The Clorox Co. is warning customers to brace for shortages of some products following a cyber attack in mid-August.
The company said the attack damaged parts of its Information Technology (IT) infrastructure, causing extensive disruption of its worldwide operations.
However, on Sept. 18, Clorox announced that production would continue at a “lower rate” despite the systems breach.
“Given that disruption, we are aware of an elevated level of consumer product availability issues,” the company statement added.
The company said it has begun repairing the damage and bringing affected IT systems back online.
It added, “Based on the information available to date, we believe the unauthorized activity is contained due to the steps the company has taken to address the incident.”
On Aug. 14, Clorox reported the cyberattack to the Securities and Exchange Commission after identifying “unauthorized activity” on some of its IT systems.
The company said it took immediate steps to stop and address the activity, including taking specific systems offline and implementing its business continuity plan.
Clorox also began manual ordering and processing procedures and scaled back production.
The company said customers have only recently begun to experience a shortage of its products.
“Clorox is still evaluating the extent of the financial and business impact. Due to the order processing delays and elevated level of product outages, the company now believes the impact will be material on [Quarter 1] financial results.
“It is premature for the company to determine longer-term impact, including fiscal year outlook, given the ongoing recovery.”
Founded in 1913, Oakland-based Clorox is a manufacturer with 8,800 employees worldwide and a reported net worth of $18.5 billion.
The company’s products include Burt’s Bees, Formula 409, Pine-Sol, Ever Clean cleaning products for pets, Liquid-Plumr, Hidden Valley, and others.
The Epoch Times could not immediately reach Clorox for additional comment on the cyber attack.
The company said it would begin returning to standard automated order processing around Sept. 25, “and we have already resumed production at the vast majority of our manufacturing sites.”
Cyber Attacks Increase
According to IT security services provider purplesec.com, there has been a 600-percent spike in cybercrime since the beginning of the COVID-19 pandemic and a 350-percent increase in ransomware attacks since 2018.Moreover, the company said an estimated 60 percent of small and medium-sized businesses fail within six months after a cyber attack.
On Sept. 11, MGM Resorts in Las Vegas reported a “cyber security incident” that impacted casinos and hotels even though the company was still operational the following day.
From Sept. 11 to Sept. 13, customers reported many problems associated with the cyber attack, possibly linked to the ransomware gang Alpha V (“Black Cat”), according to Cyber Security Hub.
“This included slot machines and online booking systems of several of MGM’s Las Vegas properties being impacted by the attack, meaning guests could not check in, make card payments to book rooms, or cancel their reservations,” the website added.
