The Information Commissioner’s Office (ICO), the United Kingdom’s data protection regulator, has initiated an investigation into MoneyGram International following a significant data breach reported by the global money transfer provider.

The breach, which has disrupted services since September 20, 2024, is being closely examined by the ICO to assess the extent of the compromised data and ensure compliance with data protection laws.

MoneyGram, the world’s second-largest money transfer service, processes more than US$200 billion annually across over 200 countries.

Since the breach was detected, the company’s services have been significantly impaired worldwide, affecting millions of customers and business partners, including the Bank of Jamaica and the UK’s Post Office.

Caribbean governments have even issued warnings to citizens about the limited availability of MoneyGram’s services, highlighting the widespread disruption.

The breach came to light publicly on September 21 when MoneyGram, via social media platform X, disclosed that it was experiencing connectivity issues. Two days later, on September 23, the company confirmed it had identified a cybersecurity issue, forcing it to take its systems offline to mitigate potential damage and begin recovery.

While MoneyGram has not specified the nature of the breach, cybersecurity experts speculate that it could be related to a ransomware attack, although no group has claimed responsibility.

Similar incidents in the financial sector, such as the LockBit ransomware attack on fintech firm Equilend earlier this year, have raised concerns that MoneyGram could face a similar threat.

The ICO, which mandates that organizations report data breaches within 72 hours of discovery, has confirmed receipt of MoneyGram’s notification and is conducting inquiries.

The ICO could impose substantial fines on the company if the investigation reveals non-compliance with data protection laws.

MoneyGram responded swiftly to the breach by launching its investigation, enlisting external cybersecurity experts, and coordinating with law enforcement. Despite the disruption, the company assured its customers and partners that recovery efforts were underway.

By September 26, MoneyGram’s website and app were back online, allowing customers to send and receive money through digital platforms and agent partners.

However, delays and service limitations persist, with many customers voicing frustrations over the slow restoration of full services.

https://www.teiss.co.uk