Electric car manufacturer in China breached, hacker wants $2.25 million in Bitcoin

NIO, the leading electric vehicle manufacturer in China, reported that a hacker had taken certain basic user information and data on vehicle sales dated before August 2021. The manufacturer also reported receiving an email extortion payment of 2.25 million US dollars equivalent in Bitcoin.

Hackers demanded Bitcoin payment

According to a statement released by the company, it received an email from a hacker who claimed that he had the company’s internal data. He then demanded $2.25 million in Bitcoin for the company to receive their data.

When NIO received the email, it promptly formed an investigative team and reported the event to regulators, according to the statement. According to preliminary assessments, the data included some basic user and car sales information before August 2021.

“We apologize for the impact this incident has had on our users and solemnly promise to take responsibility for any damages caused to our users due to this incident,” the statement said.

In response to the incident, the company said it would not pay the ransom and would work with law enforcers to investigate the matter. It also condemned the unauthorized trading and stealing of its data.

In addition, the company noted that it was responsible for protecting the information it collects. It implemented various measures to improve its cyber security.

“We will learn from the lessons and strengthen our technical strength to continuously improve the security protection of NIO’s information systems to protect the information security of our users fully,” the statement said.

Not the first incident

This incident is the second instance this year where the company encountered issues with cryptocurrency and information security. In April, the company revealed that one of its server managers had been mining Ether using its servers for over a year.

On September 1, 2021, the company received a complaint regarding an employee named Zhang, who was allegedly mining cryptocurrencies using the company’s servers. According to the company’s notice at the time, the employee’s actions negatively affected the company’s information security. He had admitted his wrongdoing.

According to Erik Gaston, vice president for global executive engagement at security firm Tanium, businesses will need to see a transformation catalyst to capitalize on the talent available in 2023 as the global economy begins to recover. He noted that companies will need to look for talent now due to the rapid emergence and evolution of new technologies, such as security and risk management.