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.
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