In a recent Securities and Exchange Commission (SEC) filing, Clorox disclosed a staggering $49 million in expenses attributed to the cyberattack by the end of 2023.
The company's 2024 Q2 Quarterly report outlines that these costs predominantly stem from third-party consulting services, encompassing IT recovery, forensic experts, and various professional services essential for investigating and remediating the cyber assault.
Additionally, incremental operating costs were incurred due to the resulting disruption to Clorox's business operations.
Clorox's Ongoing Recovery Efforts: A Glimpse into the Future
Despite the substantial financial setback, Clorox remains committed to its recovery journey.
According to Bleeping Computer, the company anticipates a gradual reduction in costs associated with the cyberattack in the coming months. Clorox Chair and CEO, Linda Rendle, expressed optimism in an 8-K filing.
Rendle said that the second quarter results "reflect strong execution on their recovery plan" from the security incident that took place in August 2023.
"We are rebuilding retailer inventories ahead of schedule, enabling us to return to merchandising and restore distribution. While there is still more work to do, we're focused on executing with excellence in what remains a challenging environment to drive top-line growth and rebuild margin," she added.
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Insights into Johnson Controls International's Ransomware Ordeal
Echoing Clorox's challenges, Johnson Controls International unveiled that a ransomware attack in September 2023 inflicted $27 million in expenses. The aftermath included a data breach, exposing sensitive corporate information.
Who's the Culprit Behind Clorox Cyberattack
While Clorox remains tight-lipped about the specifics of the cyberattack, reports from Bloomberg suggest the involvement of the notorious hacker collective, Scattered Spider. This loosely organized group of threat actors, predominantly English-speaking, specializes in social engineering attacks to infiltrate company networks.
What sets Scattered Spider apart is its affiliation with the BlackCat/ALPHV ransomware gang. Notably, this ransomware gang typically collaborates with Russian-speaking threat actors.
Scattered Spider's unconventional alliances have drawn attention, with their past exploits including attacks on prominent entities DoorDash and Reddit.
The dangerous group of hackers was also believed to be the one responsible for the MGM Resorts cyberattack.
In our previous report, we wrote that two anonymous sources claimed that Scattered Spider was accountable for the data breach.
Based on their investigation, the group excels in social engineering and some of its members are even younger than 20 years old.
The experts said that sooner, Scattered Spider will figure out how to bypass their security defenses due to their expertise in identity technology.
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