Boards may ignore alerts, but they listen to losses: new data from Resilience links security gaps directly to financial impact.
The post Cyber Insurance Data Gives CISOs New Ammo for Budget Talks appeared first on SecurityWeek.
A South Florida man pleaded guilty to conspiring with multiple ransomware affiliates to commit attacks against and extort payments from the same U.S. companies he represented as a ransomware negotiator for DigitalMint in 2023, the Justice Department said Monday.
Angelo John Martino III shared confidential information about victim organizations’ internal negotiating positions and insurance policy limits he gained from his work as a ransomware negotiator to extract the maximum ransom payment for himself and other BlackCat affiliates, according to his plea agreement.
Five of Martino’s victims hired DigitalMint, which assigned the 41-year-old to conduct ransomware negotiations on their clients’ behalf — a rare position he exploited to play both sides. DigitalMint, which is not accused of any knowledge or involvement in the crimes, fired Martino the day after the Justice Department informed the company they were investigating him in April 2025.
The five U.S.-based victims that hired DigitalMint and unwittingly tapped Martino to allegedly conduct ransomware negotiations with himself and his co-conspirators include a nonprofit and companies in the hospitality, financial services, retail and medical industries. All five of those victims paid a ransom.
Prosecutors previously said Martino helped accomplices extort a combined $75.3 million in ransom payments, including a nearly $26.8 million payment from the unnamed nonprofit, and a nearly $25.7 million payment from the unnamed financial services company.
Martino also admitted to conspiring with Kevin Tyler Martin, another former ransomware negotiator at DigitalMint, and Ryan Clifford Goldberg, a former manager of incident response at Sygnia, to deploy BlackCat ransomware, also known as ALPHV, against five additional U.S. companies between April and November 2023.
Goldberg and Martin pleaded guilty in December to participating in a series of ransomware attacks and are scheduled for sentencing April 30.
“Angelo Martino’s clients trusted him to respond to ransomware threats and help thwart and remedy them on behalf of victims,” A. Tysen Duva, assistant attorney general at the Justice Department’s Criminal Division, said in a statement. “Instead, he betrayed them and began launching ransomware attacks himself by assisting cybercriminals and harming victims, his own employer, and the cyber incident response industry itself.”
The case against Martino showcases an extreme, albeit rare, example of the dark underbelly of ransomware negotiation as a practice. The pitfalls of ransomware negotiation are excessive and these backchannel negotiations, which remain largely unscrutinized, can go awry for various reasons.
Officials shared a series of chats Martino held with co-conspirators and his victims that exemplify the lengths he went to betray DigitalMint’s clients and empower his accomplices with crucial tips for a successful negotiation strategy.
DigitalMint did not respond to a request for comment on Martino’s guilty plea.
During an incident response with one of his victims, Martino told a BlackCat affiliate the company’s insurance carrier “was only approving small accounts,” according to his plea agreement. “Keep denying our offers and I will let you know once I find out the max the[y] want to pay,” he added.
“We don’t know how you came up with your demand but we are losing money operationally and all of our loans are going to turnover on us this year at double the interest rates,” Martino said in a negotiation chat visible to DigitalMint and the victim organization in the hospitality industry. “We are able to give you $1 million now, which is a very serious offer.”
Following Martino’s instructions, the BlackCat accomplice responded: “Well, you can keep that for the penalties and lawsuits which are coming your way in case we expose you. Time is ticking — we know how much you can pay. Contact your insurance. We know about them also. Stop wasting time.”
That victim company ultimately paid a ransom worth nearly $16.5 million at the time to receive a decryptor and the BlackCat affiliate’s commitment to not publish stolen data. The two other victims Martino represented via DigitalMint at the time paid $6.1 million and $213,000 ransoms for similar commitments.
“Ransomware victims turned to this defendant for help, and he sold them out from the inside,” Jason A. Reding Quiñones, U.S. attorney for the Southern District of Florida, said in a statement.
Martino received a portion of the ransomware payments for his involvement in the conspiracy.
Authorities have seized $10 million in assets and cryptocurrency wallets controlled by Martino. Law enforcement seized multiple vehicles, a food truck and a 29-foot luxury fishing boat that he obtained using proceeds from his crimes.
