By Chuck Leaver CEO Ziften
After Target was breached it took several months for the company to recuperate and be offered a clean bill of health.
Continuous Recovery Effort And Reports Of Financial Loss
It was a significant story when Target experienced its data breach. Like all significant news releases it faded into the background as far as being covered nationally, however as far as the store is concerned it was still a significant concern. The store lowered its revenue projections for 2014 once again, which suggests that the business had actually undervalued the impact of the harmful attack that they were exposed to, according CNN Money.
The reduction in profits was truly considerable and the company wound up declaring 62% less profits. In addition to this they had to pay out $111 million as a direct outcome of the breach in the 2nd fiscal quarter and all of this adds up to a business that was once robust now looking a shadow of its previous self because of a cyber attack.
As the fallout continued, the scale of the cyber attack began to emerge. Data for around 110 million individuals was compromised, and stolen charge card data was experienced by 40 million of those individuals. As news got out about the breach, the business made some major changes that included the application of more strict cyber security measures and the change out of the system admin. Long standing CEO, Gregg Steinhafel, also resigned. However it is not considered enough to alleviate the effect of the attack. The stakeholders of Target are absorbing the unfavorable results of the attack as much as the company itself according to Brian Sozzi of Belus Capital.
In an e-mail to CNN Money Sozzi said “Target just dropped an epic full year earnings warning onto the heads of its remaining investors.” “Target has offered financiers NO reason to be encouraged that a global turn-around is secretly emerging.”
Target Provides A Lesson For All Organizations About Improved Pre-emptive Steps
No matter how proactive a company is to a cyber attack, there is no guarantee 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 try to fix it. Preventative measures are the very best way forward and you need to take actions to make sure an attack does not happen to your organization in the first place. The use of endpoint threat detection systems can have a significant role in maintaining strong defenses for any company that opts to implement it.