Cyberattack on MoneyGram Disrupts Remittances to Mexico

MoneyGram reported that a cyber-attack has disrupted its systems, threatening to delay remittances to Mexico, a key market for the company. The disruption has generated concern among users, who depend on these transfers for essential needs, according to Publimetro.

MoneyGram, the world's second largest money transfer operator, with more than 50 million users sending more than US$200 billion annually, confirmed on Saturday that it was “experiencing a network outage affecting the connectivity of several of its systems.” 

On Monday, MoneyGram partners in the Caribbean and Mexico regions reported outages within their operations. On the same day, the company specified that the origin of the problem was related to a cybersecurity incident affecting some of its systems.

In response to this situation, MoneyGram disconnected its systems to mitigate the risk, which impacted the connectivity of its network and caused interruptions in money transfers, including those destined to Mexico. The company reported that it has been working closely with outside cybersecurity experts and in coordination with law enforcement to address the incident.

On Tuesday, MoneyGram provided informed that they had made, “progress in successfully restoring some of our key transactional systems.” Despite the efforts of its “dedicated team” to resume business operations, MoneyGram has not provided an exact date for the full resumption of services. The company has indicated that once systems are fully operational, pending transactions will be available to customers.

While MoneyGram has not specified whether users' personal or financial information was compromised, Nicolás Azuara, a cybersecurity analyst, told Publimetro that an event of this magnitude can have critical repercussions, particularly for the remittance market in Mexico. 

Remittances represent approximately 4% of Mexico's Gross Domestic Product (GDP), serving as a crucial source of income for millions of people, according to Publimetro. In this context, the cyberattack on MoneyGram takes on greater significance, given that 99% of the total remittance inflows to the country during the first half of 2024 were made through wire transfers, according to Forbes. 

As reported by  BANXICO, remittances sent to Mexico via wire transfer totaled US$36.5 billion from January to July 2024. This figure highlights the market’s dependence on remittances. In this context, the uncertainty surrounding MoneyGram's operations has raised concerns among millions of Mexicans who rely on these funds for essential daily needs, such as food and healthcare, according to reporting from Publimetro.

In the short term, the continued disruption to Moneygram transfers could also have implications for consumer confidence, according to multiple media. Users have already expressing their frustration on social media, citing a lack of clear information regarding the resolution of the problem. As a result, users may opt to use other remittance services with a strong presence in Mexico, potentially translating into a considerable impact for MoneyGram.