Graff’s Ransomware Payment Not an Unusual Move, Expert Says
The high-end jeweler reportedly paid a $7.5 million ransom to a group of hackers and is suing its insurance company to cover the loss.

Ransomware is malware that uses encryption to hold a victim’s system or personal data hostage, basically, and demands payment to get them back.
Following the attack on Graff, Conti, the group that took credit for it, leaked data about the brand’s clients, such as their names and, potentially, their home addresses.
Graff counts many high-end clients and celebrities as customers, and the data breach included leaked data about the royal families in Saudi Arabia, the United Arab Emirates, and Qatar, prompting Conti to issue an apology to the families involved, an unusual move for the group.
Conti threatened to leak more of Graff’s data if the ransom wasn’t paid.
Though it tried to avoid paying, the high-end jeweler eventually offered $7.5 million, half the original ransom amount, and Conti accepted, according to Bloomberg, which broke the story. The jeweler paid in Bitcoin.
Graff is also suing its insurance company, The Travelers Companies Inc., in a London court for the losses, arguing that its policy should cover the ransom payment.
“The criminals threatened targeted publication of our customers’ private purchases. We were determined to take all possible steps to protect their interests and so negotiated a payment that successfully neutralized that threat,” a Graff spokesperson told National Jeweler.
“Regrettably, these commercial decisions are all too common these days. Insurers know this, which is why we are extremely frustrated and disappointed by Travelers’ attempt to avoid settlement of this insured risk. They have left us with no option but to bring these recovery proceedings at the High Court.”
The Travelers Companies did not respond to a request for comment by press time.
Shayne Caffrey, marketing manager and cybersecurity awareness training lead for LeeShanok Network Solutions, echoed what Graff Diamonds said it its statement—ransom payouts like this are fairly common today.
“Deciding whether to pay the ransom is a cost/benefit analysis. It can make a lot of sense to pay up when you can’t safely restore from a backup,” he said in an email to National Jeweler.
Once a business does decide to pay, it becomes a negotiation, going back and forth on price like in any deal until it becomes worth it for both sides.
“In this case, the initial $15 million demand may not have been worth it, but $7.5 million was,” Caffrey said. “Hackers would rather get something than nothing. This calculated approach means ransoms get paid more often than any of us would like.”
He also noted there’s rarely a guarantee that hackers will unencrypt the data even once the ransom is paid.
Caffey offered businesses two recommendations to reduce the chances of becoming a victim of cybercrime.
The first is to require every employee to undergo cybersecurity awareness training annually, with a particular focus on phishing prevention.
According to IBM, 95 percent of breaches result from human error, and the only way to fix that is through education, he noted.
But rather than using the common online training modules, Caffrey suggested bringing in a cybersecurity expert to deliver a live training, either in-person or virtually.
“In my experience, those trainings are much stickier.”
The second tip is to create a strong Backup and Disaster Recovery (BCDR) Strategy.
“Implementing these strategies can seem expensive on the surface, but they are often a fraction of the cost of paying a ransom, or even paying increased insurance premiums after a breach,” Caffrey said.
“Plus, it feels a lot better to restore your environment to a pre-ransomware instance than to reward the hackers by paying a ransom.”
More tips businesses can use to protect themselves from the Jewelers Security Alliance can be found in National Jeweler’s original story reporting on the Graff attack.
The Latest

The family-owned retailer is the new owner of Morrison Smith Jewelers in Charlotte, North Carolina.

The “150 Art Deco” collection features a Miss America timepiece and a pocket watch from the brand’s Archive Series.

Alex Wellen, formerly CEO and president of MotorTrend Group, has taken on the role.

Bench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.

The Impact Initiative is part of the nonprofit association’s new three-year strategic plan.


The ruby and the sapphire, which Christie’s calls a “once-in-a-generation masterpiece,” are part of the upcoming Hong Kong jewelry auction.

The two pairs of earrings, snatched from a Tiffany & Co. store in Orlando, Florida, are valued at a combined $769,500.

Natural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.

The time to start experimenting with video content is now, writes columnist Emmanuel Raheb.

From striking high jewelry to miniature fine jewelry, the new chapter continues to highlight gemstones featuring its signature 57-facet cut.

The jewelry giant is reducing its senior leadership by 30 percent as part of its new turnaround strategy.

The auction house's partnership with online watch servicing platform WatchCheck makes repairs convenient and accessible, it said.

The company also noted record sales in the United States and a strong performance in its jewelry category.

The event, set for June 13-15, will feature educational presentations and guided visits to the state’s sapphire mines.

After the black enamel band became a best-seller for the brand, it has now launched an enamel ring personalization program.

The Austin, Texas, jeweler’s new 11,000-square-foot store is set to open this summer.

The rapper and singer-songwriter will perform at Tao Beach on June 8.

As lab-grown diamond brands pop up across India, academics are researching how to grow demand outside of the jewelry industry.

The moves are part of the retailer’s new turnaround plan, “Grow Brand Love,” which also includes emphasizing brand loyalty over store banners.

The “Rush Hour” campaign stars Zoë Kravitz in bold, wearable pieces designed to make a statement in the workplace.

Breitling is reviving Gallet, which was founded in 1826 and is known for making watches used in the early days of long-distance travel.

Dubbed the “Mediterranean Blue,” this “remarkably rare” diamond will be part of Sotheby’s May jewelry auction in Geneva.

The American Gem Society now offers a Jewelry Evaluation Advisor designation as well as an updated Certified Sales Associate designation.

Rebecca Zeijdel-Paz created more than 75 new pieces for the residency, which will be on display at Trove’s store in New York through April.

Smith explores why a qualified candidate might still not be right for the job.

The company and its marketing agency, Loudr, were recognized for the “Make You Dance” marketing campaign.

The “Series8” and “Attesa” collections will be grouped under Citizen Premier.