China's biggest lender ICBC hit by ransomware attack

China's largest lender, Industrial and Commercial Bank of China (ICBC), faced a ransomware attack impacting its US arm and causing disruptions in the US Treasury market on Thursday. ICBC Financial Services, the US unit of the Chinese banking giant, is actively investigating the incident and working towards recovery. China's foreign ministry stated that ICBC is making efforts to minimise the impact and losses resulting from the attack, ensuring that business operations at ICBC's head office and global branches remain normal.

Attributed to the cybercrime group Lockbit, the attack is considered notable due to the large scale of the targeted bank. Ransomware expert Allan Liska from cybersecurity firm Recorded Future noted the increasing boldness of such groups, emphasising their willingness to target entities without fear of consequences. The US has been grappling with a surge in cybercrime, particularly ransomware attacks, prompting authorities to enhance international cooperation to curb funding routes for such criminal groups.

ICBC confirmed the successful clearance of Treasury trades executed on Wednesday and repurchase agreements (repo) financing trades on Thursday. The market impact was reported to be limited, but questions regarding the cybersecurity controls of large organisations and potential regulatory scrutiny are expected. The US Securities Industry and Financial Markets Association (SIFMA) reportedly informed its members about the ransomware attack, stating that ICBC's disruption prevented it from settling trades on behalf of other market players. While the Treasury market appeared to function normally on Thursday, the incident underscores the vulnerability of systems at major financial institutions.

(With PTI Inputs)