Netwrix Corporation

01/24/2025 | News release | Distributed by Public on 01/24/2025 12:18

Cyber Attacks in 2023: Key Incidents and the Lessons Learned for 2025

2023 saw a huge number of devastating cyberattacks, from crippling ransomware campaigns to breaches targeting critical infrastructure. As threat actors employ increasingly innovative tactics, understanding the most significant attacks and their implications is essential for building robust defenses.

This article analyzes the top cyberattacks of 2023 and their impacts, reveals emerging trends, and provides actionable strategies to protect your organization against modern threats.

The Top Cyber Attacks of 2023

High-Profile Targets

Governmental organizations and major corporations were among the primary targets of cybercriminals in 2023. Attacks focused on both exploiting sensitive data and disrupting critical operations. Top examples include the following:

  • US State Department breach: An attack in early 2023 on the US State Department resulted in the compromise of sensitive diplomatic communications. This breach is suspected to be the work of a state-sponsored group, putting both national security and international relations at risk.
  • Healthcare sector attacks: In April 2023, a cyber attack on Enzo Biochem compromised the personal information of 2.4 million patients. Attackers accessed the network using shared and outdated login credentials, installing malware that remained undetected for days due to inadequate monitoring. While the attack did not disrupt operations, it exposed significant vulnerabilities in the company's security practices, underscoring the critical need for stronger safeguards in the healthcare sector.
  • Energy sector attacks: A cyberattack on Denmark's energy sector in May 2023 targeted 22 companies using a vulnerability in Zyxel firewalls. Although the attack did not disrupt energy supply, it highlighted the risks posed by unpatched systems and the potential for significant damage to critical infrastructure.
  • Transport & Logistics sector attacks: Exploiting a high-severity vulnerability, an attack on DP World Australia affected about 40% of the country's import and export capacity.

Ransomware Epidemic

Ransomware attacks escalated in 2023, becoming more sophisticated and financially damaging. Attackers moved beyond simple data encryption to more destructive tactics, such as data exfiltration and public exposure of stolen data to force payment. Here are just two companies hit by ransomware attacks in 2023:

  • Johnson Controls, a global leader in smart building technologies, was hit by a ransomware group known for stealing and leaking sensitive information. The attack crippled operations, resulting in millions of dollars in financial losses.
  • Caesars and MGM, two of the largest U.S. hotel and casino chains, were hit by a ransomware campaign that resulted in their entire infrastructures - from hotel check-in systems to slot machines - being shut down. The threat group AlphV, also known as BlackCat, claimed responsibility.
  • Boeing, one of the world's largest defense and space contractors, was targeted by Lockbit in November 2023, exploiting the same vulnerability that led to the DP World incident.

Supply Chain Vulnerabilities

2023 also witnessed a sharp rise in supply chain attacks, with cybercriminals targeting trusted third-party vendors to infiltrate their customers and other partners. Here are two of the top incidents:

  • SolarWinds attack: While not new in 2023, the fallout from the SolarWinds attack continued into the year, with new revelations about the extent of the infiltration into government agencies and private corporations. Attackers used the compromised SolarWinds software update process to breach the networks of thousands of companies, demonstrating the scale of damage possible through supply chain vulnerabilities.
  • MOVEit and MOVEit Cloud exploitations: Attackers exploited a zero-day vulnerability in these file-sharing and management solutions to steal sensitive business data from over 500 organizations, exposing the personal information of more than 34.5 million individuals.

Cyber Attack Trends in 2023

The following emerging patterns in cyber attacks offer insights into where the battlefield is heading:

Trend Analysis
Exploitation of cloud misconfigurations Widespread adoption of cloud services has increased the chances of misconfigurations, such as exposed databases and unsecured storage buckets, that put sensitive data at risk of compromise.
Rapid evolution of ransomware Tactics such as double extortion (encrypting data while threatening to leak it) and targeting backup systems are making ransomware harder to defend against and more costly for victims.
Increased targeting of critical infrastructure Attacks on power grids, healthcare facilities and other critical sectors intensified in 2023, disrupting essential services and highlighting vulnerabilities in outdated systems.
More state-sponsored attacks Espionage and politically motivated attacks increased, leading to devastating breaches and amplifying geopolitical tensions. Top targets included defense systems, research institutions and government agencies.

Case Studies of Major Cyber Attacks

A closer look at the major incidents in 2023 can provide valuable lessons for organizations worldwide.

Ransomware Attack on Johnson Controls

The ransomware attack on Johnson Controls not only disrupted operations but also raised awareness about the cybersecurity challenges of highly interconnected systems.

