Cyberattack cost more than $17 million, Key Tronic tells regulators

Summary: Key Tronic, a printed circuit board assembly manufacturer, suffered a cyberattack in May that resulted in over $17 million in losses. The Black Basta ransomware group claimed responsibility for the attack, which led to operational shutdowns and significant revenue impacts for the company.

Threat Actor: Black Basta | Black Basta
Victim: Key Tronic | Key Tronic

Key Point :

Key Tronic detected unusual server activity on May 6, prompting a two-week operational shutdown in the U.S. and Mexico.
The company reported $2.3 million in expenses and an estimated $15 million loss in revenue due to the cyberattack.
Black Basta claimed responsibility and leaked what it asserted was sensitive data from Key Tronic.
The average cost of a data breach has risen to $4.88 million, highlighting the increasing financial impact on companies.
The manufacturing sector remains a frequent target for cyberattacks, as evidenced by recent incidents involving other companies like Crown Equipment and Volex.

A cyberattack discovered in May by the manufacturer Key Tronic has cost the company more than $17 million, according to a Friday regulatory filing.

On May 6, the printed circuit board assembly fabricator first detected unusual activity on its servers, leading it to shut down operations in Mexico and the U.S. for two weeks “during remediation efforts.”

The Black Basta ransomware group claimed the attack on its website and leaked what it claimed was sensitive Key Tronic data.

On Friday, Key Tronic informed the Securities and Exchange Commission that it had incurred about $2.3 million of expenses connected to the cyberattack and “believes that it lost approximately $15 million of revenue during the fourth quarter.” The Spokane, Washington-based company says the orders are “recoverable” and can be fulfilled next year.

Its fourth quarter revenue is expected to be $125 million, which is below previous estimates. Last year, it had revenues of more than $596 million.

A recent report from IBM and the Ponemon Institute found the average cost of a data breach from March 2023 until February 2024 jumped to $4.88 million, up from $4.45 million the year before.

The manufacturing sector is a frequent target of threat actors, with the forklift giant Crown Equipment reporting a ransomware attack in June and the U.K. manufacturing services company Volex reporting last October that hackers had gained access to its systems.