Industrial and Commercial Bank of China (ICBC), one of the world’s largest banks in terms of assets, was hit by a cyber attack by ransomware, a computer virus that demanded ransoms, and was unable to carry out clearing operations for a wide range of transactions. This forced customers to change their trading routes, and traders and brokers scrambled to assess the magnitude of the impact.
It is suspected that the attack was carried out by the same group that earlier attacked US companies such as Boeing. ICBC has confirmed a ransomware attack in the financial services sector.
The issue, which began on the night of the 8th, has affected trading in U.S. Treasuries, said multiple people familiar with the matter, who asked not to be identified because the information is private. ICBC issued a warning to the company.
ICBC told market participants that there appears to be a problem at its U.S. subsidiary and that it is working to restore trading in U.S. Treasuries as soon as possible, one of the people said.
A U.S. securities firm received an email from a broker that clears trades through ICBC informing it that the bank was no longer able to connect to the U.S. Depository Center (DTCC).
Industrial and Commercial Bank of China branch sign
Photographer: Qilai Shen/Bloomberg
“We are aware of cybersecurity issues and are in regular contact with federal regulators and supervisors, as well as key financial sector participants. We continue to monitor the situation closely,” a Treasury Department spokesperson said. ”, the company said in a statement distributed via email.
A spokesperson for the U.S. Securities and Exchange Commission (SEC) declined to comment. A representative from DTCC was also asked for comment, but so far there has been no response.
Original title:ICBC Hit by Cyberattack, Tells Clients to Reroute Trades (1)ICBC Confirms Ransomware Attack at Financial Services Unit (excerpt)
(Adds and updates information regarding DTCC)
2023-11-09 22:25:00
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