MoneyGram Confirms Cybersecurity Incident Behind Multiday Outage

by | Sep 25, 2024 | Latest News | 0 comments

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Financial services firm MoneyGram has confirmed that a recent multiday outage affecting its services resulted from a “cybersecurity issue.” The company is working around the clock to restore its systems with partial success.

In a post on X (formerly Twitter) on September 23, MoneyGram announced that “MoneyGram recently identified a cybersecurity issue affecting certain of our systems.” This recognition followed reports from users that the service went down on September 20, with hundreds more complaints pouring in over the past 24 hours, according to DownDetector, a service status tracking site.

Proactive Measures and Restoration Efforts

Once the issue was identified, MoneyGram swiftly launched an investigation and took preemptive measures to contain the problem The company stated, “We promptly initiated an investigation and implemented protective measures, which included proactively taking systems offline, affecting network connectivity.” This decision led to temporary suspension of key services as the firm worked to resolve the issue.

MoneyGram further added that it was collaborating with law enforcement and “leading external cybersecurity experts” to mitigate the situation and get its systems back online. In an update on September 24, the company shared via X that it was making progress in “successfully restoring some of our key transactional systems” and continues to work on the matter. “We are working around the clock,” the firm assured its customers.

MoneyGram (@MoneyGram)

We continue to make progress in successfully restoring some of our key transactional systems and are working around the clock to resolve the issue fully.

As soon as its systems were fully operational, the company promised that any pending user transactions would be processed. However, MoneyGram has not shared additional information regarding the specifics of the cybersecurity incident, including which systems were impacted or if any sensitive data might have been compromised. The company also did not indicate when it anticipates fully restoring its services.

Broader Trends in Cybersecurity Threats

MoneyGram’s cybersecurity incident comes at a time when cyberattacks, particularly crypto-related ransomware, are on the rise. 2024 has already seen a nearly 96% increase in ransomware attacks compared to the previous year, according to blockchain security firm Chainalysis. The surge has been driven by some high-profile cases, including a record $75 million crypto ransom payment to the ransomware group Dark Angels, the largest ever recorded.

By comparison, ransomware payments in 2023 totaled $37.8 million, highlighting the growing sophistication and scale of such attacks. Although there is no confirmation yet if MoneyGram’s systems were compromised similarly, the rise of cybercrime has created heightened risks for financial institutions globally.

MoneyGram’s Expanding Role in Crypto Services

As a leading global money transfer service, MoneyGram handles more than $200 billion in transactions each year, assisting approximately 50 million customers around the world. It is a particularly vital service for immigrants in the United States, who rely on the platform to send remittances to family members abroad.

Recently, MoneyGram has also expanded its reach into cryptocurrency. In early 2024, the firm began offering fiat-to-stablecoin exchange services. On September 18, just days before the cybersecurity incident, MoneyGram announced a partnership with the crypto exchange CEX.io to enable users to exchange fiat for stablecoins at MoneyGram kiosks.

While MoneyGram has been working hard to restore its traditional services, it remains unclear whether its crypto-related offerings have been impacted by the ongoing outage.

MoneyGram has yet to provide further comments or an exact timeline for when its services will be fully restored.

 

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