This attack highlights how even well-established businesses are becoming more susceptible to cyberattacks.
A ransomware attack has dragged Bassett Furniture Industries, a hundred-year-old mainstay of the US furniture business, to its knees. On July 10, the company had to close its manufacturing facilities due to cyberattacks that encrypted important data. Bassett Furniture, which has been around since 1902, is one of the biggest producers and marketers of furniture in the US, with around 90 locations. The corporation announced a 17% drop in revenue for the second quarter of 2024 compared to the same period the previous year on the day of the ransomware assault.
According to Bassett Furniture Industries, it found illegal access to some of its IT systems and shut them down. The hacker “disrupted the company’s business operations by encrypting some data files” and forced the company to activate its incident response plan,” it said in a regulatory filing.
“As a result of the company’s containment measures, which included shutting down some systems, the company has not been and, as of the date of this report, is not operating its manufacturing facilities,” Bassett Furniture said in an 8-K filing with the Securities and Exchange Commission.
Although Bassett Furniture’s physical storefronts and website are still operational, the company’s inability to manufacture furniture has had a significant negative impact on operations. Although workarounds and system restorations have been attempted, it is still unknown how much harm has been done.
This attack highlights how even well-established businesses are becoming more susceptible to cyberattacks. The incident serves as a reminder of the difficulties companies have in striking a balance between cybersecurity expenditures and the possible financial consequences of incident disclosure. A car dealership and the insurance provider UnitedHealth both disclosed large financial losses earlier this month as a result of cybersecurity attacks.
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