Evolve Bank Hit by Major Ransomware Attack: Customer Data Exposed

Hey FinTech Fanatic!

Evolve Bank & Trust has been hit by a significant cyberattack, with the Russia-linked LockBit ransomware group releasing stolen customer data on the dark web. This breach follows LockBit's claim of hacking the US Federal Reserve, though no proof has been provided for the latter.

Evolve confirmed the attack, acknowledging that "bad actors" had posted unauthorized data online. LockBit published files across 21 dark web links after Evolve did not meet ransom demands. This attack coincides with regulatory scrutiny on Evolve to improve risk management and oversight of FinTech partnerships.

The timing is particularly troubling as Evolve recently received a "cease and desist" order from the Federal Reserve and is involved in a bankruptcy case with the collapsed FinTech platform Synapse.

This incident is part of a larger trend of increasing cyber threats to financial institutions. Recent ransomware attacks have also targeted Santander and the UK National Health Service, disrupting services due to security misconfigurations.

These attacks highlight the vulnerabilities of smaller financial institutions, which often lack the robust security infrastructure of larger corporations. The myth of "bank-grade" security is increasingly questioned, with smaller banks at greater risk.

Ransomware proceeds frequently link to state actors like Russia, fueling a cyber cold war. This attack on Evolve underscores the urgent need for enhanced cybersecurity measures in the financial sector.

Make sure you follow Jason Mikula for the latest updates on this subject.

Have a great weekend and I'll be back in your inbox on Monday!

Cheers,

Marcel

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