Motilal Oswal Faces Scrutiny After Reported Ransomware Attack by LockBit

19 Feb 2024 , 08:58 AM

Shares of Motilal Oswal Financial Services will likely be under scrutiny on February 19 following reports of a cyber-attack targeting the domestic broking firm by the ransomware group LockBit, as reported by TechCrunch.

The ransomware group reportedly included Motilal Oswal on its dark web leak site on Tuesday, with the intention of extorting ransom payments from the brokerage. LockBit threatened to release all stolen data publicly if their demands were not met.

With approximately six million clients and total assets under management of around $53 billion, Motilal Oswal Financial Services is a significant player in the Indian brokerage industry.

India’s Computer Emergency Response Team (CERT) is reported to be taking appropriate action in response to the cyber-attack, according to TechCrunch.

LockBit has a history of launching cyber attacks on various organizations, including Granules India and National Aerospace Laboratories. The group has targeted major companies globally, including Accenture, Royal Mail, Boeing, and the Industrial & Commercial Bank of China.

The cyber-attack has had a significant impact on Motilal Oswal Financial Services’ operations, necessitating substantial changes to its IT systems and compliance efforts.

Motilal Oswal Financial Services provides a wide range of financial services in India, including wealth management, retail and institutional broking, asset management, commodity broking, private equity, investment banking, and principal strategies.

The shares of Motilal Oswal Financial Services have shown resilience, gaining over 15% in the past month. On February 16, 2024, shares settled higher by 1.2%.