The White House is saying that the United States has contacted the Russian government about a ransomware cyber attack on the world’s larged meatpacking company, JBS S.A. that originated from a criminal organization likely based in Russia, according to Reuters and other news outlets.
White House spokeswoman Karine Jean-Pierre said the FBI is investigating the matter.
JBS S.A. informed the U.S. government that the ransomware attack has disrupted meat production in North America and Australia. Bloomberg News reports that there are signs that closures of JBS facilities are spreading globally.
The JBS said its Australian operations had to shut down on Monday due to the ransomware attack. The company said it has stopped slaughtering livestock at plants in several U.S. attacks.
Last month, a ransomware attack by a criminal group likely based in Russia hit Colonial Pipeline, the largest fuel pipeline in the U.S., disrupting fuel deliveries for several days in the Southeastern U.S.. The company reportedly paid a $4.4 million ransom.
Jean Pierre said the White House “has offered assistance to JBS and our team at the Department of Agriculture have spoken to their leadership several times in the last day."
"JBS notified the administration that the ransom demand came from a criminal organization likely based in Russia. The White House is engaging directly with the Russian government on this matter and delivering the message that responsible states do not harbor ransomware criminals," Jean-Pierre added.
If the company’s plants remain shut down it could hurt the U.S. economy by tightening supplies and causing meat prices to rise during the summer season and reducing exports of meat products.
Reuters reported that the cyberattack has already had an impact. Analysts told Reuters:
U.S. meatpackers slaughtered 94,000 cattle on Tuesday, down 22% from a week earlier and 18% from a year earlier, according to estimates from the U.S. Department of Agriculture. Pork processors slaughtered 390,000 hogs, down 20% from a week ago and 7% from a year ago.
The Brazilian meatpacking company has its North American operations headquartered in Greeley, Colorado. JBS has operations in 15 countries and supplies its products to about 100 companies, according to its website.
A number of Russian-based gangs are believed to be behind a growing number of ransomware attacks. Their cyber attacks encrypt files, and then the criminals demand payment in cryptocurrency for keys that will allow the owners to use their computer files again.
President Joe Biden is scheduled to hold a summit with Russian President Vladimir Putin on June 16 in Geneva, Switzerland.
It’s time to impose tougher sanctions on Russia if Putin does not crack down on these criminal cyber attack gangs. Putin should be made to focus on what’s going on in his own backyard rather than continue to spread disinformation aimed at sowing divisions in our country, spreading lies about vaccines, and undermining our democracy.