Jaguar Land Rover Hack Cost UK Economy $2.5 Billion, Report Says

A devastating cyber attack on Jaguar Land Rover (JLR), owned by India's Tata Motors, has left the British economy reeling with losses of £1.9 billion ($2.55 billion) and affected over 5,000 organizations in the country, according to an independent report published on Wednesday.

The Cyber Monitoring Centre (CMC), a not-for-profit organization comprised of industry experts including the former head of Britain's National Cyber Security Centre (NCSC), has released its findings on the JLR hack. The report highlights that losses could be even higher if there were unexpected delays in restoring production at the vehicle manufacturer to pre-hack levels.

"This incident appears to be the most economically damaging cyber event to hit the UK, with the vast majority of the financial impact being due to the loss of manufacturing output at JLR and its suppliers," said the CMC report. "JLR started to resume manufacturing earlier this month after an almost six-week shutdown caused by the hack.

The luxury carmaker has three factories in Britain, which together produce about 1,000 cars per day. The incident was one of a string of high-profile hacks to affect major British companies this year. Retailer Marks & Spencer lost approximately £300 million ($400 million) after a breach in April shut down its online services for two months.

JLR, which analysts estimated was losing around £50 million per week from the shutdown, was provided with a £1.5 billion loan guarantee by the British government in late September to help it support suppliers. The CMC, which is funded by the insurance industry and categorizes the financial impact of major cybersecurity incidents affecting British businesses, ranked the JLR hack as a Category 3 systemic event, out of a scale of five.

The report's estimate "reflects the substantial disruption to JLR's manufacturing, to its multi-tier manufacturing supply chain, and to downstream organizations including dealerships," said the CMC. This highlights the far-reaching consequences of the cyber attack, which has left the UK economy facing significant financial losses.

As the world continues to grapple with the increasing threats of cyber attacks, it is essential for businesses and governments alike to prioritize cybersecurity measures to prevent such incidents from occurring in the first place. The Jaguar Land Rover hack serves as a stark reminder of the devastating consequences that can result when cybersecurity protocols are breached.

This article will be updated as more information becomes available on this developing story.