HQ/EMEAFind out how we can help your business
The New York-based global financial technology company EquiLend has suffered an alleged cyberattack that prompted it to shut down its operation temporarily.
Based on reports, this affected entity detected unauthorised access to its network on January 22. The company swiftly responded to secure its systems and initiated a thorough investigation into the incident.
One of its spokespersons explained that they have immediately deployed an investigation and have identified a cybersecurity incident involving unauthorised access to their systems. Moreover, they took immediate steps to secure their systems and worked methodically to restore the involved services as quickly as possible.
In addition, the company has employed a third-party cybersecurity provider to help them address the situation.
The cyberattack on EquiLend sparks suspicions about its involvement in an impending acquisition.
According to investigations, this cybercriminal activity occurred less than a week after EquiLend announced its impending acquisition by U.S. private equity firm Welsh, Carson, Anderson & Stowe (WCAS).
The acquisition, set to finish in the second quarter of this year, is pending regulatory approval. WCAS has committed an additional $200 million investment to support EquiLend’s organic growth initiatives and potential acquisitions as part of the deal.
The timing of the cyberattack raises suspicions, with the FBI warning that ransomware gangs commonly target companies involved in time-sensitive financial events, such as mergers and acquisitions.
This event aligns with EquiLend’s recent announcement of its acquisition, making it a potential target for threat actors who would like to take advantage of the situation to earn financial revenue.
EquiLend is working diligently to restore its compromised services and investigate the extent of the breach. However, the questions remain about whether the cyberattack compromised company or customer information during the incident.
The company has already informed its clients that the restoration process may take several days, implying the challenges and complexities of recovering from a cybersecurity incident of this level.
The broader financial industry watches closely while EquiLend addresses this cybercriminal activity. Every organisation should be mindful of the potential implications of these threats, as the threat actors could strike at any moment once they have identified a potential target that could provide significant profit.
