July 18, 2017 by

NotPetya Cyberattack Causes Financial Losses for FedEx

Package delivery giant FedEx has revealed that the ‘NotPetya’ ransomware attack in June has led to both financial and “material” consequences on its TNT Express unit.

In a filing with the Securities and Exchange Commission (SEC), the country’s securities regulator, the logistics firm claimed it had “experienced [a] loss of revenue due to decreased volumes at TNT and incremental costs associated with the implementation of contingency plans and the remediation of affected systems.”

TNT Express, the Netherlands-based unit of FedEx, is still experiencing significant and widespread service delays as a result of the attack, the regulatory filing revealed. As things stand, TNT facilities are forced to resort to manual processes for a “significant portion of operations,” FedEx revealed in a statement.

FedEx notably acquired Dutch shipper TNT Express for $4.8 billion last year, to gain an entry in Europe with the latter’s extensive parcel delivery system.

FedEx, which also owns the world’s largest cargo airline, stated:

We cannot yet estimate how long it will take to restore the systems that were impacted, and it is reasonably possible that TNT will be unable to fully restore all of the affected systems and recover all of the critical business data that was encrypted by the virus.

Such is the impact of the ransomware that FedEx admits it is still unable to estimate when it will be able to restore all of the affected systems at TNT.

Furthermore, the lack of adequate cyber insurance sees FedEx unable to cover the financial losses due to the attack.

We do not have cyber or other insurance in place that covers this attack,” FedEx wrote. “Although we cannot currently quantify the amounts, we have experienced loss of revenue due to decreased volumes at TNT and incremental costs associated with the implementation of contingency plans and the remediation of affected systems.”

FedEx confirmed that operations at its TNT wing were impacted by cyberattack, which it claimed “involved the spread of an information technology virus through a Ukrainian tax software product.”

Image credit: Pixabay.

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LIFARS is a digital forensics and cybersecurity intelligence firm based in New York City. LIFARS is ranked as one of the top Digital Forensics and Cyber Investigations companies in 2016 and as one of the top cybersecurity companies in the New York metropolitan area for 2015 on the Cybersecurity 500 – a directory of the hottest and most innovative companies to watch in the cybersecurity industry.

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