Photo of Evan D. WolffPhoto of Matthew B. WellingPhoto of Michael G. Gruden, CIPP/GPhoto of Maarten StassenPhoto of Garylene “Gage” JavierPhoto of Sarah Rippy

A new Cybersecurity & Infrastructure Security Agency (CISA) alert advises that, starting in late May, a well-known ransomware group called Clop compromised a widely used managed file transfer (MFT) platform called MOVEit Transfer, reportedly impacting hundreds of companies globally. 

MFT platforms are used to securely transfer files between parties, and Clop reportedly compromised MOVEit Transfer using a previously unknown (zero-day) vulnerability that allowed attackers to steal files from MOVEit’s underlying database. This vulnerability is now tracked as CVE-2023-34362.

Clop has previously targeted MFT platforms such as Accellion and has shown that it is prepared to follow through on threatened next steps.  In this case, Clop is threatening to identify victim companies on the Clop site as soon as June 14 and then, if a ransom is not paid, publish victims’ stolen data.  In prior attacks, Clop has also reportedly contacted victim companies directly with ransom demands, sometimes weeks or more after the attack.  We do not recommend that victims contact threat actors like Clop directly but instead work with experts to do so safely, if necessary.

Organizations that may be victims of this attack should consider the following steps:

  1. Organizations that used the MOVEit Transfer platform with its web interface exposed to the internet should consider initiating a privileged investigation to determine if they were impacted by this attack.
  2. Organizations with vulnerable MOVEit Transfer systems should consider reviewing available guidance and patching information from Progress Software, the maker of MOVEit Transfer, and be vigilant for additional attempts at exploitation and data theft, as well as other attacks targeting these systems (e.g., the deployment of ransomware encryptors). Progress Software, the maker of MOVEit, has provided information about the vulnerability, patching and recommended mitigation here:  https://www.progress.com/security/moveit-transfer-and-moveit-cloud-vulnerability
  3. If your organization was impacted, assess the attacker’s level of access and what data was compromised.
  4. Based on the data compromised, determine your organization’s notification requirements under applicable laws, regulations, and contracts.
  5. Organizations should also consider reviewing their supply chains and other counterparties to determine if their data may have been exposed through third parties’ use of the MOVEit Transfer platform.

Crowell & Moring attorneys are monitoring developments and stand ready to support affected businesses.

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Photo of Evan D. Wolff Evan D. Wolff

Evan D. Wolff is a partner in Crowell & Moring’s Washington, D.C. office, where he is co-chair of the firm’s Chambers USA-ranked Privacy & Cybersecurity Group and a member of the Government Contracts Group. Evan has a national reputation for his deep technical…

Evan D. Wolff is a partner in Crowell & Moring’s Washington, D.C. office, where he is co-chair of the firm’s Chambers USA-ranked Privacy & Cybersecurity Group and a member of the Government Contracts Group. Evan has a national reputation for his deep technical background and understanding of complex cybersecurity legal and policy issues. Calling upon his experiences as a scientist, program manager, and lawyer, Evan takes an innovative approach to developing blended legal, technical, and governance mechanisms to prepare companies with rapid and comprehensive responses to rapidly evolving cybersecurity risks and threats. Evan has conducted training and incident simulations, developed response plans, led privileged investigations, and advised on hundreds of data breaches where he works closely with forensic investigators. Evan also counsels businesses on both domestic and international privacy compliance matters, including the EU General Data Protection Regulation (GDPR), and the California Consumer Privacy Act (CCPA). He is also a Registered Practitioner under the Cybersecurity Maturity Model Certification (CMMC) framework.

Photo of Matthew B. Welling Matthew B. Welling

Matthew B. Welling is a partner in Crowell & Moring’s Washington, D.C. office, where he practices in the firm’s Privacy & Cybersecurity and Energy groups. Matthew has a deep technical background that he leverages to represent clients in a wide range of counseling…

Matthew B. Welling is a partner in Crowell & Moring’s Washington, D.C. office, where he practices in the firm’s Privacy & Cybersecurity and Energy groups. Matthew has a deep technical background that he leverages to represent clients in a wide range of counseling and regulatory matters. His experience includes cybersecurity and privacy incident response, compliance reviews, risk assessments, and the development of corporate policies and procedures, such as incident response plans. Matthew has a diverse background in M&A and other corporate transactional issues, with specific recent experience with technology transactions, cybersecurity issues, and critical infrastructure project development.

