Incident : ransomware

RXA1362213091025

Exposure Impact

Title: American Associated Pharmacies Ransomware Attack by Embargo

Description: American Associated Pharmacies (AAP), a major pharmacy network overseeing over 2,000 independent pharmacies, was struck by a ransomware attack by the group 'Embargo.' The attackers stole 1.4 TB of data, encrypted files, and initially demanded $1.3 million for decryption. After AAP allegedly paid the ransom, Embargo demanded an additional $1.3 million to prevent public disclosure of the stolen data. The attack disrupted AAP’s API Warehouse subsidiary, leading to limited ordering capabilities and a password reset for all users. Embargo is described as a sophisticated, opportunistic group with a history of targeting healthcare entities, including Memorial Hospital and Manor (Georgia) and Weiser Memorial Hospital (Idaho).

Type: ransomware

Attack Vector: endpoint detection and response (EDR) killer toolkitdata exfiltrationfile encryption

Threat Actor: Embargo (ransomware group)

Motivation: financial gain (ransom extortion)

Incident : ransomware RXA1362213091025

Entity Name: American Associated Pharmacies (AAP)

Entity Type: pharmacy network

Industry: healthcare

Location: Scottsboro, Alabama, USA

Size: over 2,000 independent pharmacies served

Incident : ransomware RXA1362213091025

Entity Name: API Warehouse (subsidiary of AAP)

Entity Type: wholesale purchasing platform

Industry: healthcare/pharmacy

Location: USA

Size: 2,500+ SKUs in inventory

Incident : ransomware RXA1362213091025

Entity Name: Memorial Hospital and Manor

Entity Type: community hospital and long-term care facility

Industry: healthcare

Location: Bainbridge, Georgia, USA

Size: 80-bed hospital + 107 long-term care beds

Incident : ransomware RXA1362213091025

Entity Name: Weiser Memorial Hospital

Entity Type: critical access hospital

Industry: healthcare

Location: Weiser, Idaho, USA

Incident : ransomware RXA1362213091025

Incident Response Plan Activated: likely (password resets implemented)

Containment Measures: password reset for all users on APIRx.com and RxAAP.compartial restoration of ordering capabilities

Recovery Measures: limited ordering capabilities restored for API Warehouse

Communication Strategy: 'Important Notice' posted on AAP websiteno official public statement on breach

Incident : ransomware RXA1362213091025

Type of Data Compromised: Protected health information (phi), Clinical laboratory testing data, Medical records, Account details, Prescription data

Sensitivity of Data: high (includes PHI and medical records)

Data Exfiltration: 1.4 TB of data stolen

Data Encryption: files encrypted by ransomware

Personally Identifiable Information: likely (PHI includes PII)

Incident : ransomware RXA1362213091025

Ransom Demanded: $1.3 million (initial) + $1.3 million (additional for data suppression)

Ransom Paid: $1.3 million (allegedly paid for decryption, unconfirmed by AAP)

Ransomware Strain: Embargo

Data Encryption: yes (files encrypted)

Data Exfiltration: yes (1.4 TB of data stolen)

Incident : ransomware RXA1362213091025

Regulations Violated: potential HIPAA violations (PHI compromised),

Incident : ransomware RXA1362213091025

Lessons Learned: Healthcare entities, including clinical laboratories and pharmacies, must proactively upgrade cybersecurity defenses to protect against sophisticated ransomware groups like Embargo. Regular security assessments, endpoint detection improvements, and employee training are critical to mitigating risks of PHI exposure and operational disruptions.

