Ransomware attack forces JBS to pay USD 11 million to extortionists
Category: #tech  | By Mateen Dalal  | Date: 2021-06-14 |
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Ransomware attack forces JBS to pay USD 11 million to extortionists

The world's largest meatpacking company JBS S.A. has reportedly shut its operations in Australia and North America due to a ransomware attack. The firm paid a ransom equivalent to USD 11 million to prevent any further disruption by the attackers. The hack gained access to the company's quality assurance systems, halting the production.

For the unaware, ransomware encrypts the data of its victims and in most cases, hackers will give the victim a key in exchange for cryptocurrency payments in the hundreds of thousands or even millions of dollars. The FBI announced earlier this month that it was looking into 100 different types of ransomware, cited sources.

On the ransom payment, Andre Nogueira, CEO of JBS USA, stated that the decision was tough to make for the company and him personally. However, they felt it was necessary to make this choice to avoid any potential damage to their customers, he added.

As a result of the attack, JBS's U.S. meatpacking business and Pilgrim’s Pride Corp (PPC.O), a U.S. chicken firm primarily managed by JBS, suffered a loss worth of a day's food production. On the bright side, JBS said did not report any data leaks of its supplier, employee, or customer.

According to a source acquainted with the situation, the cyberattack against JBS was apparently performed by a hacking group linked to Russia, which goes by the name REvil and Sodinokibi.

For the record, the Justice Department reportedly recovered USD 2.3 million in bitcoin ransom money given by Colonial Pipeline Co. to the alleged hacker group.

The ongoing closures of JBS plants threaten to hike meat prices even higher for American consumers, during the summer grilling season, and disrupt meat shipments amid surging demands from China.

JBS stated it suspended all affected systems, alerting the authorities, while the backup servers remain unaffected. Meanwhile, there was no impact on Brazilian business, said a spokesperson in Sao Paulo.

Analysts believe that the extent of any subsequent consumer effect will be determined by how long JBS operations remain closed.

Source Credits –

https://www.reuters.com/technology/jbs-paid-11-mln-response-ransomware-attack-2021-06-09/

 

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About Author

Mateen Dalal     twitter

Mateen Dalal

A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for ReportsGO.com and a few o...

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