"Royal Mail to Spend £10m on Ransomware Remediation"

Royal Mail has recently revealed a multimillion-pound cost attached to a serious ransomware breach it suffered earlier this year.  The British postal service company was hit by a LockBit affiliate in an incident which caused “severe service disruption” for items sent abroad.  The ransomware group was demanding nearly $80m from the firm to prevent it from leaking its stolen data.  Although Royal Mail refused to pay, in line with law enforcement advice, the operational costs associated with the incident are starting to emerge.  The half-year financials for the International Distribution Services business, which comprises Royal Mail and GLS, noted a 6.5% year-on-year revenue decline for the 26 weeks to September 2023.  The cause given was industrial action and the ransomware breach.  The macroeconomic backdrop, industrial action, and the cyber-incident were blamed for a 5% drop in international parcel volumes.  Interestingly, “infrastructure costs” increased by 5.6% in the same period.  The company said this was partly fueled by “costs of remediation and systems resilience improvement following the cyberattack on the Heathrow Worldwide Distribution Centre of £10m.”

Infosecurity reports: "Royal Mail to Spend £10m on Ransomware Remediation"