Westport Fuel Systems delays annual filings after network intrusion
Westport Fuel Systems Inc., the Vancouver-based maker of alternative-fuel systems for engines, said on March 20 that it had found unauthorized access to its network on March 17, and warned that the incident would delay its annual financial filings.
The case shows a cost of cyber incidents that rarely makes headlines: when an intrusion lands during year-end reporting, a public company and its auditor have to confirm that financial records and controls were not tampered with before results can be signed off.
What happened
In a news release filed with U.S. securities regulators, Westport said the access involved certain internal IT business applications as well as other business and employee information. Its manufacturing runs on dedicated servers separate from the affected systems, the company said, so production continued, customer orders were being filled and it did not expect a material impact on day-to-day operations. Westport said it engaged outside experts, activated its incident response plan and moved to contain the intrusion.
Because the timing overlapped with year-end reporting, Westport said it would not meet the March 31 deadline for its annual filings while it and its auditor reviewed the scope of the incident and any effect on internal controls. It applied to the British Columbia Securities Commission for a management cease trade order, which restricts trading by the chief executive and chief financial officer but not by other shareholders. The commission issued the order on April 1.
In an April 15 status update, Westport said the investigation had concluded and that management found its internal controls over financial reporting "were not deficient in connection with the incident." A revised audit scope was under way.
What we don't know yet
Westport has not said who was behind the intrusion, how the attacker got in, how many employees' records were involved or whether data was taken. No group has publicly claimed the attack.
What to do
Current and former Westport employees should watch for a direct notice from the company and be cautious of messages that use HR or payroll details to appear legitimate.
