The June 2017 NotPetya cyberattack severely disrupted TNT Express, the FedEx subsidiary—not FedEx’s entire business. FedEx reported that TNT’s operations and communications systems were affected, while its other businesses continued to operate normally. The available company records do not establish that FedEx terminals shut down or specifically confirm an email outage.
What happened to FedEx in the 2017 cyberattack?
The attack affected TNT Express’s worldwide operations beginning June 27, 2017. FedEx announced the disruption the following day. In its fiscal 2017 filing, FedEx said the malware spread through a compromised Ukrainian tax software product used by TNT and encrypted data on TNT systems. That filing called the attack Petya; a later FedEx filing referred to it as NotPetya.
FedEx’s June 28 statement said TNT’s operations and communications systems had been disrupted. Domestic and regional network services were largely operating but slowed, while intercontinental services faced delays. FedEx said its other businesses were operating normally and suggested customers consider FedEx Express as an alternative. FedEx’s June 28, 2017 statement describes the immediate effects.
Were FedEx terminals shut down?
FedEx said on July 6 that all TNT depots, hubs and facilities were open and operational. Most services were available, although backlogs, delays and restricted access to package information could continue. The initial disruption to TNT’s worldwide network should not be confused with a shutdown of its facilities. FedEx’s July 6 operations update gives that facility status.
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A separate company, A.P. Møller – Mærsk, reported that its IT systems were down across multiple sites and select business units during the same attack. Maersk also said APM Terminals was affected in a number of ports and that it had shut down some systems to contain the incident. Those statements concern Maersk and APM Terminals, not FedEx or TNT. Maersk’s June 28 update is the source for those impacts.
Did the attack shut down FedEx email?
FedEx described disruption to TNT’s “operations and communications systems,” but its statements cited here do not specifically identify email as affected or say how long any communications disruption lasted. It is more accurate to describe the confirmed effect as disruption to communications systems than to state that TNT email was shut down.
Was customer data exposed?
In its June 28 statement, FedEx said no data breach was known to have occurred. Its fiscal 2017 filing likewise said no third-party data breach or data loss was known as of the filing date. These were time-specific statements about what the company knew then; they do not establish that no data was affected in any way. The filing also describes the malware’s encryption of TNT system data. See the FedEx fiscal 2017 Form 10-K for the company’s account.
How long did recovery take?
FedEx’s fiscal 2017 filing described widespread service delays, including invoicing delays, and said TNT was using manual processes for a significant portion of its operations and customer-service functions. FedEx later reported that substantially all TNT Express services were fully restored during the first quarter of fiscal 2018. That wording indicates broad restoration, not necessarily that every system or process returned at the same time.
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How much did the TNT attack cost FedEx?
In its August 2017 quarterly filing, FedEx estimated a negative impact of $400 million in the first half of fiscal 2018. The company attributed the impact primarily to lower TNT shipment volumes and incremental costs to restore IT systems. This is FedEx’s estimate disclosed in a regulatory filing, not an independently audited study of the attack’s total losses. The Form 10-Q for the quarter ended August 31, 2017 reports the estimate.
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