Toy maker Mattel discloses ransomware attack

Mattel said the ransomware attack had "no material impact to [its] operations or financial condition."

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Image: Karen Vardazaryan, Mattel, ZDNet

US toymaker Mattel revealed today that it suffered a ransomware attack that crippled some business functions, but the company says it recovered from the attack with no significant financial losses.

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The incident took place on July 28, according to a 10-Q quarterly form the company filed with the US Securities Exchange Commission earlier today.

Mattel said that the ransomware attack was initially successful and resulted in the successful encryption of some of its systems.

"Promptly upon detection of the attack, Mattel began enacting its response protocols and taking a series of measures to stop the attack and restore impacted systems.

"Mattel contained the attack and, although some business functions were temporarily impacted, Mattel restored its operations," the company explained.

For more than a year, ransomware gangs have been stealing data and engaging in a double-extortion scheme, threatening to upload the hacked company's data on public "leak sites" unless victims pay their ransom demand.

However, the toymaker said that a subsequent forensic investigation concluded that the ransomware gang behind the July intrusion did not steal "any sensitive business data or retail customer, supplier, consumer, or employee data."

All in all, Mattel appears to have escaped the incident with only a short downtime and without any serious damages.

While companies like Cognizant said they expected to lose between $50 million and $70 million, and Norsk Hydro reported losses of at least $40 million following ransomware incidents, Mattel said the ransomware attack it suffered had "no material impact to [its] operations or financial condition."