Financial Crime World

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Major Cyber Attack Hits Local Government Organization, Raising Concerns for National Security

A severe cyber attack on a local government organization in Aotearoa New Zealand has sparked concerns about the potential impact on national security and core services. The incident, categorized as C3, is believed to have been carried out by a sophisticated malicious cyber actor seeking data for espionage purposes.

Incident Details

According to reports, the attacker compromised an internet-facing device at the local government organization and then moved laterally within the network, compromising several devices and a server. The National Cyber Security Centre (NCSC) was alerted to the compromise and worked with the victim organization and its IT managed service provider to contain the incident and prevent further attempts to breach their network.

Consequences

The attack is believed to have had significant second-order effects for other Aotearoa New Zealand organizations, posing risks to the privacy and security of several other entities. The NCSC has since launched an investigation into the incident, with officials working to identify the full path of the intrusion and understand the scope of the compromise.

Ransomware and Extortion Activity on the Rise

This year’s most severe cyber incidents were categorized as C3, with a majority linked to disruptive ransomware or extortion activity. The NCSC has seen an increase in sophisticated malicious cyber activity, including attacks on critical infrastructure and government organizations.

  • 23% of incidents showed indications of a connection to state-sponsored actors, compared to 34% in the previous year.
  • For the first time, the NCSC recorded a higher proportion of financially motivated activity than activity linked to state-sponsored cyber actors.

Disrupting Malicious Cyber Activity

The NCSC has been working to disrupt malicious cyber activity affecting Aotearoa New Zealand, providing threat information and indicators to commercial cybersecurity partners and infrastructure providers. The organization’s MFN threat detection and disruption service has disrupted over 390,000 threats in total, including hundreds of disruptions associated with state-sponsored activity.

What’s at Stake

The cyber attack on the local government organization highlights the potential risks posed by malicious cyber activity to Aotearoa New Zealand’s national security and core services. State-sponsored cyber actors are increasingly targeting the country to understand diplomatic and policy positions, or to undertake commercial espionage supporting their economic development.

Recommendations

As the NCSC continues to investigate the incident and work to prevent future breaches, officials are urging organizations to take proactive steps to protect themselves against malicious cyber activity.