Report: Data Breaches Hit Share Prices, Too

A data breach has a measurable impact on stock price, according to a report looking at incidents from the past six years



When a data breach occurs it's not just confidential information that's attacked: According to a new report, stock prices take a hit, too.

Comparitech analyzed 28 breaches suffered by 24 companies with shares listed on the New York Stock Exchange. While they found wide variations in share performance in the weeks and months following a breach, on average companies that suffered a breach under-performed the NASDAQ by -3.7% after one year.

According to the report, the most significant impact from a breach was felt 14 days after the event. After a month, share prices tended to catch up with the NASDAQ.

Comparitech found that the affected company's industry and the nature of the breach each had an impact on the stock price, with finance and payment companies hit hardest and breaches featuring credit card and Social Security number having the greatest impact.

For more, read here.

Dark Reading's Quick Hits delivers a brief synopsis and summary of the significance of breaking news events. For more information from the original source of the news item, please follow the link provided in this article. View Full Bio
 

Recommended Reading:

Comment  | 
Email This  | 
Print  | 
RSS
More Insights
Copyright © 2020 UBM Electronics, A UBM company, All rights reserved. Privacy Policy | Terms of Service