Ransomware actors may target companies in the throes of M&A deals

November 3, 2021 – Article posted on SC Media

The FBI warned businesses Monday that ransomware groups might seek out companies undergoing mergers and acquisitions as potential victims, leveraging potential disclosure of sensitive data tied to deals to push for rapid ransom payment.

The period prior to acquisition or merger is sensitive for companies. For most larger transactions requiring a filing with the Federal Trade Commission, both buyer and seller must file forms and provide data about the industry and their own businesses. By law, all information in a merger investigation is confidential, with very strict rules against disclosure. Even smaller deals that do not require FTC review bring the exchange of sensitive, classified information about both parties that, if disclosed, could disrupt the deal or result in a competitive impact.

“We’ve seen these people targeted before and using it as a point of leverage to try to get ransom payment is not unique, either,” said Mark Lance, ransomware negotiator and senior director for cyber defense at GuidePoint Security. “We’ll see these threat actors really try to do whatever it takes, and threaten whatever it takes to get that payment.”

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