Russia Hackers Behind Attack on World's Largest Meat Processor JBS... Disruption in Meat Supply Chain? (Comprehensive)

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The Russian hacker group has been identified as the culprit behind the cyberattack that disrupted operations at some workplaces in Australia and North America of JBS SA, the world's largest meat processing company.

The U.S. White House announced on the 1st (local time) that JBS SA was targeted by a ransomware attack originating from Russia. On that day, White House Deputy Press Secretary Karine Jean-Pierre told reporters aboard Air Force One en route to Oklahoma, "JBS has informed us that they were hit by a ransomware attack from hackers based in Russia."

She added that the White House has stepped in to support JBS, and the Department of Agriculture is also responding.

Deputy Press Secretary Jean-Pierre stated, "The White House is directly cooperating with the Russian government on this issue," and mentioned, "The Federal Bureau of Investigation (FBI) is investigating the incident, and the Cybersecurity and Infrastructure Security Agency (CISA) under the Department of Homeland Security (DHS) is providing technical support for recovery from the hacking damage."

She also said that the Department of Agriculture has taken measures to prevent the damage from spreading to other meat processing companies, adding, "President Joe Biden has instructed the administration to actively respond to minimize supply chain damage."

Based in S?o Paulo, Brazil, JBS is one of the world's largest meat processing companies with facilities in about 20 countries worldwide, including Australia, New Zealand, the United States, Canada, Mexico, and the United Kingdom.

The day before, JBS USA, the U.S. subsidiary of Brazil's JBS SA, disclosed in a statement that it had been subjected to a hacking attack.

JBS USA stated, "We are informing that we have been the target of an organized cybersecurity attack," and added, "As a result, servers supporting IT systems in North America and Australia were affected."

According to Bloomberg News, one of JBS's largest meat processing plants in Canada also halted operations due to the hacking. Bloomberg reported, "JBS was attacked just three weeks after Colonial Pipeline, the largest U.S. pipeline operator, was targeted." However, no reports of operational shutdowns in U.S. workplaces have been made yet.

JBS explained that it shut down all affected systems and reported the incident to authorities, while working with IT experts to resolve the hacking issue. They emphasized that backup servers were not affected.

JBS explained that it shut down all affected systems, reported the incident to authorities, and is working with IT experts to resolve the hacking issue.

Industry insiders say it is difficult to predict how long the work stoppage caused by the hacking will last, raising concerns that there could be significant disruptions in meat supply.

The U.S. Department of Agriculture announced the previous day that U.S. meat processors slaughtered 94,000 head of cattle, which is a 22% decrease from the previous week and an 18% decrease compared to the same period last year. On the same day, 390,000 pigs were slaughtered, down 20% from the previous week and 7% from the same period last year.

Meanwhile, on May 7, the largest U.S. pipeline operator, Colonial Pipeline, was forced to halt operations after a ransomware attack by the hacker group "DarkSide," causing a significant blow to gasoline supply in the United States.

When Colonial Pipeline, responsible for supplying 45% of the petroleum to the U.S. East Coast, stopped, citizens panicked and engaged in hoarding, causing major chaos.

Colonial had to pay hackers approximately $5 million in the cryptocurrency Bitcoin and work on system recovery.