The double-whammy of getting hit with a ransomware attack last New Year’s Eve that sidelined its global operations for two-and-a-half weeks coupled with COVID-19’s toll on air travel, put currency exchange provider Travelex into administration, the U.K. equivalent of bankruptcy, late last week. If internal assessments are correct, the situation serves as an example of the economic impact of ransomware and other cyberattacks.
Paying the ransom does not prevent an organization from incurring other expenses and losses, noted Caroline Thompson, head of underwriting at Cowbell Cyber, adding that attacks such as what happened to Travelex will generate damages that will go far beyond the ransom payment itself. “Business interruption can cause revenue loss, reputational harm, even compromised data, which a cyber insurance policy can cover,” said Thompson, who believes an organization’s best preparation for a ransomware attack is to always have a readily available backup.
Travelex’s financial woes come as no surprise, considering its Abu Dhabi-based parent company, Finablr, said March 2 – just two months after the attack – that it expected to take a £25 million earnings hit as a result, even though the company had a cyber insurance policy.
Please register to continue.
Already registered? Log in.
Once you register, you'll receive:
The context and insight you need to stay abreast of the most important developments in cybersecurity. CISO and practitioner perspectives; strategy and tactics; solutions and innovation; policy and regulation.
Unlimited access to nearly 20 years of SC Media industry analysis and news-you-can-use.
SC Media’s essential morning briefing for cybersecurity professionals.
One-click access to our extensive program of virtual events, with convenient calendar reminders and ability to earn CISSP credits.