2 min read

Cognizant Expects to Lose up to $70 Million from April Ransomware Attack

Filip TRUȚĂ

May 11, 2020

Cognizant Expects to Lose up to $70 Million from April Ransomware Attack

IT services giant Cognizant has calculated it will lose between $50 million and $70 million from a ransomware incident in April, the CFO said on an earnings call.

Cognizant confirmed to clients on April 18 that a security incident involving its internal systems was causing service disruptions. The hack had Maze Team”s signature, the firm said, adding that it was providing affected customers with indicators of compromise (IOCs) and other “defensive” technical information.

During last week”s earnings call with investors, Cognizant Chief Financial Officer Karen McLoughlin said the company stands to incur substantial financial damages as a result of the hack.

“While we anticipate that the revenue impact related to this issue will be largely resolved by the middle of the quarter, we do anticipate the revenue and corresponding margin impact to be in the range of $50 million to $70 million for the quarter,” McLoughlin said, according to ZDNet.

While Cognizant”s investigation is ongoing, the company believes it has contained the attack.

“Based on the investigation to date, we believe the attack principally impacted certain of our systems and data,” the company said in its quarterly SEC filing. “The attack resulted in unauthorized access to certain data and caused significant disruption to our business. This included the disabling of some of our systems and disruption caused by our taking certain other internal systems and networks offline as a precautionary measure.

“The attack compounded the challenges we face in enabling work-from-home arrangementsduring the COVID-19 pandemic and resulted in setbacks and delays to such efforts,” the filing said. “The impact to clients and their responses to the security incident have varied.”

Cognizant expects the business disruption to hit Q2 2020 financial results. It also expects to continue to experience a loss of revenue due to disruption, “either as a direct consequence of the attack or as a result of clients suspending our access to their networks as a security precaution.”

The $50 million-$70 million range includes incremental costs for the investigation, containment and remediation of the security incident, as well as legal fees and investments to enhance the company”s overall security posture looking forward.

tags


Author



Right now

Top posts

Watch Out for These Ongoing Bank of America Phishing Campaigns Targeting Customers in the US

Watch Out for These Ongoing Bank of America Phishing Campaigns Targeting Customers in the US

July 16, 2021

3 min read
How to protect yourself against cyberstalking

How to protect yourself against cyberstalking

July 06, 2021

2 min read
The Top Five Security Risks Smartphone Users Face Today

The Top Five Security Risks Smartphone Users Face Today

July 02, 2021

4 min read
Phishing Alert: Scammers Use Fake SharePoint and DocuSign Messages to Steal Users’ Login Credentials

Phishing Alert: Scammers Use Fake SharePoint and DocuSign Messages to Steal Users’ Login Credentials

July 02, 2021

3 min read
Your Doxxing Dossier Will Keep Growing Thicker Until You See the Danger

Your Doxxing Dossier Will Keep Growing Thicker Until You See the Danger

June 30, 2021

2 min read
Mobile security threats: reality or myth?

Mobile security threats: reality or myth?

June 13, 2021

3 min read

FOLLOW US ON

SOCIAL MEDIA


You might also like

Fraud Family cybercrime ring under the spotlight as arrests made in the Netherlands Fraud Family cybercrime ring under the spotlight as arrests made in the Netherlands
Graham CLULEY

July 23, 2021

3 min read
Homoglyph domains used in BEC scams shut down by Microsoft Homoglyph domains used in BEC scams shut down by Microsoft
Graham CLULEY

July 22, 2021

3 min read
China Sets Up New Worrying Vulnerability Disclosure Rules China Sets Up New Worrying Vulnerability Disclosure Rules
Silviu STAHIE

July 20, 2021

1 min read