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Capita fined £14 million by data watchdog after 2023 cyber attack

ALN

Capita PLC on Wednesday said it has been fined £14 million by the Information Commissioner’s Office for failing to protect personal data after hackers stole 6.6 million people’s information during a cyber attack in 2023.

The data watchdog said the breach in March 2023 saw the hackers access information including pension details and staff records, as well as details of customers of organisations that the London-based outsourcing company supports.

In some cases this included sensitive information such as details of criminal records, financial data or so-called special category data, which can include race, religion and sexual orientation.

The ICO fined Capita £8 million and Capita Pension Solutions a further £6 million.

Capita said it now expects free cash outflow before the impact of business exits of between £59 million and £79 million, with no other changes to the previous guidance of between £45 million and £65 million.

The firm said it continues to expect to be cash positive from the end of 2025, while the rest of its full-year guidance and medium-term targets remain unchanged.

John Edwards, UK information commissioner, said: ‘Capita failed in its duty to protect the data entrusted to it by millions of people. ’The scale of this breach and its impact could have been prevented had sufficient security measures been in place.‘

Capita Chief Executive Officer Adolfo Hernandez said: ’As an organisation delivering essential public services as well as key services for private sector clients, Capita was among the first in the recent wave of highly significant cyber-attacks on large UK companies.

‘When I joined as CEO the year after the attack I accelerated our cyber security transformation, with new digital and technology leadership and significant investment. As a result, we have hugely strengthened our cybersecurity posture, built in advanced protections and embedded a culture of continuous vigilance.’

He added: ‘Following an extended period of dialogue with the ICO over the last two years, we are pleased to have concluded this matter and reach today’s settlement. The Capita team continues to focus tirelessly on our group transformation journey for the benefit of our customers, our people and wider society.’

Shares in Capita were up 0.8% at 320.50 pence in London on Wednesday morning.

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