German defence technology company Quantum Systems has confirmed that it was targeted in a cyberattack in late October.

The incident involved a compromised software update server used to distribute updates for the company's QBase ground-control and mission-planning software.

The company said it detected suspicious activity linked to an active cyberattack carried out by unidentified hostile actors. It responded by working with government authorities to contain the threat and ensure its unmanned systems could safely resume operations.

Quantum Systems manufactures reconnaissance and interceptor drones, along with software used to control and manage their missions. Its drone systems are deployed by the German military and are also used in support of Ukraine.

Malicious software update compromises drone systems

According to reports by German newspaper Der Spiegel and the Financial Times, attackers compromised a server responsible for distributing software updates for Quantum Systems' QBase platform.

The attackers placed a malicious update file on the compromised server, disguising it as a legitimate software update. Since QBase is used for ground control and mission planning, the incident raised concerns that malicious software could reach systems used by military drone operators.

Der Spiegel reported that the Vector reconnaissance drone, known as Falke in German military service, is among the systems whose missions are planned using QBase software.

The unauthorised update triggered alarms within Quantum Systems after it was distributed to customers. However, it remains unclear how many customers downloaded or installed the malicious file.

German military grounds drones as precaution

The cyberattack disrupted German military drone operations, prompting the armed forces to ground Quantum Systems' drones as a precautionary measure.

According to media reports, the decision also resulted in the company's drone systems being excluded from a recent military exercise.

Quantum Systems said it believes the company was targeted because of its support for Ukraine. The company has also highlighted the growing number of cyberattacks against European defence organisations.

German authorities investigate the incident

Germany's military counterintelligence service (MAD), domestic intelligence agency (BfV), and Federal Office for Information Security (BSI) are involved in the investigation.

Quantum Systems said it is cooperating with government authorities to investigate the incident and address the security concerns. However, the company has not publicly identified the attackers or provided details about their methods and objectives.

In July, Australian drone manufacturer CubePilot also experienced a DNS hijacking attack that caused operational disruption.