April 26, 2018
While the effects of data breaches are usually confined to vague measures like reputational damage and a generalized increase in fraud, one of the biggest breaches in history can show the direct economic impact of a weak security posture.
The U.S. Security and Exchange Commission this week fined Altaba, the company formerly known as Yahoo!, $35 million in connection with several breaches in 2013 and 2014 that exposed the personal information of all of its three billion users. According to a Reuters report, the company was fined for keeping the breach secret from its investors.
The intrusion came to light while it was in the process of being acquired by telecom giant Verizon, which paid $350 million less than they had previously agreed to. So, the largest breach in history cost the company nearly $400 million.
Regulators are paying more attention to the data security practices of businesses than ever before. In addition to scrutiny in the U.S., under the fast-approaching General Data Protection Regulation (GDPR), companies that sell in Europe are in line for increased fines if they are deemed to have been careless with consumer data. At the 2018 CNP Expo in Orlando next month, our PCI and GDPR, OMG! Panel will discuss security requirements in the U.S. and Europe and how non-compliance could affect your business financially.