Cognizant, one of the largest providers of server hosting and IT services in the US, has revealed that ransomware attacks that took place only recently in April of 2020 will have a negative effect on its Q2 revenue.
Karen McLoughlin, a cognizant chief, has divulged to the public that its expecting the revenue impact related to the matter to be almost totally taken care of by the middle of the quarter. However, it is noted that there is anticipation for the revenue and corresponding margin impact to be in the range of 50 to 70million dollars for the quarter.
Incident only impacted internal network
Brian Humphries, Cognizant CEO, reported that the ransomware attacks greatly affected their internal network. It, however, had no seen consequences to client systems.
Humphries reported that the ransomware attacks impacted Cognizant’s select system supporting clients’ work from home setups and the purvey of devices that Cognizant was using to support its work from home systems during this pandemic.
Humphries clarified, that personnel acted quickly taking down all the affected systems, raising Cognizant’s charges for a period of time. Therefore, taking down some client services as forethought and an added safety measure.
At the initial stage, the clients harbored a fear that hackers might have either managed to steal user data, or a ransomware disruption had taken place, and the malware had spread to client servers, ciphering their data and causing the servers to become unprocurable.
However, the paranoia only increased after Cognizant sent an internal alert to all client devices. The notification urging users to bar traffic for a provided number of IP addresses.
Customers in a short time were able to trace the link between the IP addresses to web servers known to belong and be run by the Maze ransomware gang. Cognizant publicly attested to its ransomware issues a day later on the 18th day of April.
Cognizant has studied and made public a Q1 2020 revenue of $4.2 billion, up 2.8% over Q1 2019.
Ransomeware has gained a formidable reputation as one of the major risk factors bound to affect companies’ profits. This is as soon as the attacks and their intensity have skyrocketed recently.
Effects on stock
Companies are now addressing ransomware attacks as a real threat to their bottom lines. Also, ransomware occurrences have the likelihood of causing irreparable damage to stock prices and major fiscal forfeiture.