ENGlobal Corporation (NASDAQ: ENG), a prominent contractor for the energy sector and U.S. government, has announced that a ransomware attack is disrupting its operations.

The Texas-based company, which specializes in automated control systems and professional engineering services, disclosed in a filing with the Securities and Exchange Commission that the breach was identified on November 25.

Initial investigations revealed unauthorized access to its IT systems, resulting in the encryption of certain data files. To mitigate the impact, ENGlobal has restricted IT access to only essential operations, initiated an internal investigation, and engaged external cybersecurity experts to assess and remediate the incident. While the company works toward recovery, the timeline for full restoration of its IT systems remains uncertain.

ENGlobal’s role in critical infrastructure and federal projects brings into sharp focus the current cybersecurity weaknesses threatening the energy and defense industries.

Why It Matters: Ransomware attacks on contractors like ENGlobal Corporation underscore the increasing cyber risks faced by companies operating in critical infrastructure and government sectors. With the potential exposure of sensitive data and disruption to operations, these incidents pose national security concerns. ENGlobal’s ties to energy production and U.S. defense systems amplify the potential implications of this breach. Additionally, the incident adds to a growing trend of cyberattacks targeting essential industries, prompting urgency for improved security measures.

• Details of the Attack: ENGlobal confirmed that the ransomware attack led to unauthorized access and encryption of some data files within its IT systems. The company immediately implemented containment measures, including restricting access and launching a thorough investigation.

• Operational Impact: ENGlobal limited IT access to essential business functions, significantly hampering operations. It is unclear when full functionality will be restored, potentially affecting project timelines and client deliverables.

• Cybersecurity Measures in Place: In response, ENGlobal has hired external cybersecurity experts to assess the breach and guide recovery efforts. The company is also evaluating long-term strategies to strengthen its defenses.

• Broader Implications: The incident highlights vulnerabilities in firms tied to critical infrastructure. Similar attacks, such as one on Newpark Resources in October, have raised alarms over risks to sensitive government and commercial operations.

Go Deeper -> Energy Sector Contractor ENGlobal Targeted in Ransomware Attack – Security Week

US Government Contractor ENGlobal says Operations are ‘Limited’ Following Cyberattack – Tech Crunch

Energy Industry Contractor says Ransomware Attack has Limited Access to IT Systems – The Record