Russian ‘terror attack’ to cost car giant $4bn

A crippling electronic attack that has forced one of the world’s biggest car makers to halt production has been linked to state-sponsored cyber terrorism.

A disastrous cybersecurity failure tipped to have cost Jaguar Land Rover up to £2 billion ($4b) could be the result of Russian hacking.

Media reports in the UK claim that JLR and the British government are investigating the possibility of foreign government links to a hacking incident that brought the company to its knees.

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Jaguar Land Rover is the victim of a cyber attack. Photo: Christopher Furlong/Getty Images

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The UK Telegraph reports that “Russia is suspected of being behind the cyber attack that forced Jaguar Land Rover to stop production”, while the Financial Times reports it is “reasonably likely that there could be a hostile state behind this”.

JLR stopped production at its factories on September 2, and only recommenced work last week.

As a result, the brand’s vehicle production for the second quarter of the year fell by 24 per cent.

Range Rover deliveries have dropped in recent months.

The manufacturer has not revealed how much the stoppage cost, but expert estimates have placed it as high as $4 billion.

JLR chief executive Adrian Mardell released a statement last week saying the company’s “recovery is firmly underway”.

The attack came two years after JLR, which is owned by Tata Motors, outsourced its IT and cybersecurity needs to Tata Consultancy Services (TCS) in a bid to save money.

The deal, which cost £800 million ($1.63b) over five years, was said to “rapidly transform, simplify, and manage its digital and IT estate”.

TCS spokesman Anupam Singha said at the time JLR would benefit through “efficiencies from leaner operations”.

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JLR has restarted production. Photo: Christopher Furlong/Getty Images

But UK IT experts have pointed to TCS as the common denominator between major cyber incidents that affected operations food retailer Co-Op, department store Marks & Spencer, and carmaker JLR.

Cybersecurity adviser Jane Frankland said “JLR wasn’t just unlucky — they were negligent”.

“The company suffered two major cyberattacks within six months, both occurring under the cybersecurity oversight of Tata Consulting Services (TCS),” she said in a LinkedIn post.

Andy Jenkinson, chief executive of UK cybersecurity firm Cybersec Innovation Partners, agreed the crisis could be attributed to “negligence, not misfortune”.

Russian President Vladimir Putin - Russia is said to be behind the devastating cyber attack. Picture: AP

Kevin Beaumont, who describes himself as a Cybersecurity Weatherman, wrote on Medium that “it’s not a secret in the cyber industry that there’s a lot of stories about TCS”.

“I’ve heard names like Terrible Cyber Service in the trenches,” he said.

TCS has been contacted for comment.