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Ransomware Negotiator Pleads Guilty to Working for the Gang He Was Negotiating With

· via Schneier on Security

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A Ransomware Negotiator Was Working for a Ransomware Gang

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A ransomware negotiator has pleaded guilty to secretly working for the same ransomware gang whose payments he was supposed to be helping victims minimize. The negotiator used insider knowledge of client insurance limits, internal vulnerabilities, and negotiation strategy to steer payouts upward, turning the response process itself into an extension of the attack.

The case exposes a structural weakness in incident response: organizations routinely place enormous trust in individual negotiators with minimal oversight, auditing, or separation of duties. When the person tasked with pushing the price down has private incentives to push it up, the entire economic logic of ransom negotiation collapses. Multi-party controls and independent verification of negotiator activity are the obvious mitigations, but few victims demand them under the time pressure of an active intrusion.

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