MoneyGram says cyber incident causing network outages

Digital payment giant MoneyGram said a recent cybersecurity incident has caused network outages and other issues for those trying to send money.

The company released messages on social media over the weekend acknowledging that it is dealing with network outages after users complained about being unable to use the service starting on Friday.  

On Monday, the company said it “recently identified a cybersecurity issue” that prompted its IT team to launch an investigation and take systems offline, which was the cause of the network outages. 

“We are working with leading external cybersecurity experts and coordinating with law enforcement.  We recognize the importance and urgency of this matter to our customers and partners,” the company said.  

“We are working diligently to bring our systems back online and resume normal business operations.”

MoneyGram’s website was still down as of Tuesday morning. The company did not respond to requests for comment about whether they are dealing with a ransomware attack or whether a ransom has been issued. 

MoneyGram was a public company until 2023, when it was purchased for $1 billion by private equity firm Madison Dearborn Partners. In its last public earnings report, it said it had a 2022 revenue of $1.3 billion.

More than 50 million people each year use MoneyGram to send money and cryptocurrency internationally and within the U.S. The company released a report last week that highlighted its role as a pivotal player in the remittances market — where people in the U.S. and Europe send money back to households in developing nations. 

MoneyGram facilitates more than $200 billion in transactions each year in over 200 countries and territories. 

As of Monday evening, several partners across the Caribbean and Mexico told customers that their own outages were caused by the attack on MoneyGram. 

The Bank of Jamaica released its own statement, telling citizens that “remittance companies (primary agents) that offer MoneyGram services in Jamaica are unable to access the MoneyGram platform to send remittances abroad or disburse remittance proceeds to recipients in Jamaica.”

Ransomware gangs have been eager to target financial services firms knowing pressure from customers will force companies to pay ransoms. Home buyers were livid at the beginning of the year when four of the biggest financial companies involved in the loan process — Mr. Cooper, loandepot, Fidelity National Financial and First American — were all hit with ransomware attacks. 

Several other critical financial services institutions like MeridianLink, Tipalti and Moneris reported incidents throughout the fall. One of the world’s largest banks, Industrial and Commercial Bank of China (ICBC), also announced a ransomware attack in November.