Cyber attack could cost Sony studio as much as $100 million

Attack is believed to be the worst of its type on US soil

Tags: Cyber crimeSony CorporationUSA
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Cyber attack could cost Sony studio as much as $100 million "It typically takes at least six months after a breach to determine the full financial impact," Lewis said.
By  Helen Gaskell Published  December 10, 2014

Sony Corp's movie studio could face costs of as much as $100m after the recent cyber attack, which is believed to be the worst of its type on a company on US soil, Reuters reported.

According to Jim Lewis, senior fellow at the Centre for Strategic and International Studies, the attack has also hit Sony's reputation for a perceived failure to safeguard information:

"Usually, people get over it, but it does have a short-term effect," said Lewis, who estimated costs for Sony could stretch to $100 million.

"It typically takes at least six months after a breach to determine the full financial impact," Lewis said.

Sony has declined to estimate costs, saying it was still assessing the impact.

According to Reuters, the cost of the hack will be less than the $171 million Sony estimated for the breach of its Playstation Network in 2011 because it does not appear to involve customer data, the experts said.

Major costs for the attack by unidentified hackers include the investigation into what happened, computer repair or replacement, and steps to prevent a future attack. Lost productivity while operations were disrupted will add to the price tag.

Mark Rasch, a former federal cyber crimes prosecutor, estimated costs could run up to $70 million but other effects, such as the loss of trade secrets, will be difficult to measure, he said.

"Will they be able to attract high-name stars if those stars believe their personal information will not be protected?" he said. "How do you know what business opportunities are lost? It's hard to put a dollar figure on it."

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