MoneyGram says cyber incident causes network outages

Digital payments giant MoneyGram said a recent cybersecurity incident resulted in network outages and other problems for those trying to send money.

The company posted messages on social media over the weekend confirming it was experiencing network outages after users complained they would no longer be able to use the service starting Friday.

On Monday, the company said it had “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 third-party 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 hard to get our systems back online and resume normal business operations.”

MoneyGram's website was still down Tuesday morning. The company did not respond to requests for comment on whether this was a ransomware attack or whether a ransom was paid.

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

More than 50 million people use MoneyGram each year to send money and cryptocurrencies internationally and within the U.S. The company released a report last week highlighting its role as a central player in the remittance market – where people in the U.S. and Europe send money to households in developing countries.

MoneyGram processes over $200 billion in transactions each year in over 200 countries and territories.

On Monday evening, several partners in the Caribbean and Mexico notified their customers that their own outages were caused by the attack on MoneyGram.

The Bank of Jamaica released its own statement informing citizens that “remittance companies (primary agents) offering MoneyGram services in Jamaica cannot access the MoneyGram platform to make overseas remittances or to pay remittance proceeds to recipients in Jamaica.”

Ransomware gangs are quick to target financial services companies because they know that customer pressure will force companies to pay ransoms. Homebuyers were furious earlier this year when four of the largest financial firms involved in lending – Mr. Cooper, loandepot, Fidelity National Financial and First American – were hit by ransomware attacks.

Several other major financial services institutions, such as MeridianLink, Tipalti and Moneris, reported incidents in the fall. One of the world's largest banks, the Industrial and Commercial Bank of China (ICBC), also disclosed a ransomware attack in November.

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