America’s Top Cybersecurity Firm FireEye Hacked, FEYE Stock Tanks 8%

UTC by Bhushan Akolkar · 3 min read
America’s Top Cybersecurity Firm FireEye Hacked, FEYE Stock Tanks 8%
Photo: Depositphotos

This has been one of the major breaches of cybersecurity where the hackers tried to access the secret data of the US government. The FBI and other intelligence agencies have started an investigation into this matter and will submit a detailed report in the coming days.

On Tuesday, December 8, America’s top cybersecurity firm FireEye Inc (NASDAQ: FEYE) reported that it has been hacked. The company also reported that the cyberattack was possibly a state-sponsored act. Over the last many years, FireEye has been working with the US federal agencies, the FBI, and the National Security Agency. FireEye (NASDAQ: FEYE) stock is down 7.86% in the pre-market today, trading at $14.30,

In a blog post later Tuesday, CEO Kevin Mandia called it “an attack by a nation with top-tier offensive capabilities”. The company noted that the attack was unusually sophisticated as the attacker got access to FireEye’s “Red Team” tools. These tools basically help to simulate cyberattacks and detect flaws in the customers’ systems. The FireEye CEO Mr. Mandia said that the primary goal of the attackers was stealing information of its government clients. In a regulatory filing with the US SEC, FireEye stated:

“Consistent with a nation-state cyber-espionage effort, the attacker primarily sought information related to certain government customers. “The attackers…are highly trained in operational security and executed with discipline and focus. They operated clandestinely, using methods that counter security tools and forensic examination. They used a novel combination of techniques not witnessed by us or our partners in the past.”

The company is currently looking into the incident alongside Microsoft and the FBI. In a rare email accessed by the NBC News, Matt Gorham, assistant director of the FBI’s Cyber Division wrote that the agency “is investigating the incident and preliminary indications show an actor with a high level of sophistication consistent with a nation-state.”

Probability of Hack by the Russian Intelligence that Pushes FireEye Stock Down

Sources say that there’s been an indirect involvement of the Russian Intelligence behind this attack. These are the same Russian spies who penetrated the American State Department and White House a few years ago. Although no American agency has called-out Russia explicitly behind the attack.

Over the last few years, cyberattacks on the US Intelligence platform have turned out to be a common thing. In 2015, hackers having the Russian SVR intelligence service attacked the servers of the Democratic National Committee.

Rep. Adam Schiff, D-Calif., the chairman of the House Permanent Select Committee on Intelligence, has also asked America’s top intelligence agencies to submit a report in the coming days. In a statement on Tuesday, Schiff said:

“Foreign actors have not stopped attacking our country and its critical and cybersecurity infrastructure since 2016. “In fact, they’ve continued, grown more sophisticated and only have to succeed once, while the U.S. government and companies alike have to pitch a perfect game. This news about FireEye is especially concerning because reportedly a nation-state actor made off with advanced tools that could help them mount future attacks.”

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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