Breach Will Cost Capita At Least £20m

Capita, the outsourcing group that is a major supplier to the UK government and runs crucial operations for the NHS and the British military disclosed last month that it has fallen victim to a cyber attack. The breach first came to light in March when the outsourcing firm revealed that hackers had accessed its systems for almost 10 days before the breach was discovered.

Capita is one of the UK government’s largest suppliers and holds contracts valued at £6.5bn for IT and other services. Its clients include the BBC, for which it collects the lisence fee, as well as many local authorities.

Capita now says that it expects to incur exceptional costs of about £20m, comprising specialist professional fees, recovery and remediation costs and investment to strengthen Capita’s cyber security defences. 

However, the costs of the hack to Capita could well significantly increase if the British Information Regulator, the ICO, decides to impose a fine on the hapless company and there could be be other claims on Capita from its corporate cunstomers.

According to Stuart Poole-Robb, CEO of corporate security advisors KCSG: “It’s alleged that Capita paid a ransomware fee to a Russian hacking group the ‘Black Basta Gang’. The group emerged in 2022 and has been involved in a record-breaking 459 cyber attacks up to March 2023. “Organisations, like Capita, are required to implement robust security measures, encrypt sensitive data, use multi-factor authentication and carry out regular security audits."

Capita’s systems are used to administer pensions for about 450 organisations, including Royal Mail and Axa, covering millions of policyholders.  

Around half a million members of the major UK university lecturers’ pension fund may have had their personal details stolen during the attack, generating a major potential third part liability and Britain's Financial Conduct Authority and the Pensions Regulator have both been in touch with Capita’s corporate clients, asking them to assess the impact on their end customers. 

The Pensions Regulator has reportedly asked hundreds of pension funds that use Capita as an administrator to assess whether their client data may be at risk in the event that their customers, suppliers and staff data was accessed by hackers.

In comment, Paul Holland CEO at Beyond Encryption said “Pension schemes are already at a heightened risk of cyber-attacks, thanks largely to the significant amounts of sensitive data they hold. The Capita incident is just one of many in the long line of attacks and breaches we have witnessed this year and highlights that change is needed - and soon. Trustees must remember that they are ultimately accountable for the security of pension scheme assets, regardless of whether they have outsourced to a third party.... Capita will be feeling the ramifications of this attack for quite some time – both in terms of financial repercussions and the loss of customer trust. "

Capita said investigations about the attack that the data that was stolen comprise less than 0.1% of its server estate. It has also taken “extensive steps” to recover and secure the data contained within the affected server estate, and to “remediate any issues arising from the incident”.  The firm is "working closely with all appropriate regulatory authorities and with customers, suppliers and colleagues to notify those affected and take any remaining necessary steps to address the incident”. It added: “Capita has also taken further steps to ensure the integrity, safety and security of its IT infrastructure to underpin its ongoing client service commitments.”
 
Organisations must remember that mitigating digital risk is far less financially damaging than waiting for an incident to occur and cleaning up the mess left behind. Looking forward to how data can be better protected in the future, it is past time that sufficient processes and controls were put in place to analyse supply chain risk and determine the security of third-party suppliers.”  

It is now believed that information containing Capita data was circulating on the Dark Web after the breach in March, with reports suggesting this included home addresses and passport images.

Last week Capita said that its current trading remains in-line with expectations, amid ‘strong’ sales  over the first four months of its financial year with revenues up 16 per cent year-on-year to £449million. 

Capita:   TechMonitor:   Cybersecurity Connect:    Sharecast:   Security Week:   Guardian:   ThisIsMoney

Oxford Mail: 

You Might Also Read: 

Who Foots the Bill For A Data Breach?:

___________________________________________________________________________________________

If you like this website and use the comprehensive 6,500-plus service supplier Directory, you can get unrestricted access, including the exclusive in-depth Directors Report series, by signing up for a Premium Subscription.

