The American technology company Conduent, a key contractor for government projects, has disclosed that a recent disruption in its operational systems was caused by a cyberattack linked to the compromise of a third-party vendor.
Cybersecurity specialists engaged by Conduent have confirmed that no malicious activity has been detected within the company’s technological infrastructure at this time. However, system restoration required significant effort, resulting in several days of operational delays.
The company has not disclosed specific details about the nature of the attack or clarified whether it involved ransomware or data breaches.
Conduent serves as a major contractor for U.S. government agencies, providing technological solutions for programs such as Medicaid, child support, food assistance, and other social services. The company supports approximately 100 million Americans, helping state and federal agencies optimize expenditures, increase program participation, and enhance regulatory compliance.
Reports of the disruption emerged last week when the Wisconsin Department of Children and Families announced that payments sent by mail could not be processed due to issues with Conduent’s systems.
Many parents and benefit recipients experienced difficulties due to delayed payments. System functionality was restored on Sunday, after which the agency began processing the backlog of payments. Conduent also allocated additional resources to expedite the recovery process.
Wisconsin authorities indicated that the disruption affected three other states but did not specify which regions were involved. Conduent representatives similarly declined to comment on the affected states.
The outage primarily impacted payments made via electronic transfers or EBT cards, while payments processed through wage garnishments continued uninterrupted and will be addressed once full system recovery is complete. Wisconsin officials acknowledged the gravity of the situation and its impact on individuals relying on these essential services.
Notably, last week, Conduent signed a $92 million contract with Alaska’s state authorities to modernize and manage the state’s Medicaid information system.
The company annually distributes approximately $100 billion in government disbursements and reported revenues exceeding $800 million in its most recent financial quarter.
Cybersecurity expert Kevin Beaumont reminded the public that Conduent had previously encountered a ransomware attack in 2020.