Incident : ransomware RXA1362213091025

Recommendations: Implement multi-factor authentication (MFA) for all systems handling PHI., Enhance endpoint detection and response (EDR) capabilities to counter tools like those used by Embargo., Conduct regular security audits and penetration testing to identify vulnerabilities., Develop and test incident response plans specific to ransomware and double extortion scenarios., Educate employees on phishing and social engineering tactics to prevent initial access by threat actors., Segment networks to limit lateral movement by attackers., Maintain offline, encrypted backups to enable recovery without paying ransom., Monitor dark web and threat intelligence feeds for signs of stolen data being sold or leaked.Implement multi-factor authentication (MFA) for all systems handling PHI., Enhance endpoint detection and response (EDR) capabilities to counter tools like those used by Embargo., Conduct regular security audits and penetration testing to identify vulnerabilities., Develop and test incident response plans specific to ransomware and double extortion scenarios., Educate employees on phishing and social engineering tactics to prevent initial access by threat actors., Segment networks to limit lateral movement by attackers., Maintain offline, encrypted backups to enable recovery without paying ransom., Monitor dark web and threat intelligence feeds for signs of stolen data being sold or leaked.Implement multi-factor authentication (MFA) for all systems handling PHI., Enhance endpoint detection and response (EDR) capabilities to counter tools like those used by Embargo., Conduct regular security audits and penetration testing to identify vulnerabilities., Develop and test incident response plans specific to ransomware and double extortion scenarios., Educate employees on phishing and social engineering tactics to prevent initial access by threat actors., Segment networks to limit lateral movement by attackers., Maintain offline, encrypted backups to enable recovery without paying ransom., Monitor dark web and threat intelligence feeds for signs of stolen data being sold or leaked.Implement multi-factor authentication (MFA) for all systems handling PHI., Enhance endpoint detection and response (EDR) capabilities to counter tools like those used by Embargo., Conduct regular security audits and penetration testing to identify vulnerabilities., Develop and test incident response plans specific to ransomware and double extortion scenarios., Educate employees on phishing and social engineering tactics to prevent initial access by threat actors., Segment networks to limit lateral movement by attackers., Maintain offline, encrypted backups to enable recovery without paying ransom., Monitor dark web and threat intelligence feeds for signs of stolen data being sold or leaked.Implement multi-factor authentication (MFA) for all systems handling PHI., Enhance endpoint detection and response (EDR) capabilities to counter tools like those used by Embargo., Conduct regular security audits and penetration testing to identify vulnerabilities., Develop and test incident response plans specific to ransomware and double extortion scenarios., Educate employees on phishing and social engineering tactics to prevent initial access by threat actors., Segment networks to limit lateral movement by attackers., Maintain offline, encrypted backups to enable recovery without paying ransom., Monitor dark web and threat intelligence feeds for signs of stolen data being sold or leaked.Implement multi-factor authentication (MFA) for all systems handling PHI., Enhance endpoint detection and response (EDR) capabilities to counter tools like those used by Embargo., Conduct regular security audits and penetration testing to identify vulnerabilities., Develop and test incident response plans specific to ransomware and double extortion scenarios., Educate employees on phishing and social engineering tactics to prevent initial access by threat actors., Segment networks to limit lateral movement by attackers., Maintain offline, encrypted backups to enable recovery without paying ransom., Monitor dark web and threat intelligence feeds for signs of stolen data being sold or leaked.Implement multi-factor authentication (MFA) for all systems handling PHI., Enhance endpoint detection and response (EDR) capabilities to counter tools like those used by Embargo., Conduct regular security audits and penetration testing to identify vulnerabilities., Develop and test incident response plans specific to ransomware and double extortion scenarios., Educate employees on phishing and social engineering tactics to prevent initial access by threat actors., Segment networks to limit lateral movement by attackers., Maintain offline, encrypted backups to enable recovery without paying ransom., Monitor dark web and threat intelligence feeds for signs of stolen data being sold or leaked.Implement multi-factor authentication (MFA) for all systems handling PHI., Enhance endpoint detection and response (EDR) capabilities to counter tools like those used by Embargo., Conduct regular security audits and penetration testing to identify vulnerabilities., Develop and test incident response plans specific to ransomware and double extortion scenarios., Educate employees on phishing and social engineering tactics to prevent initial access by threat actors., Segment networks to limit lateral movement by attackers., Maintain offline, encrypted backups to enable recovery without paying ransom., Monitor dark web and threat intelligence feeds for signs of stolen data being sold or leaked.

Incident : ransomware RXA1362213091025

Source: The Register

Incident : ransomware RXA1362213091025

Source: HIPAA Journal

Incident : ransomware RXA1362213091025

Source: HealthcareInfoSecurity (interview with Mike Hamilton, CISO of Critical Insight)

Incident : ransomware RXA1362213091025

Source: ESET (research on Embargo ransomware)

Incident : ransomware RXA1362213091025

Source: The Cyber Express (Memorial Hospital attack)

Incident : ransomware RXA1362213091025

Source: Dark Daily (multiple articles on healthcare cyberattacks)

Incident : ransomware RXA1362213091025

Source: Reuters (Change Healthcare/BlackCat attack)

Incident : ransomware RXA1362213091025

Investigation Status: ongoing (no official confirmation or detailed report from AAP)

Incident : ransomware RXA1362213091025

Stakeholder Advisories: Password Reset Notice For Apirx.Com And Rxaap.Com Users.

Customer Advisories: 'Important Notice' on AAP website regarding limited ordering capabilities

Incident : ransomware RXA1362213091025

High Value Targets: Protected Health Information (Phi), Clinical Laboratory Data, Prescription Records,

Data Sold on Dark Web: Protected Health Information (Phi), Clinical Laboratory Data, Prescription Records,

Incident : ransomware RXA1362213091025

Root Causes: Likely Exploitation Of Vulnerabilities In Endpoint Detection Systems (Edr Bypassed Via Toolkit)., Potential Lack Of Network Segmentation Allowing Lateral Movement., Possible Phishing Or Credential Theft Enabling Initial Access.,