In September 2023 [1] [3], both Clorox and Johnson Controls International experienced separate ransomware attacks [1], resulting in significant financial implications for both companies.
Description
Clorox incurred expenses of $49 million in response to the incident [1], while Johnson Controls International incurred $27 million in expenses [1]. Additionally, Johnson Controls International suffered a data breach, with hackers successfully stealing corporate data. Clorox estimates that the attack will have an economic impact of $49 million, including losses from disruptions and expenses for third-party forensics and consultants [4]. Furthermore, Clorox anticipates a negative impact on its fiscal year 2024 results, projecting an additional $50-$60 million in costs [3]. It is important to note that Clorox has not yet recognized any insurance proceeds related to the attack. Both companies expect to incur additional expenses in fiscal 2024, including IT recovery [2], forensic experts [2], and other professional services [2]. However, they also anticipate receiving insurance coverage for a portion of these costs. It is worth mentioning that the timing of recognizing insurance recoveries may not align with the timing of recognizing expenses [4].
Conclusion
The ransomware attacks on Clorox and Johnson Controls International have had significant financial consequences. Both companies have incurred substantial expenses and anticipate further costs in the future. While insurance coverage is expected to mitigate some of these expenses, the timing of recognizing insurance recoveries may pose challenges [4]. These incidents highlight the importance of robust cybersecurity measures and the need for companies to continuously adapt and strengthen their defenses against cyber threats.
References
[1] https://www.redpacketsecurity.com/clorox-says-cyberattack-caused-49-million-in-expenses/
[2] https://www.infosecurity-magazine.com/news/clorox-johnson-controls-76m/
[3] https://e-crimebureau.com/clorox-says-cyberattack-costs-exceed-49-million/
[4] https://securityaffairs.com/158575/security/clorox-attack-costs-exceed-49m.html
