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December 10, 2014

Sony cyber attack cost could top $100m

Part of the damage to be covered by insurance.

By CBR Staff Writer

The cyber attack on Sony Movie Studios could cost the company $100m in damages, which not only exposed sensitive data but also disrupted company operations.

Reuters cited cyber security experts estimating that a large portion of the cost could go for investigating the matter, repair and replacement of computers and for taking up preventive measures to tackle further attack on the company.

Sony will also have to make up for the lost productivity that crumbled the operations for a while.

The amount could not be as high as Playstation Network hack in 2011, which was estimated to be about $171m, the latest one does not involve customer data.

Center for Strategic and International Studies senior fellow Jim Lewis said that the attack on Sony was one of the worst attacks on a company in the US, as it questions Sony’s ability to safeguard information.

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

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

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Sony has not revealed the cost of damage publically; claiming that it is still assessing the impact.

The company has insurance, which will cover a part of the loss incurred due to hacking, the news agency cited a source familiar with the matter.

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