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posted by martyb on Friday May 17 2019, @01:04PM   Printer-friendly
from the you-don't-pay-your-money-[for-security]-you-take-your-chances dept.

After analyzing the top three breaches from the past three years, Bitglass found that in the aftermath of a data breach, a decrease in stock price was a notable repercussion identifiable for publicly traded companies.

The report, Kings of the Monster Breaches, identified the extensive damage done by improper security by looking specifically at the Marriott breach of 2018, the Equifax breach of 2017 and the Yahoo! breach of 2016. These top three breaches had a widespread impact on individuals, with a reported mean number of 257 million individuals directly affected by each breach.

Research also showed that these breaches have cost an average of $347 million in legal fees, penalties and remediation costs. "Marriott uncovered the breach while seeking GDPR compliance; the company is now being fined $912 million under the regulation," the report said.

[...] Publicly traded companies suffered an average drop of 7.5% in their stock values and a mean market cap loss of $5.4 billion per company, and it reportedly took 46 days, on average, for those stock prices to return to their pre-breach levels. To date, the stock price of Equifax has not yet recovered.

Source: InfoSecurity


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  • (Score: 2) by deimtee on Saturday May 18 2019, @03:34AM

    by deimtee (3272) on Saturday May 18 2019, @03:34AM (#844926) Journal

    It also undercuts most of the conclusions of the article - "Companies will take note and change their behavior because the losses are huge!" If I were a corporation, I'd look at this and think "Investors react to negative news in the short term, but don't really care over the longer term about this kind of thing."

    You are insufficiently cynical.

    Slightly cynical: "I'd look at this and think "Right after a data breach would be a good time to pick up some more stock.""

    Sufficiently cynical: "I want to buy some more stock. How do I organize a data breach."

    --
    If you cough while drinking cheap red wine it really cleans out your sinuses.
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