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Cyberattack Costs Can Roil Economies Post-Hack

By Kim S. Nash

 

Hello. When large companies are knocked offline by hackers, the fallout can snarl supply chains, pressure vendors and often require government intervention.

The worst cyberattacks now behave more like economic shocks than technology failures, WSJ Pro's James Rundle reports for Dow Jones Risk Journal.

Quantifying the damage from hacks like the one last summer at Jaguar Land Rover can help companies and policymakers better prepare for future incidents. Read the full story (gift link). 

More news below.

 

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More Cyber News

PHOTO: DANIEL REINHARDT/AGENCE FRANCE-PRESSE/GETTY IMAGES

Arms maker Rheinmetall said it would work with Deutsche Telekom to develop a drone defense shield, stepping up efforts to protect critical infrastructure in Germany from potential acts of sabotage. The partnership includes pooling resources in cybersecurity, physical sensors and the country’s telecommunications network to detect drones. (WSJ)

Mining-industry software provider hacked. Australia's Scope Systems said it continues to help customers restore a key enterprise cloud-based system after a cyberattack on May 5. All sites are expected to be online by May 18, CEO Mark Bogos said. He didn't say how many customers were disrupted. Tech staff in the U.S., U.K. and Australia are working on recovering data and tech knocked out in the attack. 

KKR, Instructure sued over a cyberattack against Canvas education software. Instructure Holdings, which makes the popular Canvas system, and its owner, investment firm KKR, failed to protect student data, according to two lawsuits filed last week in federal courts in Utah and New York. 

  • The ShinyHunters hacking group claimed it broke into the Canvas system and stole sensitive information related to 275 million students in nearly 9,000 K-12 schools and universities across the U.S. and Canada. 
  • Instructure on Monday said it "reached an agreement with the unauthorized actor" to have stolen data destroyed and "that no Instructure customers will be extorted as a result of this incident." It didn't say whether it paid any ransom. 
  • Instructure hasn't confirmed how many people have been affected or filed notices with state regulators. Canvas has been restored. KKR bought the Salt Lake City company in 2024 for $4.8 billion.

Texas sued Netflix for allegedly collecting behavior data about customers, including children, without consent. The streaming service also shared the information with data brokers to build detailed profiles about individuals, Texas Attorney General Ken Paxton said. 

$1.3 Million

Fine against the South Staffordshire water facility in the U.K. for failing to detect a cyber incident for two years. The breach compromised the personal data of nearly 634,000 customers and employees, the U.K. Information Commissioner's Office said. 

More than 4.1 terabytes of data had been published on the dark web, the ICO said, adding that the facility monitored just 5% of its technology environment. 

 

About Us

The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash and reporters Angus Loten and James Rundle. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.

 
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