DXC reports ‘minimal impact’ following subsidiary ransomware attack

DXC has completed an internal investigation following a ransomware attack on insurance subsidiary Xchanging in early July, reporting ‘minimal impact’ on the Melbourne-based division.

The technology giant also confirmed containment of the incident during the immediate days following the breach, insisting that Xchanging customers were not affected and that no user data - including that of DXC - was exposed.

As a result, the business has reported “no impact” on wider Xchanging or DXC IT estates, alongside “full restoration” of Xchanging customer operations.

“DXC teams worked with affected Xchanging customers to restore access to their operating environments as quickly as possible and shared Indicators of Compromise (IOCs) and other relevant technical information,” a company statement read.

According to the technology provider, a forensic review and investigation involved appropriate law enforcement and cyber defence authorities, as well as independent cyber security firms including Mandiant and FireEye.

“There were no indications of previous infection, spread beyond initially impacted Xchanging systems, or continued infection by the threat actor,” a DXC statement added. “There is currently no evidence that Xchanging, DXC or customer data was compromised or lost.

“Along with ongoing systems monitoring, DXC is continuously investing in and enhancing its cyber detection and response capabilities to effectively manage risk and safeguard customer and its IT estates with the continued growth of malicious cybersecurity attacks.”

As reported by Channel Asia, DXC was targeted in early July in an attack which resulted in customer outages impacting “certain systems”.

Acquired in a multimillion-dollar deal by then CSC in May 2016 - before becoming part of the newly launched DXC in early 2017- Australia-based Xchanging operates as an insurance-focused managed services business, running as a standalone entity within the technology giant’s wider portfolio.

Headquartered in Melbourne, Xchanging specialises in the delivery of technology-enabled business solutions to organisations in global insurance and financial services, in addition to expertise in healthcare, manufacturing, real estate and the public sector.

The original intention of the acquisition - for approximately US$720 million - was to create a “new leader” in technology and business process services for the global insurance industry.

At the time of the deal, the transaction was positioned at providing CSC with “market leading insurance software” in the form of specialist product Xuber, in addition to capabilities in property and casualty insurance and wealth management business processing services.

The attack followed DXC plans to merge operations in Asia with Australia and New Zealand, forming a combined business entity across Asia Pacific.

The new-look regional organisation will be led by Seelan Nayagam, who has held trans-Tasman responsibilities since 2014. Meanwhile, Koushik Radhakrishnan - previous leader of Asia - will assume a US-based role driving global strategic transformation at the technology provider.

According to DXC, the move is motivated by a desire to leverage the “strengths and scale” of both employees and technology capabilities across the region, in a bid to better meet customer demand.