ExtraHop
released a new report analyzing the short- and long-term financial
impacts high-profile data breaches have on publicly traded companies.
According to the findings, a data breach costs an organization $677
million on average, millions more than what has been disclosed in
conventional research. Expanding the scope of traditional research to
date, the report triangulates a range of data sources, including SEC
filings, stock performance, and quarterly earnings, to help business
leaders better understand the full impact of a data breach.
The report also found that the stock prices of the affected
organizations dropped an average of seven percent one month post-data
breach, demonstrating the financial impact to not only the breached
company, but shareholders too.
"Data breaches have profound impacts that are wildly underestimated by
organizations until they find themselves in the middle of one," said
Raja Mukerji, Co-founder and Chief Scientist, ExtraHop. "It's important
for business leaders to recognize that no organization is immune to
cyberattacks or the potential financial fall-out that comes with them -
nor can they be too prepared. Bad actors have experienced great success
to date using the most basic tactics and techniques, highlighting a
great need for organizations to re-evaluate their cyber risk and
resilience postures."
One breach included in the report is expected to cost the impacted
organization an estimated $2.8 billion, inclusive of lost revenue,
business disruption, incident response and remediation, after a threat
actor gained unauthorized access to the company's systems to carry out a
ransomware attack that impacted more than 100 million customers.
Unauthorized access was the cause of nearly half of the breaches
highlighted in the report, demonstrating a growing need for robust
network visibility to detect and respond to suspicious behaviors
quickly.
To learn more, download "The True Cost of a Security Breach 2024" today.