Vietnam’s financial sector faced turbulence as VNDirect, the nation’s third-largest securities broker, continued its struggle to recover from a debilitating cyberattack over the weekend. Despite efforts to restore services, investors remained locked out of the platform, underscoring the severity of the VNDirect cyberattack.
In an official announcement on Wednesday, VNDirect acknowledged the partial restoration of services while affirming ongoing efforts to ensure system integrity and customer security.
VNDirect Cyberattack: Progressive Recovery Plan
The company outlined a phased approach to recovery from the VNDirect cyberattack, prioritizing the reinstatement of customer accounts and progressively reintegrating financial products.
“We have currently restored the system and are conducting a review to ensure absolute safety for customers,” VNDirect stated on its Facebook page.
The restoration plan unfolds in four stages after a massive cyberattack on VNDirect:
- Phase 1: Preservation of client status and account information.
- Phase 2: Resumption of money trading, fundamental and reproductive stocks trading.
- Phase 3: Reinstatement of other financial products.
- Phase 4: Full restoration of all features.
Currently, VNDirect has completed Phase 1, urging customers to access their account information and promptly change passwords. However, the company anticipates potential technical glitches due to heavy traffic and requests patience from users.
Meanwhile, VNDirect scheduled flow checks with stock trading departments on March 28, 2024, in collaboration with ANTT experts to ensure system security. The company emphasized the importance of cybersecurity awareness among investors, advising against downloading unknown files or sharing PC access.
Market Repercussions and Regulatory Response
The fallout extended beyond VNDirect’s operations, prompting the Hanoi Stock Exchange (HNX) to temporarily suspend remote trading and online transactions involving derivative securities and debt instruments through VNDirect. The move reflects the severity of the incident and its broader implications for the financial ecosystem.
Market repercussions were evident as VNDirect’s share price plummeted nearly 4% and transaction volumes on the Ho Chi Minh City Stock Exchange (HSX) dropped by 10% on Monday. Concerns loomed over the contagion effect, but Vietnam’s State Securities Commission (SSC) assured that other financial institutions remained unaffected.
Addressing the attack, VNDirect’s CEO, Nguyen Vu Long, attributed it to a “group of professional hackers” who encrypted data. Despite the setback, Long affirmed the successful decryption of blocked data and initiation of the restoration process.
The cyber onslaught extended to affiliated entities like investment firm IPA and stock investment fund IPAAM, compounding the disruption across Vietnam’s financial landscape. Websites of these companies remain offline as they grapple with the aftermath of the assault.
As Vietnam’s financial sector navigates the aftermath of this cyber siege, stakeholders brace for continued turbulence while emphasizing vigilance against evolving digital threats. The incident underscores the imperative for robust cybersecurity measures to safeguard the integrity of financial systems and protect investor interests in an increasingly digitized world.
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