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The Justice Department recovered millions of dollars that Colonial Pipeline paid to ransomware hackers. MoviePass settles a data privacy case with the FTC. And more back-and-forth about cyber insurance. This is CyberScoop for June 8, 2021.

Yoink! DOJ seizes cryptocurrency back from Colonial attackers

The Justice Department snagged back part of Colonial Pipeline's ransomware payment to DarkSide operators, officials touted on Monday. They recovered $2.3 million in cryptocurrency. Colonial originally paid $4.4 million worth, although the price of bitcoin has fluctuated since then. DOJ said it took the money back from a virtual wallet that belonged to the attackers. It's a small chuck of change for ransomware gangs who made billions in 2020, but it's part of a blitz against ransomware from the Biden administration. Tim Starks has more.

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MoviePass settles with the FTC over exposing private information

The now-bankrupt company MoviePass settled with the Federal Trade Commission Tuesday over allegations that it failed to secure users’ personal information and misled them about the company’s subscription offerings, the agency announced. The company allegedly failed to protect user data, leading to the exposure of tens of thousands of user credit card number and other personal information in 2019. The FTC also slammed the company for using an array of tricks to keep users from actually using the service. Bad news: Because the company went bankrupt before the FTC stepped in, consumers won't get any restitution. Tonya Riley has the latest.

Ransomware comes for a political newsletter

The scourge of ransomware has now hit very close to home for U.S. lawmakers. Ransomware has impacted the newsletter service of iConstitutent, a firm that offices on Capitol Hill uses to contact constituents, the House of Representatives’ Chief Administrative Officer said Tuesday. There’s no sign of the incident impacting House data itself, but it’s another reminder of third party risk as Congress takes unprecedented interest in combating ransomware. Sean Lyngaas looks closer.

Azusa, Calif. rides the ransomware and insurance seesaw

The California city of Azusa didn't tell the public about a 2018 ransomware attack where its insurer Chubb paid the hackers $65,000. Now it's dealing with another attack where Chubb has balked at an $800,000 demand citing a Treasury warning about sanctions. City Manager Sergio Gonzalez said it wasn't required under law to disclose the first attack because the city was able to determine no data was stolen. Azusa's situation is a showcase for the will-they-or-won't-they dynamic that sometimes rears its head in cyber insurance these days. Tim has this one, too.

A new critical exploit on the block

Hackers are exploiting a critical bug in popular software made by Silicon Valley vendor VMware, the feds warned over the weekend. The flaw allows an attacker to execute code remotely and potentially infiltrate sensitive computing environments that run on VMware’s widely used server management software. Over the last year, federal officials have had to respond to persistent hacking operations that are only exacerbated when organizations fail to update their software. Sean unpacks the impact.

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