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July 2nd, 2009

Manchester City Council pays $2.4m in Conficker clean up costs

Posted by Dancho Danchev @ 7:22 am

Categories: Anti Virus, Botnets, Governments, Hackers, Malware, Microsoft, Patch Watch, Pen testing, United Kingdom, Viruses and Worms

Tags: Infection, Patch Management, Worm, Conficker, Cyberthreats, Security, Patches, Viruses And Worms, Dancho Danchev

How severe can the impact of the Conficker worm be on a single city council that has apparently not implemented basic security solutions in place?

Pretty severe according to a recently released a report entitled “Service interruption resulting from ICT disruption in February 2009” which details the financial costs of a Conficker incident affecting Manchester City Council’s network - 1.5 million pounds in clean up costs and lost revenue from the downtime.

Where did all the money go, and can this incident cost be used as an average to draw conclusions from in the long term in respect to assessing Conficker’s financial impact on affected networks? Let’s find out.

The infection obviously caught them off guard, since no antivirus, IPs, patch management solutions or general security awareness were in place. The results came shortly - hundreds of unprocessed bus lane fines due to service disruption, post-infection network-wide USB device ban, installation of antivirus software and patch management solutions, and a thousand Conficker infected laptops accumulating such a hefty clean up bill.

According to the audit report, 600k pounds went for consulting fees support and expertise and another 600k for the purchase of Wyse terminals to replace the PCs which have been affected. The report always tries to emphasize that the purchase of the Wyse terminals has been budgeted long before the Conficker infection took place, which I doubt based on single sentence within the incident response document attempting to explain how Conficker attacks - “The Conficker virus attacks ICT systems by what is known as a “denial of service attack”.

In April, the Cyber Secure Institute estimated that the economic cost of Conficker is as high as $9.1 billion based on the average cost for related malware incidents analyzed in their previous studies. The high cost was once again accumulated by considering the purchase of counter-measure software, a cost which is also pretty evident in Manchester City Council’s case, once again indicating a blurred perception of pre-malware infection costs and post-malware infection costs where no security solutions are active in the fist place, naturally increasing the size of the bill.

The 1.5m pounds cost incurred by Manchester’s City Council may not be the real Conficker cost, but the cost for the lack of basic security awareness which would have prevented the infection or mitigated its impact. A matter of interpretation or not, the money is gone, and it’s money gone in times when Conficker remains in stand-by mode.

Dancho DanchevDancho Danchev is an independent security consultant and cyber threats analyst, with extensive experience in open source intelligence gathering, malware and cybercrime incident response. He's been an active security blogger since 2007, and maintains a popular security blog. See his full profile and disclosure of his industry affiliations.

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  • Talkback
  • Most Recent of 46 Talkback(s)
RE: Manchester City Council pays $2.4m in Conficker clean up costs
My worry is that all this misspelling and bad grammar could result in misleading information being disseminated in the workplace with disasterous consequences. ... (Read the rest)
Posted by: moodiesburn Posted on: 07/07/09 You are currently: a Guest | | Terms of Use
And let us not forget the costs of people refraining from performing  InAction Man | 07/02/09
They could have saved 2 million by  GuidingLight | 07/02/09
Making up poor excuses again, hey Misguinding Light?  InAction Man | 07/02/09
It is only an excuse when it is not fact  GuidingLight | 07/02/09
First you prove your facts claims  InAction Man | 07/02/09
They have been proven time and time again  GuidingLight | 07/02/09
If I recall well, in that FAA case it all started with a windows virus  InAction Man | 07/02/09
lol, so your plan is, blame windows for a linux hack?  rtk | 07/02/09
They could have saved 2 million just by installing a basic AV package.  James T. Kirk | 07/02/09
Which apparently they did have...  zkiwi | 07/02/09
LOL  James T. Kirk | 07/02/09
See what you get when you reply to an idiot?  InAction Man | 07/02/09
Awww.... now see.  James T. Kirk | 07/02/09
Did you believe you could escape that easy?  InAction Man | 07/02/09
Huh?  zkiwi | 07/02/09
@zkiwi  James T. Kirk | 07/02/09
When the graceful exit fails there's always the option to go off on retreat  InAction Man | 07/02/09
don't forget the wickedly clever  rtk | 07/02/09
They could have saved more than that by  deaf_e_kate | 07/02/09
They were. (nt)  ye | 07/02/09
And what OS would that be?  Pliny the Elder | 07/02/09
I'd go for z/OS, but that's just me...  zkiwi | 07/03/09
I don't care....  daMan25 | 07/02/09
No Job Losses  tony.meredith@... | 07/03/09
Probably followed up by a ?1,000,000 study...  Marty R. Milette | 07/06/09
The care they put into the system  Boot_Agnostic | 07/02/09
If you leave the vault open and unguarded you're bound...  ye | 07/02/09
Extortion?  BALTHOR | 07/02/09
basic infrastucture  ThinkFairer | 07/02/09
The Cost Of A Broken Security Model  Alan Smithie | 07/02/09
Broken security model is right  wolf_z | 07/03/09
Patched in October of 2008...  CrashPad | 07/03/09
Odd then that...  zkiwi | 07/03/09
got any sources  rtk | 07/03/09
Well, one imagines the military as security conscious  zkiwi | 07/04/09
yes, one would imagine...  rtk | 07/05/09
You asked for support...  zkiwi | 07/05/09
Except the articles tell you  rtk | 07/05/09
So, the MS08-067 patch had what to do with  zkiwi | 07/05/09
The patch  rtk | 07/05/09
Then patch on fool  zkiwi | 07/06/09
What's your advice?  rtk | 07/06/09
Windows pane again  whisperycat | 07/03/09
You are absolutely correct.  James T. Kirk | 07/03/09
heheh, to pick a nit  rtk | 07/03/09
RE: Manchester City Council pays $2.4m in Conficker clean up costs  moodiesburn | 07/07/09

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