Latitude Financial released an ASX announcement forecasting it’s first half of 2023 Statutory losses to be around $100 million. This is mainly attributed to the cyber-attack and data breach it suffered in mid March which affected 14 million records containing personally-identifiable information. While the company was able to continue processing transactions during the cyber-attack, new account originations and collections were closed or severely restricted for a period of approximately 5 weeks. This resulted in loss of income for Latitude Financial. The company is also setting aside approximately $53 million in the first half for costs associated with the cyber incident. This provision, however, did not cover the potential for regulatory fines, class action, future system enhancements or an assumption of insurance proceeds. This means that the total cost of the incident is still unknown.
https://www.itnews.com.au/news/latitude-financial-counts-the-cost-of-cyber-attack-596270
https://announcements.asx.com.au/asxpdf/20230526/pdf/05q23pr11qt3z2.pdf
This segment was created for the It’s 5:05 podcast