Hackers access Capita customer data in cyber attack

Capita, one of the UK government’s biggest contractors, said that hackers may have accessed customer and internal data after a cyber attack on its servers last month.

In an update on the cyber attack initially announced earlier this month, the company, which provides IT services to UK public and private sector organisations including the Ministry of Defence, said the incident had affected about 4 per cent of its servers.

“There is currently some evidence of limited data exfiltration from the small proportion of affected server estate which might include customer, supplier or colleague data,” said Capita in a statement on Thursday.

The London-listed outsourcer confirmed that hackers had accessed its servers on or around March 22, adding that it had managed to interrupt the operation on March 31 and had “significantly restricted” the incident.

The announcement follows reports from the Sunday Times that the data breach was part of a ransomware attack by hacking group Black Basta, which operates on the dark web.

Capita declined to confirm or deny that Black Basta launched the cyber attack.

Several councils in England, including South Oxfordshire, Sheffield and Barnet, outsource tasks such as the processing of benefit payments to Capita.

Tony Kirkham, director of financial and commercial services at Sheffield City Council, said there was no evidence that any of the council’s systems had been breached and it had not been contacted by any cyber attackers. However, it was “advising and supporting some schools who have been affected by the publishing of leaked information as per the latest update from Capita”.

Capita has also helped digitise many services for clients such as England’s NHS, moving paper or desk-based processes such as ordering supplies and payments online. It helps the BBC to collect the licence fee.

Susannah Streeter, head of money and markets at Hargreaves Lansdown said the attack will “be yet another thorn in Capita’s side and certainly won’t help its turnaround efforts”.

“The admission that customer and supplier data might have been accessed is yet another blow for the company, which has suffered from years of declining revenues due to a loss of contracts,” she added.

“The restructuring drive has yet to reap significant rewards and this could cause a fresh slowdown in its efforts to rebuild its customer base,” Streeter said.

Capita’s share price fell 1 per cent in London.

Cabinet Office minister Oliver Dowden has warned businesses that cyber attacks are on the rise.

Almost a third of the UK’s businesses and a quarter of its charities reported a breach or cyber attack over the past year, according to a recent government survey.

In one notable example, the LockBit hacking group encrypted data from postal service Royal Mail and sought a £65.7mn ransom in February. The demand was rebuffed by the company’s board.