November 16, 2023 at 07:39AM
Royal Mail’s parent company, International Distribution Services (IDS), has disclosed that the ransomware attack it experienced in January will cost the company approximately £10 million ($12.4 million) in improvements to its Heathrow Worldwide Distribution Centre. Although the total costs related to the attack are expected to be higher, IDS has not provided specific figures. The cyber attack has also had a negative impact on Royal Mail’s international shipping business, with a 6.5% decline in international revenue and a 5% decrease in parcel volume. Additionally, the company has incurred significant losses totaling £319 million ($395.8 million) in the first half of this year, partly due to an agreement with the Communication Workers Union to increase staff pay. Despite these challenges, international revenues have shown improvement compared to preliminary results reported in March. Royal Mail’s cyberattack involved a month-long negotiation with the LockBit ransomware group, with Royal Mail ultimately refusing to pay the demanded $80 million ransom.
Key takeaways from the meeting notes:
– Royal Mail’s parent company, International Distribution Services (IDS), has revealed that the infrastructure costs associated with the January ransomware attack are estimated to be around £10 million ($12.4 million). However, the total costs related to the attack are expected to be higher and hard figures have not been provided.
– The attack by LockBit impacted Royal Mail’s international shipping business, causing operations to take longer to resume normal service. As a result, the company’s international revenue has declined by 6.5 percent year-on-year, amounting to a drop of £22 million ($27 million).
– The drop in revenue is attributed to a 5 percent decrease in international parcel volumes, which was partly caused by the cyber attack. Other factors contributing to the decline include the global macroeconomic backdrop and recovery from industrial action.
– Royal Mail’s total half-year losses amount to £319 million ($395.8 million), with a significant portion attributed to the agreement with the Communication Workers Union (CWU) to raise staff pay by 10 percent over three years.
– Despite the challenges faced by Royal Mail, IDS’s board has acknowledged that the company’s international revenues have improved compared to the preliminary results from March, two months after the ransomware attack.
– The cyberattack on Royal Mail involved a ransom demand of $80 million by LockBit. Royal Mail refused to pay, and negotiations lasted nearly a month before the company went silent and did not appear willing to pay.
– Dirk Schrader, CISO and VP of Security Research at Netwrix, emphasizes the importance of improving cyber resilience and learning from the breach to better protect the organization in the future.
Please note that these takeaways are based on the provided meeting notes and should be verified with additional information if necessary.