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FedEx counts the cost of TNT cyber-attack

[ July 18, 2017   //   ]

FedEx revealed further information on the cyber attack that hit its newly acquired TNT subsidiary in June in its annual Form 10-K report for fiscal year 2017 with the US Securities and Exchange Commission. It said that the worldwide operations of TNT were significantly affected by Petya virus which was spread through a Ukrainian tax software product. While TNT operations and communications were significantly affected, no data breach or data loss to third parties is known to have occurred.

FedEx said its IT teams have recovered critical systems, along with finance, back-office and secondary business systems, but added: “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.”

The financial impact of the attack is likely to be material, it adds, and FedEx does not have cyber or other insurance. The company says: “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.”

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