US gun maker Saeilo hacked by ransomware gang, private info stolen

US gun manufacturer Saeilo Enterprises confirmed it notified 8,725 people about an August 2024 data breach that compromised names, addresses, driver’s licenses, and other personal information. Saeilo is the parent company of Kahr Arms, Magnum Research, Tommy Gun, and Thompson/Auto Ordinance.

Ransomware group Metaencryptor claimed responsibility for the breach, saying it stole 11.5 GB of data.

Saeilo has not verified Metaencryptor’s claim. We do not yet know if Saeilo paid a ransom, how much Metaencryptor demanded, or how attackers breached Saeilo’s network. Comparitech contacted Saeilo for comment and will update this article if it responds.

The notice sent by Saeilo to victims states, “On August 8, 2024, we discovered that files on some of our servers, as well as the servers of our brands and subsidiaries – Kahr Arms, Magnum Research, Tommy Gun, and Thompson / Auto Ordinance – had been subject to a ransomware cyber-attack. The cyber-attack resulted in an unauthorized third-party gaining access to certain files that include transaction records Saeilo is required to maintain in accordance with federal law.”

The notice does not mention any offer of free credit monitoring or identity theft protection, but that’s not unusual for a breach that did not expose Social Security numbers.

Who is Metaencryptor?

Metaencryptor, also known as LostTrust, is a ransomware group that claimed nine confirmed attacks since April 2023. Its attacks mostly target American and Germany businesses. Metaencryptor steals data and locks down target systems until a ransom is paid for a key to unlock them. It further demands ransom in exchange for not selling or publicly releasing stolen data.

This year, Metaencryptor successfully attacked two Germany companies (Eurofleurs and Max Wild) and one American company (MBE CPAs). It claimed another 16 attacks that haven’t been acknowledged by victims.

Ransomware attacks on US manufacturing

2023 saw a record-number of ransomware attacks on the US manufacturing sector. Aside from data theft, ransomware can disrupt operations by encrypting systems used to day-to-day tasks, from payroll to logistics. Ransomware attacks cause downtime and put data subjects at risk of identity theft.

Since 2018, Comparitech researchers recorded 351 ransomware attacks on US manufacturing organizations. On average, each day of downtime lost to these attacks has cost $1.3 million per day.

In total, we estimate these attacks have cost US manufacturers over $870 million.

About Saeilo Enterprises

Based in Pennsylvania, Saeilo is a CNC manufacturer that specializes in making firearms for personal and law enforcement use. It also services automobiles and sells used cars.

Saeilo is the parent company of Kahr Arms, Magnum Research, Tommy Gun, and Thompson/Auto Ordinance.