The U.S. division of the Industrial & Commercial Bank of China (ICBC) fell victim to a ransomware attack, which reportedly led to disruptions in the U.S. Treasury market.
ICBC, the world's largest bank by assets, announced on Thursday that its U.S.-based subsidiary, ICBC Financial Services, experienced a ransomware attack that resulted in the disruption of certain internal systems on Wednesday. The bank quickly disconnected and isolated the affected systems, and law enforcement was notified.
Despite the attack, ICBC managed to successfully clear all U.S. Treasury trades executed on Wednesday (11/08) and Repo financing trades carried out on Thursday (11/09). However, Bloomberg News reported that some U.S. Treasury transactions failed to clear due to the disruption, prompting traders to reroute their deals. The Treasury market also faced disruptions, as reported by Reuters.
The Securities Industry and Financial Markets Association (SIFMA) notified its members about the cyberattack on Wednesday, according to the Financial Times. The Treasury Department confirmed its awareness of the incident and stated that it is monitoring the situation closely.
The attack is believed to be the work of the cybercrime gang known as Lockbit, as reported by Bloomberg and Reuters. This same gang has been suspected of previous cyberattacks, including those against Boeing Co., ION Markets, and Accenture in recent years.
Fortunately, ICBC clarified that its head office remains unaffected, along with its other domestic and overseas branches. This includes its New York branch.
Ransomware attacks have become increasingly prevalent in recent years, with hackers gaining control of organizations' systems and holding them hostage until a payment is made. These attacks have targeted a wide range of entities, from school districts to casinos to government agencies like the U.S. Marshal's Service.
To learn more about the real-world effects of cyberattacks, including stranger danger in hotel rooms and unexpected kitty-litter shortages, continue reading.