In mid-2023, a known cybercriminal group infiltrated the network of Johnson Controls and used ransomware to encrypt critical data. The attack reportedly affected not just IT systems but the company's operational technology (OT) networks - disrupting the company's ability to serve customers across sectors like healthcare, government, and commercial real estate.

This attack underscores the vulnerabilities of smart infrastructure like OT networks and the increasing appeal of these systems as targets for cybercriminals. As organizations adopt more IoT-enabled solutions and cloud-based platforms, they need to implement robust cybersecurity measures to protect them. For instance, companies relying on OT systems must ensure that these networks are as secure - at least - as their IT counterparts, as well as to implement strong segmentation between OT and IT environments to limit the spread of ransomware.

Exploitation of MOVEit and MOVEit Cloud

In mid-2023, threat actors exploited a zero-day vulnerability in MOVEit Transfer and MOVEit Cloud to breach over 500 organizations. Specifically, the vulnerability enabled the attackers to execute unauthorized SQL commands to both extract sensitive data and inject malicious code for broader network exploitation. Many organization lacked proper monitoring processes to detect suspicious activity, which enabled the attacker to continue over an extended period. The Clop ransomware group claimed responsibility and threatened to publish the stolen data unless a ransom was paid.

This incident shines a light on both the interconnectedness of modern digital ecosystems and the inherent risks in supply chain software: A single vulnerability in a critical tool can cascade into a global crisis. In addition, it demonstrates the increasing sophistication of threat actors and their focus on high-reward targets like supply chain software.

To address the glaring weaknesses in supply chain security, organizations must adopt a more comprehensive approach to cybersecurity. Enhanced collaboration between software vendors, organizations and cybersecurity agencies is also vital to prevent similar incidents in the future.

DarkBeam Data Breach

In mid-2023, attackers infiltrated the network of DarkBeam, a company specializing in monitoring dark web activity and providing threat intelligence for businesses. While the full scope of the breach is still under investigation, initial reports revealed that:

  • Customer data was stolen. Data collected for clients, including threat intelligence reports, usernames, passwords, and potentially sensitive organizational details, was exposed.
  • Platform vulnerabilities were exploited. Research suggests that a vulnerability in DarkBeam's platform allowed attackers to bypass authentication measures and access its data repositories.
  • Dark web activity reports were exposed. Ironically, data collected to alert clients of their own vulnerabilities on the dark web became accessible to malicious actors.

The DarkBeam breach reinforces the importance of robust defenses and proactive measures. In particular, organizations must perform due diligence to verify the cybersecurity posture of their partners.

US State Department Breach

In mid-2023, attackers infiltrated the US State Department in a data breach with wide-reaching implications for national security and international diplomacy. While details of the breach were classified, leaked information from investigative reports and cybersecurity firms painted a concerning picture:

  • Use of a sophisticated attack vector: Advanced persistent threat (APT) groups, which often linked to nation-states, are believed to be responsible for the attack. They exploited a zero-day vulnerability to gain initial access.
  • A goal of espionage: The primary objective of the breach appears to have been theft of classified and sensitive diplomatic information. Stolen data included emails, reports and possibly encrypted communications related to foreign policy, negotiations and international agreements.
  • Long dwell time: The attackers likely remained undetected for an extended period, engaging in lateral movement to access high-value systems and exfiltrate data.

This breach serves as a sobering reminder of the vulnerabilities in even the most secure systems. To prevent similar incidents in the future, government agencies must:

  • Invest in cutting-edge cybersecurity technologies, such as artificial intelligence and machine learning for threat detection.
  • Foster a culture of cybersecurity awareness among employees at all levels.
  • Strengthen international norms and agreements to discourage cyberattacks on critical governmental institutions.

23andMe Data Breach

In October 2023, 23andMe reported a breach in which attackers gained unauthorized access to user accounts and exfiltrated sensitive data. Noteworthy aspects of this attack include the following:

  • Use of credential-stuffing: The attackers used stolen credentials from previous unrelated breaches to log into 23andMe accounts. This method succeeded because many users reused passwords across platforms.
  • Broad impact: Because 23andMe's user base spans the globe, the breach affected individuals from diverse backgrounds and raised international concerns.
  • Targeting of highly personal data: Stolen data included not only personally identifiable information (PII) like names, email addresses, and locations but also detailed genetic information. For users who opted into DNA relative-sharing features, family relationships and genetic traits were also compromised.
  • Sale of data on the dark web: Shortly after the breach, large 23andMe datasets appeared for sale on the dark web. Moreover, some datasets were marketed as being related to specific ethnic groups, raising concerns about the misuse of genetic data for targeted attacks or discrimination.

Unlike other personal information like credit card numbers, genetic data is immutable and permanent, making its misuse a long-term threat. Indeed, concerns remain that the stolen data could be misused by employers, insurers or other entities to discriminate against individuals based on genetic predispositions.

The incident has led to calls for greater regulation of genetic data and other sensitive personal information. 23andMe immediately suffered a hit to revenue as large numbers of customers cancelled their services due to concerns over their security practices.

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Impact of Cyberattacks on Organizations

Organizations targeted in cyberattacks can experience a broad range of consequences, including those detailed below.

Financial Losses

The financial cost of a breach can include ransom payments, lost productivity, legal fees and restoration services. The global cost of breaches has reached billions of dollars.

The damage from the attacks described ranged from tens of millions of dollars to hundreds of millions. Breaches of organizations such as the US State Department are harder to quantify. Small and medium-sized businesses (SMBs) may be unable to recover financially from a breach.

Reputation Damage

High-profile attacks have eroded trust in affected organizations and government entities. The reputational damage from a breach often leads to a loss of business, as customers turn to competitors perceived as more secure. Rebuilding credibility with customers, partners and the public can take years.

Legal and Regulatory Consequences

Organizations that suffer breaches can face stiff penalties from regulatory agencies, including steep fines. In addition, they may face increased oversight and audits.

In addition, a breach can lead to legal action by individuals or groups impacted by the incident. In fact, victims of three of the breaches mentioned above are dealing with class action lawsuits that are still ongoing, so the final scale of the consequences may take years to fully materialize.

Increased Cybersecurity Spending

Organizations often need to significantly increase their cybersecurity budgets to bolster defenses by hiring cybersecurity professional, engaging third-party services staff, and investing in tools like threat detection systems, firewalls endpoint security software. This increased spending needs careful planning and proper justification, since it can divert resources from other critical areas of the business, such as product development, marketing or employee development.

Cascading Effects and Delayed Impact

Attacks on critical infrastructures can have cascading effects and suffer from delayed impacts. Cascading effects are those where the actual events have an influence on business partners and customers of the targeted organization or the society at large. When DP World had to halt operations in Australia, hundreds of companies were unable to receive or send goods needed. Healthcare providers, foremost hospitals, might have to postpone scheduled treatments, which requires rearranging resources and might have an effect on a patient's long-term treatment plan.

Preventative Measures and Best Practices

Proactive measures can mitigate the risk of falling victim to cyberattacks. Below are a few best practices.

Cloud Security

  • Conduct regular audits to identify misconfigurations.
  • Strictly limit access to sensitive data and systems using role-based access control (RBAC) and multifactor authentication (MFA).
  • Use encryption to protect sensitive data.
  • Use cloud-native monitoring tools and intrusion detection systems to detect suspicious activity.

Ransomware Defense

  • To enable data recovery without paying a ransom, take regular backups and ensure they are encrypted and stored offline.
  • To identify ransomware and block its execution, deploy advanced endpoint detection and response (EDR) tools.
  • Use email filtering, URL scanning and phishing simulation training to reduce the risk of ransomware delivery via phishing attacks.
  • Limit the lateral movement of ransomware within the network by segmenting critical systems from less secure ones.
  • Restrict user permissions using a least privilege model to minimize the potential damage from compromised accounts.
  • Be strict with data classification and data minimization so that your organization knows exactly what kind of data it processes and only the least amount needed. Data not stored cannot be abused in a ransomware attack.

Vendor Management and Supply Chain Security

  • Regularly evaluate the cybersecurity posture of all vendors and partners.
  • Limit third-party access to essential systems only, and monitor for unusual activity.
  • Include cybersecurity requirements in vendor agreements, such as compliance with industry standards (e.g., ISO 27001).
  • Use tools to monitor vendor systems for vulnerabilities or breaches, if possible.
  • Adopt Zero Trust principles, including treating all external connections as untrusted until verified and closely monitoring activity.
  • Establish a regular exchange with vendors and supply chain partners about security processes in place and new developments around attack patterns likely affecting your ecosystem.

Incident Response

  • Develop a clear incident response plan (IRP) that outlines roles, responsibilities and procedures for responding to incidents, including communication strategies.
  • Conduct regular drills and test the IRP through simulated cyberattacks (e.g., tabletop exercises) to identify gaps and improve readiness.
  • Monitor and log events, and use security information and event management (SIEM) tools to improve threat detection and response.
  • Establish a communication protocol and have a clear strategy for notifying stakeholders, regulators and affected individuals promptly and transparently.
  • After resolving an incident, conduct a thorough post-incident review to identify lessons learned and improve future response strategies.

Future of Cybersecurity

The following are key cybersecurity trends to expect in the near term.

Major Changes to the Threat Landscape

Increased use of IoT devices will increase the attack surface of individuals, businesses and critical infrastructure. In addition, the rise of quantum computing will challenge current encryption standards, potentially even rendering them obsolete.

At the same time, geopolitical tensions are expected to fuel state-sponsored attacks targeting essential services.

Technological Advancements

Artificial intelligence (AI) and machine learning (ML) will play a dual role in cybersecurity. Cybercriminals will increasingly use these technologies to develop advanced malware and create convincing deepfakes for fraud and misinformation. AI and ML will also empower them to automate attacks, evade detection and bypass traditional defenses.

Defenders, meanwhile, will use AI and ML to improve threat detection with robust behavioral analytics, as well as to automate incident response. Predictive analysis powered by machine learning will allow organizations to anticipate attack patterns and strengthen defenses proactively.

Stricter Regulations

Governments will introduce stricter cybersecurity regulations, imposing higher standards for data protection and incident reporting and more severe penalties for violations. For example, the US Cyber Incident Reporting for Critical Infrastructure Act mandates notification within 72 hours of breach detection.

CISA and other regulatory bodies have ramped up compliance expectations, especially for software vendors, to prevent supply chain attacks like the MOVEit exploitations. And the exposure of 23andMe's genetic data has spurred calls for more comprehensive industry-specific regulations to protect sensitive bioinformatic and genomic data.

Global Cybersecurity Collaboration

Cybercriminals often operate across jurisdictions, making it vital for governments, international organizations and private companies to share threat intelligence and develop standardized regulations. Initiatives like the United Nations' Group of Governmental Experts (GGE) and alliances such as NATO are working to establish norms for responsible behavior in cyberspace. Public-private partnerships will also play a key role in accelerating the development of advanced defensive tools. However, geopolitical tensions, legal disparities and resource inequalities among nations can hinder these efforts, underscoring the importance of fostering trust and cooperation.

How Netwrix Can Help

Netwrix offers several products designed to help organizations defend against cyber attacks:

Conclusion

In 2023, cyberattacks increased in both scale and sophistication, from ransomware campaigns targeting critical infrastructure to exploitation of supply chain vulnerabilities resulting in breaches of hundreds of organizations. Many incidents resulted in severe financial, reputational and regulatory consequences, and highlighted inadequate cybersecurity measures.

Key takeaways include the urgent need for organizations to prioritize cloud security, implement strong defenses against ransomware, and address third-party risks in their supply chains. Indeed, as cybercriminals increasingly adopt advanced technologies like AI and target connected devices, organizations must be ever more vigilant, proactive and adaptive. They should develop robust incident response plans, adopt Zero Trust principles, and leverage cutting-edge technologies to detect and mitigate threats in real time.

Collaboration is equally vital - businesses must partner with industry peers, third-party vendors and government agencies to share intelligence and develop unified defenses. By prioritizing cybersecurity as a core component of their operations and fostering a culture of awareness, organizations can not only mitigate risks but build resilience against the evolving threats of tomorrow. The cost of inaction is far too great, and the time to act is now.

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FAQ

What are the most common types of cyberattack?
Common cyberattacks include phishing, ransomware, distributed denial-of-service (DDoS), supply chain, and credential-stuffing attacks.

How can small businesses protect themselves from cyberattacks?
Small businesses can protect themselves by implementing multifactor authentication (MFA), taking regular data backups, updating software frequently, training employees on cybersecurity best practices and investing in endpoint security solutions.

What should you do if your company is hit by a cyberattack?
Activate your incident response plan immediately, contain the breach to prevent further damage, notify stakeholders and regulators as required, and engage cybersecurity experts to investigate and recover systems securely.

Are there any new regulations related to cybersecurity?
Yes, 2023 saw new cybersecurity mandates at both national and local levels. They include stricter timelines for reporting incidents and requirements for stronger vendor risk management.

Dirk Schrader is a Resident CISO (EMEA) and VP of Security Research at Netwrix. A 25-year veteran in IT security with certifications as CISSP (ISC²) and CISM (ISACA), he works to advance cyber resilience as a modern approach to tackling cyber threats. Dirk has worked on cybersecurity projects around the globe, starting in technical and support roles at the beginning of his career and then moving into sales, marketing and product management positions at both large multinational corporations and small startups. He has published numerous articles about the need to address change and vulnerability management to achieve cyber resilience.