Taiwan Semiconductor

Taiwan Semiconductor Refused To Pay $70M To The Attacker Gang

LockBit 3.0 ransomware gang claims to have hacked Taiwan Semiconductor Manufacturing Co. and demands a ransom of $70 million to delete the stolen data.

On the other hand, Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest chip manufacturer, has openly dismissed LockBit’s claims and refused to pay the ransom.

TSMC clarified that the data leak occurred at one of its IT hardware suppliers, Kinmax Technology Inc., and did not impact customer information or operations.

Even though the ransomware gang threatened to release the leaked data if the ransom was not paid, TSMC remains firm in its statement.

The Hack and Ransom Demand

LockBit 3.0 listed TSMC on its dark web leak site, asserting that it possessed confidential data from the chip-making giant.

The ransomware gang posted screenshots as evidence of their access to TSMC’s systems.

They demanded a ransom of $70 million, with a deadline of August 6, which could be extended for an additional 24 hours for $5,000.

LockBit threatened to publish the leaked data and provide entry points into TSMC’s network if the ransom was not paid.

The gang also expressed willingness to sell the data to interested buyers.

Response From Taiwan Semiconductor

A spokesperson from TSMC promptly refuted the claims of a direct hack, explaining that the data leak actually affected their “IT hardware supplier, Kinmax Technology Inc.

The leaked information was related to the server initial setup and configuration and did not compromise TSMC’s business operations or customer information.

As a response to the incident, TSMC terminated data exchange with the supplier, adhering to their security protocols and standard operating procedures.

Kinmax’s Investigation and Response

Kinmax, the IT hardware supplier of TSMC, confirmed the attack on its testing environment and the exfiltration of relevant information.

However, they clarified that the compromised data was limited to system installation and configuration details that were not directly linked to customer applications.

Taiwan Semiconductor
Newsletter from Kinmax

Kinmax took immediate action by shutting down the infected network section and engaging a third-party cybersecurity company to investigate the incident.

The company assured stakeholders that their operating conditions were normal, and no substantial losses had been incurred.

Ransomware attacks have surged in recent months, causing significant disruption and financial losses.

LockBit 3.0 ranks as the most active threat actor, responsible for numerous ransomware incidents in the present year.

For more news and Updates on Cybersecurity, visit The Cybersecurity Club.

Image source: Reuters

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