tomshardware.com - A leading mobile device insurance and service network has initiated insolvency proceedings in the wake of a cyberattack. Selling properties and cutting staff numbers wasn't enough to save the business.
The Einhaus Group was once a familiar name, with its services available through 5,000 retail outlets in Germany and an annual revenue of around 70 million Euros.
A leading mobile device insurance and service network has initiated insolvency proceedings in the wake of a cyberattack. Germany’s Einhaus Group was targeted by hackers in March 2023 and is understood to have paid a ransom(ware) fee of around $230,000 at the time, according to Wa.de and Golem.de (machine translations). However, the once large and successful company, with partnerships including Cyberport, 1&1, and Deutsche Telekom, struggled to recover from the service interruption and the obvious financial strains, which now appear to be fatal.

The ides of March
In mid-March 2023, Wilhelm Einhaus, founder of the Einhaus Group, recalls coming into the office in the morning to witness a ‘horrific’ greeting. On the output tray of every printer in the office was a page announcing, “We've hacked you. All further information can be found on the dark web.” Further investigations revealed that the hack group 'Royal' was the culprit. They had encrypted all of Einhaus Group’s systems, which were essential for the day-to-day running of the business. 'Royal' demanded a ransom payment, thought to be around $230,000 in Bitcoins, to return access to the computers.

Of course, with operational systems down, there was an immediate impact on Einhaus. The police were involved promptly. However, the affected firm seems to have decided to pay the ransom, as it could see business losses/damages piling up – meaning continuing without the computer systems was untenable. Einhaus estimated that the hacker-inflicted damage to its business was in the mid-seven-figure range.