Cyberattacks and NotPetya ransomware

Cyberattacks and NotPetya ransomware

Horace C. White

Modern Tokyo Times 

Mondelez vs. Zurich case turn the spotlight on insurance companies

Much as the widely reported NotPetya malware attacks are gradually disappearing from the headlines, its aftermath still holds sway. Apparently, the Mondelez vs. Zurich Case has become a constant reminder that several companies are still grappling with the cyberattack. In what will be perfectly described as whetting enthusiasts’ appetites, many long to see how it all ends. But before going any farther, a brief history of the NotPetya attack will give an insight into this matter.

Background

For those who are unfamiliar with the development, a variety of popular malware Petya – called NotPetya ransomware – attacked many companies’ computer networks around the world. The ransomware attacks, which happened in June 2017, had disrupted their operations, culminating in huge losses. Property Claim Services (PCS) report noted that the victims of the malware attack incurred more than $3 billion in losses.

While a few of them have let the compensation for their losses ride, US food company Mondelez International Inc. is not ready to forgo theirs. Consequently, the food manufacturer has filed a lawsuit against its insurance firm, Zurich. Determined to have Zurich pay for everything it has lost, Mondelez International Inc. demands its insurer to pay $100 million in compensation.

Impact of the Virus 

According to Robert Stines, a cyber law expert, Mondelez International Inc. is one of the companies hard hit by the NotPetya cyberattacks. In his article, Stines maintained that the US food company, which owns the popular Cadbury and Oreo brands, had its computer software and hardware systems shattered as a result of the malware. While explaining the impact of NotPetya, the legal practitioner said that the cyber incursion disrupted Mondelez’s orders and damaged its property. On the other hand, Mondelez disclosed that it lost about 24,000 laptops and 1,700 servers.

Similarly, the White House described NotPetya as “the most destructive and costly cyberattacks in history.” Believed to be Russia-sponsored attack, media reports say that the NetPetya affected about 100 countries around the world, causing losses of immeasurable proportions.

Mondelez insurance details reaching our sources state that Mondelez’s insurance covered a wide spectrum of eventualities. As contained in its cyber insurance policy, Mondelez is fully insured against all physical losses and damage. Furthermore, the leading food manufacturer and the brand owner is covered against losses emanating from computer codes and instructions. Besides, the analysis of its insurance protection shows that Zurich will have to compensate Mondelez if it experiences damage to its electronic data.

Compensation move

Indeed, this case has turned the spotlight on the activities of insurance companies with respect to their willingness to pay insurance claims. The Register reported that Zurich had earlier approached Mondelez with $10 million to pay off the insurance claim. However, the food manufacturer turned down the offer, drawing an analogy between the malware attack and a war-like attack in the time of peace by a powerful government. Given that the two companies are unable to reach a compromise, Mondelez feels that a court of justice is the only forum in which it can get the insurance company to cough up the desired compensation. In its estimate, Cyence, a cyber risk analytics firm, says that insurance companies will pay nearly $81.7 billion in compensation to cover the costs of NotPeya and other cyber attacks.

PLEASE DONATE TO HELP MODERN TOKYO TIMES

Modern Tokyo News is part of the Modern Tokyo Times group

DONATIONS to SUPPORT MODERN TOKYO TIMES – please pay PayPal and DONATE to sawakoart@gmail.com

http://moderntokyotimes.com Modern Tokyo Times – International News and Japan News

http://sawakoart.com – Sawako Utsumi personal website and Modern Tokyo Times artist

https://moderntokyonews.com Modern Tokyo News – Tokyo News and International News

PLEASE JOIN ON TWITTER

https://twitter.com/MTT_News Modern Tokyo Times

PLEASE JOIN ON FACEBOOK

https://www.facebook.com/moderntokyotimes

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: