"Kyivstar" estimated the damage as a result of a major cyberattack at UAH 3.6 billion. The company announced that the loss of revenue caused to subscribers due to the cancellation of monthly service fees will amount to about $95 million. However, Kyivstar does not expect a significant impact of the cyber attack on its financial results in 2023, as it preliminarily assesses the costs of recovery and compensation. The cyber attack caused temporary disruptions to the network and services, but the company has since restored all operations and is offering compensation to its customers for the inconvenience. In addition, "Kyivstar" expressed gratitude to customers and partners for their support during the cyber attack. Hackers caused significant damage to the company's network, destroying about 40% of its infrastructure.
Loss estimates
"Kyivstar" estimated the financial impact of the cyber attack that occurred in December 2023. The loss of income as a result of canceling the monthly fee for the provision of services for its customers as compensation will amount to about 3.6 billion UAH (approximately $95 million).
Financial consequences
The company does not expect a cyber attack to significantly affect its financial results for 2023 due to costs related to equipment repairs, IT work specialists, and compensation to external consultants and partners in 2023.
Obstacles for customers
The cyber attack temporarily disrupted the operation of the Kyivstar network and services, interrupting voice and Internet communication on mobile and fixed networks, international roaming, as well as SMS services for "Kyivstar" clients in Ukraine and abroad.
Restoration and compensation
"Kyivstar" resumed the operation of services in several stages, starting from voice and Internet communication. After the network was stabilized, the company immediately began offering compensation to customers for the inconvenience, including a month of free service on certain types of contracts. The process of restoring services and compensation for customers will continue in the coming months and will require certain costs.
Thanks for support
VEON and Kyivstar thanked customers for their support and loyalty, demonstrated during and after the cyber attack, as well as to its partners and the Ukrainian authorities for their support in restoring services.
Network damage
Hackers destroyed approximately 40% of the company's infrastructure, in particular, the layer was heavily affected network
Additional information
- "Kyivstar" is a Ukrainian telecommunications company that provides mobile and fixed communication services.
- VEON Ltd. - parent company "Kyivstar", which is one of the largest international providers of communication and Internet services.
- A cyber attack is a hacking of a system with the aim of causing damage or obtaining confidential information.
- IT specialists are specialists in the field of information technologies.
Frequently asked questions
What damage did Kyivstar suffer as a result of the cyber attack?
"Kyivstar" estimated the damage as a result of the cyberattack at UAH 3.6 billion, which is approximately equal to $95 million.
What were the consequences of the cyber attack for Kyivstar customers?
The cyber attack temporarily stopped voice and Internet communication, as well as SMS services for Kyivstar customers. However, the company has already restored all services and is offering compensation for the inconvenience.
How does a company plan to restore its infrastructure after a cyberattack?
"Kyivstar" has already begun to restore its network and plans to compensate customers for inconvenience. Recovery and compensation costs have not yet been estimated.
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Discussion of the topic – "Kyivstar" estimated the damage from the cyberattack at UAH 3.6 billion: how will it affect the company
"Kyivstar" identified financial losses as a result of a large-scale cyber attack in December 2023. The company decided to compensate customers by canceling the monthly fee for services, which is 3.6 billion UAH or $95 million. Find out how this will affect Kyivstar and its business reputation.
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