Photo of Michael G. Gruden, CIPP/G Michael G. Gruden, CIPP/G

Michael G. Gruden is a counsel in Crowell & Moring’s Washington, D.C. office, where he is a member of the firm’s Government Contracts and Privacy and Cybersecurity groups. He possesses real-world experience in the areas of federal procurement and data security, having worked…

Michael G. Gruden is a counsel in Crowell & Moring’s Washington, D.C. office, where he is a member of the firm’s Government Contracts and Privacy and Cybersecurity groups. He possesses real-world experience in the areas of federal procurement and data security, having worked as a Contracting Officer at both the U.S. Department of Defense (DoD) and the U.S. Department of Homeland Security (DHS) in the Information Technology, Research & Development, and Security sectors for nearly 15 years. Michael is a Certified Information Privacy Professional with a U.S. government concentration (CIPP/G). He is also a Registered Practitioner under the Cybersecurity Maturity Model Certification (CMMC) framework. Michael serves as vice-chair for the ABA Science & Technology Section’s Homeland Security Committee.

Michael’s legal practice covers a wide range of counseling and litigation engagements at the intersection of government contracts and cybersecurity. His government contracts endeavors include supply chain security counseling, contract disputes with federal entities, suspension and debarment proceedings, mandatory disclosures to the government, prime-subcontractor disputes, and False Claims Act investigations. His privacy and cybersecurity practice includes cybersecurity compliance reviews, risk assessments, data breaches, incident response, and regulatory investigations.

Photo of Maarten Stassen Maarten Stassen

Maarten Stassen is a partner in the Brussels office of Crowell & Moring, where he is a member of the firm’s Privacy & Cybersecurity Group. His practice focuses on privacy and data protection, including the General Data Protection Regulation (GDPR) and cross-border data…

Maarten Stassen is a partner in the Brussels office of Crowell & Moring, where he is a member of the firm’s Privacy & Cybersecurity Group. His practice focuses on privacy and data protection, including the General Data Protection Regulation (GDPR) and cross-border data transfers solutions, as well as on the legal and operational aspects of the digital ecosystem, including Internet of Things (IoT), MedTech, and upcoming technologies such as Distributed Ledger Technology (e.g. Blockchain).

Before joining Crowell & Moring, Maarten was a director in Deloitte’s Cyber practice, as well as the Faculty Leader of the European Privacy Academy. He has been focusing on privacy and data protection law for many years, first as a lawyer in both Spain and Belgium, and later as European Privacy Officer of an international health insurance company.

Photo of Garylene “Gage” Javier Garylene “Gage” Javier

Garylene “Gage” Javier, CIPP/US is a Privacy & Cybersecurity associate in the firm’s Washington, D.C. office. Gage practices focuses on privacy, data security, and consumer protection, assisting financial services clients overcome regulatory challenges and achieve their business goals. Gage assists clients concerns that…

Garylene “Gage” Javier, CIPP/US is a Privacy & Cybersecurity associate in the firm’s Washington, D.C. office. Gage practices focuses on privacy, data security, and consumer protection, assisting financial services clients overcome regulatory challenges and achieve their business goals. Gage assists clients concerns that arise from state and federal laws that apply to data privacy and information security, including: the Gramm-Leach-Bliley Act (GLBA); California Consumer Privacy Act (CCPA); California Privacy Rights Act (CPRA); California Financial Information Privacy Act (CFIPA); the Fair Credit Reporting Act (FCRA) and its Affiliate Marketing Rule; the Virginia Consumer Data Protection Act (CDPA); and the EU General Data Protection Regulation (GDPR).

Photo of Sarah Rippy Sarah Rippy

Sarah Rippy is an attorney in Crowell & Moring’s Denver office and a member of the Privacy & Cybersecurity Group.

During law school, Sarah was executive editor of the Colorado Technology Law Journal and an active member of the Silicon Flatirons Center. She…

Sarah Rippy is an attorney in Crowell & Moring’s Denver office and a member of the Privacy & Cybersecurity Group.

During law school, Sarah was executive editor of the Colorado Technology Law Journal and an active member of the Silicon Flatirons Center. She joins the firm after a year serving as a Westin Research Fellow at the International Association of Privacy Professionals, where she focused on state law developments, including the California Privacy Rights Act (CPRA), the Colorado Privacy Act (CPA), and the Virginia Consumer Data Protection Act (VCDPA).