The largest worldwide asset lender, the Industrial and Commercial Bank of China (ICBC), was hit with a ransomware attack, leading to disruptions in the trading of Treasury securities through its US financial services division. ICBC revealed the cyberattack had occurred, resulting in system disruptions, and immediately implemented system isolation as a preventative measure. The prevalence of ransomware attacks, where hackers demand a ransom in exchange for system availability, has increased.
Despite ICBC’s claims that affected transactions had been successfully cleared, market liquidity remained a concern in the aftermath. The US Financial Industry Regulatory Authority (FINRA) and other government entities are investigating the impact of the ICBC ransomware attack. The potential influence of the cyberattack on the performance of a 30-year bond auction cannot be ruled out.
The extent of the ICBC ransomware attack’s impact has proven challenging to evaluate, given the ongoing decline in value of bond markets due to remarks made Federal Reserve Chair Jerome Powell. Despite market liquidity concerns, the ICBC Hong Kong-listed shares closed with a decrease of 0.8%.
This cyberattack has sparked national and economic security concerns, bringing it to the attention of the Biden administration. Ransomware attacks have emerged as a matter of international significance, affecting businesses and public services. This cyber incident has highlighted the potential threats to financial and national security.