Danish company incurs loss of $95 million due to Ransomware
Demant, one of the world's largest manufacturers of hearing aids, expects to incur losses of up to $95 million following a ransomware infection that hit the company at the beginning of September.
Demant's troubles began on September 3, when in a short statement on its website, the company said it was shutting down its entire internal IT infrastructure following what it initially described as "a critical incident."
Reports in Danish media stated that all the company's infrastructure was impacted severely.
Demant is still recovering assets and expects to take two more weeks to recover in full. This pattern of destruction that takes months to recover from is usually encountered during ransomware infections only.
The company reported "delays in the supply of products as well as an impact on our ability to receive orders."
Furthermore, "in our hearing aid retail business, many clinics across our network have not been able to service end-users in a regular fashion."
These business upheavals have been a disaster for the company's bottom line. In a message to its investors, Demant said it expects to lose somewhere between $80 million and $95 million.
The sum would have been higher, but the company expects to cash in a $14.6 million cyber insurance policy.
Most of the losses have come from lost sales and the company not being able to fulfill orders. The actual cost of recovering and rebuilding its IT infrastructure were only around $7.3 million, a small sum compared to the grand total.
The company expects the incident to have a long-lasting effect on its bottom line, proving again why businesses can't ignore their cyber-security posture anymore.