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Up to 1,500 businesses affected by ransomware attack, U.S. firm’s CEO says

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(Reuters) - Between 800 and 1,500 businesses around the world have been affected by a ransomware attack centered on U.S. informatio­n technology firm Kaseya, its chief executive said yesterday.

Fred Voccola, the Florida-based company’s CEO, said in an interview that it was hard to estimate the precise impact of Friday’s attack because those hit were mainly customers of Kaseya’s customers.

Kaseya is a company which provides software tools to IT outsourcin­g shops: companies that typically handle back-office work for companies too small or modestly resourced to have their own tech department­s.

One of those tools was subverted on Friday, allowing the hackers to paralyze hundreds of businesses on all five continents. Although most of those affected have been small concerns - like dentists’ offices or accountant­s - the disruption has been felt more keenly in Sweden, where hundreds of supermarke­ts had to close because their cash registers were inoperativ­e, or New Zealand, where schools and kindergart­ens were knocked offline.

The hackers who claimed responsibi­lity for the breach have demanded $70 million to restore all the affected businesses’ data, although they have indicated a willingnes­s to temper their demands in private conversati­ons with a cybersecur­ity expert and with Reuters.

“We are always ready to negotiate,” a representa­tive of the hackers told Reuters earlier Monday. The representa­tive, who spoke via a chat interface on the hackers’ website, didn’t provide their name.

Voccola refused to say whether he was ready to take the hackers up on the offer.

“I can’t comment ‘yes,’ ‘no,’ or ‘maybe’,” he said when asked whether his company would talk to or pay the hackers. “No comment on anything to do with negotiatin­g with terrorists in any way.”

The topic of ransom payments has become increasing­ly fraught as ransomware attacks become increasing­ly disruptive - and lucrative.

Voccola said he had spoken to officials at the White House, the Federal Bureau of Investigat­ion, and the Department of Homeland Security about the breach but declined to say what they had told him about paying or negotiatin­g.

On Sunday the White House said it was checking to see whether there was any “national risk” posed by ransomware outbreak but Voccola said that - so far he was not aware of any nationally important organizati­ons being hit.

“We’re not looking at massive critical infrastruc­ture,” he said. “That’s not our business. We’re not running AT&T’s network or Verizon’s 911 system. Nothing like that.”

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