Cybersecurity Breach Disrupts ICBC's U.S. Operations in Latest Ransomware Attack

By IndraStra Global News Team

Cover Image Attribute: Robert Way

 
The largest commercial lender in China, the Industrial and Commercial Bank of China (ICBC), suffered a ransomware attack on November 8 that caused disruptions to U.S. Treasury trades on Thursday. ICBC is now one of the many companies this year that have received ransom requests from cybercriminals due to such attacks.
The impacted U.S. unit, ICBC Financial Services, has acknowledged system interruptions, is actively looking into the situation, and has stated that it is committed to overcoming the attack. In ransomware assaults, hackers encrypt a company's systems, demand payment for the decryption, and frequently threaten to reveal private information for further blackmail.
Allan Liska of Recorded Future and other cybersecurity experts and analysts believe that Lockbit is most likely the perpetrator of the attack, even though as of Thursday night, the dark web site linked to the believed culprit, Lockbit, did not mention ICBC as a victim. Liska emphasized a pattern of rising daring among ransomware gangs and remarked how unusual it was for such a large financial institution to fall prey to such a damaging ransomware attack.
In reaction to the growing threat posed by ransomware operators, U.S. officials have been attempting to improve international collaboration, exchanging information among a coalition of 40 nations to obstruct these criminal businesses' funding sources.
As is customary for victim groups in situations like this, the ICBC has not formally linked the attack to Lockbit and has not commented on the particulars of the ongoing inquiry. Over 1,700 U.S. organizations have reportedly been targeted by Lockbit, which was discovered in 2020, according to the U.S. Cybersecurity and Infrastructure Security Agency (CISA).
Although the attack appears to have had little effect on ICBC's operations, it does demonstrate how susceptible large-scale corporations' systems are to cyberattacks. This incident is expected to draw regulatory attention and raise concerns among market participants regarding cybersecurity controls.
On Wednesday, ICBC stated that it had successfully cleared Treasury trades, and on Thursday, it reported clearing repurchase agreement (repo) financing trades. Market sources suggested that the impact was minimal, but some unresolved trades were allegedly made through ICBC, which might have affected market liquidity. Concerns were also raised over the incident's possible role in Thursday's poor result in a 30-year bond auction.
Curvature Securities' Executive Vice President for Fixed Income and Repo, Scott Skrym, guaranteed minimal market impact. On the other hand, other market players proposed that the attack's technical consequences may have made it more difficult for some participants to access the market on the day of the occurrence.
According to reports, the U.S. Securities Industry and Financial Markets Association (SIFMA) notified its members that ICBC was unable to settle deals on behalf of other market participants due to the disruption caused by the ransomware attack on the U.S. Treasury market. Even though Thursday's Treasury market seemed to be operating smoothly, the event highlights the ongoing threat fraudsters pose to vital financial infrastructure.
A Treasury spokeswoman responded by saying that they are aware of the cybersecurity problem, closely monitor the situation, and communicate with essential players in the financial sector and federal authorities. SIFMA chose not to address the issue in the remark.

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