FedEx repents for not having Cyber Insurance against Cyber Attacks

1917

FedEx, an American multinational Courier delivery service has openly confessed to media sources that it now repents for not having a cyber insurance cover for its digital assets against cyber attacks.

The confession was made as soon as the company learned that the disruption in services of its TNT Express unit following a cyber attack last month could hurt its full year financial results.

Announcing to the world through Reuters, the shipping services giant said that its shares fell as much as 3.4 percent to $2.11.53 in early trading due to the effect of the cyber attack.

On May 12th, 2017 more than 250,000 computers across 150 countries were targeted by Wannacry Ransomware. And on June 27th,2017, a new ransomware called GoldenEye or NotPetya targeted more than 65 companies in Europe and Ukraine causing disruption to digital services of many companies.

FedEx became a target to second ransomware attack which took place in the month of June this year. A Netherlands based service unit named TNT Express fell prey to hackers spreading ransomware following the attack. And reports from FedEx suggest that the unit might need some more time to recover from the malware disruption.

David J Bronczek, the COO of FedEx admitted that his company will witness a loss of revenue due to decreased volumes at TNT Express and an increase in incremental costs from contingency plans and remediation of affected systems.

Mr. Bronczek, however, admitted that his company did not witness any sort of data loss of data breach to third parties during the ransomware attack event.

FedEx which has more than 400,000 employees working all around the world is said to report its 1Q results in September’17.

So, did the malware attack made the world’s leading courier service provider cover its digital assets with a cyber insurance cover..?

Absolutely, said David J Bronczek who further disclosed that a cyber insurance company from the UK is showing interest in doing so.

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Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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