Aflac Sues Vendor Over Ransomware-Related Refund

It decided to bring the services back in-house in 2020, and it and Exela began to operate under a new agreement in 2021.

A ransomware group hacked Exela in June 2022, and Aflac was unable to use key software involved with claim processing.

Aflac spent $355,927 to cope with the disruption.

The termination: Aflac sent Exela a termination notice in 2023.

Exela agreed to refund Aflac a total of $975,500, including $500,000 by Sept. 15, 2023, and $475,000 by Oct. 15, 2023. Instead, it paid Aflac $100,000 Sept. 22, 2023, and nothing else, Aflac said.

The hackers: The Exela hack was probably the work of the Hive network, according to press accounts based on an entry that the Hive network posted on its dark web blog.

Federal investigators say the Hive network has attacked about 1,500 victims, including hospitals and school districts as well as financial services companies.

The U.S. State Department is offering a reward of up to $10 million for information that helps identify or locate any Hive group leaders and a $5 million reward for information leading to the arrest or conviction of any Hive group hackers.

Credit: Sergey Nivens/Adobe Stock