ICBC in the Hot Seat: In a startling turn of events, China’s Industrial and Commercial Bank (ICBC), the nation’s largest lender, allegedly capitulated to a ransom demand after falling victim to a cyberattack by the Lockbit ransomware gang last week. The representative of the hacking group claimed, “They paid a ransom, deal closed.
ICBC, whose U.S. operations were hit by the ransomware attack on November 9, disrupting trades in the U.S. Treasury market, has remained tight-lipped, declining immediate comment on the situation. The aftermath of the attack left ICBC’s U.S. broker-dealer temporarily indebted to BNY Mellon with a staggering $9 billion, a sum surpassing its net capital by a considerable margin.
The severity of the breach extended to the point where corporate email functionality ceased to operate, compelling employees to transition to Google mail. While the market is reported to have largely returned to normalcy, concerns about the resilience of the $26 trillion Treasury market persist, drawing attention from regulatory quarters.
Zhiwei Ren, a portfolio manager at Penn Mutual Asset Management, noted that the incident occurred at a time of heightened apprehension about the Treasury market, a linchpin in global finance. Regulatory scrutiny is anticipated in the wake of this ransomware attack.
Read More: Navigating the Cybernetic Seas: ICBCs Dance Between Resilience and Disruption
The U.S. Treasury Department remained silent on the matter as of Monday, leaving unanswered questions about the broader implications of the attack. The Financial Services Information Sharing and Analysis Center, a cybersecurity group within the financial industry, emphasized the importance of firms staying vigilant and promptly addressing critical vulnerabilities.
The ransomware group, Lockbit, has gained notoriety in recent months, targeting some of the world’s largest organizations. In cases where victims resisted paying the ransom, the group resorted to stealing and leaking sensitive data. In just three years, Lockbit has ascended to become the top ransomware threat globally, according to U.S. officials.
The United States, in particular, has felt the brunt of Lockbit’s disruptions, affecting over 1,700 organizations across various sectors. Despite authorities advising against paying ransomware groups to disrupt their business model, some companies, faced with the potential reputational damage and lacking digital backups, opt to pay up to swiftly regain online functionality.
Last week, Lockbit hackers took responsibility for breaching aerospace giant Boeing and claimed to have infected the computer systems of the law firm Allen & Overy, showcasing the far-reaching impact of their activities. The evolving landscape of cybersecurity threats raises critical questions about the preparedness and resilience of major financial institutions in the face of relentless cyber assaults.
Our Reader’s Queries
What is the meaning of ICBC?
ICBC, also known as Industrial and Commercial Bank of China Limited, is a multinational bank based in China. With its Chinese name being Zh?ngguó G?ngsh?ng Yínháng, ICBC is a prominent player in the banking industry.
In 2022, the Industrial and Commercial Bank of China’s leading shareholders were dominated by the Chinese state-owned investment fund Huijin. With almost 35 percent of the bank’s shares under its ownership, Huijin held the largest stake in ICBC.
What type of bank is ICBC?
As the largest commercial bank in China, Industrial and Commercial Bank of China Limited (ICBC) is a major player in the overseas business arena. Their flagship operation in Hong Kong is one of the domestic systemically important banks (D-SIBs), solidifying their position as a key player in the financial industry.
Who is the owner of Industrial and Commercial Bank of China?
ICBC is primarily owned by the Ministry of Finance PRC and Central Huijin Investment Company.