Patriotic hacking

Hello from Jordan Robertson in London. For its next move in cyberspace, analysts say Russia may follow the example of another shunned nation [View in browser]( [Bloomberg]( Hello from Jordan Robertson in London. For its next move in cyberspace, analysts say Russia may follow the example of another shunned nation. But first... Today’s top tech news: - Price increases [added $32 billion]( to the cost of online goods - Amazon and Walmart orders are [likely to be delayed]( due to China’s Covid lockdowns - Volkswagen says [demand for electric]( vehicles is so strong that some models are sold out for the year A new kind of cybercrime state? As sanctions cripple Russia’s economy and U.S. companies send the country into technological obscurity, the Kremlin may call on Russian hackers to use their prowess to benefit the state, a new report warns. In the near term, a hostile Russia might hack American and European networks in retaliation for sanctions, attacks that could involve the kinds of [destructive malware]( deployed in Ukraine in the weeks before Russia’s invasion, according to a [new report]( from the Swedish cyber firm Truesec Group. The threat is serious enough for multiple European banks to curb access from Russia to mitigate a possible hack, [Bloomberg reported]( Monday. As Russia transforms into an isolated rogue state, though, the Kremlin may conscript prolific cybercrime syndicates there to generate revenue, Truesec warned, using ransomware, financial malware and cryptocurrency theft to try to recover some of the [$30 billion erased](from Russia’s gross domestic product. Such a move would clarify what security analysts have [described]( as an unofficial relationship between the government and hacking gangs that has existed for years. While security personnel have said that Russia tolerates cybercrime as long as scammers don’t target domestic organizations, a stronger relationship between hackers and the Kremlin could create international ripple effects. “We fear that if they choose to integrate the Russian ransomware groups into such a strategy that it could potentially become a threat to the global economy,” Truesec founder Marcus Murray told me. Such a strategic shift would follow the model in North Korea, where the regime has taken in as much as $2.3 billion through cybercrime, including ransomware and cryptocurrency theft, Bloomberg News [reported](in December. The costs of an unconstrained nation-state hacking program can add up quickly. U.S. [prosecutors said]( that North Korea tried to steal $1.2 billion from global banks by sending fraudulent messages on the global Society for Worldwide Interbank Financial Telecommunication, or SWIFT, network, while hackers also targeted Sony Pictures in an attempt to stop the release of a comedy movie about an assassination plot of Supreme Leader Kim Jong Un. “If Russia becomes a pariah-state like North Korea, then they might fully industrialize cybercrime to fund the regime,” Murray added. The size of the Russian cybercrime market is unknown. Researchers at the cryptocurrency-tracking firm Chainalysis [found]( that three quarters of global ransomware revenue went to Russia-linked hackers, earning them $400 million in cryptocurrency from those attacks in 2021 alone. Russia-based hackers also have more experience with the cybercriminal ecosystem than their counterparts in North Korea: developing [busy illicit forums](, distributing malicious software throughout global networks and utilizing access in U.S. infrastructure to boost Kremlin interests. In one case that hints at the potential for collaboration between scammers and the Russian state, a suspect with [Kremlin ties]( is [charged](with breaching two companies that process filings with the Securities and Exchange Commission to make millions of dollars by trading on non-public information. In 2017, U.S. prosecutors also [indicted]( two Russian intelligence officers for allegedly directing criminal hackers who had breached 500 million Yahoo accounts, then protecting the hackers as they used those accounts for a mass spamming campaign.   In a more recent case, a Russian-speaking ransomware gang, Conti, appeared to acknowledge a relationship with government officials in a series of leaked chats. That group made $200 million last year, a worrisome success rate that could spell trouble for U.S. companies if Russia’s need for plausible deniability disappears. Moscow has consistently denied any involvement in malicious cyber activity. —[Jordan Robertson](mailto:jrobertson40@bloomberg.net) If you read one thing Cerebral has built the fasted-growing online mental health business thanks in part to backing from SoftBank and promotions from Simone Biles. Former employees [say the company]( also over-prescribes medication, hurting patients amid rapid growth. What else you need to know The U.K.’s National Crime Agency [wants regulation]( for cryptocurrency protocols that help users obfuscate transaction activity. South Africa is looking to fine Meta after [Facebook removed]( GovChat, a tool that local officials use to send public announcements. Russian social network operator VK may [lack funds]( to redeem its convertible bond, triggering talks with bondholders to find alternative options. Follow Us More from Bloomberg Dig gadgets or video games? [Sign up for Power On]( to get Apple scoops, consumer tech news and more in your inbox on Sundays. [Sign up for Game On]( to go deep inside the video game business, delivered on Fridays. Why not try both? 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