There has been a severe scandal going on at the accounting firm PwC over the past few weeks involving a tax scam and the company was dealt another blow as Russian hackers have just managed to steal sensitive information.
It has come to the attention of PwC that a notable cyber breach has so far affected 267 Australian companies, and would also have a significant impact on many more corporations from other countries. In a recent attack on popular file-sharing software, cybercriminals with Russian connections broke into the system, which resulted in new high-profile attacks on the system.
During the last week of May, clop, a cybercrime group, made its first attempt to break into the MOVEit file-sharing service. The company had begun the theft of data from various institutions, including agencies of the US federal government, Shell, the BBC, and many others. As more and more companies reveal that they have been targeted by the data breach, which has affected rival consultancy EY as well, this breach is expected to grow much larger by the day.
The cybercrime group reportedly obtained client data after hacking third-party software called MOVEit, which PwC used to transfer confidential information.
The hackers, who have executed two other global attacks in the last three years, have told companies to pay a ransom or have their files released online. “Pay attention to avoid extraordinary measures that may negatively impact your company,” Clop’s website reads.
On Monday, PwC Australia confirmed it had used the software for a “limited number” of its clients, adding to its woes stemming from the Collins tax scandal.
PwC said its initial investigations showed that the company’s internal IT network had not been compromised. The cyberattack on MOVEit had a limited impact on PwC.
The firm had determined its own IT network had not been compromised, saying the breach was likely to have a "limited impact."
PwC has reached out to the businesses whose files were affected and is discussing the next steps.
The spokesman added that data security remained a "key priority" for the firm and that it was continuing to put "the right resources and safeguards in place" to protect its network and data.
Although the company appears to have escaped significant harm, the revelation comes at a poor time as it battles to regain governments' trust following the leaking of confidential tax information.
Former PwC partner Peter Collins allegedly distributed documents describing the government's tax plans to other staff at the firm. This led to his registration termination with the Tax Practitioners Board. It also caused a slew of governments and their agencies to terminate agreements with the company.
Clop demanded large ransoms for data return, but senior US officials have reportedly said no such demands have been made to federal agencies.
It remains to be seen if the group will seek money from either of the Australian firms caught up in the breach.
Progress, the company that created and maintains MOVEit software, patched the vulnerability within 48 hours.
It also said it was aiding affected clients and had drafted in some of the world's best cybersecurity firms to assist with its response.
In the face of a cybersecurity crisis that has hit Australia, PwC finds itself at the forefront, bracing for the expanding fallout. This incident serves as a stark reminder of the urgent need for robust cybersecurity measures and collaboration between organizations and government agencies.
As the nation grapples with the aftermath, it becomes crucial for stakeholders to fortify their cybersecurity strategies, invest in advanced technologies, and enhance incident response capabilities. Australia must come together to address the immediate challenges and lay the groundwork for a more resilient and secure digital future.
