Microchip Technology Reports Data Breach from August Cyberattack

Threat Actor: Play | Play
Victim: Microchip Technology | Microchip Technology
Price: Unknown
Exfiltrated Data Type: Employee information, financial reports, payroll records, customer documents, tax files

Key Points :

  • Microchip Technology experienced a significant data breach due to a cyberattack in August 2024.
  • The Play ransomware group claimed responsibility for the attack on August 29.
  • The breach exposed employee information, including contact details and encrypted passwords.
  • No indication of customer data compromise has been reported so far.
  • The attack disrupted operations and delayed order fulfillment for 123,000 clients across various industries.
  • Microchip Technology has restored most critical IT systems and resumed regular operations by early September.
  • Play has released portions of the stolen data and threatened to release more if demands are not met.
  • The company is working with cybersecurity experts to assess the breach’s full extent and strengthen security measures.

Microchip Technology, a leading American semiconductor supplier, has confirmed a significant data breach following a cyberattack in August 2024. The attack, which disrupted the company’s operations and exposed employee information, was claimed by the notorious ransomware group Play, known for targeting large organizations globally.

The cyberattack was detected on August 17, prompting an immediate response from Microchip Technology. By August 20, the company had disclosed the full scope of the breach, revealing that several of its production facilities were affected. The incident temporarily hampered the company’s ability to fulfill orders for its 123,000 clients, which span industries including industrial, automotive, aerospace, telecommunications, and defense.

To contain the attack and prevent further damage, Microchip Technology shut down portions of its systems and isolated the compromised areas. This move was critical in halting the spread of the ransomware, but it also contributed to delays in manufacturing and order processing.

Despite the disruption, Microchip Technology has made significant strides in recovering from the attack. By early September, the company had restored the majority of its critical IT systems and resumed regular operations. According to a filing with the U.S. Securities and Exchange Commission (SEC), Microchip has been processing orders and shipping products to clients for over a week.

During the investigation, which is still ongoing, it was discovered that the attackers had gained access to certain employee information, including contact details and encrypted passwords. So far, there has been no indication that customer data was compromised. Microchip Technology is working closely with external cybersecurity experts and forensic analysts to assess the full extent of the breach.

The Play ransomware group claimed responsibility for the attack, adding Microchip Technology to its list of victims on its darknet site on August 29. The group alleged that a significant volume of sensitive data was stolen, including personal information, financial reports, payroll records, customer documents, and tax files.

Play has already released portions of the stolen data online and has threatened to release the remaining files if Microchip Technology does not comply with their demands. The company has not disclosed whether a ransom was paid, but it remains focused on mitigating the impact of the breach and safeguarding its operations.

Microchip Technology continues to investigate the breach and is working diligently to strengthen its security infrastructure. The company has emphasized that it is committed to protecting its employees’ and customers’ sensitive information and is implementing additional measures to prevent future attacks.

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Original Source: https://securityonline.info/microchip-technology-confirms-data-breach-in-august-cyberattack/