Kyivstar cyberattack results in revenue loss of nearly $100 million

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Veon, the parent company of Kyivstar, Ukraine’s leading mobile operator, recently highlighted the financial impact of the Kyivstar cyberattack in December. This violation is expected to have resulted in a substantial revenue shortfall for fiscal year 2024, estimated at approximately 3.6 billion Ukrainian hryvnias, or nearly $95 million.

The Kyivstar cyberattack resulted in substantial disruptions to Kyivstar’s network, affecting voice and data services, international roaming and SMS for users in Ukraine and abroad.

THE cyber These intrusions prompted Kyivstar to work with Ukrainian law enforcement, including the Ukrainian Security Service and government entities, to gradually restore services.

The company, recognizing the loyalty of its customers during the outage, implemented measures such as offering a month of free services on specific contracts.

Updates on Kyivstar cyberattack

Kyivstar cyberattack

VEON conducted a financial impact assessment, indicating that the limited downtime of critical services is not expected to materially affect its consolidated results for the financial year ending December 31, 2023.

However, the company expects a revenue impact in 2024, estimated at approximately $95 million, attributed to customer retention measures taken by Kievstar to compensate for disturbances.

CEO Oleksandr Komarov expressed optimism that major services, including mobile Internet, voice services and SMS, will be restored quickly in the coming days.

He nevertheless acknowledged that full restoration of all additional services could take several weeks, emphasizing the meticulous approach required in the process.

The intrusion, attributed to pirate Solntsepyok group and linked to Russian military intelligence through the Ukrainian Security Service (SBU), has raised concerns about possible data compromise.

Komarov, however, reassured his clients that no sensitive data was compromised and dismissed the leaked screenshots as fabricated.

Remediation strategies after the attack

Despite the challenges, Kyivstar’s parent company has emphasized its commitment to ongoing remediation efforts. The extent of the financial implications of these efforts remains uncertain and cannot be reasonably estimated at this time, according to VEON’s statement.

VEON, a digital operator serving nearly 160 million customers across six countries, has a vision to transform lives through technology-driven services. Headquartered in Amsterdam, the company is listed on NASDAQ and Euronext.

As the situation develops, the parent company expresses its gratitude to its customers for their unwavering support following the cyber incident. and thanks industry partners and Ukrainian authorities for their collaborative efforts in the recovery process.

Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only and users take full responsibility for their reliance on it. The Cyber ​​Express assumes no responsibility for the accuracy or consequences of the use of this information.

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