emerged during the month, including Hades Team, Shiba, and Vortex (which is suspected to be part of the cluster of threat actors affiliated with the former BlackFile group).

Throughout the month, analysts at Arete identified several trends behind the threat actors perpetrating cybercrime activities:
In September 2026, the ShinyHunters threat group escalated its extortion activity by publicly targeting both the Clop ransomware group and the FBI. The group claimed to have breached and defaced Clop’s infrastructure, demanding an eight-figure ransom, while separately alleging the theft of sensitive FBI-related data and demanding the retraction of statements made in a prior public advisory. In both incidents, ShinyHunters employed similar pressure tactics, including website defacements, repeated public postings, and threats of data disclosure.
ClickFix attacks remained prevalent in September 2026, with ransomware groups including Qilin, Helix, and The Gentlemen leveraging ClickFix lures to facilitate PowerShell-based payload execution and initial access. The technique continues to evolve, combining social engineering with legitimate tools and services to enable compromise and evade detection.
September 2026 saw continued activity from the former BlackFile extortion ecosystem. BlackFile, a data theft and extortion operation active since at least October 2025, rebranded as Redact in May 2026, and since appears to have broken off into several affiliated brands, including Pink, Helix, Falcon, Cinder, and potentially Vortex. During September, some affiliates publicly disputed these associations and claimed to operate independently. However, the coordinated timing, messaging, and near-identical nature of these statements support the assessment that these groups remain part of a broader interconnected ecosystem operating under shared objectives or coordination.
Article
Attack Patterns in Settra Incidents
Recent Settra ransomware incidents demonstrate a consistent operational pattern involving compromised credentials, VPN access, and the deployment of ransomware executables tailored to victim environments. Researchers have observed Settra naming ransomware executables after the targeted organization's domain while following similar attack sequences across multiple intrusions. Arete has also identified overlapping tactics, techniques, and tools in Settra engagements observed from June to August, including the use of MeshAgent for remote access and Bring Your Own Vulnerable Driver (BYOVD) techniques to weaken endpoint security controls.
What’s Notable and Unique
Settra operators have been observed naming ransomware executables after the victim organization's domain, creating a direct association between the payload and the targeted environment.
Initial access vectors have included targeting exposed VPN infrastructure and the use of compromised credentials, reducing the need for traditional exploitation of vulnerabilities.
Arete observed MeshAgent in multiple Settra engagements, which provides threat actors with a mechanism for remote access and continued activity within compromised environments.
Settra engagements have also included Bring Your Own Vulnerable Driver (BYOVD) activity, which can be used to bypass or impair security controls by abusing legitimate but vulnerable drivers.
Analyst Comments
Recent Settra activity demonstrates how ransomware operators can combine credential-based access, remote management tooling, and security control evasion techniques to establish and maintain access before ransomware deployment. The repeated use of similar tools and operational patterns across incidents provides useful detection opportunities for defenders. Organizations should closely monitor VPN authentication activity, unusual use of compromised credentials, unexpected MeshAgent deployment, ransomware executables with victim-specific naming conventions, and suspicious driver activity associated with attempts to disable or bypass endpoint security controls.
Arete’s MDR practice detects Settra’s full attack chain, with special attention to the staging of BYOVD activity for defense evasion. However, for us to detect it, SentinelOne needs to be fully deployed across an environment. To support organizations with full deployment, Arete offers SentinelOne Deployment Assistance. This service is designed to ensure that SentinelOne is deployed across all eligible endpoints, eliminating coverage gaps that could otherwise expose the organization to ransomware, malware, credential theft, and other advanced threats. Through endpoint discovery, inventory reconciliation, and deployment assistance, Arete helps organizations achieve comprehensive protection and maximize the effectiveness of their SentinelOne investment. Contact clientcares@areteir.com to learn more.
Sources
Ready, Settra, Go: New Settra Ransomware Variant Deploys MeshAgent RMM



