Ransomware Price Tag Reaches $52M for Norwegian Aluminum Maker

Downtime, Lost Profits and Remediation Costs Reach $52 Million for Norsk Hydro

The Norwegian aluminum maker, Norsk Hydro, is still suffering the aftermath of a ransomware attack that riddled its networks early last month.  The ransomware variant, LockerGoga, initially infiltrated the company’s networks through their Active Directory.  This allowed for the malicious software to quickly spread among the company’s endpoints. 

Since this is a newer version of ransomware, LockerGoga was able to bypass the security solution Norsk Hydro had in place.  Fortunately, their detection and response process was rather effective, resulting in minimal interruption to daily operations and consumer deliveries.  However, this doesn’t mean the company has been left unimpacted.  Select production lines have suffered a 20 to 30 percent decrease in productivity.  In just a matter of days, this has cost the company millions in lost revenues. 

To date, the cyber attack has cost Norsk Hydro a total of 350 million Norwegian crowns, or $52 million USD.  A bulk of these funds are lost revenues from the decrease in production; however, there are also additional costs factored in as well, including the remediation efforts and IT and security costs. 

Company officials have yet to disclose a projected timeline for operations to return to full capacity.  Although, total costs are expected to continue to rise due to the approximate 25% decrease in production. 

As a result, the company has postponed its first quarter earnings report an additional five weeks to June 5, 2019. Norsk Hydro has confirmed a cyber security insurance policy should help cover the cost of the attack.

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3 thoughts on “Ransomware Price Tag Reaches $52M for Norwegian Aluminum Maker

  1. I’m a little surprised that you haven’t figured out PCMatic’s M.O. The scare the crap out of you with the consequences and of course the solution is to buy their product. This includes the free scan for malicious content on your computer, the last three times I tried it, it found 18 serious threats each time. They were part of my already existing PC Protection. Of course the average person would have paid for PCMatic software to “fix” the issue.

  2. Would PC-Matic and company have been able to protect against this attack? if so, make a proposal to the company to help prevent a re-occurrence. If there is a way to prevent these ransomware attacks, new or otherwise, would it not be prudent to present packages of protection to this business, along with others? Perhaps this is being done, if so great, if not, please do.

  3. New ransom-ware variant or not, if this is the best protection they had, they were asking for trouble.
    It’s my understanding that attack pattern recognition is the best defence, although not 100% effective.
    Surprised to see much reporting on the consequences but little on how it happened & how to structure effective defences.

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