Over 200 US Companies affected by monstrous ransomware attack

Organized cyber gangs are constantly attempting to gain access to computer networks in order to hold them hostage for a hefty price.

In this latest attack centered around Kaseya's IT software the hackers showed that by going after the software supplier of multiple organizations they can potentially affect dozens, perhaps hundreds of victims in one go. We've seen horrendous supply chain attacks in the past but this one has the potential to be the biggest incident involving ransomware yet.

Huntress Labs, a company that provides threat detection and response services, said that the hack targeted Florida-based IT software company Kaseya before spreading through a multitude of corporate networks that use its IT software.

Kaseya said in a statement on its website that it was investigating a "potential attack". Huntress Labs said it believed the Russia-linked REvil ransomware gang was responsible.

The cyber-breach emerged on Friday afternoon, shortly after the US Cybersecurity and Infrastructure Agency stated that it was taking action to address the attack.

Kaseya said one of its applications that runs corporate servers, desktop computers and network devices may have been the compromising element in this attack. The company said it was urging customers that use its VSA tool to immediately shut down their servers.

Kaseya said in its statement that a "small number" of companies had been affected, however Huntress Labs stated the number was greater than 200.

It is not clear what specific companies have been affected and a Kaseya representative contacted by the BBC declined to give details.

Kaseya's website says it has a presence in over 10 countries and more than 10,000 customers, so it is not hard to see how detrimental this attack could be.

This attack shows that ransomware groups are now thinking way outside of the box by learning how to have the most impact possible and command the biggest ransom possible from unexpecting corporations.

Huntress Labs' senior security researcher John Hammond was quoted saying "This is a colossal and devastating supply chain attack"

The group commonly threatens to post stolen documents on its website - known as the "Happy Blog" - if victims don't comply with its demands.

Ransomware is plaguing businesses all around the world, and experts are scrambling for a long term solution.