Latitude Group (ASX:LFS) shares fall as cyber attack losses unveiled

• Latitude Group (LFS) shares are falling after the company unveiled the extent of damage done to its financials following the March cyberattack
• The March cyberattack saw the personal information of approximately 7.9 million customers, past customers and applicants exfiltrated
• LFS expects direct non-recurring costs of $7 million due to business disruption for the first half of 2023
• The consumer finance business also reported its unlikely to declare a dividend for the six months to June 30 as a result of the losses incurred by the attack  
• LFS shares are down 3.86 per cent and trading at $1.25 at 3:47 pm AEST

Latitude Group (LFS) shares were falling after the company revealed the extent of damage caused to its financials following the March cyberattack.

The March cyberattack saw the personal information of approximately 7.9 million customers, past customers and applicants exfiltrated. A further 6.1 million partial records were also comprised as part of the attack.

But, the consumer finance business acted swiftly to contain the attack, resetting passwords, taking its IT platforms offline and calling on experts to investigate the matter at hand. The company also contacted all affected individuals.

After completing thorough platform assurance reviews across 5-6 weeks, the company gradually restored its operations to full capacity.

While the total cost of the cyber-attack is yet to be fully assessed, Latitude has created a customer care program to support queries of the affected individuals.

The company has anticipated direct non-recurring costs of $7 million due to business disruption for the first half of 2023.

Furthermore, Latitude announced it would need to raise $46 million to cover customer remuneration costs that aren’t inclusive of potential regulatory fines, class actions, future system enhancements and possible insurance proceeds.

The company also reported its unlikely to declare a dividend for the six months to June 30 as a result of the losses incurred by the attack.

LFS shares were down 3.86 per cent and trading at $1.25 at 3:47 pm AEST.