Question

Your client, Virus-Victim, Inc. (VVI), has suffered an attack. The company sells popular retail items only via the Internet to customers all over the world. The perpetrator has been identified and local law enforcement and the county prosecutor are handling the criminal action.

VVI believes that the perpetrator has the deep pockets to compensate VVI for its losses associated with the attack. The perpetrator committed the act at 12:01 am Saturday, July 4th and the retail website was down for 8 hours. At 12:01 am, alarms triggered and the Director of Information Technology (IT) and 10 IT programmers worked all weekend long, 20 hours, to restore and remediate the attack.

1. and 2. VVI’s supervisor from information technology and an accounting clerk have assembled the following lists of costs:

• The IT Director earns a salary of $175,000 annually.
• Each IT person earns $40 per hour; IT personnel work scheduled shifts to provide 24 hour coverage; each of the 10 IT programmers had worked 40 hours the prior week and worked their scheduled 40 hours the week after the incident.
• The company’s cost for benefits is approximately 25%.
• The police and prosecutor believe that the perpetrator worked alone, but his daughter works for VVI IT and earns $50 per hour and is normally scheduled for 40 hours per week. She averages 10 hours of overtime each week. The company put her on paid-administrative leave starting, Monday, July 6. She was paid administrative leave until police arrested her father on August 3, 28 days later. The daughter and VVI worked out an “exit” compensation package, where the daughter resigned immediately on August 3 and was paid for her expected earnings for 20 weeks.
• IT Department utilities and nonpersonnel operational costs for the month of the attack were approximately on budget of $500,000, though 5% higher than the prior year. Operational costs equal $672 per hour during the month of July.
• As part of the remediation process, the company purchased a redundant server. The cost of the server, peripherals, and software totaled $75,000.
• After the attack, the company purchased a new software protection package for $100,000 to prevent future attacks, similar to then July 4th attack.

1. Assuming that ALL costs above are damages, estimate incremental costs to VVI.
2. Assuming that true incremental costs to remediate and restore the Internet website are damages, estimate incremental costs to VVI.

Answer 1

ANSEN in the criven question. viry-victim inc. (wil, has suffered on attack Sind the Estimate incremental Cost to wi to IT Programmer's World 20 hour for skole Anxheliemediabattack Extra Comek UT) 20 hour x$40 = $ 800 Ophortumly con? 2ohor X 40 X 257. = $ 200 Compenschio Package 2owak XUD X 50 $ - for 20 week $ 40000 28 day loud Aclminishowe leave uweek x40 X 50 $ :_$8010 extusoo werk week x lo haur x50 $ = $2000 non personal operational hoval soosy. Os sy. Higher their Peior. Period - $ 25000 Comicom Purclose a lootinda! surver Cost total $ 75.00 $ 7000 a After Attack, the Company Archer He sayloche perkelian Package for to prevent future attacks. Similar to then July uth attack Total ehwoce incrementar lost $ 25000 olet due to to V attect the tare is 25/000 dollar incremental cost. assumption there is no in Complasation extrag work fackage for 20 week including in comfonsation