In these attacks, hackers seize control of an organization’s systems, demanding payment to restore access. They frequently also engage in data theft for extortion purposes.
U.S. authorities have been grappling with the challenge of controlling a surge in cybercrime, particularly from ransomware groups that target hundreds of companies across nearly every sector each year.
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The U.S. branch of the Industrial and Commercial Bank of China (ICBC) experienced a ransomware attack that disrupted U.S. Treasury trades on Thursday. This incident adds to a series of attacks this year where hackers demand ransom from their victims.
ICBC Financial Services, the American division of China’s largest commercial bank, is currently investigating the disruption in its systems and is making progress towards recovery.
Ransomware attacks involve hackers locking up an organization’s systems and demanding payment for their release, often including the threat of exposing sensitive data.
Experts and analysts in the field of ransomware suggest that the cybercrime group Lockbit is likely responsible for this attack. However, as of Thursday evening, ICBC was not mentioned as a victim on Lockbit’s dark web site, where they typically list their targets. Lockbit did not respond to a request for comment made through the contact address on its site.
Allan Liska, a ransomware expert from the cybersecurity firm Recorded Future, noted that it is uncommon for a bank of this size to be affected by such a disruptive ransomware attack.
Liska, who also believes Lockbit was responsible for the attack, mentioned that ransomware groups might not reveal their victims while negotiating ransom demands.
“This incident follows a pattern of ransomware groups becoming more daring,” he noted. “With no concerns about consequences, these groups think no target is exempt.”
U.S. authorities have faced challenges in addressing a surge in cybercrime, particularly from ransomware actors targeting hundreds of companies across various industries each year. Just last week, U.S. officials announced efforts to cut off funding for ransomware gangs by enhancing information-sharing on these criminals within a 40-country alliance.
The ICBC did not confirm whether Lockbit was the perpetrator of the hack. It’s common for victim organizations to avoid publicly disclosing the identities of cybercrime groups.
“In general, the market impact of the event was limited,” stated Scott Skrym, executive vice president for fixed income and repo at broker-dealer Curvature Securities.
Some participants in the market mentioned that trades conducted through ICBC were unsettled due to the attack, impacting market liquidity. It remains unclear if this contributed to the less favorable outcome of a 30-year bond auction on Thursday.
“There might have been technical issues with certain participants not fully accessing the market on that day,” noted Michael Gladchun, associate portfolio manager, core plus fixed income, at Loomis Sayles.
On Thursday, the Financial Times reported that the U.S. Securities Industry and Financial Markets Association (SIFMA) informed its members that ICBC had experienced a ransomware attack, disrupting the U.S. Treasury market by hindering trade settlements for other market players.
“We are aware of the cybersecurity issue and are in regular contact with key financial sector participants, in addition to federal regulators. We continue to monitor the situation,” responded a Treasury spokesperson to a question regarding the FT report. SIFMA declined to comment.
According to LSEG data, the Treasury market appeared to be functioning normally on Thursday.
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