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Ransomware attack targets major US logistics firm DSC

Chicago-area firm says incident brought minimal disruption

A growing number of transportation and logistics firms have been victimized in ransomware attacks. (Photo: Jim Allen/FreightWaves)

DSC Logistics, a third-party logistics provider and supply chain management firm near Chicago, was targeted in a ransomware attack, the company told FreightWaves.

DSC, which is owned by South Korean supply chain management conglomerate CJ Logistics,  disclosed the cyberattack after a ransomware gang threatened to expose stolen data on a leak site. The firm specializes in consumer packaged goods and food logistics and helps large corporations manage internal supply chains.

“Fortunately, as a result of our security practices and response measures, we were able to continue business operations and experienced minimal disruption,” DSC said in a statement on Wednesday. 

DSC said it was investigating the incident with help from outside specialists. It declined to comment on whether any data was stolen. 

The appearance of the company’s name on the leak site of ransomware group Egregor suggests it refused to pay a ransom demand. 

The cyberattack adds to a growing list of victims among U.S. transportation and logistics firms targeted in a ransomware attack, including Forward Air and OmniTRAX.  

Feds hit back at notorious ransomware gang

But this week also brought encouraging news in the fight against ransomware attacks. On Wednesday, the U.S. Department of Justice announced an international law enforcement action aimed at Netwalker, a ransomware gang that brought havoc on the Australia-based transportation and logistics company Toll Group in 2020. 

Authorities took down Netwalker’s leak site and brought charges against a Canadian man,  Sebastien Vachon-Desjardins, accused of extorting companies out of $14 million. Criminal charges are extraordinarily rare in ransomware attacks.

A consortium of global law enforcement agencies including the FBI also took down a massive cyber threat, Emotet, whose malware has infected more than a million devices worldwide. 

Still more than a dozen ransomware gangs remain active, and a threat to transporttion and logistics providers.  

DSC said it was taking the recent attack to heart. 

“As we are increasingly aware, malicious cyber activity is on the rise,” DSC said. “While no company ever wants to encounter an event of this kind, the experience has further sharpened our vision for cybersecurity education and innovation. We are focused on providing leadership in this area.”

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Nate Tabak

Nate Tabak is a Toronto-based journalist and producer who covers cybersecurity and cross-border trucking and logistics for FreightWaves. He spent seven years reporting stories in the Balkans and Eastern Europe as a reporter, producer and editor based in Kosovo. He previously worked at newspapers in the San Francisco Bay Area, including the San Jose Mercury News. He graduated from UC Berkeley, where he studied the history of American policing. Contact Nate at [email protected]