FedEx unit’s delivery service slowed by cyberattack
A cyberattack “significantly affected” operations and slowed the delivery service of a FedEx courier service Wednesday, the company confirmed.
The extent of the financial damage caused by “an information system virus” that infiltrated its Dutch unit, TNT Express, can’t be measured at this time, but “it could be material,” FedEx said.
No data breach “is known to have occurred,” and no other FedEx operations had been affected, FedEx said. But TNT Express’ services, including international shipping, are delayed. FedEx didn’t elaborate on which markets are the most heavily affected by the slowdown. But it is offering its other express delivery services as alternatives, it said.
TNT Express, which has operations in more than 60 countries, delivers about 1 million documents and packages a day. Acquired by FedEx for $ 4.8 billion in 2016, TNT Express was formerly headquartered in Amsterdam and is still heavily focused on Europe. But it also delivers in the U. S. through four gateways in New York, Chicago, Los Angeles and Miami.
TNT Express is the latest company that has come under attack online in the last two days. An attack of ransomware, called Petya, spread through computers of major companies in more than 65 countries, mostly in North America and Europe, in the last two days, Microsoft said.
Once ransomware infects a computer system, it locks out key functions that companies use for daily operation until a ransom is paid. FedEx didn’t comment if the attack is related to Petya.
“Remediation steps and contingency plans are being implemented as quickly as possible,” FedEx said.
“In FedEx’s case, ransomware could completely shut down their operation by locking out logistical systems, like package tracking and routing,” says Ryan O’Leary, vice president of Threat Research Center at cybersecurity firm WhiteHat Security. “For the attackers, ransomware is a quick and easy win. The software itself doesn’t need to be particularly sophisticated, and they can rely on known vulnerabilities.”
FedEx shares were up about 0.9% Wednesday morning before trading was halted. Trading resumed in the afternoon.