US money transfer giant MoneyGram has reacted to the UK Post Office’s decision to terminate a longstanding partnership following a cybersecurity incident.
As reported in a recent article by Computer Weekly, the two companies were in discussions to establish a new contract starting October 2024. However, a cyber attack on MoneyGram disrupted its operations for several days, prompting the Post Office to propose shortened contract terms, which MoneyGram declined.
Following this decision, MoneyGram reached out to postmasters to convey its disappointment regarding the Post Office’s portrayal of the cybersecurity incident to its customers. In a letter shared with Finextra, MoneyGram expressed, “We are shocked and disappointed by the message you received from the Post Office, which was both misleading and a breach of the current agreement’s confidentiality.”
The letter also emphasized the long-standing relationship between MoneyGram and the Post Office, stating, “We have always held our relationship with you in high regard as we deliver value for our shared customers.” MoneyGram claimed it had a binding agreement for a new 12-month extension with the Post Office, but stated that the Post Office took advantage of the cyber incident to alter the agreement’s terms in a way that harmed MoneyGram.
MoneyGram reassured that its cybersecurity experts determined the incident did not impact any of its agents’ systems. They reported that operations have resumed in all countries outside of the UK, and efforts are underway to restore operations within the UK.
The company expressed regret over the Post Office’s position after a partnership of over 25 years, concluding, “We sincerely hope to further the dialogue with the Post Office and can continue to work with you in the future.”
This situation is not the first time the UK Post Office has faced controversy in its dealings with third parties and technology. The organization was previously involved in a prolonged dispute with sub-postmasters regarding its Horizon accounting system from Fujitsu, which has been labeled the biggest miscarriage of justice in British corporate history.