Black Basta ransomware costs Keytronic more than $17M

SPOKANE, Wash. — A cybersecurity data breach of Keytronic, a manufacturing and engineering company, that occurred earlier this year has resulted in significant losses, the company’s recent financial results have shown. 

The company reported that they had suffered a data breach from the Black Basta ransomware gang, which leaked 530 GB of stolen data following the attack, in a U.S. Securities and Exchange Commission report filed back in May. The results of that attack were reflected in its recent financial results, which saw a year-over-year decline in revenues, especially in its fourth quarter. 

“Ransomware criminals are escalating their attacks on organizations with increasingly sophisticated methods, leading to substantial revenue losses and exorbitant ransom demands,” said Jim McGann, vice president of Strategic Partnerships at Index Engines, an AI-powered analytics engine designed to detect data corruption. “Recently, Sonic Automotive reported $30 million in losses due to the CDK attack. The criminal organization BlackSuit has demanded ransoms of up to $60 million, according to a Cybersecurity and Infrastructure Security Agency alert. Additionally, Keytronic has reported $17 million in lost revenue following a recent attack. The impact on businesses is significant and can no longer be ignored. Organizations must enhance their cyber resiliency strategies to avoid severe consequences to their bottom line.” 

Despite the disruption, Keytronic believes that it can recover that revenue from missed orders in the coming year.   

A recent Principled Technologies report issued by Dell found that Index Engines managed to detect data corruption from three similar attacks in a single analysis.  

“Some data protection organizations are positioning themselves as cyber resiliency companies, yet they struggle in providing data integrity,” said McGann. “Attacks are costing companies millions of dollars and taking months to recover. We take pride in the Dell collaboration in providing data integrity within the isolated vault, knowing it is the gold standard for cyber resiliency and this Principled Technology report is proof of that.” 

Black Basta was first identified in April 2022. The CISA, in partnership with the FBI, encourages organizations to implement mitigations provided by the agency and to stay educated on the threats by visiting StopRansomware.gov.