Abstract:
The German military has grounded drones produced by defense technology start-up Quantum Systems. Previously, the company was hit by a cyber attack, becoming the latest example of the European military industry being attacked by malicious actors. Two people familiar with the matter said the Bundeswehr took the step as a precaution after the Bavaria-based Quantum Systems suffered a cyber attack.
Informed sources said that this decision prevented the company from participating in a recent military exercise. Quantum Systems is one of Europe's most successful defense technology startups, valued at €7 billion in a funding round this year.
Quantum Systems has notified customers that a malicious update file was distributed through its servers, a third person familiar with the matter said. The server was originally responsible for pushing updates to the company's QBase ground control and mission planning system.
Quantum Systems has contracts with the German, Spanish and Dutch militaries. The company said in a statement that it had discovered a security incident at the end of October, and "an internal investigation immediately launched found that malicious actors were conducting a cyberattack."
The company added that its IT and security teams "worked closely and transparently with relevant authorities" and had the threat "under control."
Quantum Systems said: "Due to the rapid response measures we took and the nature of the incident itself, there is no risk to end users and operators when using Quantum Systems unmanned systems."
The company has reported the incident to the relevant authorities and the investigation is still ongoing.
Quantum Systems said it would not comment on the specific actions of individual customers, adding that its "drone fleet remains operational." The company did not reveal the identity of the person suspected of carrying out the attack.
The German Ministry of Defense stated that for security reasons, it will not provide information on the operation and combat readiness of weapon systems or military equipment.
The German armed forces did not immediately respond to a request for comment.
This incident is a rare public disclosure of a successful cyber attack on the defense industry. The industry typically tries to avoid such security breaches and try to avoid as much publicity as possible after an incident occurs.
European defense company executives said that the threat of cyberattacks they face is intensifying, the attack methods are becoming more complex, and the frequency of occurrence is also increasing.
Quantum Systems has more than 200 employees in Ukraine and has established three joint ventures with Ukrainian companies. Together, these companies produce small attack drones, interceptor drones, and unmanned ground vehicles.
It is unclear whether Quantum Systems' operations in Ukraine were affected by the cyberattack.
The company said it was targeted "precisely because our work is critical to the security of our customers."
Quantum Systems added: "We are fully aware of our responsibilities and have developed risk mitigation plans and are committed to achieving the highest levels of data and system security standards."
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