Ransomware Strikes Again: Keytronic Loses $17 Million in Shocking Cyber Attack

Hot Take:

Looks like Keytronic got a crash course in “How to Lose $17 Million in Two Weeks”! With a plot twist like this, maybe they should consider writing a thriller next time. Spoiler alert: the bad guys are always online.

Key Points:

• Keytronic lost over $17 million due to a ransomware attack in May.
• The attack disrupted their operations in Mexico and the U.S., causing a significant impact on their business applications.
• The Black Basta ransomware gang claimed responsibility, leaking sensitive employee and corporate data.
• Keytronic incurred $2.3 million in additional expenses but expects to recover most lost orders by 2025.
• Black Basta has been a notorious player in the ransomware game, breaching over 500 organizations and collecting $100 million in ransom payments.

Keyboard Warriors No More

Keytronic, the tech company that started out making keyboards and mice, probably wishes they could just “Ctrl+Z” their way out of this mess. Instead, the ransomware attack in May hit them where it hurts: their wallets and their reputation. And no, the attackers weren’t playing Minesweeper—they were playing a high-stakes game of ransomware. The attack led to a whopping $17 million loss, with disruptions in their Mexico and U.S. facilities throwing a wrench into their business operations. Talk about a bad day at the office!

Expenses That Make You Go “Ouch!”

During the fourth quarter, the company reported $2.3 million in additional expenses thanks to this cyber catastrophe. But wait, there’s more! They also believe they lost around $15 million in revenue. The silver lining? They expect to recover most of these orders by 2025. So, if you’re wondering what their New Year’s resolution might be, it’s probably “Don’t get hacked again.” On the bright side, they did get an insurance gain of $0.7 million—small comfort, but it’s something.

Black Basta: The Plot Thickens

Enter the villains of our story: the Black Basta ransomware gang. These cybercriminals claimed responsibility for the attack and leaked what they said was all the stolen data. Imagine a dark web leak site showcasing screenshots of employees’ passports, social security cards, and corporate documents. It’s like a twisted version of Facebook, but with way more dire consequences. Black Basta, which emerged in April 2022, has been wreaking havoc ever since, collecting $100 million from over 90 victims. And they’re not picky—they’ve targeted everyone from German defense contractors to your local library’s website.

Data Breach Drama

Keytronic’s troubles didn’t end with financial losses. The attackers managed to steal personal information from their systems, making this breach more like a soap opera with a new twist at every turn. While Keytronic hasn’t disclosed how many people were affected, the data breach has undoubtedly caused a significant headache for their HR and IT departments. The stolen data included human resources, finance, and engineering files, among other corporate documents. What’s next? Probably a lot of awkward conversations and some mandatory cybersecurity training sessions.

Unanswered Questions

Despite the chaos, Keytronic has been tight-lipped about the specifics of the attack. They have yet to respond to requests for more information, including the exact number of people impacted by the data breach. So, if you’re looking for a detailed play-by-play, you might have to wait a bit longer. In the meantime, it’s safe to say that Keytronic’s top priority is to tighten their cyber defenses and ensure they won’t be the star of the next ransomware horror story.