  • Individual £5 per month or £50 per year. Sign Up
  • Multi-User, Corporate & Library Accounts Available on Request

Cyber Security Intelligence: Captured Organised & Accessible


 

« Higher Education: Lessons In Cybersecurity
The Philadelphia Inquirer Newspaper Hacked  »

Infosecurity Europe
CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

XYPRO Technology

XYPRO Technology

XYPRO is the market leader in HPE Non-Stop Security, Risk Management and Compliance.

Directory of Cyber Security Suppliers

Directory of Cyber Security Suppliers

Our Supplier Directory lists 8,000+ specialist cyber security service providers in 128 countries worldwide. IS YOUR ORGANISATION LISTED?

NordLayer

NordLayer

NordLayer is an adaptive network access security solution for modern businesses — from the world’s most trusted cybersecurity brand, Nord Security. 

CYRIN

CYRIN

CYRIN® Cyber Range. Real Tools, Real Attacks, Real Scenarios. See why leading educational institutions and companies in the U.S. have begun to adopt the CYRIN® system.

ZenGRC

ZenGRC

ZenGRC (formerly Reciprocity) is a leader in the GRC SaaS landscape, offering robust and intuitive products designed to make compliance straightforward and efficient.

Information Security Research Group - University of South Wales

Information Security Research Group - University of South Wales

The Information Security Research Group has an international reputation in the areas of network security, computer forensics and threat analysis.

StratoKey

StratoKey

StratoKey is an intelligent Cloud Access Security Broker (CASB) that secures your cloud and SaaS applications against data breaches, so you can do secure and compliant business in the cloud.

Fraunhofer Institute for Secure Information Technology (SIT)

Fraunhofer Institute for Secure Information Technology (SIT)

Fraunhofer SIT is a research centre specialising in all areas of IT security.

Cyberwrite

Cyberwrite

Cyberwrite was founded to provide underwriters around the world a unique and innovative Cyber Underwriting platform.

Baffin Bay Networks

Baffin Bay Networks

Baffin Bay Networks operates globally distributed Threat Protection Centers™, offering DDoS protection, Web Application Protection and Threat Inspection.

DivvyCloud

DivvyCloud

DivvyCloud protects your cloud and container environments from misconfigurations, policy violations, threats, and IAM challenges.

Technology Law Alliance (TLA)

Technology Law Alliance (TLA)

Technology Law Alliance is a specialist IT law firm focussed on the fields of technology, outsourcing and e-commerce.

NSA Career Development Programs

NSA Career Development Programs

NSA offers entry-level programs to help employees enhance their skills, improve their understanding of a specific discipline and even cross-train into a new career field.

Fly Ventures

Fly Ventures

Fly Ventures is a seed-stage venture capital fund for outstanding teams building Enterprise and Deep Tech startups in Europe.

Snowflake

Snowflake

Empower your cybersecurity and compliance teams with Snowflake. Gain full visibility into security logs, at massive scale, while reducing costs of Security Information and Event Management systems.

Nardello & Co

Nardello & Co

Nardello & Co. is a global investigations firm with experienced professionals handling a broad range of issues including Digital Investigations & Cybersecurity.

Secuna Software Technologies

Secuna Software Technologies

Secuna is the most trusted Cybersecurity Testing Platform in the Philippines. Our pool of vetted security researchers will find and ethically report security vulnerabilities in your product.

Trenton Systems

Trenton Systems

Trenton Systems are committed to providing high-performance computing solutions to customers running mission-critical applications in harsh settings worldwide and across various industries.

North Green Security

North Green Security

North Green Security is a UK-based cyber security training and consultancy company.

Domotz

Domotz

Domotz enables IT teams to monitor and manage their networks remotely, while ensuring that the security and the operational efficiency of their organizations are properly maintained.

SPYROS Information & Technology Consulting

SPYROS Information & Technology Consulting

SPYROS specializes in providing highly qualified professionals in Computer Network Operations, Signals Intelligence, Technical Training and Certifications, Network Administration and Security.