According to a Bitglass report, publicly traded companies who were a victim of the worst data breaches caused a 7.5 percent decrease in the stock price.
The most extensive data breaches occurred over the last three years on pub.icly traded companies was researched by Bitglass to uncover cybersecurity trends and the amount of damage weak security results in. Within the incidents, the Marriot Breach of 2018, the Equifax Breach of 2017 and the Yahoo! Breach of 2017 were listed under the Kings of the Monster Breaches.
The report gives a detailed investigation of the causes, repercussion, and the responses of the company after every one of these breaches. Furthermore, it provides a recap of the three most significant cybersecurity events that had an impact on the government as well as the private companies within the past three years.
The content of the report highlights the critical similarities among these significant breaches. It also proposes that other organizations refrain from making the same mistakes again.
The key findings of the report are:
- The average number of individuals that suffered the direct of each breach was 257 million
- Up till now these breaches still cost their companies an average of $347 million paying legal fees, penalties, remediation costs, and other expenditures.
- There was a post-market cap decrease of $742 million on average- apart from the Facebook breach that resulted in the loss of $43 million in market cap
- The companies’ stock market prices took an average of 46 days to revert back to their former glory. Equifax though is still struggling
“The largest breaches over the past three years have caused massive and irreparable damage to large enterprises and their stakeholders around the globe,” said Rich Campagna, Chief Marketing Officer of Bitglass.
“This should serve as a stark warning to organizations everywhere. If massive companies with seemingly endless resources are falling victim to external attacks, then companies of all sizes must remain vigilant in their cybersecurity efforts. It is only by taking a proactive approach to security that breaches can be prevented and data can truly be kept safe.”