‘Cyberattack on PSE firms could cost P6 billion a day’

MANILA, Philippines — The economy will lose more than P6 billion a day if listed firms with critical information infrastructure (CII) are attacked all at once, according to a cybersecurity group.

In a report, Secure Connections said that the Philippines may lose up to P6.15 billion a day if all listed firms operating CII are attacked all at the same time.

Secure Connections ICT policy analyst Mary Grace Mirandilla said revenue losses may reach as much as P2.81 billion in energy; P1.49 billion in banking; P1.06 billion in telco; P631 million in transport; P115 million in water and P40 million in health.

According to Mirandilla, Secure Connections looked into the financial reports of all firms listed with the Philippine Stock Exchange to come up with the estimate. She said the number has yet to cover the indirect and non-quantifiable costs as a consequence of a cybersecurity attack.

CII covers digital assets, such as communications, electronic, magnetic and optical facilities that serve vital purposes to the country. As such, any strike on a CII may jeopardize national security and will disrupt the flow of business and trade.

“The economic losses are much bigger than the direct revenue losses to the companies. After the cyberattack, after you respond, how do you regain public trust? How do you regain the system?” Mirandilla said in a seminar hosted by the US Embassy in Manila.

In particular, firms have to spend on network upgrades in the aftermath of a cybersecurity attack to recover their corporate data, as well as protect them from future breaches.

With this, Mirandilla said that firms, particularly those handling CII, should invest in preventive measures to strengthen their digital defenses.

Mirandilla warned that a successful cyberattack on corporations would not only hurt their earnings, but the economy in general. For one, compromising the energy sector will harm the operations of a number of industries, such as health and transport, both of which are crucial to everyday living.

It may be an unlikely scenario that all listed firms with critical information infrastructure will be attacked at the same time. However, Mirandilla said that nothing is impossible these days given that criminal groups are targeting digital portals to steal sensitive data like financial details.

Secure Connections recommends that policymakers come up with a national policy mandating state agencies to promote information security.

Secure Connections–backed by nonprofit The Asia Foundation–gathers public, private and civil stakeholders advocating for cybersecurity improvements in the Philippines.