Officials also seized two properties owned by Martino in Nokomis, Florida, including a bayfront home with an estimated value of $1.68 million and a second single-family home with an estimated value of $396,000.
Martino surrendered in March to the U.S. Marshals in Miami and was released on a $500,000 bond.
“The FBI works every day to dismantle the ransomware ecosystem,” Brett Leatherman, assistant director of the FBI’s Cyber Division, said in a statement. “That includes apprehending key facilitators like Angelo Martino, who abused the trust placed in him as a private sector negotiator by collaborating with ransomware criminals.”
ALPHV/BlackCat was a notorious ransomware and extortion group linked to a series of attacks on critical infrastructure providers. The ransomware variant first appeared in late 2021, and was later used in dozens of attacks on organizations in the health care sector.
The group behind the ransomware strain also claimed responsibility for the February 2024 attack on UnitedHealth Group subsidiary Change Healthcare, which paid a $22 million ransom and became the largest health care data breach on record, compromising data on about 190 million people.
Martino pleaded guilty to conspiracy to obstruct, delay or affect commerce or the movement of any article or commodity in commerce by extortion. He faces up to 20 years in federal prison and is scheduled for sentencing July 9.
You can read Martino’s plea agreement below.
The post Former DigitalMint ransomware negotiator pleads guilty to extortion scheme appeared first on CyberScoop.
The Treasury Department is soliciting public feedback on whether it should change a terrorism risk insurance program to address cyber-related losses.
In a Federal Register notice set for publication Wednesday, Treasury seeks comment from the public for a mandatory report it must deliver to Congress this summer on the effectiveness of the terrorism risk insurance program (TRIP) created by the 2002 Terrorism Risk Insurance Act. That law arose from the Sept. 11 terror attacks and provided a federal backstop to make terrorism risk insurance more available and affordable.
Some experts have suggested that the cyber insurance industry should also get a federal backstop as the industry struggles to develop fully. With the law set to expire at the end of 2027, tying it to the reauthorization of the terrorism risk insurance law could be one way to get Congress to create such a cyber backstop.
Among the topics Treasury hopes commenters will address before it sends the report to Congress in June is the interaction between the terrorism risk insurance law and program, and cybersecurity. The agency will accept comments until May 8.
That includes: “Any potential changes to TRIA or TRIP that would encourage the take up of insurance for cyber-related losses arising from acts of terrorism as defined under TRIA, including, but not limited to the potential modification of the lines of insurance covered by TRIP and revisions to any of the current sharing mechanisms for cyber-related losses, such as, for example, the individual insurer deductible or the federal share percentage.”
In 2021, Treasury issued a rule making it clear that TRIP could cover cyber losses when written in a TRIP-eligible line of insurance. However, a Government Accountability Office report last year outlined some of the limitations there.
“Because TRIA was designed specifically as a federal backstop for losses from acts of terrorism, only losses from cyberattacks certified by Treasury as acts of terrorism would have TRIA coverage,” it states. “As a result, even large cyberattacks that result in catastrophic losses would not be covered under TRIA if they were not certified as acts of terrorism.”
Treasury said in its Federal Register notice that it wants feedback on cyber-related terrorism losses within TRIP and losses outside of it.
Cyberattacks would need to meet definitions under the terrorism risk insurance law to be certified. They need to be violent or otherwise dangerous to life, property or infrastructure, and designed to influence the U.S. population or government. Damage to U.S. organizations outside the United States still might not qualify.
Medical device maker Stryker recently suffered a wiper attack, with the pro-Palestinian, Iranian government-linked group Handala taking credit. It said the attack was in retaliation for U.S. and Israel military strikes against Iran, specifically a U.S. missile strike on a school that killed 175 people, according to Iran’s government.
The post Treasury asks whether terrorism risk insurance program should bolster cyber coverage appeared first on CyberScoop.
John Strand // It’s odd, we try to push security forward through standards like NIST, the Critical Controls, and PCI, but most organizations strive to meet the bare minimum required […]
The post WEBCAST: Insurance & Ransomeware appeared first on Black Hills Information Security, Inc..
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