Ransomware attack disrupts ICBC Financial Services' securities trading and clearing operations

On November 8, 2023, ICBC Financial Services, the U.S. broker-dealer subsidiary of Industrial and Commercial Bank of China, discovered a ransomware attack that encrypted systems and data. The incident disrupted access to trading records and forced the firm to disconnect from clearing firms and agents, impeding securities trading. A subsequent SEC enforcement order documented failures to maintain current books and records and deliver certain transaction confirmations. The directly attacked entity was the U.S. broker-dealer, not the Chinese parent bank.