Ransomware Attack Again After One Month... Global Supply Chain Cyberattack Target (Comprehensive Report 1)

Following the Largest Pipeline Damage in the US
World's Largest Meatpacker JBS
Suspends Some Operations in Australia and North America
White House Announces "Russian Hacker Attacks"
One Day Halt Cuts US Beef Production by a Quarter

[Asia Economy New York=Correspondents Baek Jong-min and Kwon Jae-hee] The world's largest meat processing company, JBS SA, suffered a ransomware attack originating from Russia, causing operations at some facilities in Australia and North America to halt. This incident occurred just a month after the largest U.S. pipeline operator was hit by a ransomware attack that disrupted supply, raising concerns as major supply chains are becoming targets of cyberattacks.

According to Bloomberg on the 1st (local time), JBS SA, headquartered in Brazil and the world's largest meat processing company, notified the U.S. government that it had been hit by a ransomware attack from a Russian hacker group. Due to this attack, some plants in Australia and North America stopped operations. However, JBS SA did not disclose which of its 84 production facilities in the U.S. were affected. Some plants in Canada are also reported to have ceased operations.

On the same day, Karine Jean-Pierre, Deputy Press Secretary of the White House, confirmed, "JBS SA has informed us that it was targeted by a ransomware attack from hackers based in Russia." She added that the White House has begun providing support to JBS SA and that the Department of Agriculture is also responding.

[Image source=AP Yonhap News]

She stated, "The White House is directly communicating and cooperating with the Russian government on this issue," and added, "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 mentioned that the Department of Agriculture has taken measures to prevent the spread of damage to other meat processing companies, and "President Joe Biden has instructed the administration to actively respond to minimize supply chain damage."

JBS SA, based in S?o Paulo, Brazil, 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.

Considering the company's influence, concerns arose that if recovery from this attack is prolonged, it could disrupt the meat supply chain. However, JBS SA announced that operations would return to normal soon. JBS SA stated, "We are currently restoring the supply chain affected by the hacking and expect to be back to normal by the next day."

It is estimated that if the company closes even for a single day, about one-quarter of the U.S. beef production would disappear. The U.S. Department of Agriculture reported the previous day that U.S. meat processors slaughtered 94,000 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.

Earlier, on the 7th of last month, Colonial Pipeline, the largest U.S. pipeline operator, was forced to halt operations after a ransomware attack by the hacker group 'DarkSide,' causing a gasoline shortage in the U.S. Due to this, concerns are growing over the JBS SA cyberattack as it targeted a major meat supply chain.

In particular, worries are spreading that this attack could further fuel the already soaring meat prices. U.S. meat prices had already risen due to COVID-19 lockdowns, adverse weather, and reduced factory operating rates. The U.S. Department of Agriculture has forecasted that beef prices will increase by 1-2%, chicken by 1.5%, and pork by 2-3% this year.

Bloomberg pointed out, "Less than a month after the largest U.S. pipeline operator Colonial Pipeline was targeted by hackers, JBS SA has been attacked," and noted, "Hackers appear to be targeting raw materials as key targets."