London & Zurich Ransomware Attack Disrupts Business for Thousands of Clients

London & Zurich, a prominent British financial services provider, has fallen victim to a significant ransomware attack, leaving numerous clients facing disruptions. The firm, catering to organizations across various sizes and sectors, from SMEs to NGOs, began experiencing interruptions in its services on November 10. Four days later, the company officially confirmed the ransomware attack on its website.

The fallout from the cyber incident has been impactful, particularly in terms of direct debit payments for many clients. Cash flow has been adversely affected, with reports of delays accumulating, such as one administrative services provider experiencing a setback amounting to $124,000.

Criticism has emerged regarding the transparency and communication practices of London & Zurich in response to the attack. Some media outlets, including The Register, suggest that the company failed to meet client expectations in these aspects.

Despite the company’s status page indicating the operational status of its direct debit portal by November 23, emails sent to customers conveyed a different message, stating that payment capabilities would not be restored until November 28. Additionally, customers faced difficulties accessing phone support.

London & Zurich has refrained from responding to inquiries from The Register regarding potential compromises to customer data during the ransomware attack or details about the attackers and their methods. Instead, a spokesperson issued a statement acknowledging the ransomware incident and the immediate initiation of an investigation with third-party cybersecurity experts. The company claimed to have taken measures to contain the incident, including identifying and terminating access to affected servers.

According to the spokesperson, the incident impacted only one environment, which has since been reconstructed in a new, secure environment. The restoration process is reportedly progressing well, with the API service fully functional, and final testing underway in two additional service areas. London & Zurich aims to reinstate all services by the end of the week.

Expressing gratitude for customer patience, the company urged continued monitoring of its daily status update page for further information on the ongoing recovery efforts.