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A Kyivstar office in Lviv, Ukraine. Image: Maksym Kozlenko / Wikimedia Commons /
CC BY-SA 4.0
Daryna Antoniuk
December 12th, 2023
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UKRAINE'S LARGEST TELECOM OPERATOR SHUT DOWN AFTER CYBERATTACK

This article was updated at 10:40 a.m. EST

KYIV — Ukraine’s largest telecom operator, Kyivstar, got hit by a major
cyberattack on Tuesday, leaving millions of people without cell service and
internet.

Kyivstar customers began complaining about network and internet outages in the
early morning. The company later reported via Facebook that it got hit by a
"powerful" cyberattack that led to a "large-scale technical failure." Customers'
data hasn't been compromised, the statement said.

Kyivstar's services in Ukraine were still down as of Tuesday afternoon. The
company’s CEO, Oleksandr Komarov, said in a video statement that “it is still
not completely clear” when the company will restore normal operations.

Ukraine's state cybersecurity agency (SSSCIP) told Recorded Future News that the
"relevant services," including Ukraine's computer emergency response team
(CERT-UA), are investigating the incident. Kyivstar didn't reply to a request
for comment. Its parent company, the Netherlands-based VEON, confirmed in a news
release that the incident was a “hacker attack.”

Sources within Kyivstar told several Ukrainian media outlets that hackers
breached “a part of the operator's internal systems” and that the company is
working to “launch duplicate systems.” The decision to completely shut down the
Kyivstar system was made by security forces and the operator in order to
"localize" the impact of the attack, one of the sources said.


UKRAINIANS LOOK FOR NEW SIMS

Many Ukrainians chose to switch mobile carriers on Tuesday, rather than wait for
Kyivstar services to return.

Ukraine has three major telecom operators: Kyivstar, with 24 million
subscribers; Vodafone, with 19 million; and Lifecell with 8.5 million.

Switching to another operator in Ukraine is easy — no contract is needed, and
it's relatively cheap (a prepaid SIM card costs about $5). In Ukraine's capital,
Kyiv, many people were lining up on Tuesday to buy SIM cards from Vodafone and
Lifecell to stay connected.

One Kyiv resident, who was affected by the Kyivstar outage, told Recorded Future
News that it was hard to figure out how to switch to another operator at first,
but she was happy that it worked out because she needs the cellular network to
make phone calls for her work.

Subscribers of Vodafone and Lifecell were complaining that the services were
working slowly. Vodafone and Lifecell have Azerbaijani and Turkish owners,
respectively.

A Vodafone spokesperson told Recorded Future News that the company saw an
increase in new subscribers on Tuesday, while the load on its network increased
by 30% and was growing.

“The company's engineers work to maintain network availability for all
subscribers in such conditions,” Vodafone said. Vodafone services were not
targeted by a cyberattack, but the company said it "keeps an eye" on its
systems.

Lifecell said that some of its services, including the website and mobile app,
were temporarily down due to the increased load.

Last year, amid blackouts caused by Russian missile strikes, Ukrainian mobile
operators introduced a service called "national roaming," allowing subscribers
to switch operators when the base transceiver stations (BTS) of others are
damaged or disconnected.

However, this service was unavailable on Tuesday for Kyivstar subscribers,
probably because the problem was not with BTS but with the core of the
operator's network, a Lifecell spokesperson told Forbes Ukraine. Several other
sources also alleged that the attack probably affected Kyivstar's core network.

The core network is the central part of the operator’s telecommunications
infrastructure. It connects different regions or countries and routes traffic to
external networks, such as the internet and cloud services.

The attack on Kyivstar also affected the operations of Ukraine’s largest
state-owned bank, PrivatBank. The company said that the work of some of its
banks, ATMs, and point-of-sale (POS) terminals used by businesses to process
card payments was disrupted because they rely on Kyivstar SIM cards. However,
the disruption is not “massive,” the company said.

Another Ukrainian bank, Monobank, suffered a distributed denial-of-service
(DDoS) attack on its systems on Tuesday but quickly resolved the incident.

Ruslan Kravchencko, the head of the regional state administration in Kyiv, also
warned that the Kyivstar hack had affected the air raid alert systems that
notify residents of Russian missile strikes in the region. The outage impacts 75
small towns and settlements in the Kyiv region, but Kravchencko didn’t mention
the city itself.

While the alerts system is down, the police and emergency service workers will
warn about missile strikes through loudspeakers, he said.


POTENTIAL SUSPECT

The hacker group behind those attacks is unknown, but fingers point to Russia.
Ukraine’s security service (SBU) told Ukrainian media that it suspects Russian
intelligence services.

The SBU opened criminal proceedings over the cyberattack on Kyivstar. Some of
the charges include unauthorized interference in the work of information
systems, high treason, and sabotage.

Telecom operators and internet providers are an attractive target for hackers of
both countries.

Vodafone told Recorded Future News that since the start of the war last
February, it recorded over 240 cyberattacks on its systems.

In an October interview with The Record’s Click Here podcast, Illia Vitiuk, head
of the cyber department at the SBU, said there had been “a serious attempt to
penetrate one of Ukraine’s telecom operators,” but it was stopped.

“This penetration could lead to eavesdropping, listening to phone calls of our
people, reading messages,” Vitiuk said. “And if one of [the companies] is out of
operation, the other two won't be able to operate because they will be
overloaded.”

Last March, Russian hackers disrupted web traffic from major Ukrainian internet
service provider Ukrtelecom, causing one of the most widespread internet outages
since Russian troops invaded Ukraine.

Russian communication services are also under attack. Ukrainian hacktivists are
consistently targeting small internet providers in the occupied parts of
Ukraine. In June, a group of previously unknown hackers claimed responsibility
for a cyberattack on the Russian satellite communications provider
Dozor-Teleport, which is used by energy companies and the country's defense and
security services.

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Tags
 * Ukraine
 * telecom
 * internet outages
 * Kyiv
 * SIM

Previous articleNext article
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DARYNA ANTONIUK



Daryna Antoniuk is a freelance reporter for Recorded Future News based in
Ukraine. She writes about cybersecurity startups, cyberattacks in Eastern Europe
and the state of the cyberwar between Ukraine and Russia. She previously was a
tech reporter for Forbes Ukraine. Her work has also been published at Sifted,
The Kyiv Independent and The Kyiv Post.


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