Data I/O Reports Data Security Incident Impacting Daily Operations

Data I/O, a U.S.-based technology firm, experienced a data security incident earlier this month that disrupted its day-to-day operations.

 

Headquartered in Redmond, Washington, Data I/O is a technology company that provides advanced data and security programming solutions for electronic manufacturing industry.

 

In a filing with the U.S. Securities and Exchange Commission (SEC), Data I/O said that on August 16, it suffered a ransomware attack where threat actors infiltrated its internal network, accessed and encrypted critical systems, and stole confidential data from the company.

 

Data I/O immediately launched an investigation, with assistance from external cyber security experts, to determine the nature and scope of the incident. It also reported the incident to relevant law enforcement authorities and collaborated with them to resolve the matter at the earliest.

 

“Upon discovery, the Company promptly activated its response protocols, took steps to secure its global IT systems and implemented containment measures, including proactively taking certain platforms offline and implementing other mitigation measures.

 

“The Company also engaged leading cybersecurity experts to support the IT system recovery and conduct a comprehensive investigation. Based on the findings, the Company will take additional actions as appropriate, including notifying affected individuals and regulatory authorities in compliance with applicable laws,” Data I/O said in its filing.

 

The technology company is in the process of restoring its affected systems that have created temporary disruption to the company’s daily operations.

 

“The Incident has temporarily impacted the Company’s operations, including internal/external communications, shipping, receiving, manufacturing production, and various other support functions. While the Company has implemented measures to allow for the restoration of some operational functions, the timeline for a full restoration is not yet known,” Data I/O added.

 

While the company is yet to evaluate the material impact the incident has on its business operations, it is expecting that the “costs related to the Incident, including fees for our cybersecurity experts and other advisors, and costs to restore any impacted systems, are reasonably likely to have a material impact on the Company’s results of operations and financial condition.”