U.S. says ransomware attack on meatpacker JBS likely from Russia

The logo of Brazilian meatpacker JBS SA is seen in the city of Jundiai, Brazil June 1, 2017. REUTERS/Paulo Whitaker
The logo of Brazilian meatpacker JBS SA is seen in the city of Jundiai, Brazil June 1, 2017. REUTERS/Paulo Whitaker

Brazil’s JBS told the U.S. government that a ransomware attack on the company that disrupted meat production in North America and Australia originated from a criminal organization likely based in Russia, the White House said

by Tom Polansek & Jeff Mason – Reuters

JBS, the world’s largest meatpacker, said on Tuesday night it had made “significant progress in resolving the cyberattack.” The “vast majority” of the company’s beef, pork, poultry and prepared foods plants will be operational on Wednesday, according to a statement, easing concerns over rising food prices.

The cyberattack followed one last month by a group with ties to Russia on Colonial Pipeline, the largest fuel pipeline in the United States, which crippled fuel delivery for several days in the U.S. Southeast.

JBS halted cattle slaughter at all its U.S. plants on Tuesday, according to union officials. On Monday, the attack caused Australian operations to shut down.

“The supply chains, logistics and transportation that keep our society moving are especially vulnerable to ransomware”

“Our systems are coming back online and we are not sparing any resources to fight this threat,” said Andre Nogueira, chief executive of JBS USA.

With North American operations headquartered in Greeley, Colorado, JBS controls about 20% of the slaughtering capacity for U.S. cattle and hogs.

White House spokeswoman Karine Jean-Pierre said the United States contacted Russia’s government and that the FBI was investigating.

“The White House is engaging directly with the Russian government on this matter and delivering the message that responsible states do not harbor ransomware criminals,” Jean-Pierre said.

JBS sells beef and pork under the Swift brand, with retailers like Costco Wholesale Corp carrying its pork loins and tenderloins. JBS also owns most of chicken processor Pilgrim’s Pride Co, which sells organic chicken under the Just Bare brand.

Ongoing shutdowns of JBS plants would threaten to raise meat prices further for American consumers during summer grilling season and to disrupt meat exports at a time of strong demand from China.

“The supply chains, logistics and transportation that keep our society moving are especially vulnerable to ransomware, where attacks on choke points can have outsized effects and encourage hasty payments,” said threat researcher John Hultquist with security company FireEye.

The disruption quickly had an impact on Tuesday, industry analysts said. U.S. meatpackers slaughtered 22% fewer cattle than a week earlier and 18% than a year earlier, according to estimates from the U.S. Department of Agriculture. Pork processing was also down.

Prices for choice and select cuts of U.S. beef shipped to wholesale buyers in large boxes each jumped more than 1%, the USDA said.

 

 

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