Dole Inc. suffers $10.5 million in immediate expenses due to the ransomware attack in February.
In a recent quarterly conference call, Dole Food Co. CEO Rory Byrne revealed the costs and impact of a ransomware attack that occurred in February 2022. The combined company, based in Dublin and formed through the merger of Dole Food Co. and Total Produce in 2021, reported a total cost of $10.5 million due to the attack.
The attack had a limited impact on Dole's overall operations, with the main disruption occurring in the fresh vegetables and Chilean business. According to the company, half of its legacy company's servers and one-quarter of its end-user computers were affected. However, Dole officials stated that there's no evidence employee data has been released.
To investigate and recover from the attack, Dole retained third-party cybersecurity experts, including Mandiant, to assist with the investigation and recovery process. The company has been cooperating with law enforcement throughout the process.
Byrne mentioned during the conference call that the fresh vegetable business incurred about $5.7 million in costs related to the attack. He also warned that the company did not expect to fully recover the government costs of the attack.
In a 6-K filing with the Securities and Exchange Commission, Dole provided more details about the attack's extent. The filing revealed that the threat actors stole some company data, including information on certain employees. Despite the theft, Byrne stated that the company's people demonstrated commitment in ensuring system recovery protocols worked as anticipated.
Dole reported that all impacted servers and end-user computers have been restored or rebuilt since the attack. Byrne expressed concerns about the ability to get sufficient insurance in North America, stating that it was prohibitive.
The details about the attack's cost and impact were disclosed in Dole's first quarter earnings report. Byrne also mentioned an additional $4.8 million in ongoing costs related to the attack during the conference call.
Despite the setbacks, Dole plc, the world's largest produce company, continues its operations, demonstrating resilience in the face of cyber threats. The company remains committed to ensuring the security and integrity of its systems and data.
