Electronics manufacturer Data I/O has been forced to shut down critical operational systems after being hit by a ransomware attack. The Redmond, Washington-based company, which produces electronics for major automotive and consumer device companies like Tesla, Amazon, and Google, reported the incident to the U.S. Securities and Exchange Commission (SEC) on Thursday.
The attack, which began on August 16, prompted the company to take systems offline to contain the threat and secure its global IT network. This has resulted in the temporary disruption of vital functions, including internal and external communications, shipping, receiving, and manufacturing production.
In its SEC filing, Data I/O stated that it is working diligently to restore the affected systems and has engaged external cybersecurity specialists to support its recovery process and investigate the full scope of the incident. The company noted that while some systems are now back online, others remain offline, and there is no clear timeline for a full restoration of services.
The financial fallout from the attack is still being assessed, but the company warned that the costs, including fees for cybersecurity experts and the expenses to restore impacted systems, are “reasonably likely to have a material impact” on its financial results and operations. The incident highlights the growing threat of cyberattacks, particularly on the manufacturing sector, which has become a prime target for ransomware groups.
This attack on Data I/O is the latest in a wave of cybersecurity incidents impacting critical industries. According to recent reports, the manufacturing sector has been hit hardest by ransomware attacks this year, underscoring the need for robust security measures across all industries. Data I/O’s ongoing investigation will determine if any sensitive data was exfiltrated during the breach, and the company has committed to notifying any affected individuals as required by law.
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