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Money transfer firm MoneyGram rushes to contain cyber attack

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Money transfer firm MoneyGram rushes to contain cyber attack

MoneyGram, a US-based financial services firm that facilitates money transfers, bill payments, and cryptocurrency trading, has temporarily suspended its services due to an ongoing cyber security incident. The exact nature of the incident is still unclear.

The problem started on Friday, September 20, when customers began experiencing issues. Initially, it was believed to be a network outage affecting connectivity.

After further investigation, MoneyGram provided more information about the incident on Monday, September 23, stating, “MoneyGram recently identified a cyber security issue affecting certain systems. Upon detection, we immediately launched an investigation and took necessary steps to address it, including taking systems offline to preserve network security.

“We are collaborating with external cyber security experts and law enforcement to resolve the issue. We understand the urgency of the situation for our customers and partners, and we are working diligently to restore our systems and resume normal operations.”

One of the affected downstream customers is the Post Office in the UK, which offers MoneyGram services in its branches nationwide. The Post Office announced on its website, “Currently, MoneyGram services, including online support, are unavailable. We apologize for any inconvenience.”

Speculation

Speculation surrounding the incident suggests that MoneyGram may have fallen victim to a ransomware attack, given the need to take systems offline to contain the threat. However, MoneyGram has not confirmed this speculation.

Akhil Mittal, senior security consulting manager at Synopsys Software Integrity Group, explained that money transfer services are attractive targets for cyber criminals due to the large amounts of digital currency handled and sensitive data stored. The apparent attack on MoneyGram is not surprising.

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“The challenge lies in maintaining security while keeping services operational. By prioritizing security and taking systems offline, MoneyGram is facing a common dilemma in the financial sector – how to safeguard data without disrupting business operations,” Mittal said.

“IT teams must provide regular updates to customers while addressing the threat, cleaning systems, and ensuring security before resuming services. Collaborating with cyber security experts, as MoneyGram is doing, can expedite the recovery process.

“This issue goes beyond technical aspects; it impacts individuals. In regions like Jamaica, where the outage disrupts remittances vital for daily expenses, the consequences are significant. It is crucial to consider the community impact of such disruptions on those reliant on remittances.”

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