Capita CEO steps down amid cybersecurity fallout
LONDON, UNITED KINGDOM — Capita CEO Jon Lewis announced his resignation by the year-end amid potential ramifications from a significant cyber-attack that breached confidential data within the company.
Adolfo Hernandez, Vice President of Telecommunications at Amazon Web Services, is set to succeed him.
This leadership change is happening as Capita grapples with the aftermath of a severe security breach reportedly led by the Black Basta ransomware group in March. The attack compromised the personal data of the company’s employees and several clients by infiltrating Capita’s Office 365 software.
Capita clarified that Lewis’s exit was not a reaction to the cyber-attack. Rather, he postponed his retirement to navigate the crisis response. This security lapse could result in a substantial fine from the Information Commissioner’s Office (ICO) for not adequately safeguarding private data.
Around 90 organizations serviced by Capita have reported data breaches due to the cyber-attack. This leaves Capita in a challenging situation as it provides essential services to a diverse clientele like local council pension schemes, the military, the NHS, and the BBC.
The company projects that the cyber-attack could cost them between £15m and £20m, factoring in professional fees, recovery and remediation expenses, and further investments in fortifying cybersecurity and IT security measures. This projection does not account for a potential ICO fine, and whether Capita paid a ransom to the hackers remains undisclosed.
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