According to a Comparitech Report released on the 6th of September, data breaches not only affect confidential information, but hit share prices, too.
Their study looked at incidents from the past six years occurred to 24 companies listed on the New York Stock Exchange, and find out that the impact on stock price is measurable. The study included many of the largest data breaches in history; all of them resulted in at least 1 million records leaked, and some surpassed 100 million.
A data breach incurs serious consequences no matter whether a company is big or small. Staff get fired, executives issue apologies, and entire systems are overhauled to ensure that it doesn’t happen again. They instill doubt in consumers, damage the company’s reputation, and the impact can last for years. A data breach can harm both public sentiment and a company’s competitive edge in the market.
But how to investors react to data breaches? Does Wall Street punish companies that leak customer data? This is the question we will attempt to answer.
Click to read the Comparitech Report.