HomeNewsDDoS attacks cost Bandwidth.com about $12 million

DDoS attacks cost Bandwidth.com about $12 million

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Last Updated on 22/11/2021 by Sunaina

Bandwidth.com published its third-quarter profits on Monday, raking in $131 million in sales. However, the corporation stated in another press release that a recent DDoS assault will cost them “between $9 million and $12 million” for the whole fiscal year.

While the firm nonetheless outperformed expectations in the third quarter, the financial impact of the assault, which was originally reported by The Record, shows how much harm DDoS events may inflict. On October 26, the business informed the SEC that the hack resulted in a “loss of approximately $700,000 in third quarter 2021 revenue from missed transaction volume and customer credits.”

“Based on preliminary usage data and currently available information, the company estimates that the impact of the DDoS attack may reduce CPaaS revenue for the full year of 2021 by an amount ranging from $9 million to $12 million, inclusive of the aforementioned $0.7 million revenue impact in the third quarter,” the company said in a filing.

During an earnings call on Monday, Bandwidth officials stated that many of the customers who left the firm following the assault have already signalled that they may return, and that they did not pay a ransom to resolve the issue.

Bandwidth CEO David Morken confirmed disruptions in September, following claims that the service was under attack by a DDoS attack. Other VoIP providers, including Accent, RingCentral, Twilio, DialPad, and Phone.com, were suffering outages and informing consumers that the issue was with an “upstream supplier.”

A source who requested anonymity told ZDNet that their clients were having serious issues with their transferred phone lines and that they couldn’t make any adjustments, such as forwarding phones. The firm is a downstream reseller of Bandwidth-hosted goods and stated that they were aware of a big telecoms company that was “in emergency mode” owing to the Bandwidth crisis. While the hack caused downtime for many days and the firm reported projected losses, Morken maintained it had minimal influence on the company’s successful quarter.

Multiple VoIP service providers have reported DDoS assaults in recent months, and Cloudflare analysts have seen several “record-setting HTTP DDoS attacks,” emphasising the emergence of ransom DDoS attacks on VoIP service providers.

VoIP.ms, a Canadian VoIP operator, alleged earlier this year that it was subjected to a week-long large ransom DDoS campaign. To finish the attack, the REvil ransomware organization requested a $4.5 million payment.

Sunaina
Sunaina
A tech enthusiast, with a mission to report data breaches, fraudulent practices, dark pattern practices, and updates. She is also frequently fascinated by fintech and unicorns.
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