Sopra Steria expects €40 to €50 million loss after Ryuk ransomware attack
French IT services giant Sopra Steria said today in an official statement that the October Ryuk ransomware attack will lead to a loss of between €40 million and €50 million. Sopra Steria is a European information technology firm with 46,000 employees in 25 countries providing a large array of IT services, including consulting, systems integration, and software development.
Sopra Steria published a statement on October 21st regarding a cyberattack that hit its network on the evening of October 20th but did not provide details on who was behind the attack.The ransomware attack was blocked by Sopra Steria's in-house security and IT teams which contained the ransomware to "a limited part of the Group’s infrastructure" thus protecting the company's data, as well as its customers and partners. The recovery process started by the company on October 26th is almost complete, with access restored to nearly all "workstations, R&D and production servers, and in-house tools and applications." How was it that the French IT services firm got hit by a version of Ryuk that had not been previously seen by security researchers? Experts say the cybercrime gang behind Ryuk continually refines and updates the crypto-locking malware, sometimes customizing it for individual targets, to better try and evade security defenses
In a statement issued on Wednesday, the firm also says it expects to receive an insurance payout of $35 million. The company notes, however, that it does not expect the ransomware outbreak to impact its fourth quarter sales results, and says its cleanup efforts have nearly concluded. "After including the items mentioned above, for financial year 2020 Sopra Steria expects to see negative organic revenue growth of between 4.5% and 5.0% (previously 'between -2% and -4%'), an operating margin on business activity of around 6.5% (previously 'between 6% and 7%'), and free cash flow of between €50 million and €100 million (previously 'between €80m and €120m')," the company added.
Cognizant, one of the largest IT managed services company worldwide, also said it expected losses of between $50 million to $70 million after a Maze ransomware attack from April 2020.