Royal Mail has revealed that it suffered a serious ransomware breach earlier this year, with a multimillion-pound cost attached to the incident. The ransomware actors were demanding nearly $80m from the firm to prevent them leaking its stolen data, causing severe service disruption for items sent abroad. Despite refusing to pay, the operational costs associated with the incident are starting to emerge. The half-year financials for the International Distribution Services business noted a 6.5% year-on-year revenue decline, attributing the cause to industrial action and the ransomware breach. The macro-economic backdrop, industrial action, and the cyber-incident were blamed for a 5% drop in international parcel volumes. Infrastructure costs increased by 5.6% in the same period, partly due to the costs of remediation and systems resilience improvement following the cyber-attack. SecurityScorecard CISO, Steve Cobb, explained that the expenditure could include system recovery and rebuild, hardening of identity management systems, and cloud security. He also suggested that the company could be investing in resources to improve their security program.
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