Vasco Subsidiary Diginotar Files for Bankruptcy After Cyberattack

Diginotar, the Dutch subsidiary of Internet security company Vasco Data Security International, has filed for bankruptcy after suffering a massive hack attack.

The firm, which was responsible for issuing security certificates for websites, filed for bankruptcy in a Dutch court.

Recently, the Dutch government started an inquiry into the security measures used by DigiNotar after the attack. The government found the company used weak passwords, had installed no anti-virus solutions on its internal servers and had failed to update software that was run on its public servers.

The hacking of DigiNotar had allowed the Iranian government to spy on users of Google’s Gmail email service in the country. Browser makers had rushed to block fake certificates hackers had issued via DigiNotar to protect users.

"Although we are saddened by this action and the circumstances that necessitated it, we would like to remind our customers and investors that the incident at DigiNotar has no impact on Vasco's core authentication technology," said Vasco's chairman and CEO, T. Kendall Hunt, in a statement.

Vasco maintains that its core business is secure and hopes to use DigiNotar’s intellectual property in its existing product offerings.