A ransomware attack on the Industrial and Commercial Bank of China (ICBC), the communist county’s largest bank, has reportedly caused a disruption at the U.S. Treasury market.
Market participants claim a ransomware attack on the ICBC has disrupted the market for U.S. Treasuries, according to a report by Financial Times.
China’s largest bank was hit by ransomware software, the Securities Industry and Financial Markets Association told members on Thursday. As a result, the ICBC was unable to settle Treasury trades on behalf of other market participants, banks and traders said.
New Series 2001 one dollar bill notes pass through a printing press November 21, 2001 at the Bureau of Engraving and Printing in Washington, DC. The new dollar bills contain the signatures of U.S. Treasury Secretary Paul O”Neill and U.S. Treasurer Rosario Marin. (Photo by Alex Wong/Getty Images)
Several people familiar with the situation said that the ransomware software involves paralyzing computer systems until a payment is made.
“This is a large party on [the Fixed Income Clearing Corporation], so certainly of major concern,” an executive at a large bank that clears U.S. Treasuries said. “And potentially impacting liquidity of US Treasuries.”
On Thursday afternoon, the ICBC began restoring services, according to some people who were briefed on the matter.
Ransomware attacks have become more common in recent years.
In June, St. Margaret’s Health, a hospital in Illinois, had to close, partially due to a devastating ransomware attack that occurred in 2021, making it the first time a hospital had publicly attributed its closure to a cyberattack.
In May, Dallas, Texas, was hit by a ransomware attack that disrupted key services in the city, including its 911 dispatch. Earlier this year, the U.S. Marshals Service fell victim to a security breach that compromised sensitive information.
Last year, the government of Costa Rica declared a state of emergency following a massive ransomware attack that locked down computer networks across multiple government agencies, paralyzed tax collection, and left the private information of Costa Rican citizens vulnerable.
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