Ransomware attack on Demant fetches $95 million loss and FBI on Meridian Cyber Attack

Denmark based hearing aid manufacturer Demant has released an official statement yesterday stating that the ransomware attack which took place on its database early last month could fetch a $95 million loss to the company in the current financial year.

The loss includes disruption of services, recovery, IT staffs extra pay to probe and contain the incident, purchase of new hardware and software and compensation if in any case has affected the clients.

Readers of Cybersecurity Insiders have to notify that the incident impacted heavy loss to company’s infrastructure disrupting services related to ERP systems, production and distribution infrastructure at Poland, and some sites in Mexico, Cochlear implants production sites in France, amplifier production sites in Denmark and some offices of Demant located in Asia pacific.

A $14.69 million cyber insurance cover is expected to help the company while recovering the data infrastructure. However, other loss might have to be borne by the company.

In other news related to a cyberattack on an auto parts manufacturer of the US named Meridian Lightweight Technologies Inc, The Federal Bureau of Investigation shortly referred to as FBI was pressed into service to investigate the incident.

The company which supplies lightweight magnesium parts to car manufacturers and has production units in Mexico, UK and US say that the attack launched on its was sophisticated and is suspected to be the deed of a state-funded intelligence agency.

Hayden Heins, the company representative of Meridian did not divulge details on the nature of the cyber attack and if any ransom is being demanded. However, he stated that the company is urging its employees to refrain from connecting their PCs and laptops to the company network.

Naveen Goud
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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