In a significant Cybersecurity incident, the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, fell victim to a cyberattack on Thursday. The attack, attributed to the Lockbit ransomware group, impacted ICBC’s US unit, disrupting its ability to process transactions on the US Depository exchanges. As a result, ICBC had to resort to unconventional measures, such as delivering settlement details via courier on a USB stick, to ensure the continuity of critical financial operations.
Thank you for reading this post, don't forget to subscribe!Lockbit, known for its connections to Russia, has been involved in several high-profile cyberattacks, including those targeting Boeing, Particle Trading UK, and the UK’s Royal Mail. The incident led to widespread disruptions as market participants, including market-makers, bankers, and other financial institutions, had to reroute transactions, causing uncertainty about when normal access would be restored.
The cyberattack on ICBC highlights the vulnerability of major financial institutions to cyber threats, raising concerns among bank executives and regulatory authorities. The incident prompted calls for increased cybersecurity measures across the financial industry, emphasizing the need for robust defenses against potential disruptions.
The ICBC hack prompted urgent meetings between the bank’s Beijing headquarters and its US division, with discussions on mitigating the impact and implementing necessary measures. ICBC is reportedly considering seeking assistance from China’s Ministry of State Security to address potential risks of further attacks on its various units.
In a statement, ICBC confirmed the ransomware attack and reported that it had isolated the affected systems. The bank reassured that its headquarters and other overseas units were unaffected, along with its New York branch. However, the full extent of the disruption is yet to be determined, with market participants reporting liquidity issues.
The Securities Industry and Financial Markets Association (SIFMA) held discussions with its members regarding the incident, reflecting the broader concerns within the financial industry. The attack on ICBC‘s Financial Services unit, which handles fixed-income clearing, Depositories repo lending, and equity securities lending, had approximately $23.5 billion in assets at the end of 2022, according to its latest annual filing with US regulators.
As the financial industry grapples with the aftermath of the cyberattack, there is a growing sense of urgency to fortify cybersecurity defenses to prevent future disruptions. The incident serves as a wake-up call for banks worldwide, urging them to enhance their security measures and stay vigilant against evolving cyber threats.
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