ExtraHop, a leader in cloud-native network detection and response (NDR), today released a new report analysing 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 organisation US$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 organisations 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 recognise that no organisation 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 organisations to re-evaluate their cyber risk and resilience postures.”
One breach included in the report is expected to cost the impacted organisation an estimated US$2.8 billion, inclusive of lost revenue, business disruption, incident response and remediation, after a threat actor gained unauthorised 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 behaviours quickly.
To learn more, download “The True Cost of a Security Breach 2024” today.
