By Charles Leaver CEO Ziften
After Target was breached it took a number of months for the company to recuperate and be given a clean bill of health.
Constant Recovery Effort And Reports Of Financial Loss
It was a significant story when Target suffered from its data breach. Like all major news releases it faded into the background as far as being covered nationally, but as far as the company is concerned it was still a major top priority. The store lowered its earnings forecasts for 2014 once again, which implies that the business had undervalued the impact of the malicious attack that they were exposed to, according CNN Money.
The reduction in revenues was actually significant and the business ended up declaring 62% less profits. In addition to this they had to pay $111 million as a direct outcome of the breach in the second financial quarter and all of this amounts to a business that was once robust now looking a shadow of its former self because of a cyber attack.
As the fallout continued, the scale of the cyber attack started to emerge. Information for around 110 million individuals was compromised, and stolen charge card data was experienced by 40 million of those individuals. As news ventured out about the breach, the business made some significant modifications that included the execution of more stringent cyber security measures and changing of the system admin. Long standing CEO, Gregg Steinhafel, also resigned. But it is not deemed enough to mitigate the effect of the attack. The stakeholders of Target are soaking up the unfavorable impacts of the attack as much as the business itself according to Brian Sozzi of Belus Capital.
In an e-mail to CNN Money Sozzi said “Target just dropped an epic complete year profits warning onto the heads of its remaining shareholders.” “Target has actually offered investors ABSOLUTELY NO reason to be encouraged that a global turnaround is covertly emerging.”
Target Supplies A Lesson For All Organizations About Improved Pre-emptive Measures
No matter how proactive a company is to a cyber attack, there is no assurance that the recovery time will be quicker. The bottom line is that a data breach is bad news for any company no matter how you call it or attempt to fix it. Preventative procedures are the very best way forward and you need to take steps to ensure an attack does not happen to your organization in the first place. Using endpoint threat detection systems can have a substantial role in maintaining strong defenses for any company that opts to implement it.