Ransomware Attack on German Phone Repair and Insurance Company Causes Multi-Million Euro Damage – A Wake-Up Call for the Service Sector

In early 2023, a cybercriminal group known as Royal launched a devastating ransomware attack on a prominent phone repair and mobile insurance company in Germany. The incident severely disrupted operations and caused extensive financial damage, shaking the foundation of the organization.

How the Attack Began

The attackers exploited vulnerabilities in outdated VPN and Remote Desktop systems. Through brute-force and credential-stuffing techniques (using leaked or weak passwords), they were able to breach the company’s network perimeter.

Once inside, Royal deployed advanced encryption methods to lock down critical systems — including customer databases, internal communications, and billing records. The malware used AES-256 for file encryption and RSA-4096 to secure encryption keys, effectively making all data inaccessible.

A Tactic of Intimidation

Within hours, the company’s operations ground to a halt. In a bold move, the attackers printed ransom notes via every network-connected printer in the office, warning that systems were encrypted and that a decryption key would only be provided upon payment of several dozen Bitcoins.

Damage Beyond Repair

Despite prompt coordination with law enforcement and cybersecurity experts, the damage was already done:

• Operations were down for several weeks
• Data recovery had to be done manually in many cases
• Customer trust took a serious hit
• A Bitcoin ransom was paid in mid-2023
• However, the cryptocurrency was later seized by prosecutors as part of the ongoing investigation, leaving the company without the means to rebuild

From Financial Loss to Corporate Collapse

The company estimates total losses in the multi-million euro range. Without access to the ransom funds and faced with mounting operational costs and loss of clients, the company is now undergoing formal insolvency proceedings.

Key Lessons for Every Organization

This incident is a stark reminder that cyberattacks don’t just compromise data — they can destroy entire businesses, especially those heavily reliant on digital services.

Here’s what organizations must prioritize now:

• Patch vulnerable systems (VPN, RDP) and keep them up to date
• Implement Multi-Factor Authentication (MFA)
• Maintain secure, air-gapped backups
• Regularly test and update your Incident Response Plan
• Review your cyber insurance policy — and understand its limitations

If your organization hasn’t yet developed a clear cybersecurity strategy, don’t wait for disaster to strike. Start preparing today — it could mean the difference between recovery and collapse.

Consult with Our Cybersecurity Experts

Whether you're just beginning to build your cybersecurity strategy or looking to strengthen the resilience of your IT and OT environments — we're here to help.

Our consulting services include:

• Risk assessment and gap analysis
• Incident Response Plan (IRP) development and testing
• Enhanced protection against ransomware and zero-day threats
• Cybersecurity awareness training for employees
• Tailored solutions and technology recommendations for your business

Contact our expert team today:
Email:  [email protected]
Tel: (236) 997-9648

Don’t wait until an attack happens — take action now to secure your organization’s future.

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