© Reuters.
Boeing (NYSE:), the global aerospace and defense leader, has confirmed a significant cybersecurity breach by the notorious ransomware group, LockBit. The group has threatened to release Boeing’s data unless contacted within a specific timeframe. This breach was confirmed on Monday by both Boeing and VX Underground, an independent cybersecurity tracking organization.
The cybercriminals targeted Boeing’s parts and distribution business under its Global Services division. This division provides material and logistical support to customers in over 150 countries, manufacturing commercial jets, defense products, and space systems. Despite the breach, Boeing assured that flight safety was not compromised.
LockBit had initially threatened to leak 4 GB of Boeing’s data on the dark web on November 1, 2023, with plans to release an additional 500 GB later. However, Boeing was mysteriously removed from LockBit’s target list recently, hinting at potential ongoing negotiations.
LockBit is a notorious ransomware group linked to Russian hacker groups. They are infamous for organized cyberattacks on American and European organizations. The FBI reported over 1,700 attacks since 2020 by this group alone, extorting around US$91 million in total. In 2022, LockBit targeted approximately 1,700 companies and collected over 85 million euros in ransoms.
This is not the first time Boeing has faced cybersecurity issues. Last year, Jeppesen, a Boeing subsidiary distributing airspace safety notices to pilots, experienced a similar incident. As one of the largest private military companies globally, with a turnover of $66 billion and employing 150,000 people worldwide, the upcoming days will be critical for Boeing as it negotiates with cybercriminals and checks its systems for potential threats.
The leaked data could potentially attract buyers on the dark web, given Boeing’s defense contracts and products. The situation remains unclear whether Boeing will pay the ransom or negotiate, especially considering recent incidents involving MGM and Caesars (NASDAQ:) casinos in Las Vegas, where one paid the ransom while the other negotiated – with different outcomes.
InvestingPro Insights
Boeing (BA) has been showing some interesting metrics as per InvestingPro’s real-time data. The company’s market cap stands at a significant $118.0 billion, with revenue growth accelerating at 23.34% over the last twelve months as of Q3 2023. However, the company’s P/E Ratio is at -41.42, indicating that it has not been profitable over the same period.
InvestingPro Tips suggest that despite the company’s position within its industry and its revenue growth, it suffers from weak gross profit margins and does not pay a dividend to shareholders. Additionally, 14 analysts have revised their earnings downwards for the upcoming period, indicating potential financial challenges ahead.
For those interested in a deeper analysis, InvestingPro offers a multitude of additional tips and real-time data metrics, helping investors make informed decisions.
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