Cybercriminals threaten to leak London Drugs data if it doesn't pay $25M ransom
Last month’s cyberattack on pharmacy and retail chain London Drugs that forced the closure of all its stores in Western Canada was orchestrated by a “sophisticated group of global cybercriminals” who are demanding a ransom—and say they’ll leak the company’s data if it doesn’t pay up.
In a statement to CTV News Tuesday, London Drugs said it has learned that it’s been “identified by cybercriminals on the dark web” as the victim of file theft from its corporate head office, and that some of those files may contain employee information.
The company said that to date it doesn’t appear that patient, customer or “primary employee” databases have actually been compromised, but the investigation into the cyberattack is ongoing.
In its statement, London Drugs did not name the criminal group behind the attack, but Brett Callow, a threat analyst at cybersecurity company Emsisoft identified it as LockBit, a prolific ransomware operation.
Callow told CTV News Emsisoft’s trackers found out about the ransom “fairly quickly” by pulling data off the dark web.
In a screenshot shared with CTV News, LockBit says it will release data it claims to have stolen from London Drugs in 48 hours if it does not pay $25 million. The post also claims that London Drugs has offered to pay $8 million.
London Drugs said it is “unwilling and unable to pay ransom to these cybercriminals.”
“We acknowledge these criminals may leak stolen London Drugs corporate files, some of which may contain employee information on the Dark Web. This is deeply distressing, and London Drugs is taking all available steps to mitigate any impacts from these criminal acts,” the statement continues.
London Drugs says it notified all current employees of the potential breach and offered 24 months of free credit monitoring and identity theft services, regardless of whether or not any of their data was ultimately stolen.
Callow said that London Drugs made “absolutely the right decision” by refusing to pay the ransom.
There’s no guarantee LockBit would delete the data if London Drugs capitulates, he explained, adding that law enforcement has previously found LockBit servers containing data from multiple companies that paid to have it erased.
“They are untrustworthy, bad-faith actors,” he said.
LockBit, through affiliates using its ransomware tools, has extorted $120 million from thousands of victims since 2019, which include airplane manufacturer Boeing, Britain’s National Health Service and China’s biggest bank, according to The Associated Press.
Its ransom demands range from the tens of thousands of dollars to tens of millions, Callow said.
He added that all London Drugs can do now is to support employees whose information may be compromised and hope law enforcement agencies take down LockBit.
Overall, cybercriminals collected $1.1 billion in ransom in 2023, according to crypto-tracing firm Chainalysis. “The bulk of that would have been paid by companies in the U.S. and Canada,” Callow said.
“Victims often claim that the attacks were sophisticated, but most ransomware attacks succeed because of fairly basic security failings, so there are absolutely things organizations can do to reduce the likelihood of becoming the next victim,” he said.
London Drugs said it would not give any interviews Tuesday.
CTVNews.ca Top Stories
BREAKING 'All hands on deck situation': City of Calgary declares state of local emergency over water main break
The City of Calgary declared a local state of emergency Saturday morning in response to the latest developments in a major water main break that is impacting the city.
A new tax filing system could give Canadians more than $1 billion in unclaimed benefits: PBO
Canadians would get more than $1 billion in unclaimed benefits each year through an automatic tax filing system, according to a report published by the Parliamentary Budget Officer (PBO).
U.K. royals unite on palace balcony as Princess of Wales returns to public view after cancer diagnosis
London put on a display of birthday pageantry Saturday for King Charles III, a military parade that marked the Princess of Wales ' first public appearance since her cancer diagnosis early this year.
Trudeau calls into question findings of stunning watchdog foreign interference report
Prime Minister Justin Trudeau says he has concerns with how conclusions were gathered in a spy watchdog report.
Man who stabbed Mexican tourist in Vancouver Tim Hortons 2 years ago released from prison, police warn
Vancouver police are warning the public that the man who stabbed a stranger in a downtown coffee shop in January 2022 has been released and will be living in the city again.
Winning Lotto Max ticket for $55 million jackpot sold in GTA
A lucky lotto player in the Greater Toronto Area is waking up with millions more reasons to smile this morning.
U.S. regulators investigating unusual 'Dutch roll' of a Southwest Airlines Boeing 737 Max
Federal officials are investigating an unusual rolling motion during the flight of a Southwest Airlines Boeing 737 Max.
One person in custody after armed Manitoulin Island standoff
The armed standoff that created a large police presence on Manitoulin Island on Saturday morning has ended peacefully and one suspect is in custody, police confirmed to CTVNewsNorthernOntario.ca.
93-year-old pleads guilty to careless driving after crash involving CTV Kitchener reporter
A 93-year-old woman has pleaded guilty to careless driving causing bodily harm in the crash that sent CTV News Kitchener reporter Stephanie Villella to hospital with life-threatening injuries last year.