Telematics company Microlise recently experienced a cyberattack that compromised some of its network systems, affecting employees’ data and disrupting key clients such as DHL and Serco. While the company assured the public that customer data remains secure, the attack has impacted Microlise’s business and led to significant challenges for some of its partners. Here’s a closer look at what happened and the steps Microlise is taking to address the issue.

What Happened at Microlise?

Microlise, a company specializing in telematics technology, first reported the attack on October 31. The news led to a notable 16 percent drop in the company’s share price, with the AIM-listed company’s value still struggling to recover fully. According to Microlise, the attack appears to have impacted some internal systems, with certain employee data being compromised. However, the company assured stakeholders that customer data remains unaffected.

Microlise informed the London Stock Exchange about the breach, stating that only “limited employee data” was affected. Details regarding the specific type of employee data compromised or the exact number of employees impacted remain unclear. The company is currently working with cybersecurity experts to assess the extent of the breach and minimize any further disruptions to its operations.

Ongoing Efforts to Address the Incident

Microlise has expressed optimism that its services will be fully restored by the end of this week. In a recent update, the company said, “The Company is pleased to say that it is making substantial progress in containing and clearing the threat from its network.” Since the breach, Microlise has been gradually bringing services back online, with most systems expected to return to normal within days.

Microlise is also working closely with third-party cybersecurity specialists to investigate the attack. The company has assured that its top priority is to protect its customers’ data and maintain the stability of its business operations. “The safety and security of customer data and business operations is always our top priority,” Microlise stated, thanking customers for their patience during this challenging time.

The company has informed relevant authorities, including the Information Commissioner’s Office in the UK, about the incident, and those employees potentially impacted by the breach will be notified in line with regulatory requirements.

Disruptions for Major Clients

Despite Microlise’s efforts to contain the incident, some of its major clients have reported disruptions in their services due to the cyberattack. Delivery giant DHL, for example, confirmed that the breach affected its tracking systems for Nisa Group stores, causing delivery delays and inconveniences for store managers.

In addition to DHL, British security company Serco, which holds several public sector contracts, also reported issues. Serco’s tracking and panic alert systems used in prisoner transport vans for the Ministry of Justice were temporarily disabled due to the cyberattack. While Serco confirmed that its services were not interrupted, the disabled tracking system affected drivers, who were reportedly unaware of the issue for a few days and continued to use the vans as normal.

Though some of Microlise’s other clients were also contacted about the incident, most did not provide comments, with Tesco simply declining to speak on the matter.

Expert Insights on the Attack

Cybersecurity experts say the incident shows many signs of a ransomware attack, although Microlise has not confirmed this. According to Elaine McKechnie, head of cybersecurity consultancy i-confidential, the attack “bears all the hallmarks of ransomware,” given the recent rise in such attacks on supply chains.

McKechnie explained that cyberattacks targeting third-party providers like Microlise can have a significant ripple effect, impacting not only the targeted company but also its clients and the wider network. “This is a timely reminder that the consequences of supply chain attacks can be just as devastating as those targeting an organization’s own infrastructure,” she said. McKechnie emphasized the importance of including third-party resilience in cybersecurity strategies, as supply chain attacks continue to rise globally.

Microlise’s Path Forward

As investigations continue, Microlise remains committed to enhancing its cybersecurity protocols. The company is working diligently to bring its systems back to full capacity, aiming to restore operations with minimal disruption to its customers. Given the recent incident, Microlise may also consider improving its cybersecurity measures to prevent future breaches, particularly those targeting third-party partners and employee data.

Why This Matters

The Microlise attack is a stark reminder of the dangers companies face in today’s digital world. Cyberattacks can lead to severe disruptions not only within the affected company but also among its clients and partners. In this case, disruptions were particularly challenging for Microlise’s logistics clients, where real-time data tracking is essential for efficient operations. DHL, for instance, faced delays in tracking deliveries, while Serco had to deal with temporarily disabled tracking for prisoner transport vans.