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Cyber SecurityNews
·2 min read


SUSPECTED RANSOMWARE CYBER ATTACK DISRUPTS EXPEDITORS INTERNATIONAL’S LOGISTICS
OPERATIONS WORLDWIDE

Alicia Hope·March 1, 2022
TwitterFacebookLinkedIn

Logistics operations company Expeditors International shut down its computer
systems after a targeted cyber attack that limited its ability in managing
customs and distribution activities. Expeditors said the February 20 incident
affected its global operations forcing it to initiate crisis management and
business continuity plans. However, its services would remain limited until the
complete restoration of its computer systems from data backups.




With a turnover of $10.1 billion and over 18,000 employees, Expenditors
International manages distributions in over 350 locations globally. Expeditors
International’s services include transportation, warehousing, distribution, and
customs.


EXPEDITORS’ CYBER ATTACK TO AFFECT GLOBAL LOGISTICS OPERATIONS, INCLUDING
DISTRIBUTION

The logistics operations giant shut down most of its systems worldwide to
prevent further damage following Sunday’s cyber attack.

“Upon discovering the incident, we shut down most of our operating systems
globally to manage the safety of our overall global systems environment,” the
company wrote.



The logistics operations giant did not provide an expected date of resumption of
normal operations but said it was working with global cybersecurity experts to
manage the incident.

Additionally, Expeditors said most of its logistics operations, including
arranging for shipments of freight or managing customs and delivery of
customers’ shipments, would be limited.



However, the company promised to minimize the impact of the cyber attack by
supporting customers through alternative solutions and providing timely and
accurate information and regular updates.

“We are conducting a thorough investigation to ensure that our systems are
restored both promptly and securely, and on a parallel track, evaluating ways
with our carriers and service providers to mitigate the impact of this event on
our customers.”


COMPANY DID NOT CONFIRM RANSOMWARE ATTACK

Although Expeditors did not describe the incident as a ransomware attack, the
company said it was restoring its systems from backups. This recovery method
suggests that it likely lost most data through ransomware encryption.

No major ransomware operator has listed Expeditors International on any data
leak site or claimed responsibility for the cyber attack.

However, the company fears that the incident could have “material adverse impact
on our business, revenues, results of operations and reputation.”

Ransomware attacks carry reputational penalties when threat actors list the
victims on data leak sites and publish exfiltrated data. Consequently, most
victims are cautious about acknowledging ransomware attacks to avoid hurting
their reputation. Limited information on suspected ransomware attacks may also
suggest possible ongoing ransom negotiations.

Nasser Fattah, North America Steering Committee Chair at Shared Assessments,
said ransomware attacks could have further impact like churn, and failure to
meet contractual obligations.

“It is unfortunate, but we do not see ransomware slowing down,” Fattah said.
“The cost of outages attributed to ransomware can be very impactful to companies
of all sizes.

“When we look at revenue loss, time, and resources to identify, contain, and
eradicate ransomware to systems recovery, the overall financial loss to a
company can be staggering.”

He recommended understanding the company’s “strengths and weaknesses in
defending against ransomware,” being prepared if ransomware strikes, and
understanding all costs associated with ransomware incidents.



The incident could also have widespread impact on the already stressed supply
chain trying to overcome the effects of COVID-19 and Russia’s invasion of
Ukraine.


LOGISTICS OPERATIONS COMPANIES TARGETED

Expeditors’ cyber attack is the latest incident targeting logistics operations
companies. On February 4, 2022, Swissport disclosed that it suffered a
ransomware cyber attack that affected its infrastructure, causing outages.

Expeditors suffered a #cyberattack that disrupted its #logistics operations and
limited its ability to handle distributions and customs. #cybersecurity
#respectdataClick to Tweet

Similarly, Hellmann Worldwide logistics suffered a cyber attack on December 9,
2021, that potentially led to data leakage or led to unauthorized use. Hellmann
said it disconnected its central data center as a precautionary measure.

 

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Tags
Cyber AttackLogistics Operations
Alicia Hope
Staff Correspondent at CPO Magazine
Alicia Hope has been a journalist for more than 5 years, reporting on
technology, cyber security and data privacy news.



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www.cpomagazine.com Open in urlscan Pro 2606:4700:3033::ac43:be7c Public Scan

Form analysis 4 forms found in the DOM

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www.cpomagazine.com Open in urlscan Pro
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