Clorox Sues Cognizant Over $380M Cyberattack Loss
Clorox has filed a lawsuit against IT provider Cognizant following a 2023 cyberattack that caused significant damages. The hacking group Scattered Spider infiltrated Clorox's network, leading to a $380 million loss.
The hack began when Scattered Spider targeted Cognizant staff, asking for employees' passwords. A Cognizant employee, whose name remains undisclosed, provided the necessary credentials, allowing the hackers access to Clorox's network. Security expert Maxie Reynolds attributed the incident to Cognizant's negligence rather than advanced social engineering tactics.
Clorox alleges that Cognizant handed over credentials without proper verification, leading to the intrusion. Remedial costs associated with the hack amounted to $50 million. The hacking group is known for its sophistication and persistence, specializing in tricking IT help desks into handing over credentials. However, Cognizant's staff failed to de-activate certain accounts or properly restore data during the clean-up process, exacerbating the situation. Clorox's inability to ship products due to the hack resulted in $330 million in losses.
Clorox's lawsuit against Cognizant follows a 2023 cyberattack that caused $380 million in damages. The hack, carried out by the Scattered Spider group, resulted in significant losses for Clorox, including $50 million in remedial costs and $330 million in lost revenue due to shipping disruptions. The incident highlights the importance of robust cybersecurity measures and proper verification procedures when handling sensitive information.
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