04 Nov IT Failures Could Result in Hefty Fines for Key Service Companies
This August, the UK government launched an effort to incentivize key service providers to upgrade their IT systems by imposing hefty fines for companies who fail to protect their systems from network failures or cyberattacks Sectors affected by this new legislation include those in “essential services,” including the energy, health and transportation sectors. Those who fail to take adequate measures in protecting their IT systems could face fines as high as £17 million (22.2 million USD).
This legislation comes just two months after the WannaCry ransomware attacks that shut down 16 UK hospitals in May of 2017. While the fines remain intimidating, the UK government has explained that fines will serve more as a deterrent than a punishment for IT failures. What remains certain, is that the dependence on internet connectivity in the transportation, health and energy sectors is only set to increase.