Simpson Manufacturing recently reported a cybersecurity breach, which has momentarily halted its operations, a disturbance expected to persist. The company, a prominent figure in North America’s building and structural materials industry, specializes in structural connectors and anchors. It boasts an impressive workforce of 5,150 and reported net sales of $2.12 billion in 2022.
Earlier this week, Simpson faced IT complications and application disruptions. They soon identified these as symptoms of a cyber intrusion. To contain the breach, the company promptly disconnected the affected systems.
The company’s official statement read, “On October 10, 2023, Simpson Manufacturing Co., Inc. encountered issues with its IT setup and applications due to a cybersecurity breach. We’re actively working on halting and rectifying the breach, which includes the temporary shutdown of certain systems.”
They emphasized that the resolution might take a while, leading to a sustained interruption in their operations. “This breach has, and might further, impact specific sectors of our business processes.” – Simpson Manufacturing.
Extended interruptions like this are often consequences of ransomware attacks. These attacks are particularly difficult to tackle as they encrypt data, making core systems and applications inaccessible. Given Simpson Manufacturing’s stature in the industry, potential data theft could be alarming. The company’s possession of vast proprietary information, owing to its seven labs for testing new materials and designs and ownership of over two thousand patents and trademarks, could be at risk.
The exact nature of the cybersecurity breach faced by Simpson Manufacturing remains undetermined. As of now, no cybercriminal group has claimed responsibility.
In response to the situation, the company has onboarded top-notch third-party specialists to guide them through the investigation and recovery phases, both of which are still in their early stages.
Surprisingly, this cyber assault and the resultant operational freeze haven’t yet influenced the company’s stock market performance adversely.