![]() The customers and suppliers whose data is compromised in a breach often bear the brunt of the consequences. The Council, in their calculation, did not include any financial impact on the affected residents and any possible further scams and attacks against residents which might occur in the near future.Considering this was the second major attack on the Gloucester City Council, the reputation damage is not included as it cannot be simply quantified in monetary terms.In the early stages, the Council optimistically estimated that the cost of the incident remediation, security measures and restoration of IT services will likely reach £350,000.The impact of the incident stretched for more than 6 months and the investigation into the incident only conclude recently in June 2023.The data included the full names, addresses and council tax numbers. The Council eventually admitted that residents data has been stolen.The cyber-attack interrupted services provided by the council to a number of residents and businesses. Gloucester City Council experienced an attack on December 2021.Possible loss of customers, although there is no public announcement from Capita in this matter.Since the attack, around 90 organisations and hundreds of thousands of people have been warned that they could have been affected by the attack.Considering the type of customers, the breach will have far reaching consequences for affected parties. The cyber-attack is a significant blow to Capita, which is a major contractor for local authorities and other public sector bodies.The Company has estimated that the total cost of remediation will most likely go up to £20m.According to notification, the data has been exposed since 2016. Capita was informed by the security researcher Kevin Beaumont about AWS data exposure on 24th of April 2023.The company eventually admitted that they have been a victim of ransomware attack and eventually have confirmed that some customers, suppliers and staff data were breached.Initially the company said that the incident was limited to parts of their network and there was no evidence of customer, supplier or workers data being compromised. In March 2023, Capita experienced a cyber-attack which caused disruptions to its service. ![]() The Capita and Gloucester City Council incidents are interesting in the way they quantify the impact and cost of the data breach. Organizations of all sizes need to take steps to protect their data from hackers. Figure 1: Chart taken from IBM Cost of data breach 2022 report It is important to note that this does not take into consideration any negative financial impacts on any people or other organisations whose data was stolen. According to the report, the average global total cost of a data breach for the company is $4.35m. ![]() In recent years, there has been a sharp rise in the number of data breaches, and the cost of these attacks is rising as reported by IBM report “Cost of a data breach 2022”. These costs include hiring cybersecurity experts, conducting forensic investigations, implementing additional security measures, providing identity theft protection services to affected customers, and potentially facing legal settlements or fines. From a financial standpoint, the costs associated with incident response, investigation and remediation can be substantial. This article delves into the multi-faceted impact of a data breach, exploring the perspectives of different stakeholders affected by these breaches.Ī data breach can have devastating consequences for the company targeted. The repercussions of such incidents are far-reaching and encompass not only the breached company, but also the customers whose data was stolen and the broader supply chain. In today's digital age, data breaches have become an all too familiar threat, compromising the security and privacy of individuals and organizations alike. ![]()
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