NASDAQ: SPNS – A Nasdaq and Tel Aviv- listed Israeli software company Sapiens International Corp. N.V. was forced to pay around $250k ransom in Bitcoin to hackers that threatened to terminate its computers, an individual known to this case told Calcalist on condition of anonymity. The firm, that is based out of the Tel Aviv suburb of Holon didn’t report the matter to the American or Israeli exchange authorities.
Sapiens focuses on developing software based for the insurance and finance firms and has several of its clients around the globe. The hack is believed to have occurred while most of the company’s employees switched to figure from home amid the Covid crisis. Sapiens employs 2,500 people around the world, 900 of them are from Israel. The hackers are believed to possess taken advantage of the safety weaknesses caused by the huge move to remote work.
Ransom attacks are usually activated by illicit code transferred via online chat or email. The victim clicks on the link and is transferred to a site from which the harmful code was injected to the host computer. Hackers were then able to take control of the user’s computer or network and further prevent other individuals from using it. After their computers are appropriated, its owner or administrator receives a message demanding ransom for freeing the system or network from its cyber shackles. The ransom is usually demanded in Bitcoin, that allows the hackers to stay anonymous. Consistent with a report by cyber company Coveware, in 98% of the cases, the hackers release the computers back to use after receiving the payment. Coveware’s research further found that the typical ransom request in 2019 was $40,000 and lasted for over 12 days.
Sapiens’ revenue for the primary quarter of 2020 came mainly from the U.S. and Europe, up 16.7% to $44.5 Mln & 25% to $40.2 Mln, respectively. Its earnings from its secondary markets in Asia Pacific and South Africa , meanwhile has dropped by 20% to $3 Mln and 3.8% to $2.6 Mln, respectively.
However meanwhile, Sapiens have neither confirmed nor denied the news.