JBS paid hackers US$11m after cyber attack hit plants

New York

JBS USA said it paid US$11 million in ransom to the criminals responsible for the cyber attack that disrupted operations across North America and Australia, the latest high profile example of large corporations falling prey to extortion.

"This was a very difficult decision to make for our company and for me personally," JBS USA chief executive officer Andre Nogueira said in a statement. "However, we felt this decision had to be made to prevent any potential risk for our customers." A spokesperson for JBS Brazil said the ransom payment was made in bitcoin.

The cyber attack on May 30 forced the Sao Paulo-based meat giant to shut down all of its beef plants in the US, accounting for almost a quarter of American supplies. It also halted slaughter operations across Australia and idled one of Canada's largest beef plants. The FBI has attributed the incident to REvil, a hacking group that researchers say has links to Russia.

The global shutdowns alarmed the agricultural industry and raised concerns about food security as hackers increasingly target critical infrastructure. Operations have returned to normal levels and the company expected lost production to be fully recovered by the end of this week.

Dow Jones had earlier reported the JBS ransom payment.

JBS is the latest company to pay hackers after a cyberattack. Colonial Pipeline Co paid US$4.4 million, or 75-bitcoin, in ransom after a hack that forced it to shut the largest fuel pipeline in the US on May 7, driving up petrol prices and sparking shortages at filling stations.

JBS in its latest statement said the vast majority of the company's facilities were operational at the time of payment. It made the decision to "mitigate any unforeseen issues related to the attack and ensure no data was exfiltrated" in consultation with internal IT professionals and third-party cybersecurity experts.

The company added it has maintained constant communications with government officials throughout the incident, and that third-party forensic investigations are still ongoing. BLOOMBERG