The cost of a malware attack is difficult to predict. There are many factors that affect the cost. The type of malware, whether data were stolen, the extent of the infection, how easy it is to mitigate, and how much business is lost while the infection is resolved. For many companies, the customer churn rate increases after a cyberattack, and certainly one in which sensitive data are stolen.
For Maersk, the NotPetya attack did not result in any theft of customer data. Consequently, there was no need to pay for credit monitoring services or mail breach notification letters to customers – Two additional and sizable costs associated with a malware attack. That said, the cost was considerable. Maersk has estimated the NotPetya wiper attack has cost as much as $300 million.
NotPetya was initially thought to be ransomware. The malware had a number of similarities to Petya ransomware – The malware overwrote and encrypted the master file table and a ransom demand was issued. However, in the case of NotPetya, paying the ransom would not result in keys being sent to unlock the encryption. The purpose of the attack was sabotage. The attackers had no intention of providing keys and allowing firms to recover their data.
For A.P. Møller – Maersk, the consequences of the attack were considerable. After its systems were taken out of action, the company was unable to load and unload its cargo ships in ports around the world. Many ships had to be rerouted as a result of the attack. Systems had to be rebuilt and the firm suffered considerable disruption while the infection was resolved.
A Model Response to A Cyberattack
Maersk was extremely quick to announce it had been attacked. The attacks occurred on June 27, 2017 and Maersk announced the following day that it had been affected. The company also maintained transparency throughout the following days and weeks while it attempted to recover, giving frequent updates on its progress in resolving the infection. The transparency has been applauded, with many security experts saying the company executed a model breach response. Not all companies were nearly as transparent.
The company recently issued an interim statement explaining how severe the attack was and how it would dent profits saying, “Business volumes were negatively affected for a couple of weeks in July. We expect that the cyberattack will impact results negatively by $200-$300 million.”
Nuance Communications was also affected, and similarly gave frequent updates to its customers on the impact of the attack and its efforts to resolve the infection. That communication undoubtedly reduced customer churn, although with its systems taken out of action for more than three weeks, many customers were forced to seek alternate vendors. Whether they will return remains to be seen. Nuance believes its Q2 profits are down about $15 million as a result of the attack, although losses are likely to be ongoing and the attack will certainly affect its Q3 profits. The manufacturer Reckitt Benckiser has estimated the NotPetya attack has cost the company around $129 million in lost revenue.
These are just three large companies to have disclosed the cost of the malware attack. Logistics firm TNT suffered considerable disruption as a result of the attack, as did FedEx, Mondelez, Merck, Heritage Valley Health System, WPP, Rosneft, DLA Piper, Saint-Gobain and many firms in Ukraine – the country worst affected by the attacks. The total cost of these malware attacks will certainly be measured in billions.
The Ponemon institute calculated the average cost of a malware attack that results in a data breach to be $3.62 million. This malware attack clearly shows the devastating effect of a malware attack and why it is so important for companies to invest improving policies, procedures and cybersecurity defenses.