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Digital Identity, Security & Online Fraud

Company brand hurt, billions lost – the cost of data breaches

Friday 14 April 2017 | 09:15 AM CET

Severe cyber security breaches could hurt company brand and erode companies’ share prices permanently, according to a study issued by Oxford Economics and IT consultant CGI.

Cyber security breaches, such as those having legal or regulatory consequences, caused share prices to fall on average 1.8% on a permanent basis, the analysis of 65 companies affected since 2013 globally has found. Overall, the cost to shareholders of these 65 companies would be in excess of 42 billion pounds (USD 52.40 billion).

The report compared each company’s share price against a group of similar companies to isolate the impact of cyber breaches from other market movements, during incidents detailed in a breach index compiled by Gemalto, a Dutch security company.

Furthermore, two-thirds of firms had their share price adversely impacted after suffering a cyber-breach. Worst affected were financial institutions, followed closely by communications companies.

More: Link
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